Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The market
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- Figure 1: US total travel sales ($bn), online and offline, 2010-16
- Market drivers
- Leading companies
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- Figure 2: US online travel agency market share, 2013
- Marketing strategies
- The consumer
- Online booking is the norm, few have used mobile – but one quarter still use offline
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- Figure 3: How reservations for most recent personal flight/other travel were made, June 2014
- With airlines, starting the search is split; for other travel, OTAs are the first stop
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- Figure 4: Where online airline ticket/other travel searches begin, June 2014
- Searching for airfares is often a multi-step process
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- Figure 5: Online airline ticket search methods, June 2014
- Cost and convenience drive travel booking decisions
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- Figure 6: Most important factors in how to book travel, June 2014
- Expedia is most popular OTA; Travelzoo users are more frequent visitors
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- Figure 7: Travel websites visited in the last 30 days, January 2013-March 2014
- What we think
Issues and Insights
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- What is the future for the travel agent model?
- The issues
- The implications
- Is there room for new OTAs, or is the market saturated?
- The issues
- The implications
- What will be the impact of mobile? Do consumers really want apps?
- The issues
- The implications
Trend Application
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- Trend: FSTR HYPR
- Trend: Guiding Choice
- Trend: Access All Areas
Market Size and Forecast
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- Key points
- Market for online travel booking
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- Figure 8: Total online travel sales ($bn) worldwide, by region, 2010-16
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- Figure 9: Total online travel sales ($bn) – US compared to total, 2010-16
- Market for total travel booking
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- Figure 10: Total travel sales worldwide ($bn), by region, 2010-16
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- Figure 11: Total travel sales ($bn) – US compared to total, 2010-16
- Figure 12: US total travel sales ($bn), online and offline, 2010-16
Market Drivers
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- Key points
- Unemployment declines; consumer sentiment rises
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- Figure 13: Consumer sentiment index and unemployment, annual averages, 2000-13, January-June 2014
- Travel sentiment trending upward
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- Figure 14: Traveler Sentiment Index, March 2007-April 2014
- Internet penetration and mobile device adoption increase
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- Figure 15: World internet usage and population statistics, December 2013
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- Figure 16: Smartphone and tablet penetration in the US, 2010-17
Competitive Context
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- Overview of the competitive landscape
- Key points
- Booking method overview
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- Figure 17: How personal airline travel and other travel reservations were made, June 2014
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- Figure 18: How online airline ticket/other travel searches begin, June 2014
Leading Companies
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- Key points
- The Priceline Group
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- Figure 19: Priceline Group company background
- Priceline.com
- Booking.com
- Kayak.com
- Other brands/notable business units
- Expedia Inc.
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- Figure 20: Expedia Inc. company background
- Expedia.com
- Hotwire.com
- Hotels.com
- Trivago.com
- Other brands
- Sabre Inc.
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- Figure 21: Sabre Inc. company background
- Travelocity.com
- Orbitz Worldwide Inc.
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- Figure 22: Orbitz worldwide Inc. company background
- Orbitz.com
- CheapTickets.com
- Other brands
- TripAdvisor Inc.
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- Figure 23: TripAdvisor Inc. company background
- TripAdvisor.com
- Viator.com
- Other travel booking companies
Market Share of Online Travel Agencies
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- Key points
- Four brands account for 95% of share
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- Figure 24: US online travel agency market share, 2013
- Site traffic reflects dominance of major OTAs
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- Figure 25: Estimated US monthly site visits of leading online travel agencies, December 2013-June 2014
- Domestic revenues of leading OTAs puts Expedia in the lead
Innovations and Innovators
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- Leading companies improve price transparency while saving customers’ time
- Expedia.com rolls out Flight Recommendations and Scratchpad
- TripAdvisor launches price adjustment site Tingo
- Rewards programs turn site hoppers into loyal shoppers
- Expedia+ Rewards
- Orbitz Rewards
- CheapCash
- Meta-searches get personal with SuperFly
- Friends of a feather fly together using TripCommon
- Peek transforms visual bookmarks into real-life travel experiences
- Mobile apps provide access to travelers on the go
- Digital currency takes to the air
Marketing Strategies
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- Overview of the brand landscape
- A brief history of online travel bookers…
- It’s an (online) ad ad ad ad world
- Advertising channels and company activity
- Booking.com, Expedia Inc., Priceline.com are top mobile, online, print advertisers
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- Figure 26: Share of travel company consumer campaigns, January 2013-June 2014
- Mobile advertising dominates media channels
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- Figure 27: Share of travel company consumer campaigns, by media channel, January 2013-June 2014
- Few travel companies deviate from a focus on mobile
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- Figure 28: Share of travel company consumer campaigns, by media channel, January 2013-June 2014
- Mobile, online, print, and TV ads from top companies
- American Express
