Traveler s Path to Purchase

Traveler s Path to Purchase

DEREK PRICE Director, North America Expedia Media Solutions Previous experience: More than 20 years experience in the travel industry holding roles in everything from Leisure Travel Services Manager, OTA market management and Sales Director for a Starwood resort Fun Fact: I graduated from culinary school in June of 2015, and spent time as a baker for a café in Vermont and pastry cook for a restaurant in New York City.

Expedia Media Solutions: Reach A Global Network Of Trusted Brands 200 sites 75 countries 35 languages 3

Connect with Us @expediamedia linkedin.com/company/expedia-media-solutions blog.advertising.expedia.com 4

Real World Insights PATH TO PURCHASE TRAVELER ATTRIBUTION BLEISURE TRAVELER 5

METHODOLOGY Expedia Media Solutions commissioned comscore to conduct a study on travel path to purchase in the United Kingdom, United States and Canada comscore blended online travel behavioral data with data collected through a custom survey Custom Survey Qualifications Age 18+ Live in UK, US or Canada (each country required for each market being analyzed) Booked travel online within the past 6 months Survey yielded: United Kingdom: 817 total completes United States: 805 total completes Canada: 815 total completes Fielding dates: March 14 23, 2016 Behavioral Data Sources comscore PC Panel (2MM devices worldwide) comscore Mobile Panel (20,000 devices) comscore Multi-Platform comscore Census Tags (>1.5 trillion events monthly) Survey Statistical Reliability A sample of 800 is reliable within ±3.5% points at a 95% confidence interval A sample of 500 is reliable within ±4.4% points at a 95% confidence interval

50 MILLION DIGITAL UK USERS CONSUME 239 BILLION DIGITAL MINUTES EACH MONTH 7

3 OUT OF 4 DIGITAL UK USERS CONSUME TRAVEL CONTENT 8

2.4 BILLION MINUTES SPENT ON DIGITAL TRAVEL CONTENT IN THE UK +44% INCREASE YEAR OVER YEAR Total Multi-Platform Travel Minutes (MM) 3,000 2,500 2,000 1,500 1,000 500 0 Jan-15 Feb-2015 Mar-2015 Apr-2015 May-2015 Jun-2015 Jul-2015 Aug-2015 Sep-2015 Oct-2015 Nov-2015 Dec-2015 Jan-2016 Feb-2016 9

OTAS, HOTEL SITES AND AIRLINE SITES ARE USED THROUGHOUT THE PATH WHILE SEARCH ENGINES AND FAMILY/FRIEND RECOMMENDATIONS WERE USED MOSTLY NEAR THE BEGINNING OF THE BOOKING PATH 68% 68% 49% SEARCH ENGINES FRIEND/FAMILY OTAS AIRLINES HOTELS 41% 32% 42% 43% 31% 32% 27% 36% 31% 31% 26% 27% 23% 18% 16% 8% * 5% * Search engines Friend / family Recs OTAs Airline Sites Hotel Sites When I First Started Overlap in resource usage decreases When I Was Narrowing Options Right Before Booking Used to Book Data Source: comscore Survey, WHENRESOURCEUK. TOP 5 - WHEN DID YOU USE EACH RESOURCE FOR THE RECENT BOOKING OF YOUR TRIP?, Among UK Online Travel Buyers Who Used Each Resource (n=14*-202) *Caution: small sample size (n=30-50), Friend / family recommendations Right before booking and Used to book, Search engines Used to book 10

SEARCH ENGINES AND OTAS WERE THE MOST COMMON INITIAL ONLINE RESOURCES USED TO DECIDE ON A DESTINATION 12% 12% 10% 15% 6% 4% OTAs Search Engines Airline sites Hotel sites Friend / family recs Travel books / magazines Online Resources Offline Resources Data Source: comscore Survey, STARTUK. WHAT WAS THE FIRST RESOURCE YOU USED TO HELP YOU DECIDE ON THE DESTINATION OF YOUR RECENT BOOKING?, Among Total UK Online Travel Buyers (n=817) Not listed: 2%: Social media, ground transportation/cruise sites, aggregator/meta-search sites, my company s travel site, offline travel agency 1%: Online travel videos, rental car sites, blogs, deal sites, home rental sites, destination call centre, live TV shows 11

OVER HALF OF ONLINE TRAVEL BOOKERS STARTED WITH MULTIPLE DESTINATIONS IN MIND Number of Destinations Considered 54% 46% 1 destination considered 2+ destinations considered Data Source: comscore Survey,, DESTINATIONS. PRIOR TO DECIDING ON YOUR FINAL DESTINATION, HOW MANY OTHER DESTINATIONS DID YOU CONSIDER VISITING?, Among Total UK Online Travel Buyers (n=817). 12

