The American Traveler - Summer 2011

@PhilipGrote @comScore 1 #ETS11

the American
Traveler/summer 2011
sentiment | flash sales | mobile | search | social

comScore 2011


Retail & Travel
Online Spending Trend

Retail @ $87b, 13%!
January to July 2011 vs. year ago

Travel @ $58b,  11%!
January to July 2011 vs. year ago

-7
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
source: comScore eCommerce data, 2002 to July 2011


117,000 new jobs were added in July 2011 : 139,296,000

source: National Bureau of Economic Research, Bureau of Labor Statistics


November 2007: 146,584,000

117,000 new jobs were added in July 2011 : 139,296,000

at the rate of July 2011 it would take 5 ½ years
to get the number of jobs up to pre-recession levels!
source: National Bureau of Economic Research, Bureau of Labor Statistics


Travelers

58% of travelers are cutting back!
Q: In the past 3 months, have you been cutting back on your travel expenses?
 5pts vs. year ago
source: comScore Survey, Q2 2011


Travelers who are cutting back

62% do so by staying closer to home!
Q: Please indicate all the ways in which you are cutting back on travel expenses.
[x] Traveling closer to home |  from 9pts vs. year ago




41% book cheaper accommodations!
[x] Staying at less expensive hotels |  13pts vs year ago




40% take shorter trips!
[x] Spending fewer days at my destinations | 6pts vs. year ago



Travelers are cutting back on travel expenses by staying:

Closer, Cheaper, Shorter!


Online Travel Agencies (OTAs) vs. Suppliers: Dollar Share

OTAs
OTAs
36.2%
2%
55.8%
4%
Airlines

Hotels

OTAs gain ground high-margin product!
*share of Hotel $  4%, Q2 2011 vs. year ago

source: comScore Travel CPR, Q2 2011

Expedia vs. Online Travel Agencies: Dollar Share
Hotwire
5.7% Expedia
Hotels
6.5%

CheapTickets
35.8%
6.8% 35.2%

Travelocity 22.6%
13.0%

Orbitz 52.2%
16.2%

Every 3rd Dollar* Went to Expedia!
*spent at an online travel agency in Q2 2011
Priceline
16.6%
source: comScore Travel CPR, Q2 2011


Deal or No Deal…
…are deal sites friends or foes?

comScore 2011


$200 Room Rate
-$100 50% Deal Discount
-$ 50 50% to Deal Site
-$ 40 Operating Cost
$ 10 Profit @ $190 Cost*
Do the Math!
Only if you know your customer acquisition
cost can you tell if it’s a good deal to you.

* Other cost to consider: commoditization, price point degradation,
operational costs of handling a new channel, displacement costs
Example taken from http://www.tnooz.com/2011/06/22/news/expedia-what-groupon-getaways-with-expedia-means-for-hotels/


Deal Sites Lose Momentum…
…likely due to deal fatigue and signs of recovery. August 2011
12,387,095
Groupon

August 2010
6,507,924

6,115,866
LivingSocial

August 2009 3,665,418
591,729

155,707

comScore, Media Metrix, August 2009 to August 2011

Deal Sites Average Audience Overlap
with Top 15* Travel Sites
*Based on Unique Visitors August 2011, US Desktop Groupon

LivingSocial

14.3%
SniqueAway 7.7%
(or JetSetter)

0.7%
Minimal Audience Overlap suggests that
Deal Sites Reach Different Travelers!
source: comScore MediaMetrix, August 2011


Check Demographics!
Only if you reach your target customer (or new segments)
can it be a good deal to you.


Groupon GetAways LivingSocial Escapes JetSetter
33%
27% 25% 24%
22% 19% 18% 15%
11% 13% 13%
9%

25-34 35-44 45-54 55-64 25-34 35-44 45-54 55-64 25-34 35-44 45-54 55-64


59% 66% 50%

$60-75K 16% 11% 11%

$75-100K 8% 16% 13%

$100k+ 41% 31% 22%


Is this Channel right for me?
[ ] What is my cost per acquisition?
[ ] Have I exploited all lower cost channels?

Do I have the right Partner?
[ ] What do my peers say?
[ ] Do our customer demographics match?
[ ] Are black out dates allowed?
[ ] Can they target specific regions and segments?
[ ] Do they curate the deal to align with my image?

Do I have a Plan?
[ ] Loyal Customers can get offended. What is my offer for them?
[ ] Deal seekers are loyal to deal sites. What is my retention plan?
[ ] How will I track success for post-mortem analysis?


Chose the right partner at the right time
Deal Sites can Make or Break You!

comScore 2011


U.S. Mobile Phone Install Base

Every 3rd phone is a smartphone!
35% of all cell phones currently in use are smartphones!

source: comScore MobiLens, 3 months ending July 2011


US Internet traffic

4.5%
SmartPhones
from

source: comScore Device Essentials, July 2011


U.S. Mobile Phone Purchasing Trend

Every 2nd NEW phone is a smartphone!
50.4% of new cell phones bought are smartphones!