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- Figure 29: American Express, Platinum/Centurion Travel Service, print advertisement, January 2013
- Figure 30: American Express Travel Services, online advertisement, February 2013
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- Figure 31: American Express Travel Service, print advertisement, December 2013
- Booking.com
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- Figure 32: Booking.com “Booking.yeah” TV ad, January 2013
- Figure 33: Booking.com “Booking Right” TV ad, February 2013
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- Figure 34: Booking.com, mobile ad, June 2014
- Expedia.com
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- Figure 35: Expedia.com, mobile ad, June 2014
- Figure 36: Expedia.com, mobile ad, June 2014
- Hotwire.com
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- Figure 37: Hotwire.com mobile ad – hotels, June 2014
- Figure 38: Hotwire.com mobile ad – cars, March 2014
- Kayak.com
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- Figure 39: Kayak “Lecture” – “Search one and done” TV ads, 2014
- Figure 40: Booking.com from Kayak.com mobile ad, February 2014
- Orbitz
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- Figure 41: Orbitz mobile ad, April 2014
- Figure 42: Orbitz, mobile ad, February 2013
- Priceline.com
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- Figure 43: Priceline Shocker: the Negotiator’s Secret Daughter Revealed, 2013
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- Figure 44: Priceline.com mobile ad, June 2014
- Travelocity.com
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- Figure 45: Travelocity.com mobile ad, June 2013
- Figure 46: Travelocity Roaming Gnome: “Beached” TV ad, 2014
- TripAdvisor
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- Figure 47: TripAdvisor mobile ad, December 2013
- Viator
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- Figure 48: Viator mobile ad, May 2014
- Figure 49: Viator online ad, June 2014
Social Media
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- Key points
- Market overview
- Key social media metrics
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- Figure 50: Key social media metrics for select travel booking sites, July 2014
- Brand usage and awareness
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- Figure 51: Brand usage and awareness for select travel booking sites, June 2014
- Interactions with travel booking sites
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- Figure 52: Interaction levels for select travel booking sites, June 2014
- Leading online campaigns
- Partnerships
- Highlighting travel destinations
- Mobile
- Nostalgia
- What we think
- Online conversations
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- Figure 53: Share of conversation for select travel booking sites, by week, July 28, 2013-July 27, 2014
- Where are people talking about travel booking?
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- Figure 54: Share of conversations for select travel booking sites, by page type, July 28, 2013-July 27, 2014
- What are people talking about?
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- Figure 55: Topics of conversation for select travel booking sites, July 28, 2013-July 27, 2014
Method for Booking Most Recent Travel
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- Key points
- Booking online using a traditional computer is preferred method
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- Figure 56: How reservations for most recent travel were made, June 2014
- Younger adults more tech-savvy – but less likely to book air travel online
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- Figure 57: How reservations for most recent flight were made, by generations, June 2014
- Online booking most common – but some men gravitate offline
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- Figure 58: How reservations for most recent flight – for personal reasons – were made, by gender, June 2014
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- Figure 59: How reservations for most recent travel were made, by gender, June 2014
- Younger adults less inclined to book online; more comfortable with smartphones
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- Figure 60: How reservations for most recent flight – for personal reasons – were made, by age, June 2014
- Figure 61: How reservations for most recent travel were made, by age, June 2014
- Insight: Design travel booking apps for mobile Millennial women
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- Figure 62: How reservations for most recent travel were made, by gender and age, June 2014
Who Books Travel Online
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- Key points
- Three quarters of air travelers book for themselves online
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- Figure 63: Past 12 month airline travel booking, by gender and age, June 2014
- 18-34-year-old men least likely to book air travel themselves online
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- Figure 64: Past 12 month airline travel booking, by gender by age, June 2014
- Online air travel booking increases with affluence
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- Figure 65: Past 12 month airline travel booking, by household income, June 2014
- Other transportation booking follows similar demographic trends
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- Figure 66: Past 12 month travel transportation booking, by gender, age, and household income, June 2014
- Six in 10 book accommodations online
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- Figure 67: Past 12 month travel accommodations booking, by gender and age, June 2014
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- Figure 68: Past 12 month travel accommodations booking, by gender by age, June 2014
- Figure 69: Past 12 month travel accommodations booking, by household income, June 2014
Online Searching and Booking Tools
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- Key points
- Airlines
- Travelers split on searching airfares via suppliers or consolidators
- Equipment
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- Figure 70: Online airline ticket search and reservations, June 2014
- Age impacts preferences for online ticket searches and booking platform
- Search
- Equipment
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- Figure 71: Online airline ticket search and reservations, by age, June 2014
- Searching for airfare is a multi-step process
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- Figure 72: Online airline ticket search methods, June 2014
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- Figure 73: Online airline ticket search methods, by age, June 2014
- Other travel and accommodations
