Day ONE BTO2017 | TEN Mercoledì 29 novembre WORLD Hall The State of Travel Net https://www.buytourismonline.com Keynote Speaker Douglas Quinby Phocuswright

1. The State of
Digital Travel 2017
BTO2017
Douglas Quinby
@douglasquinby

2. The Era of Online Travel
Is Over

3. © 2017 Phocuswright Inc. All Rights Reserved.
These days, just about every
traveler does something
online.

4. © 2017 Phocuswright Inc. All Rights Reserved.
0%
20%
40%
60%
80%
100%
India U.K. Germany U.S. France Australia Brazil Korea China Japan Southeast
Asia*
Percent of Travelers Who Do Anything
Trip-Related Online
Note: *Singapore, Thailand, Malaysia, Indonesia
Base: Online Travelers: (U.S. N = 857; U.K. N=795; AU N=786; IN N=777; FR N=762, DE N=760; BR N=740; JP N=811; KR
N=753)
Sources: Phocuswright’s Google Travel Study 2017; Phocuswright’s The Southeast Asian Traveler; Phocuswright’s China
Unbounded: The Rapid Rise of China’s Outbound Millions © 2017 Phocuswright Inc. All Rights Reserved.

5. © 2017 Phocuswright Inc. All Rights Reserved.
European Total & Online Leisure Gross Bookings
Source: Phocuswright’s U.S. Online Travel Overview Sixteenth Edition
0
50
100
150
200
250
300
350
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Total Online Total Offline
€B

6. © 2017 Phocuswright Inc. All Rights Reserved.
2014-2017 CAGR for Select Digital Travel Markets
Source: Phocuswright’s The State of Digital Travel 2017
China Indonesia India U.S. U.K. Japan BrazilItaly
Bubble size
reflects relative
online market
size in US$.
35%
25%
15%
5%
-5%

7. The Mobile Travel Story Isn’t Here

8. © 2017 Phocuswright Inc. All Rights Reserved.
Mobile Share of Online Gross Bookings by
Region
Note: *Mobile bookings calculations for APAC includes China, India and Japan only.
Sources: Phocuswright’s Global Mobile Market Sizing: Focus on U.S., APAC and Europe, 2017
0%
10%
20%
30%
40%
50%
60%
70%
2015 2016 2017 2018 2019 2020
APAC* Europe U.S.

9. © 2017 Phocuswright Inc. All Rights Reserved.Source: Phocuswright’s The State of Digital Travel 2017
And it’s mostly
China.

10. © 2017 Phocuswright Inc. All Rights Reserved.
-
20
40
60
80
100
120
140
160
180
China Total
Travel
Japan China Mobile
Bookings
Southeast Asia Northeast Asia
Top Five Travel Markets in APAC, 2018 (US$B)
Source: Phocuswright’s The State of Digital Travel 2017

11. © 2017 Phocuswright Inc. All Rights Reserved.
0%
10%
20%
30%
40%
50%
60%
70%
80%
China Japan U.K. India U.S. ANZ
2018 Mobile Share of Online Travel, by Market
Source: Phocuswright’s Global Mobile Market Sizing: Focus on U.S., APAC and Europe, 2017

12. © 2017 Phocuswright Inc. All Rights Reserved.
Share of European
Mobile Gross
Bookings by OTAs
and
Supplier-Direct
Channels, 2017
Source: Phocuswright’s European Online Travel Overview Twelfth Edition, 2017
OTAs
Airline
Rail
Hotel
Tour
Operator
Car
Rental

13. © 2017 Phocuswright Inc. All Rights Reserved.
The Travel App Landscape by Segment –
Intermediaries Rule…
Note: Segment data represents cumulative downloads and the sum of average MAUs (monthly active users) for the top 10 most
downloaded apps (Android and iOS apps) for the segment for the period Apr 16-May 17.
Source: Phocuswright & Apptopia: The Travel App Landscape
CumulativeDownloads(M)
0
2
4
6
8
10
12
14
0
50
100
150
200
250
300
OTAs/Meta/Rental Sites Airlines Hotels
Cumulative Downloads Average MAUs
TotalMAUs(M)

14. © 2017 Phocuswright Inc. All Rights Reserved.
Airbnb vs. Hotels: Total App Downloads
Source: Phocuswright & Apptopia: The Travel App Landscape
0
5
10
15
20
25
30
35
40
45
50
Airbnb Hotel Brands
CumulativeDownloads(M)
Wyndham
Club Carlson
Best Western
Choice Hotels
Hyatt
SPG
IHG
Marriott
Hilton
Accor

