Research Digest: Adding value at-destination for the end traveller

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1 Research Digest: Adding value at-destination for the end traveller Understanding the business travellers in-trip needs and the mobile services they aspire for.

2 Introduction TNS, on behalf of Amadeus, conducted a study on the needs of the business traveller to determine what mobile services they value most at destination. The study spanned 1,636 respondents from eight countries and a series of workshops with travel organisers in November 12. The study The selection criteria were business travellers that have done at least two business trips with overnight stays in the last twelve months. Furthermore, at least one of the business trips in the last twelve months had to involve a flight. The respondents were from the UK, Spain, Italy, France, Benelux, South Africa, Saudi Arabia and UAE 1,636 respondents 8 countries The selection criteria min 2 business trips in the last 12 months at least 1of them involving a flight Who is TNS? TNS is part of Kantar, one of the world's largest insight, information and consultancy groups. With a presence in over 80 countries, TNS has more conversations with the world s consumers than anyone else and understands individual human behaviours and attitudes across every cultural, economic and political region of the world. 2

3 Who is the Business Traveller? Typically, the average business traveller did eight trips in the last year, of which six had overnight stays and five involved a flight. AVERAGE business traveller 8 TRAVELLED times in the last year 5involved a flight 6 with overnight stays On average 64% were male and the travellers were 40 years old and were managers in their companies. Majority of them had a managed or slightly managed travel policy (.7% and.9% respectively). (1) 36% 64% 40 years old Travelling frequency Frequent traveller Average traveller 21 times a year 8times a year The frequent business traveller A sub-group, the frequent business traveller (n=3), had a higher-level job and travelled much more frequently than the average business traveller (twenty-one vs. eight times a year), fifteen of which had overnight stays and eleven involved a flight. They were more inclined to arrange their business trips directly with the provider (unmanaged travel policy: 42.8% vs. average traveller unmanaged policy: 44.4%). 3

4 How do they use their mobile phone in general and while travelling? These same business travellers were also relatively heavy smartphone users. Looking at all our respondents 70% had travel apps on their smartphones 82% of them used at least 1 travel app during their last trip preferred to access travel services through mobile apps rather than mobile web 64% Average Business Traveller Vs only 35% owned company smartphones 75% said their companies paid for mobile internet abroad 51% discovered new apps through friends or colleagues All of them had smartphones, but only 35% of them owned company smartphones. 89% of them owned personal smartphones that they used during their business trip. 75% of business travellers said their company pays for mobile internet while abroad. The large majority had a smartphone with a modern operating system: ios %, RIM % and Android 35% Among business travellers, 61% were between intermediate and advanced smartphone users, meaning they are able to use their phones for social networking, banking, shopping, video calls. (Basic: 38.7%, Intermediate: 38.1% and Advanced: 23%) On average, they had 17 third party applications installed, which increased to 27 apps amongst iphone users. 51% said that they usually discover new apps through friends/colleagues. Frequent Business Traveller 4 50% owned company smartphones 81% said their companies paid for mobile internet abroad 48% discovered new apps through friends or colleagues All of them had smartphones, 50% of them owned company smartphones. 85% of them owned personal smartphones that they have used during their business trip. 81% of frequent business travellers said their company pays for mobile internet while abroad (vs 75%). The large majority had a smartphone with a modern operating system: ios %, RIM % and Android 35% Frequent business travellers are slightly more advanced smartphone users - 64% (vs 61%). (Basic: 35.8%, Intermediate: 33.6% and Advanced:.3%) On average, they have 19 third party applications installed (vs 17), which increases to 31 apps amongst iphone users. 48% said that they usually discover new apps through friends/colleagues (vs 51%).