OTAS WERE THE MOST INFLUENTIAL ONLINE RESOURCE IN BOOKERS DESTINATION DECISIONS Friend / family recs Online travel agencies (Expedia.com, etc.) Search engines (Google.com, etc.) 11% 15% 18% Airline sites (United.com, etc.) 9% Hotel sites (Marriott.com, etc.) 8% Travel information sites (Tripadvisor.com, etc.) 6% Search engine travel sites (Yahoo.com/travel, etc.) 5% Online travel guide sites (LonelyPlanet.com, etc.) 4% Destination sites (Visitcalifornia.com, etc.) 3% Data Source: comscore Survey, INFLUENTIALRESOURCEUK. MOST INFLUENTIAL - PLEASE RANK THE TOP THREE RESOURCES THAT INFLUENCED YOUR DESTINATION DECISION. Among UK Online Travel Buyers Who Used Resources (n=780) <3%: Offline travel agency, social media, my company s travel site, ground transportation/cruise sites, travel books/magazines, aggregator sites, blogs, online travel videos, live TV shows, deal buying sites, home rental sites, destination s call centre, rental car sites, other 13

ONLINE BOOKERS INCREASINGLY ENGAGE WITH TRAVEL CONTENT IN THE WEEKS LEADING UP TO PURCHASE Number of visits to travel sites made by bookers 45 days before booking: 121 30.0 25.0 20.0 15.0 10.0 5.0 - Average Travel Site Visits per Week (Number of travel sites visited per week by the average segment member, Oct 15-Feb 16 aggregate) 8.8 15.2 16.2 17.2 17.2 19.4 26.7 Week 6 Before Week 5 Before Week 4 Before Week 3 Before Week 2 Before Week 1 Before Week of Booking The average segment member makes 26.7 visits to travel sites in the week leading up to the booking Data Source: comscore UK Desktop Panel, Custom Path to Booking Visitation Analysis, Weekly Visits per User, Dec 15 Feb 16. 14

OTAS HAVE THE MOST ENGAGEMENT OF BOOKERS OF TRAVEL SITE CATEGORIES THROUGHOUT THEIR TRAVEL BOOKING PATH Total Visits Share Throughout 45 Day Path to Booking DMO, 2% Other, 5% Ground/Rail/Auto/Bus, 9% OTA, 32% Airline, 15% Accomodations, 16% Travel Research, 21% OTA Travel Research Accomodations Airline Ground/Rail/Auto/Bus DMO Other Data Source: comscore UK Desktop Panel, Custom Path to Booking Visitation Analysis, Share of Total Visits per User Across 45 Day Path, Dec 15 Feb 16. 15

ADVERTISING INFLUENCED THE DESTINATION DECISIONS FOR 3 IN 10 ONLINE TRAVEL BOOKERS WHO WERE CONSIDERING MORE THAN ONE DESTINATION 30% OF TRAVEL BOOKERS WERE INFLUENCED BY ADVERTISING WHEN CONSIDERING MORE THAN ONE LOCATION Data Source: comscore Survey, DESTINATIONAD. Did any advertising (via online banners, online videos, TV, radio, magazines, etc.) influence your decision to visit [specific destination]? Among Total UK Online Travel Buyers (n=817) 16

ADVERTISING RECALL DROPS BY AS MUCH AS 65% DEPENDING ON TRAVEL CATEGORY THROUGHOUT THE PURCHASE PATH CAR RENTAL ADVERTISING SHOWED RELATIVELY STABLE RECALL THROUGHOUT THE PROCESS 64% 60% 52% 50% 42% 39% 31% 30% 32% 27% 26% 18% 17% 16% 14% When I First Started When I Was Narrowing Options Right Before Booking Hotel Air Travel Travel package Car rental Cruise Data Source: comscore Survey, ADNOTICE. WHEN DID YOU NOTICE ADVERTISING RELATED TO EACH TRAVEL SERVICE? Among UK Online Travel Buyers Who Noticed Ads for Each Service (n=141-360) *Caution: small sample size (n=30-50) for Travel Package = Right Before Booking (17%*), Cruise = When I Was Narrowing Options (26%*) n<30 not shown (Cruise, Right before booking) 17

KEY FINDINGS & INSIGHTS The UK digital travel industry is seeing incredible reach and explosive growth in travel content engagement Content consumption on mobile is outpacing desktop, and consumers in general are moving more fluidly across devices Over half of online travel bookers began their purchase journey with multiple destinations in mind Nearly a third of travellers who were considering multiple destinations were influenced by advertising 18

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