15. Everybody vs. OTAs

16. © 2017 Phocuswright Inc. All Rights Reserved.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
U.S. U.K. Australia India France Germany Brazil Japan South Korea
Airline websites/apps OTAs
Typical Websites/Apps Used for Flight Shopping
Base: Online Travelers: (U.S. N = 857; U.K. N=795; AU N=786; IN N=777; FR N=762, DE N=760; BR N=740; JP N=811; KR
N=753)
Source: Phocuswright’s Google Travel Study 2017

17. © 2017 Phocuswright Inc. All Rights Reserved.
Super Sur-charged!
Source: Phocuswright’s The State of Digital Travel 2017

18. © 2017 Phocuswright Inc. All Rights Reserved.
Typical Websites/Apps Used for Hotel Shopping
Base: Online Travelers: (U.S. N = 857; U.K. N=795; AU N=786; IN N=777; FR N=762, DE N=760; BR N=740; JP N=811; KR
N=753)
Source: Phocuswright’s Google Travel Study 2017
0%
10%
20%
30%
40%
50%
60%
70%
80%
U.S. U.K. Australia India France Germany Brazil Japan South Korea
Hotel websites OTAs

19. © 2017 Phocuswright Inc. All Rights Reserved.
-10%
0%
10%
20%
30%
40%
2013 2014 2015 2016
OTAs – Two in Particular – Are Creaming Airlines &
HotelsAnnual Change in Global Gross Bookings
Source: Phocuswright’s The State of Digital Travel 2017
Expedia
Priceline
OTAs
Total Hotels
Total Airlines

20. © 2017 Phocuswright Inc. All Rights Reserved.
WHY?

21. © 2017 Phocuswright Inc. All Rights Reserved.© 2017 Phocuswright Inc. All Rights Reserved.
Millennials.

22. © 2017 Phocuswright Inc. All Rights Reserved.
0%
10%
20%
30%
40%
50%
60%
U.S. U.K. France Germany
OTAs Hotel Websites
© 2017 Phocuswright Inc. All Rights Reserved.
Where 18-34-Year-Olds Would Most Likely
Book a Hotel
Base: Online Travelers: (U.S. N = 857; U.K. N=795; FR N=762, DE N=760
Source: Phocuswright’s Google Travel Study 2017

23. © 2017 Phocuswright Inc. All Rights Reserved.
Fragmentation

24. © 2017 Phocuswright Inc. All Rights Reserved.
Channel Share of Online Hotel Gross Bookings,
2016
Source: Phocuswright’s Global Online Travel Overview Fourth Edition
0%
25%
50%
75%
100%
U.S. Europe APAC
Hotel Websites/Apps OTAs

25. © 2017 Phocuswright Inc. All Rights Reserved.
Note: *Excludes gross bookings for Egencia, Expedia’s corporate travel business. Includes Travelocity, Wotif and Orbitz in 2015.
Source: Phocuswright Inc.
2011 2016
Other
OTAs
PCLN
EXPE*
38%
66%
Global Gross
Bookings of OTAs &
Priceline/Expedia
Combined Share

26. © 2017 Phocuswright Inc. All Rights Reserved.Source: Phocuswright Inc.
So how do hotel
brands fight back?
© 2017 Phocuswright Inc. All Rights Reserved.

27. Loyalty

28. (Dis)Loyalty

29. © 2017 Phocuswright Inc. All Rights Reserved.
Membership Loyalty

30. © 2017 Phocuswright Inc. All Rights Reserved.
93%
U.S. Fliers Who Belong
to Airline Loyalty
Programs
Source: Phocuswright and Microsoft, Future of Travel, 2017

31. © 2017 Phocuswright Inc. All Rights Reserved.
Share of Bookings*
on U.S. Airline Sites
by Loyalty Program
Status
Note: *Based on captured airline website booking sessions for 2015-2016
Source: Phocuswright’s Parsing Shop and Book 2016: How OTAs, Airlines and Hotels Compete on the Desktop and Mobile Web
None
Entry level
Mid-tier
Elite

32. © 2017 Phocuswright Inc. All Rights Reserved.
2017
63%
Free Wi-Fi and Discounts Work Great!
U.S. Hotel Stayers Who Belong to One or More Hotel Rewards Programs
Base: U.S. travelers who stay in hotels
Source: Phocuswright U.S. Consumer Travel Report Sixth Edition; Phocuswright and Microsoft, Future of Travel, 2017
2015
47%

33. © 2017 Phocuswright Inc. All Rights Reserved.
0%
20%
40%
60%
80%
100%
Entry Mid-tier Elite Entry Mid-tier Elite
Not so loyal
Loyal
Members Likely to Cheat, 2017
Percent of program members who book outside of program
for better rate or convenience
Base: U.S. travelers who belong to a loyalty program (Air N=988, Hotel N=992)
Source: Phocuswright and Microsoft, Future of Travel, 2017
Frequent Flyer Programs Hotel Loyalty

34. © 2017 Phocuswright Inc. All Rights Reserved.
A little loyalty trivia:
What lodging brand has the
most customer loyalty?