The Last Adoption Barrier Falls!
8% of new Smartphones now are Pay-As-You-Go Phones!

U.S. Smartphone
Browser Activity
insurance services 3.9%
men's magazine content 4.5%
stock trading 4.6%
horoscopes 5.1%
automotive services 5.1%
Home/Lifestyle 5.3%
Beauty/Fashion/Style 6.8%
kids and family entertainment 6.9%
real estate listings 7.0%
6,920,805 people use travel services!
dating service 7.0%
adult entertainment services from July 2010!!
 42% 7.1%
comics or humor 7.9%
travel service 8.4%
health information 8.9%
electronic payments 9.1%
television guides 9.2%
gaming information 9.3% comScore MobiLens, 3 months ending March 2011, n=32,311
source:

auction sites 9.8% @PhilipGrote @comScore 26 #ETS11
credit cards 10.2%
U.S. Smartphone
Food/Recipes/Cooking Tips 10.2%
business directories 12.5%
Browser Activity
online retail 12.9%
classifieds 13.8%
restaurant information 16.0%
stock quotes or financial news 16.9%
bank accounts 17.1%
Search is the #1 Browser Activity!
movie information 17.9%
36,674,272 peoplenewstech search,  58% from 17.9%2010
July
photo or video sharing service 18.0%
maps 18.0%
general reference 19.8%
sports information 22.8%
entertainment news 24.7%
weather 26.3%
news 32.6%
social networking 34.5%
search
search 44.6%



(619 ) 246-6228

Best Practice Mobile Experience:
Connect Desktop  Mobile!


Connect Mobile  Mobile Web / App!


Tripadvisor.com

Connect Mobile Web  App!


American Airlines

Connect Mobile Search  Mobile Web / App!


100% of Smartphone Platforms
- 2%, Symbian
- 2%, Palm
- 6%, Microsoft
- 22%, RIM

- 42%, Google

27%, Apple

No, it is not just Apple!
Google  6pts | RIM  5pts | Apple  1pt vs. year ago!


Top 10 Smartphones in the Market…
…Apple owns 27% of the market!

#1 11.4% iPhone 4
#2 8.6% iPhone 3GS
#3 4.6% iPhone 3G
#8 2.3% iPhone (1st Gen)
#4 3.6% BlackBerry Curve 8530
#10 1.7% Blackberry Curve 8330
#5 3.2% HTC EVO 4G
#6 2.7% Motorola Droid X
#7 2.5% Motorola Droid
#9 2.2% HTC Droid Incredible


It’s not just an adoption, it’s a migration:
Double Down On Mobile!

comScore 2011


Travel searches
411,117,066 each month

Paid Search in Travel
Each travel search returns 5 paid results

Search Referrals
17% come from paid search

Travel Searches at the Core 5 Engines.
Google, Bing, Yahoo, AOL, Ask

source: comScore Search Planner, July 2011 vs. July 2010


Expedia turns back on paid search!
07/2010 Paid 07/2011
28.7% 11.6%
Expedia.com 2,312,616 746,908

75.3% 84.7%
Booking.com 688,959 1,612,063

Priceline.com 58.6% 56.7%
3,082,530 2,920,236

Hotels.com 57.0% 58.8%
1,931,225 1,854,389

source: comScore Search Planner, July 2011


Reality Check:
Is Paid Search Still Working?

comScore 2011

10,912,4812
YouTube views of Dave Carroll’s music video

United breaks guitars
[ ]
create a PR nightmare across all media.

Social Media
powerful.
[
is ]
dangerous.
awesome .


“ …it is about using social media to
harness amplify and
the travel experience.
”
- @DaveHanley, Principal @BanyanBranch


Harnessing & Amplifying 1.0!

comScore 2011


Harnessing & Amplifying 2.0!

comScore 2011


Social Media Sites
Unique Visitors and Growth (US Desktop)

Social Media is still growing!
August 2011 vs. year ago
42%
33 million

11%
126 million

10%
162 million

source: comScore MediaMetrix, August 2010 vs. August 2011

Social Media Sites Average Audience Overlap
with Top 15* Travel Sites
*Based on Unique Visitors August 2011, US Desktop

85.5%

64.7%

You can reach more than
22.4%
85% of your customers on Facebook!


Benefit from Word of Mouth:
[] Enable One-Click Amplification!
Engage with your customer on their terms: Phone, email,
[] and Social Media.
Whether you like it or not – they are already talking about you!
[] Start Listening NOW!


Thank You!

@PhilipGrote | pgrote@comScore.com | (619) 246-6228

The American Traveler - Summer 2011

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