- Other travel searches more likely to begin with an OTA than a supplier
- A note about SEs and Google
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- Figure 74: Online travel search and reservations, June 2014
- Starting with an OTA more common among younger travelers
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- Figure 75: Online travel search and reservations, by age, June 2014
Factors Impacting How to Book Travel
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- Key points
- Cost and convenience drive travel booking decisions
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- Figure 76: Most important factors in how to book travel, June 2014
- Age influences travelers’ motivations for booking method
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- Figure 77: Most important factors in how to book travel, by age, June 2014
- How bookings are executed sheds light on influential factors
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- Figure 78: Most important factors in how to book travel, by how reservations for most recent travel were made, June 2014
Online Travel Sites
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- Key points
- Nearly one third have booked travel online in the last 12 months
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- Figure 79: Travel booking in previous 12 months – online and travel agent, by age, January 2013-March 2014
- Nearly six in 10 of the most affluent consumers booked online in the last year
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- Figure 80: Travel booking in previous 12 months, by household income, January 2013-March 2014
- About one quarter visit an online travel site on monthly basis
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- Figure 81: Frequency of visiting airline/car/hotel information or reservations sites in previous 30 days/past seven days, by age, January 2013-March 2014
- Expedia is most popular; Travelzoo users are the most frequent visitors
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- Figure 82: Frequency of visiting travel websites, January 2013-March 2014
Impact of Race and Hispanic Origin
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- Key points
- Method for booking most recent travel
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- Figure 83: How reservations for most recent travel were made, by race/Hispanic origin, June 2014
- Online searching and booking tools
- Airlines
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- Figure 84: Online airline ticket search and reservations, by race/Hispanic origin, June 2014
- Online searching methods – airlines
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- Figure 85: Online airline ticket search methods, by race/Hispanic origin, June 2014
- Other travel and accommodations
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- Figure 86: Online travel search and reservations, by race/Hispanic origin, June 2014
- Factors impacting how to book travel
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- Figure 87: Most important factors in how to book travel, by race/Hispanic origin, June 2014
- Online travel sites
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- Figure 88: Frequency of visiting airline/car/hotel information or reservations sites in previous 30 days/past seven days, by race/Hispanic origin, January 2013-March 2014
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- Figure 89: Frequency of visiting travel websites, by race/Hispanic origin, January 2013-March 2014
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- Figure 90: Travel booking in previous 12 months – online and travel agent, by race/Hispanic origin, January 2013-March 2014
Appendix – Social Media
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- Key social media metrics
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- Figure 91: Key social media metrics for select travel booking sites, July 2014
- Online conversations
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- Figure 92: Share of conversation for select travel booking sites, by page type, July 28, 2013-July 27, 2014
- Figure 93: Topics of conversation for select travel booking sites, July 28, 2013-July 27, 2014
- Brand usage or awareness
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- Figure 94: Brand usage or awareness, June 2014
- Figure 95: Kayak usage or awareness, by demographics, June 2014
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- Figure 96: Expedia usage or awareness, by demographics, June 2014
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- Figure 97: Priceline usage or awareness, by demographics, June 2014
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- Figure 98: Hotwire usage or awareness, by demographics, June 2014
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- Figure 99: Travelocity usage or awareness, by demographics, June 2014
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- Figure 100: Orbitz usage or awareness, by demographics, June 2014
- Activities done
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- Figure 101: Social media activities done, by travel site, June 2014
- Figure 102: Kayak – Activities done – I have looked up/talked about this brand online on social media, by demographics, June 2014
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- Figure 103: Kayak – Activities done – I have contacted/interacted with the brand online on social media to, by demographics, June 2014
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- Figure 104: Kayak – Activities done – I have researched the brand on social media to, by demographics, June 2014
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- Figure 105: Expedia – Activities done – I have looked up/talked about this brand online on social media, by demographics, June 2014
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- Figure 106: Expedia – Activities done – I have contacted/interacted with the brand online on social media to, by demographics, June 2014
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- Figure 107: Expedia – Activities done – I follow/like the brand on social media because, by demographics, June 2014
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- Figure 108: Expedia – Activities done – I have researched the brand on social media to, by demographics, June 2014
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- Figure 109: Priceline – Activities done – I have looked up/talked about this brand online on social media, by demographics, June 2014
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- Figure 110: Priceline – Activities done – I have contacted/interacted with the brand online on social media to, by demographics, June 2014