35. © 2017 Phocuswright Inc. All Rights Reserved.
Repeat Booking Index* by Hotel or Online Travel
Brand, 1H16
Source: Phocuswright’s U.S. Accommodation: Clickstream & Conversion, 2014-2016 The Battle for Lifetime Value
0 1 2 3 4 5 6 7 8
Expedia
Priceline
Hotels.com
Booking.com
Hilton
Choice
Starwood
Marriott
Hyatt
Best Western
Airbnb

36. Most travelers
don’t love you
(and probably never will)

37. Alternative Accommodation

38. © 2017 Phocuswright Inc. All Rights Reserved.
2008:
Lodging’s
Final Frontier…

39. © 2017 Phocuswright Inc. All Rights Reserved.
Hotels in the Crosshairs

40. © 2017 Phocuswright Inc. All Rights Reserved.
Percent of Travelers Who Rent
Is Much Higher in Europe (2015)
Source: Phocuswright's U.S. Consumer Travel Report Eighth Edition; Phocuswright’s European Consumer Travel Report Sixth
Edition
0%
10%
20%
30%
40%
50%
U.S. France Germany U.K.

41. © 2017 Phocuswright Inc. All Rights Reserved.
The End
of Alternative
Accommodation

42. © 2017 Phocuswright Inc. All Rights Reserved.
How’d they do it?

43. © 2017 Phocuswright Inc. All Rights Reserved.
Easy

44. © 2017 Phocuswright Inc. All Rights Reserved.
Beautiful

45. © 2017 Phocuswright Inc. All Rights Reserved.
Bookable

46. © 2017 Phocuswright Inc. All Rights Reserved.
The Host is the Lynchpin

47. © 2017 Phocuswright Inc. All Rights Reserved.
Home or Hotel?

48. © 2017 Phocuswright Inc. All Rights Reserved.
The most important
question facing the rental industry?

49. © 2017 Phocuswright Inc. All Rights Reserved.
Why don’t non-renters rent?

50. Tours & Activities

51. © 2017 Phocuswright Inc. All Rights Reserved.Source: Phocuswright’s Tours & Activities Come of Age: Global Travel Activities Marketplace 2014-2020
$147B in 2017

53. © 2017 Phocuswright Inc. All Rights Reserved.© 2017 Phocuswright Inc. All Rights Reserved.Source: Phocuswright’s Tours & Activities Come of Age: Global Travel Activities Marketplace 2014-2020
80% of gross
bookings are offline.
.

54. © 2017 Phocuswright Inc. All Rights Reserved.
Tour & Activity Suppliers with
Third-Party Reservation System
Base: 2011: 340 companies; 2016: 980 companies
Source: Phocuswright’s Tours & Activities Come of Age: Global Travel Activities Marketplace 2014-2020
11%
45%
2011 2016

55. © 2017 Phocuswright Inc. All Rights Reserved.
$90M
(two rounds)
$75M $17M
$12M $10M $6M
$6M $4M $1.8M
More than $220M Raised in this Sector this Year
Source: Phocuswright’s The State of Digital Travel 2017

56. © 2017 Phocuswright Inc. All Rights Reserved.Source: Expedia, TripAdvisor
Easy

57. © 2017 Phocuswright Inc. All Rights Reserved.Source: Expedia, TripAdvisor
Beautiful

58. © 2017 Phocuswright Inc. All Rights Reserved.Source: Tiqets
Bookable

59. Voice & A.I.

60. © 2017 Phocuswright Inc. All Rights Reserved.
0%
10%
20%
30%
40%
50%
U.S. U.K. France Germany
Online Traveler Interest in Using
a Digital Assistant to Plan Travel
Base: Leisure Travelers: (U.S. N=857; U.K. N=795; FR N=762, DE N=760
Source: Phocuswright’s Google Travel Study 2017

61. © 2017 Phocuswright Inc. All Rights Reserved.
Travel Startup Funding (US$B), 2005-2Q17
Source: Phocuswright’s The State of Travel Startups 2017
0
5
10
15
20
25
30
35
2005-09 2010-12 2013-14 2015 2016-2Q17

62. The State of
Digital Travel 2017
BTO2017
Douglas Quinby
@douglasquinby