Atout France French- Affairs 2011

October 24, 2011

Trends in Distribution
Workshop

“French Affairs 2011”
JW Marriott Marquis
Miami, FL

Cees Bosselaar
Director Business Development and
Destination Marketing Specialist

Travel is our world.
PhoCusWright is the global travel research authority on
how travelers, suppliers and intermediaries connect.

PhoCusWright Analysts Around the World


The Global Picture

Distribution: consumers

Distribution: suppliers and intermediaries

Distribution: travel agents

Distribution: mobile + social

Q&A

U.S.
Europe
SCAN
U.S. APAC
Higher

U.K. CHILE
JAPAN LATAM
Online Travel Penetration

ANZ
U.S.
FRANCE

SING INDIA
GERMANY
MEXICO

ITALY BRAZIL

SPAIN COL
PERU ARG

CHINA
Lower

Lower Higher
Source: PhoCusWright’s Global Online Travel Overview Second Edition
Annual Growth Online Sales

U.S.
Europe
SCAN
U.S. APAC
Higher

U.K. CHILE
JAPAN LATAM

ANZ

FRANCE

SING INDIA
GERMANY
MEXICO

ITALY BRAZIL

SPAIN COL
PERU ARG

CHINA
Lower

Lower Higher

Online Leisure/Unmanaged Business Travel Penetration by
Market, 1992

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

Note: 2010-2012 projected.
Source: PhoCusWright’s Global Online Travel Overview Second Edition, 2011


Online Leisure/Unmanaged Business Travel Penetration by
Market, 2012

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

Europe APAC LATAM
Note: 2010-2012 projected.
Source: PhoCusWright’s Global Online Travel Overview Second Edition, 2011


Online Travel Penetration* of the Total Travel
Market, Global Markets, 2008-2012
45%
39% 39%
40% 38% 38%
35%
35% 36%
35%
33%
30% 31%
24% U.S.
25% 27% 23%
21%
APAC
20% 18%
21%
15% Europe
15% 18%
14%
Latin America
10% 11%
5% 8%

0%
2008 2009 2010 2011 2012
*Leisure/unmanaged business travel websites as a percent of the total travel market.
Note: 2010-2012 projected. Data for 2012 not available for Canada.
Source: PhoCusWright's U.S. Online Travel Overview Tenth Edition; PhoCusWright’s Asia Pacific Online Travel Overview Fourth Edition; PhoCusWright’s Latin
American Online Travel Overview


The Leisure Travel Cycle

Dream

Share Plan

Explore Book

Source: PhoCusWright Inc.


Leisure Destination Types (Incidence Among Travelers)*
57%
Destination that you selected independently 63%
(excluding all of the above) 61%
65%

Destination where you visited friends or family 55%
casually (not driven by a social event, such as a 45%
36%
reunion or wedding) 39%

23%
Destination where you attended a social 16%
event, such as a reunion or wedding 15%
24%

9%
Destination where you, friends, or family own a 14%
holiday home 11% U.S.
11%

9% France
Destination where you added a leisure stay as an 9%
extension of a business trip 10%
5% Germany

Destination where you have a timeshare or
8% U.K.
5%
fractional ownership of property 5%
5%

*Respondents were asked to count each trip once in the most relevant category
Base: U.S. travelers (N=2,755), French travelers (N=807), German travelers (N=793), U.K. travelers (N=783)
Source: Destination Unknown: How U.S. and European Travelers Decide Where to Go


Factors Affecting Destination Selection
70%
I had the specific destination in mind and planned this 54%
trip around it 59%
60%
16%
I chose between a number of destinations I had in mind 22%
24%
20%
5%
I had some destinations in mind but considered new 3%
options as I began researching and planning 2%
7%
3%
I had no specific destinations in mind until I started 11%
researching and planning 6%
5%

I hadn't been thinking about taking this trip, but saw a
3% U.S.
8%
good deal for this destination and decided to book it 6% France
5%
Germany
3% U.K.
Other 3%
2%
3%
Base: Travelers who have selected a destination independently: U.S. travelers (1,569), French travelers (N=507), German travelers (N=477), U.K. travelers (N=510)
Source: Destination Unknown: How U.S. and European Travelers Decide Where to Go


A

B


“When was the last time somebody
used a travel agent instead of just
going online?”

And Travel Agencies Have Suffered
U.S. Online Leisure/Unmanaged Business Travel Penetration of
Total U.S. Travel Market and ARC-Accredited Agencies, 1999-2011
50%
35,000 Online Travel Agencies & Supplier Web Sites
45%
Accredited ARC agencies
30,000 40%

35%
25,000
30%
20,000 25%

20%
15,000
15%
10,000
10%

5,000 5%

0%
01999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Sources: PhoCusWright Inc. and ARC


Travel Agents’ Exaggerated Demise
Total U.S. Travel Market by Channel, 2008-2012

Source: PhoCusWright’s U.S. Online Travel Overview 10th Edition, November 2010


Travel Agents’ Exaggerated Demise
Total U.S. Travel Market by Channel, 2008-2012 (US$B)

Source: PhoCusWright’s U.S. Online Travel Overview 10th Edition, November 2010


Yesterday’s travel agent

Order taker Air was the asset

General purpose Change averse

Transactional


Today’s travel agent

Expertise, relationships,
Consultative service are the asset

Specialized Adaptive

Traveler Advocate


The “Conceptual” Travel Distribution Chain

Supplier
Air, hotel, car rental

Wholesaler
Retailer


The Convoluted Reality of “Traditional” Agency Distribution

“Preferred”
Supplier HBAs
Airline
Host
Hotel
Agencies
Car rental RSAs
Cruise line
Tour operator

Consortia/
Franchise


Pressure


OTAs & Supplier Pressure on the Demand
Direct leisure travel agency Generation
landscape


But Travel Agents Still Have Significant Market Share
Total U.S. Travel Market* & Travel Agency** Sales & Share, 2010 (US$B)

32% of all
travel sales
in 2010

* Total travel market: passenger/ticket/room revenue of airlines, hotels, car rental, tour operator, cruise and rail.
** Travel agency refers to traditional agencies (TMC, brick and mortar, home-based) and excludes online agencies.


