The Sharing Economy & Managed Travel? Hail Yes!

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1 The Sharing Economy & Managed Travel? Hail Yes! The Ohio Valley & Michigan Business Travel Association Joint Education Day Meeting Susan Steinbrink Senior Research and Corporate Market Analyst October 4, 2016

2 Agenda Market size and trends Panelist overviews Program & policy integration Best practices Advances to target corporate needs Q&A 2016 Phocuswright Inc. All Rights Reserved. 2

3 There is a transformation underway in ground transportation

4 This is giving way to this and this and this 2016 Phocuswright Inc. All Rights Reserved. 4

5 U.S. Ground Traveler Population Adult 18+ Online Flown and/or stayed in paid lodging for an overnight trip Ground travelers have also used some ground transportation when traveling U.S. Adults million Online Adults 211 million (87%) 2 U.S. Travelers (Leisure) 140 million (58%) 3 U.S. Ground Transportation Travelers U.S. 88 Travelers million (63% (Business) of all 52 travelers) million 4 Base: Consumers who have stayed in paid accommodations and/or taken a flight for leisure travel in the past 12 months (N=1,850) 1. Source: U.S. Census Bureau; 2. Source: Pew Research Center 3. Source: U.S. Consumer Travel Report Sixth Edition 4. Phocuswright s Hail This! The Transformation of the Ground Transportation Experience for Travel, Phocuswright Inc. All Rights Reserved. 5

6 Traveler Projected Annual Spend* on Ground Transportation Services (US$M, projected) Leisure Travelers Business Travelers 1,780 1, Taxi hailed in person Pre-arranged car service Mobile ride-hailing Shuttle * Based on a traveler use and spend on selected services over the previous 12-month period through June 2015 Source: Phocuswright s Hail This! The Transformation of the Ground Transportation Experience for Travel, Phocuswright Inc. All Rights Reserved. 6

7 Business Travelers More Active Users of Mobile Ride Hailing Percentage of Travelers Who Have Used Ground Transportation Services 66% Leisure Travelers Business Travelers 45% 55% 49% 46% 43% 32% 32% 24% 22% Rental car Taxi hailed in person Shuttle Mobile ride-hailing Pre-arranged car service Question E and F: How many times did you book the following types of ground transportation while in-destination during your [pipe number of trips] leisure/business trips over the past 12 months? Base: Leisure travelers (N=3,470); Business travelers (N=1,302) Source: Phocuswright s Hail This! The Transformation of the Ground Transportation Experience for Travel, Phocuswright Inc. All Rights Reserved. 7

8 Mobile Ride Sharing is Increasing at the Expense of Other Options Number of Times Used Transportation Services for Last Business Trip 3+ times 2 1 Mobile ride-hailing 34% 30% 35% Taxi hailed in person 29% 37% 32% Pre-arranged car service 23% 31% 39% Shuttle 16% 40% 40% Question 101: We would now like to ask you a few questions about a recent business trip where you used one of these transportation services while in-destination. How many times did you use these services on this recent business trip? Base: Business travelers that used taxi (N=281), pre-arranged car service (N=196), mobile ride-hailing app (N=201), shuttle service (N=243) Source: Phocuswright s Hail This! The Transformation of the Ground Transportation Experience for Travel, Phocuswright Inc. All Rights Reserved. 8

9 More than one in five business travelers found and reserved their car service via mobile. Most are under Phocuswright Inc. All Rights Reserved. 9

10 Business Travelers Take More Trips and Behavior Crosses Over Number of Trips Taken in Past Year 51% 45% 53% 28% 29% 20% 21% 23% 27% 1 to 2 3 to 4 5+ Leisure Travelers Business Travelers (Leisure) Busines Travelers (Business) Question SDa: How many leisure and business trips have you taken over the past year? Please do not count day trips Only include trips with an overnight stay. Base: Leisure travelers (N=1,195); Business travelers (N=808) Source: Phocuswright s Hail This! The Transformation of the Ground Transportation Experience for Travel, Phocuswright Inc. All Rights Reserved. 10

11 Managed Business Travel: Fewer than Half of Traveler Policies Cover Ground 2016 Phocuswright Inc. All Rights Reserved. 11

12 Managed Travelers Have High Likelihood of Using in the Future Likelihood of Using Ground Transportation Services for Future Trips Leisure Travelers Unmanaged Business Travelers Managed Business Travelers Rental car 64% 70% 80% Shuttle 52% 62% 75% Taxi hailed in person Mobile ride-hailing 28% 38% 59% 72% 54% 65% Reflects extremely or very likely Pre-arranged car service 27% 45% 62% Questions 6 and 68: How likely would you be to use each of these ground transportation services for future leisure/business trips? Base: Leisure travelers (N=1,195); Managed business travelers (N=422); Unmanaged business travelers (N=386) Source: Phocuswright s Hail This! The Transformation of the Ground Transportation Experience for Travel, Phocuswright Inc. All Rights Reserved. 12

13 Business Travelers Use Mobile Ride-Hailing Services at Multiple Touchpoints Last Trip Leisure Travelers Business Travelers To or from airport 34% To or from airport 40% To or from a restaurant/ night out 43% Transportation for an evening out 39% To or from a specific attraction or activity 17% To or from meetings 17% Sightseeing/to uring 4% A ride between hotel and your office 4% Question 59 and 121: When you used your smartphone to hail a ride through a service such as Uber or Lyft, what was the purpose of the ride? Base: Leisure travelers who used a mobile ride-hailing service (N=150); Business travelers who used a mobile ride-hailing service (N=207) Source: Phocuswright s Hail This! The Transformation of the Ground Transportation Experience for Travel, Phocuswright Inc. All Rights Reserved. 13

14 But Corporate Travel Managers Have Some Big Concerns 2016 Phocuswright Inc. All Rights Reserved. 14

15 Agenda Market size and trends Panelist overviews Program & policy integration Best practices Advances to target corporate needs Q&A 2016 Phocuswright Inc. All Rights Reserved. 15

16 Polling Question Which best represents the essence of your travel policy? A. Mandated, with penalties for noncompliance B. Mandated, with no penalties for noncompliance C. Non-mandated D. No policy 2016 Phocuswright Inc. All Rights Reserved. 16

17 Polling Question Which best represents the state of mobile ride hailing in your company? A. Allowed in current policy B. Not allowed in current policy C. Will allow within next 12 months D. Will evaluate in the future E. No plans to address 2016 Phocuswright Inc. All Rights Reserved. 17

18 Polling Question What is your top issue about mobile ride hailing for your program? A. Cost B. Traveler satisfaction C. Safety D. Regulation E. Integration into travel program 2016 Phocuswright Inc. All Rights Reserved. 18

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