5 How do they use their mobile phone in general and while travelling? UK.7% were BlackBerry 77.9% were more willing to pay for 3rd party apps Higher-level job positions in UK: considerably more Managers travelled (60.9% vs. 44.3%). In Europe, the UK was the only country where BlackBerry, with.7%, had a considerable presence (vs..1%). British people were more willing to pay for 3rd party apps: 77.9% had paid for at least one app (vs. 71.1%). They discovered new apps more often through Reviews in blogs and forums (45.8% vs. 38.0%). BENELUX 41.5% of the business travellers had a company smartphone 8 out of 10 companies paid for internet abroad 41.5% of the business travellers had a company smartphone. (vs. 34.8%). 8 out of 10 of the Benelux companies paid the internet abroad for their employees (vs. 74.8%). Android was the leader but Windows phones have a relatively high presence in the Benelux (15.5% vs. 8.3%). FRANCE 46.6% of travellers were women had 3rd party apps in their smartphones (vs. 17) A higher percentage of travellers in France were women (46.6% vs. 36.1%). Business travellers had lower-level job positions: 60.7% are Executives (vs. 31.4%). French companies allowed their travellers to use internet abroad for anything their employees want more often than other countries/regions (41.7% vs. 33.6%). The French had more 3rd party apps in their smartphones ( vs. 17), however they paid for them less often (62.4% vs. 71.1%). ITALY 51.5% of travellers were women 49.5% arranged the business trips on their own more frequently The majority of Italian business travellers were women (51.5% vs. 36.1%). They arranged the business trips on their own more frequently (49.5% vs. 40.7%). As in Spain but with less intensity, the main ways of arranging a business trip were via traditional (60.5% vs. 51.6%) and online travel agencies (57.0% vs. 45.4%). Android was more prominent in Italy, 43.0% (vs. 35.6%). Their smartphone usage was generally speaking more basic (46.5% vs. 38.7%). 5 Comparisons provided are against the total sample average.

6 How do they use their mobile phone in general and while travelling? SPAIN 53.0% owned Android handsets 58.5% discovered new apps through friends and colleagues SOUTH AFRICA 40.5% RIM Market share 37.6% were advanced smartphone users (vs. 23.0%) Only 16.5% of Spanish Business travellers were Directors (vs..4%). The vast majority were Managers (59.5% vs. 44.3%). Spanish employees were more often encouraged, but not required, to use the company's travel agency 31.5% (vs..9%). They preferred to arrange business trips through traditional (72.0% vs. 51.6%) or online travel agencies (66.5% vs. 45.4%). Spain was the country with the most Android handsets (53.0% vs. 35.6%). Friends and Colleagues were the main way to discover new apps (58.5% vs. 51.0%). High percentage of women (45.7% vs. 36.1%). RIM had double the market share in comparison to WEMEA (40.5% vs..1%). 37.6% were advanced smartphone users (vs. 23.0%). A higher willingness to pay for 3rd party apps, with 79.8% having paid for at least one app (vs. 71.1%). UAE 84.5% of travellers in UAE were men 45.6% had company smartphones More than 8 out of 10 travellers in UAE were men (84.5% vs. 63.9%). High representation of directors (33.4% vs..4%) and high ownership of company smartphone (45.6% vs. 34.8%). Companies were most restrictive in the travel policy, with only 26.6% allowing their employees to arrange the business trip by themselves. (vs. 40.7) Blackberry was the strongest smartphone platform in UAE with the 39.1% of the smartphones (vs..1%). SAUDI ARABIA 12.3% had company smartphone had apps and were more prone to installing 3rd party apps The vast majority of travellers were men (84.3% vs. 63.9%) and the proportion of directors is high (.3% vs..4%). However in contrast to UAE, just 12.3% had a company smartphone. (vs. 34.8%) Internet abroad was only paid for by the employer for 66.2% (vs. 74.8%). Almost half of the business travellers had an Android smartphone (45.6% vs. 35.6%) and over the half were basic users 51.5% (vs. 38.7%). They appeared to be more prone to installing 3rd party apps ( vs. 17). They were also more likely to discover new apps through reviews (55.3% vs. 38.0%) and the family (46.7% vs. 39.9%). 6 Comparisons provided are against the total sample average.