Leisure Agencies Have Focused on Higher-Margin
Complex Leisure
Travel Agency Leisure Sales by Component Type, 2010



There Are a Lot Fewer of These…


But a Lot More of These…


Agencies in 2006: Agencies in 2009:
c.24,000 c.20,600

General
Purpose Corporate &
24% General
Purpose, 26%

Corporate
7%
Leisure Leisure, 74%
69%

Corporate, “GP” not examined
in this study, but most
Agency Type Definitions:
Leisure: At least 70% of volume is leisure
contraction expected within
Corporate: At least 60% of volume is managed corporate travel “general purpose agencies”


Agency Population Contracts Faster Than the
Home-Based Population Grows
Agent Population Shift by Type, 2006 & 2009 (000s)

2006 2009
111
106

80
72

31 34

Agent Population RSAs HBAs

Note: RSAs include leisure and corporate, full-time and part-time employees


RSAs Are Far More Productive
Total Personal Sales Volume for All Travel Products by
Agent Type

Retail storefront Home-based

30% 33%
$250k+
<$250K
67%
70%

Note: Q20. Please check the volume range that best represents the gross sales volume (the total value) you personally
expect to sell in 2009, including all travel (leisure and corporate, cruise and land-based vacations, etc). Select only one.
(n=917)

If You Provide a Service, Why Not Charge for It?
Percentage of Leisure Agents That Charge Fees

Retail storefront 82%

Home-based 45%

Note: Q17. Do you charge service fees to your clients? (n=917)


Characteristics of Agency Organizations
(PhoCusWright subjective assessment)

Franchise/Club
AAA
CruiseOne
TravelLeaders
Consortia
Production Ensemble
Volume Independent Signature
HBAs Vacation.com
(per capita) Host
Virtuoso
Agencies
Avoya
Nexion
Hosted
HBAs

Unorganized Organized


Characteristics of Agency Organizations

Franchise/Club
AAA
CruiseOne
TravelLeaders
Consortia
Production Ensemble
Volume Independent Signature
HBAs Vacation.com
(per capita) Host
Virtuoso
Agencies
Avoya
Nexion
Hosted
HBAs

Unorganized Organized


Vacation.com Is Most Common, but Lots of
Fragmentation
Consortia, Franchise & Host Agency Affiliation
RSAs HBAs

Vacation.com 23% Other 57%

Other 20%
Vacation.com 38%

Virtuoso 16%
Nexion 11%
AAA 14%
American Express 8%
American Express 9%
AAA 6%
TravelSavers 8%
Virtuoso 6%
Ensemble 8%
Cruise Planners 5%
Signature 8%
TravelSavers 5%
Travel Leaders 7%

Note: Q22a. Please tell us to which of the following you belong: Select all that apply.(n=384/533)


For Leisure Agents, These Days Should Be Coming to an
End…


Travel Agents Are Expecting – and Expected – to Shop
and Book Online


Mobile Travel Applications for Leisure Travel
Explore
destinations, view
sample itineraries
Dream

Share experiences Plan day-by-day
while traveling activities

Share Plan

Navigate location and Book alternatives during
explore surroundings. service disruptions and
Explore cultures and Explore Book ancillary services such as
historical sites based on hotels, restaurants, and
your preferences ground transportation



Travel-Related Mobile Phone Activities (U.S.)
View maps/get directions online 35% 14% 51%

Research local activities such as restaurants and shows
28% 16% 56%
online
Research travel products such as hotel rooms or flights
25% 14% 61%
online
Reserve/purchase local activities such as restaurants
21% 17% 62%
and show tickets online

Check-in for flight, hotel, train, or car rental 20% 22% 58%

Reserve/purchase travel products such as hotel rooms
19% 16% 64%
or flights online

Make online changes to existing travel reservations 17% 18% 65%

Use as a boarding pass or ticket for flight or train 16% 20% 64%

Likely to do and have in the past Likely to do and have not in the past Not likely to do in next 12 mos.
Note: Totals may not add to 100% due to rounding
Source: PhoCusWright's Traveler Technology Survey 2010


Travel Distribution & Social Media

Sizing Social Travel
• More than two in three travelers cite traveler reviews (either on OTAs or
traveler review websites) as influential when planning leisure travel
• More than four in ten travelers say comments from people within their social
networks are influential in the travel planning process
• Facebook referred more than 15.2 million visitors to hotel websites in 2010, a
35% increase from 2009 and more than 400% jump from 2.1 million in 2008
• Of those 15.2 million referrals from Facebook to hotel websites, some
568,000 resulted in a booking, representing a conversion rate of 4% and a
jump of 562% in referred bookers from 2008


Atout France French- Affairs 2011

Recomendados

Recomendados

Más contenido relacionado

Destacado

Destacado (8)

Último

Último (17)

Atout France French- Affairs 2011

Notas del editor