When They Get There & Why They Go
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1 October 18, 2013 Gray Line Partner Conference When They Get There & Why They Go In-Destination Events, Attractions & Activities Douglas Quinby Vice President, Research PhoCusWright Inc.
2 PhoCusWright Global Sizing Methodology Air Hotel Car Rental Cruise Package/Tour Rail Source: PhoCusWright Inc. 2
3 Total & Online Travel Gross Bookings (US$B) by Region, 2012 E.U. Total E.U. Online U.S. Total U.S. Online APAC Total APAC Online East Eur Total East Eur Online LATAM Total LATAM Online M.E. Total M.E. Online Source: PhoCusWright Inc. 3
4 4
5 5
6 6
7 Why We Go! 7
8 $26.8B Source: PhoCusWright's When They Get There and Why They Go: In-Destination Activities,
9 9
10 Activity Groups, Types and Subsegments Activity Group Activity Type Activity Type Detail 1. Activities and Tours Tours Sightseeing tours by land, water and air 2. Attractions 3. Events Adventure/recreational activities Spa and wellness Amusement parks Museum, zoo, or aquarium Cultural/historical attractions Natural attractions (parks, gardens, reserves, etc.) Performing arts events Spectator sports Cultural tours Shore excursions Walking tour Riding, land-based, and water-based adventure activities Sports and recreation (participatory): skiing, tennis, golf, hunting/fishing 4. Ground transportation (pre-arranged shuttles, taxis, transfers; excludes transient taxi) Source: When They Get There and Why They Go: In-Destination Activities, Europe
11 The European Five 11
12 Glossary: Activity Groupings 1 Amusement park/theme park 2 Cultural/historical attraction, landmark or monument 3 Cultural tours (culinary, historical, arts, etc.) 4 Festivals (Dublin Theatre Festival, Edinburgh Festivals, London Art Fair) 5 Ground transportation (pre-arranged transportation: airport transfers, cars, limousines etc.) 6 Multi-attraction pass (Edinburgh Pass, London Pass, Historic Scotland Explorer Pass) 7 Museum, zoo, or aquarium 8 Natural attraction (garden, park, reserves, etc.) 9 Scenic/sightseeing tours by air (plane, helicopter, hot air balloon, etc.) 10 Scenic/sightseeing tours by land (bus, train, trolley, etc.) 11 Scenic/sightseeing tours by water (boat tour, dinner cruise, whale watching, etc.) 12 Shore excursion (an organized tour or activity at port as a cruise passenger) 13 Spa and wellness 14 Walking tour (city walking) 12
13 Glossary: Activity Groupings Adventure/ recreational activities Performing arts events Sporting events (as a spectator) Active land-based adventure (hiking, climbing, camping, caving, etc.) Active water-based adventure (kayaking, rafting, sailing, surfing, snorkeling, etc.) Active riding activities (cycling, horseback riding, off-road/atv, etc.) Skiing, snowboarding or other snow activities Sporting activities as player (golf, tennis etc.) Hunting/Fishing Festivals Music concerts (rock, pop, metal, jazz etc.) Classical music (orchestra, opera) Music festivals Theatre (plays, musicals) Dance/ballet Football (Premier League, Ligue 1, Bundesliga, La Liga BBVA, etc.) Rugby (Local Rugby Fixture, Six Nations, Heineken Rugby, etc.) Tennis (Wimbledon, French Open, etc.) Motorsports Winter sports (alpine ski, cross country, ice hockey, etc.) 13
14 Structure & Approach Surveys, in-depth executive interviews and third-party data analysis to deliver a 360 view of the local activities and events opportunity Events & Activities Opportunity Consumer Survey: U.K., France, Germany, Italy and Spain Event and Activity Supplier Survey Consumer survey on purchase incidence, shopping and buying behavior, influencers and inhibitors, attitudes, preferences and demographics (quantitative and projectable). Directional survey on event and activity supplier trends, including sales and marketing strategies to travelers, use of technology and role of the Internet. Executive Interviews & Data Analysis In-depth interviews with key activity event suppliers, technology and distribution companies, DMOs and others covering sales and marketing strategies to travelers, use of technology and role of the Internet. 14
15 Project Sponsors City Discovery Destinations Services (TUI Travel PLC) Excursiopedia Expedia, Inc. Fjord Norway Gray Line Corporation, Inc. GetYourGuide Inc. The Leisure Pass Group Rezgo StubHub, Inc. Viator, Inc. 15
