attracting the european market by richard singer - arabian travel market 2014

1 www.travelzoo.com

APPEALING TO THE EUROPEAN TRAVELLER

RICHARD SINGER

2 www.travelzoo.com 2

+ Arabian Travel Market survey findings

+ European travel trends

+ Information sources and the impact of mobile

+ Channel selection and case studies

AGENDA

3 www.travelzoo.com

27 million subscribers worldwide

6.9 million European subscribers

1.6 million global Facebook likes

Over 3m app downloads

108 million unique visitors

worldwide

TRAVELZOO

A leading publisher of travel, entertainment and local deals.

Website statistics

About Travelzoo

Social and mobile Audience

25 offices in 11 countries and 3 continents

NASDAQ listed: TZOO

Founded in 1998

Tailored solutions

Our cohesive mix of advertising

solutions stimulates and captures

demand through email, search

and online channels

A quality audience

We deliver an affluent and

enthusiastic audience who

respond to deals with

incremental purchases

A trusted process

We spend 1000+ hours each

week researching, checking and

validating deals to ensure reliable

content for our subscribers and

the best ROI for our advertisers

THE TRAVELZOO PROCESS

WE TARGET EVERY GEOGRAPHIC LEVEL

LOCAL Local Deals

DRIVE MARKET Travelzoo Getaways & NewsflashTM

COUNTRY WIDE

Top 20® & NewsflashTM

GLOBAL Top 20® & NewsflashTM 27 million subscribers worldwide

6 www.travelzoo.com

ARABIAN TRAVEL SURVEY

Source: Travelzoo EU Survey April 2014; Surveys administered by Travelzoo Sales Operations department using Question Pro survey tool.

Sample picked at random. No incentives, n=3,440

7 www.travelzoo.com

HOW MANY HAVE BEEN TO THE REGION FOR A HOLIDAY

OR BREAK?

30% 31%

70% 71%

UK DE FR ES

8 www.travelzoo.com

THIS IS WHERE THEY HAVE BEEN

9 www.travelzoo.com

FOR THE PEOPLE WHO HAVE BEEN THIS IS HOW THEY

DESCRIBE DUBAI

10 www.travelzoo.com

AND THE PEOPLE WHO HAVEN’T BEEN

UK DE FR ES

THE GOOD NEWS, MANY WILL RETURN TO THE REGION

Yes No

AND THEY WOULD RECOMMEND IT TO FAMILY AND

FRIENDS

UK DE FR ES

BUT FOR THOSE THAT HAVEN’T BEEN, THEY WILL TAKE

SOME CONVINCING

AND THESE ARE THE REASONS WHY…

Culturaldifferences

Language barrier Climate Safety Unsure what it hasto offer

Too expensive Lack of appeal

UK DE FR ES

WHERE WOULD YOU CONSIDER GOING TO IN THE

FUTURE?

Abu Dhabi Bahrain Dubai Egypt Israel Jordan Lebanon Oman Qatar

UK DE FR ES

Yes No

DO YOU CONSIDER DUBAI TO BE A FAMILY-FRIENDLY

DESTINATION?

GREAT COVERAGE IN THE UK

WHAT DO CONSUMERS WANT/EXPECT FROM A HOLIDAY

IN THE REGION?

29.32%

14.66%

28.99%

58.31%

22.46%

11.44%

16.53%

49.58%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Sporting events (ie. Grand Prix/World Cup)

Water-sports ie diving in the Red Sea

A shopping experience

Desert safari

A city break

A twin-centre break using a Middle-Eastern destinationas a stopover

A sun, sea and sand experience

A cultural experience (ie. visiting historic sites)

ES FR DE UK

WHAT IS THEIR TOP WINTER SUN HOLIDAY

DESTINATION?

0% 10% 20% 30% 40% 50% 60%

Arabian Peninsula

North Africa

The Balearic Islands

The Canary Islands

ES FR DE UK

BROADER MESSAGING AND DEEPER CONTENT

WORD OF MOUTH AND TESTIMONIALS WORK

THE EUROPEAN TRAVELLER

TRAVEL BEHAVIOR IN SPRING AND SUMMER 2014 + Germany and the UK lead the recovery in Europe

+ Last year the percentage of adults who took a holiday grew to well over 70%, up 4% YoY

+ Spend increased considerably in 2013 with the average rising to €3,000

+ German travellers are holidaying for longer with 47% over 1 week compared to 39% in the UK

+ The UK are the most frequent travellers (3.5 trips)

+ France, Spain and Italy lag well behind the UK and Germany. Frequency is in decline YoY and

average spend at €2,400

+ International vacations for German and UK travellers is growing significantly. Germany grew from 14%

to 17% and UK from 15% to 17%

+ The majority of German vacations are packages

CONSUMER TRENDS

FAMILY TRAVEL IS IMPORTANT AND GROWING FOR

THE UK MARKET

DE UK DE UK DE UK DE UK DE UK DE UK

Travel with one adultor another as a

couple

Travel by yourself Travel with familyincluding children(<18 years old)

Travel with friends ora group of people

Travel with adultfamily (no children)