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- Figure 111: Priceline – Activities done – I follow/like the brand on social media because, by demographics, June 2014
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- Figure 112: Priceline – Activities done – I have researched the brand on social media to, by demographics, June 2014
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- Figure 113: Hotwire – Activities done – I have looked up/talked about this brand online on social media, by demographics, June 2014
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- Figure 114: Hotwire – Activities done – I have contacted/interacted with the brand online on social media to, by demographics, June 2014
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- Figure 115: Hotwire – Activities done – I have researched the brand on social media to, by demographics, June 2014
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- Figure 116: Travelocity – Activities done – I have looked up/talked about this brand online on social media, by demographics, June 2014
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- Figure 117: Travelocity – Activities done – I have contacted/interacted with the brand online on social media to, by demographics, June 2014
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- Figure 118: Travelocity – Activities done – I follow/like the brand on social media because, by demographics, June 2014
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- Figure 119: Travelocity – Activities done – I have researched the brand on social media to, by demographics, June 2014
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- Figure 120: Orbitz – Activities done – I have looked up/talked about this brand online on social media, by demographics, June 2014
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- Figure 121: Orbitz – Activities done – I have contacted/interacted with the brand online on social media to, by demographics, June 2014
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- Figure 122: Orbitz – Activities done – I have researched the brand on social media to, by demographics, June 2014
Appendix – Other Useful Consumer Tables
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- Past 12 month travel booking
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- Figure 123: Past 12 month airline travel booking, by gender, age, and household income, June 2014
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- Figure 124: Past 12 month travel accommodations booking, by gender, age, and household income, June 2014
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- Figure 125: Past 12 month travel booking, June 2014
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- Figure 126: Past 12 month travel booking, by gender, June 2014
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- Figure 127: Past 12 month travel booking, by age, June 2014
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- Figure 128: Past 12 month travel booking, by household income, June 2014
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- Figure 129: Past 12 month travel booking, by race/Hispanic origin, June 2014
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- Figure 130: Past 12 month travel booking, by past 12 month travel booking, June 2014
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- Figure 131: Past 12 month travel booking, by past 12 month travel booking, June 2014
- Method for booking most recent travel
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- Figure 132: How reservations for most recent travel were made, by household income, June 2014
- Online searching and booking tools
- Airlines
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- Figure 133: Online airline ticket search and reservations, June 2014
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- Figure 134: Online airline ticket search and reservations, by household income, June 2014
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- Figure 135: Online airline ticket search and reservations, by generations, June 2014
- Other travel
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- Figure 136: Online travel search and reservations, June 2014
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- Figure 137: Online travel search and reservations, by gender, June 2014
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- Figure 138: Online travel search and reservations, by household income, June 2014
- Online searching methods
- Airlines
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- Figure 139: Online airline ticket search methods, June 2014
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- Figure 140: Online airline ticket search methods, by gender, June 2014
- Online travel sites
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- Figure 141: Frequency of visiting airline/car/hotel information or reservations sites in previous 30 days/past seven days, by age, January 2013-March 2014
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- Figure 142: Travel booking in previous 12 months – online and travel agent, by age, January 2013-March 2014
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- Figure 143: Travel booking in previous 12 months, by household income, January 2013-March 2014
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- Figure 144: Travel booking in previous 12 months, by marital status, January 2013-March 2014
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- Figure 145: Travel booking in previous 12 months, by parents with children in household, January 2013-March 2014
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- Figure 146: Travel booking in previous 12 months, by marital status and presence of children in household, January 2013-March 2014
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- Figure 147: Frequency of visiting travel sites in previous 30 days, and use of mobile device to access, by race/Hispanic origin, January 2013-March 2014
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- Figure 148: Use of travel apps, by race/Hispanic origin, January 2013-March 2014
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- Figure 149: Frequency of visiting travel websites, by race/Hispanic origin, January 2013-March 2014
- Factors impacting how to book travel
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- Figure 150: Most important factors in how to book travel, June 2014
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- Figure 151: Most important factors in how to book travel, by gender, June 2014
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- Figure 152: Most important factors in how to book travel, by household income, June 2014
Appendix – Trade Associations
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