16 37B Source: When They Get There and Why They Go: In-Destination Activities, Europe
17 Total & Online Travel Gross Bookings (US$B) by Region, 2012 E.U. Total E.U. Online U.S. Total U.S. Online APAC Total APAC Online East Eur Total East Eur Online LATAM Total LATAM Online M.E. Total M.E. Online Source: PhoCusWright Inc. 17
18 European Travel Market Gross Bookings Share by Segment, 2012 Car Rental 4% Tour Operator 6% Rail 11% Air 38% Travel Activities 13% Hotels 28% Tour operator overlap with air, hotel, 13% Source: When They Get There and Why They Go: In-Destination Activities, Europe
19 66% Shop Online 37B 23% Booked Online Source: When They Get There and Why They Go: In-Destination Activities, Europe
20 Comparative Online Penetration by Segment, Europe, % 18% Hotel Room Revenue Tours & Recreation Source: When They Get There and Why They Go: In-Destination Activities, Europe
21 Is that a tour or activity? How do we book it? 21
22 Why don t they book in advance? Don t think about it What influences their selection: Activity descriptions 22 Source: When They Get There and Why They Go: In-Destination Activities, Europe 2013
23 Websites Used by Active Travelers Researching Activities General search engines Traveller review websites Online travel agencies Travel search engines Travel guidebook/ magazine websites Website of DMO/CVB Website of a tour operator U.K. Germany Activity provider websites 0% 10% 20% 30% 40% 50% 60% 70% Q13a: What type(s) of websites or applications do you usually use to compare and choose activities (including attractions, events and tours)? Active travelers base: U.K , France 683, Germany 543, Spain 747, Italy 834 Source: When They Get There and Why They Go: In-Destination Activities, Europe
24 On OTAs, Activities Are Second Fiddle at Best Source: When They Get There and Why They Go: In-Destination Activities, Europe
25 Source: When They Get There and Why They Go: In-Destination Activities, Europe
26 Source: When They Get There and Why They Go: In- Destination Activities, Europe
27 The Traditional Travel Distribution Chain Leisure Travelers Points of Sale Direct (Supplier website, call center) Online Travel Agency Tour Operator Travel Agent GDS: Amadeus Sabre Travelport Travel Suppliers Airlines Hotels Car Rental Cruise Source: When They Get There and Why They Go: In-Destination Activities, Europe
28 The Activities Travel Distribution Mess Leisure Travelers PoS Cruise Line Other Website (DMO, airline, hotel, etc) Online Activity Specialist Online Travel Agency Tour Operator Travel Agent Hotel Concierge OAS II: Switchfly, iseatz OAS I: Isango City Discovery GetYourGuide Viator GDS: Amadeus Sabre Travelport Specialized Activity Aggregators: GroundLink, Live Nation, Continental Guest Services, Expedia Museums, Zoos, etc. Amusement Parks Theaters, Stadiums, etc. Tour Providers Limo, Shuttle, Taxi Firms Activity Providers Source: When They Get There and Why They Go: In-Destination Activities, Europe
29 Too Much Power? Why did you choose the particular website(s) you used? 29
30 Too Much Power? Ease of use. 30
31 It s All Mobile 31 Source: When They Get There and Why They Go: In-Destination Activities, Europe 2013
32 Current and Future Mobile Phone Use for Activities Next 12 months 70% 60% 50% 40% 30% 20% 10% Research Book Research Book 0% Germany Question: Please indicate which, if any, of the following activities you have performed via your mobile telephone in the past 12 months, and which you are likely to do in the upcoming 12 months. Select all that apply for each activity. Base: Travelers with mobile phones: French travelers (2011 N=866, 2012 N=867, 2013 N=1,009) Source: PhoCusWright s European Consumer Travel Report Fourth Edition U.K. 32
33 33
34 Solves two big problems: 1) Herding homeowners 2) Trust 34
35 Solves a not-so-big problem: same-day hotels Makes it ridiculously easy 35
36 Solves several enormous problems: No hunting No haggling No crappy rides and It s ridiculously easy 36
37 Source: PhoCusWright s Travel Agency Distribution Landscape: It s Only Mobile 37
38 Thank You! Douglas Quinby Vice President, Research PhoCusWright
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