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Online Travel Aggregators - UK - June 2017

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Close to four in 10 holidaymakers have booked via an OTA
Figure 1: Estimated number of people who booked a holiday online, by channel, 2016
The travel market is increasingly mobile
Companies and brands
Above-the-line adspend on OTAs grows 25% in 2016
Figure 2: Total above-the line, online display and direct mail advertising expenditure on online travel/booking agents, by advertiser, 2016
Half of OTA bookers used Booking.com
Figure 3: Travel comparison websites/apps used to book holidays online in the last 12 months, February 2017
Figure 4: Ranking of top OTA apps according to average monthly active users on iPhone and Android Phone in the UK, 2016
TripAdvisor’s review-based business model drives differentiation and trust
Figure 5: Attitudes towards and usage of selected brands, March 2017
The consumer
Holiday-makers prefer to book online
Figure 6: Ways in which consumers booked their holidays in the last 12 months, February 2017
Travel comparison platforms are central to holiday researching and booking
Figure 7: Providers used to research and book holidays online in the last 12 months, February 2017
Short breaks in the UK are the most booked via OTAs
Figure 8: Type of holiday most recently booked via travel comparison websites/apps, February 2017
Consumers mostly booking as package holiday
Figure 9: Services booked via travel comparison websites/apps for the most recent holiday, February 2017
Laptops are the most common device to book a holiday via OTAs
Figure 10: Devices used to research and book the most recent holiday through travel comparison websites/apps, February 2017
Holiday-makers seek the best of both worlds
Figure 11: Types of additional information consumers would like to receive when booking holidays online, February 2017
Price is the biggest pull factor when choosing booking platform
Figure 12: Most important factors when choosing where to book a holiday online, February 2017
What we think
ISSUES AND INSIGHTS
Can social media ads help to drive mobile bookings?
The facts
The implications
Is real-time in-destination assistance the next big thing?
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Close to 36 million UK adults booked a holiday in 2016
Close to four in 10 holidaymakers have booked via an OTA
The travel market is increasingly mobile
Positive market outlook ahead but an income squeeze appears imminent
Post-Brexit uncertainty a likely driver of OTA usage spike
Brexit could revive staycation effect
Changing dynamics in the competitive landscape
Holiday booking becomes more social
MARKET SIZE AND SEGMENTATION
Close to 36 million UK adults booked a holiday in 2016
Figure 13: Estimated number of people who booked a holiday, 2016
Close to four in 10 holidaymakers have booked via an OTA
Figure 14: Estimated number of people who booked a holiday online, by channel, 2016
The travel market is increasingly mobile
MARKET DRIVERS
Positive market outlook ahead
Figure 15: Consumer plans to book a holiday within the next three months, April 2013-17
But an income squeeze appears imminent
Figure 16: Average wage growth and consumer price inflation, 2007-2017
Post-Brexit uncertainty a likely driver of OTA usage spike
Figure 17: Websites/apps used to book holiday, March 2017
Figure 18: Holiday behaviour following the Brexit vote, March 2017
Brexit could revive staycation effect
Figure 19: Estimated holiday market volume, by domestic and overseas, 2011-2018
Changing dynamics in the competitive landscape
The Priceline Group invests aggressively …
… while Expedia also expands
Metasearch vs direct bookings
Holiday booking becomes more social
Figure 20: Usage of selected research sources when booking a holiday, by age, March 2017
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Half of OTA bookers used Booking.com
Google’s increasing activity in the travel market
Facebook harnesses user data to provide travel recommendations …
… and facilitates travel ads
Skyscanner partners with Finnair for direct bookings
Above-the-line adspend on OTAs grows 25% in 2016
TV ads accounted for £3 of every £4 spent on above-the-line advertising in 2016
Trivago accounted for a quarter of total monitored adspend
TripAdvisor’s review-based business model drives differentiation and trust
trivago outperforms other Expedia brands
MARKET SHARE
Half of OTA bookers used Booking.com
Figure 21: Travel comparison websites/apps used to book holidays online in the last 12 months, February 2017
Booking.com shows consistent multi-channel strategy
Figure 22: Ranking of top OTA apps according to average monthly active users on iPhone and Android Phone in the UK, 2016
LAUNCH ACTIVITY AND INNOVATION
Google’s increasing activity in the travel market
Figure 23: Google Destinations, March 2016
Figure 24: Google Trip features, May 2017
Facebook harnesses user data to provide travel recommendations …
Figure 25: Facebook’s City Guides, May 2017
Figure 26: Facebook recommendations, May 2017
… partners with airlines …
Figure 27: KLM’s flight information via Facebook Messenger, May 2017
Figure 28: KLM’s emoji service, May 2017