7 What mobile services are they looking for? A variety of mobile services were tested with Business Travellers. These concepts came from the following categories: Flight and Airport, Hotel, Dining and Leisure, Experience Sharing, Travel Tools and Expense Management. Top 10 Mobile for Business Travellers: 1. Flight & Airport: Baggage 2. Flight & Airport: Delay voucher 3. Flight & Airport: Check-in 4. Flight & Airport: Itinerary 5. Hotels: Change booking 6. Travel: Maps 7. Travel: Emergency situations 8. Travel: Emergency contacts 9. Expense Management: Expenses 10. Flight & Airport: Ground transportation The table below represents how the respondents from each market rated the different mobile services and how it compares to the total sample average. No. Concept Total Sample Average UK Spain France Italy Benelux UAE Saudi Arabia South Africa 1 2 A. Baggage A. Delay-voucher A. Check-In A. Itinerary H. Change booking T. Maps T. Emergency situations T. Emergency contact S. Expenses A. Ground. trans A. VIP lounge offer A. Map & POI T: Emergency Info H. Concierge L. Book table T. Click-to-contact T. Converter $- L. Reminders 7

8 Corporations and TMCs on mobile solutions In the second leg of the study, a series of workshops were conducted with travel organisers from major global corporations and senior managers from Travel Management Companies (TMCs). The aim of the workshops was to understand their needs and restrictions as well as to validate the key findings from the business traveller study. Representatives of Corporations and TMCs were presented with the categories of mobile services and were asked to organise them based on their preference. Business Travellers 01. Flight & Airport 02. Hotel 03. A to B Flight & Airport 03. A to B 05. Expense Management Corporations 02. Emergency 04. Hotel Flight & Airport Expense Management 03. A to B TMCs 02. Hotel Emergency 01. Emergency Expense Management 8

9 Corporations and TMCs on mobile solutions Most desirable services for Business Travellers airport making changes to hotel booking related to the airport (locating lost luggage, receipt of a voucher in case of delays, flight check-in and itinerary management) as well the ability to make changes to a hotel booking were considered most desirable. Corporations Amongst the Corporations there was one clear favourite mobile solution: airport services TMCs For travel organisers from TMCs, emergency services was a priority. Although there was a degree of polarisation on the solutions during emergency situations (some rating it highest, some rating it lowest), overall it was the second most favoured possible solution. Least popular were expenses based solutions. For TMCs, the airport solution was much less popular perhaps illustrating a territorial response to a key TMC service. BUSINESS TRAVELLERS & CORPORATIONS RATED HIGHEST Flight 9 Airport management applications In summary, Business Travellers and Corporations rated flight and airport management applications highest (recognising that TMCs were more reticent). There were high levels of interest in solutions around emergency situations amongst Corporations and TMCs, and although slightly less interest amongst Travellers.

10 What is the ideal mobile app? Should Fully integrated Best in class Delivers added value vs. thousands of other apps Natural extension of online Makes traveller more efficient and effective on the road Reduce stress, save time and money Show timely and accurate information Can work on different OS Replicate what s available Create an app or automate something just because you can; human interaction should not be underestimated. Business traveller Corporations TMCs Shouldn t 10

11 Conclusions Business travellers SMARTPHONE is king Business travellers used their personal or company smartphones to assist them during their trips. Most of the travellers had travel apps installed and accessed these apps during their last trip. They were more interested in mobile services that were related to flight and airport services such as lost baggage, delay vouchers, online check-in and itinerary management. Though most of them do not currently have in trip solutions, Corporations and TMCs were interested in developing them as long as the solution does not replicate what is already available. Corporations and TMCs realised the benefits of having a mobile solution as it increases the travellers productivity on the road, reduces stress and can lead to cost-effective changes. Like the Business traveller, Corporations were interested in flight and airport services, while TMCs ranked emergency services first. Expense management services were ranked least important across all the respondents. For TMCs, it was important to note that human interaction and the expertise of the human counsellor were not underestimated when developing a mobile solution. Although there are differences in opinion, there was a degree of commonality across Corporations, TMCs and the Business travellers on what the ideal application or mobile solution should look like. All were keen to have a fully integrated solution, which was best in class. 11

12 Research Study: November 12 (1) Travel management policy Managed: Employees are required to use the company's travel agency/department. Slight managed: Employees are encouraged, but not required to use the company's travel agency/ department Unmanaged: 1) Employees make their own travel arrangements with the travel agency of their choice because the company does not have a travel agency/ department. 2) Respondent can make his own travel arrangements with a travel agency of his choice because he/she is self-employed

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