… and facilitates travel ads
Figure 29: An example of Facebook’s Dynamic Ads for Travel, May 2017
Skyscanner partners with Finnair for direct bookings
Figure 30: Direct booking of Finnair flights on Skyscanner
ADVERTISING AND MARKETING ACTIVITY
Above-the-line adspend on OTAs grows 25% in 2016
TV ads accounted for £3 of every £4 spent on above-the-line advertising in 2016
Figure 31: Total above-the line, online display and direct mail advertising expenditure on online travel/booking agents, by media type, 2015 and 2016
Trivago accounted for a quarter of total monitored adspend
Figure 32: Total above-the line, online display and direct mail advertising expenditure on online travel/booking agents, by advertiser, 2016
Nielsen Ad Intel coverage
BRAND RESEARCH
Brand map
Figure 33: Attitudes towards and usage of selected brands, March 2017
Key brand metrics
Figure 34: Key metrics for selected brands, March 2017
Brand attitudes: trivago’s ad campaign helps to set brand apart from competitors
Figure 35: Attitudes, by brand, March 2017
Brand personality: Hotels.com could be at risk of falling behind
Figure 36: Brand personality – macro image, March 2017
Booking.com has most well-rounded image
Figure 37: Brand personality – micro image, March 2017
Brand analysis
TripAdvisor’s review-based business model drives differentiation and trust
Figure 38: User profile of TripAdvisor, March 2017
trivago’s TV campaign is driving upbeat image
Figure 39: User profile of trivago, March 2017
Booking.com shows well-rounded image centred on flexibility
Figure 40: User profile of Booking.com, March 2017
Expedia’s focus on package deals appears to limit its target audience
Figure 41: User profile of Expedia, March 2017
Hotels.com seems to be falling behind
Figure 42: User profile of Hotels.com, March 2017
THE CONSUMER – WHAT YOU NEED TO KNOW
Holiday-makers prefer to book online
Travel comparison platforms are central to holiday researching and booking
Short breaks in the UK are the most booked via OTAs
Consumers mostly booking as package holiday
Laptops are the most common device to book a holiday via OTAs
Holiday-makers seek the best of both worlds
Price is the biggest pull factor when choosing booking platform
HOLIDAY BOOKING PREFERENCES
Holiday-makers prefer to book online
Figure 43: Ways in which consumers booked their holidays in the last 12 months, February 2017
Travel comparison platforms are central to holiday researching and booking
Figure 44: Providers used to research and book holidays online in the last 12 months, February 2017
Tour operators holding their ground
Online travel aggregators and the luxury travel market
Figure 45: Providers used to book holidays online in the last 12 months, by annual household income, February 2017
The appeal of the one-stop shop proposition
Figure 46: Providers used to research holidays online in the last 12 months, by repertoire of providers used to research holidays online in the last 12 months, February 2017
HOLIDAYS BOOKED THROUGH TRAVEL COMPARISON WEBSITES/APPS
Short breaks in the UK are the most booked via OTAs
Figure 47: Type of holiday most recently booked via travel comparison websites/apps, February 2017
Consumers mostly booking as package holiday
Figure 48: Services booked via travel comparison websites/apps for the most recent holiday, February 2017
DEVICES USED TO VISIT TRAVEL COMPARISON WEBSITES/ APPS
Laptops are the most common device to book a holiday via OTAs
Figure 49: Devices used to research and book the most recent holiday through travel comparison websites/apps, February 2017
OTAs show a fragmented path to purchase
Figure 50: Proportion of consumers who have researched and booked the most recent holiday through travel comparison websites/apps on the same device, February 2017
Figure 51: Devices used to research the most recent holiday through travel comparison websites/apps, by devices used to research the most recent holiday through travel comparison websites/apps, February 2017
Holiday type impacts device choice for booking
Figure 52: Devices used to book the most recent holiday through travel comparison websites/apps, by type of holiday most recently booked via travel comparison websites/apps, February 2017
ADDITIONAL INFORMATION WHEN BOOKING HOLIDAYS ONLINE
Holiday makers seek the best of both worlds
Figure 53: Types of additional information consumers would like to receive when booking holidays online, February 2017
OTAs hoping to monetise information
The quest for an authentic experience
The real-time enabler: Instant Apps
A focus on safety could convert in-person bookers
Figure 54: Types of additional information consumers would like to receive when booking holidays online, by ways in which consumers booked their holidays in the last 12 months, February 2017
IMPORTANT FACTORS WHEN CHOOSING BOOKING PLATFORM
Price is the biggest pull factor when choosing booking platform
Figure 55: Most important factors when choosing where to book a holiday online, February 2017
Could financial protection become a deal-breaker?
Converting loyalty into social advocacy
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Brand research
Brand map

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