Travel as part of anorganised group/tour

0 10 20 30 40 50 60

Special event such as a concert

Proximity

Fit with travel dates

Recommendation by friends/family

Affordability of dining/shopping

Price of airline ticket

Available activities (e.g. snorkelling, swimming, gaming)

Appeal of hotel/lodging amenities

Cultural attractions (e.g. museums, historical landmarks)

Price of hotel/lodging

Prior experience (enjoyed a previous trip there)

Climate

GERMAN TRAVELLERS LIKE IT HOT…

Key factors when selecting an international destination

…SO DO THE BRITISH BUT THERE ARE OTHER

CONSIDERATIONS

0 10 20 30 40 50 60

Proximity

Special event, such as concert or sporting event

Affordability of dining and shopping

Appeal of hotel/ lodging amenities

Fit with travel dates

Recommendation by friends/family

Available activities (e.g., snorkeling,skiiing, gaming)

Price hotel/lodging

Price of airline ticket

Cultural attractions (e.g., museums, historical landmarks)

Prior experience (enjoyed a previous trip there)

Climate

Key factors when selecting an international destination

INFORMATION SOURCES AND THE IMPACT OF MOBILE

HOW WOULD EUROPEAN TRAVELLERS PREFER TO

BOOK THEIR TRAVEL TO A MIDDLE EAST DESTINATION?

I would book via a travel agent or tour operator

I would self-package i.e. book my own flight and own hotel

GERMAN TRAVELLERS HAVE A HIGH DEPENDENCY

ON PRINT RECOMMENDATIONS AND ADVICE

WHICH SOURCES DO UK TRAVELLERS TURN TO?

11% 10% 7% 6%

Tripadvisor Family/friends Online travelagents

Guide books Traditionalmedia

Listings andentertainment

guides

Other Social media

OVER 50% OF UK CONSUMERS USE REVIEWS

DURING THE SELECTION AND BOOKING PROCESS

* Goldman Sachs

Tablets will play an increasingly important role as worldwide

consumer spending via mobile jumps from $204 billion in 2014 to

$626 billion in 2018, according to Goldman Sachs. 535 million

consumers across the globe will make a purchase via mobile this

year, the firm says.

THE SHIFT TO MOBILE PLATFORMS

Desktop

www tablet

www mobile

Mobile web

iPhone app

Android app

Travelzoo Europe

THE SHIFT TO MOBILE PLATFORMS

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2011 2012 2013 2014

of total traffic is via

mobile devices

3,000,000+

app downloads

1 sale every 1.5 minutes

on mobile

TRAVELZOO MOBILE

2011 2012 2013 2014 2015

France 3% 7% 10% 14% 18%

Germany 2% 6% 9% 13% 18%

Italy 1% 4% 9% 14% 20%

Scandinavia 2% 5% 8% 13% 17%

Spain 2% 6% 9% 13% 17%

UK 5% 8% 13% 16% 21%

Total Europe 3% 6% 11% 15% 20%

(Source: Phocuswright EU Consumer)

MOBILE PENETRATION IS GROWING

Only 24 of the top 50 UK travel

companies have a mobile

optimized website

Only 26 of top 50 UK travel brands

have an app, 14 are transactional,

3 also have tablet apps

16 of the top 50 UK travel

companies have no mobile

presence at all

Source: IAB – November 4, 2013

ARE TRAVEL COMPANIES EMBRACING THIS?

THIS IS HOW IT LOOKS TO THE CONSUMER

OWN THE END TO END BOOKING PROCESS

IN DESTINATION MARKETING

CLEAR TRENDS OF SMARTPHONE USAGE

Hotels Restaurants

‘41% of UK travellers research local activities

such as restaurants and shows on their

smartphones’

(Source: Phocuswright EU Consumer)

‘65% of same-day hotel reservations are made

from a smartphone’

(Source: Hotel Marketing.com)

CHANNEL SELECTION AND CASE STUDIES

1. I know which hotel and place I want

2. I know where I want to go but not where I want to stay

3. I don’t know where I want to go, I just want to go somewhere

4. I'm not even thinking about going anywhere just now

THE WHAT, WHERE AND WHEN

The states of leisure consumer

THE FLEXIBLE EUROPEAN TRAVELLER

Search, Metasearch, OTA, GDS, etc.)

Creating demand:

Push Marketing

Travellers don’t

know where they are

going and can be

inspired to visit

(Email marketing,

travel content sites)

Demand Curve

Capturing demand:

Pull Marketing

Travellers have already

selected their destination and

are now shopping for flights

and hotels

100% Capacity

The states of leisure consumer

THE FLEXIBLE EUROPEAN TRAVELLER

WORLDLY

50% are inspired by Travelzoo

deals to take a leisure trip

FLEXIBLE

50% are totally flexible as

to when they travel

SPONTANEOUS

66% have no preference as to

which time of year they travel

A luxury Dubai trip sold over 400 room nights

THE CAMPAIGN

+ £639 for a three night package at

Atlantis, The Palm with return flights,

breakfast, dinner and a room upgrade

THE OBJECTIVES

+ Encourage longer length of stay by

upselling to room nights

+ Expand client base to a new audience of

affluent consumers who are ready to book

CASE STUDY

A £699 Dubai cruise generated over 100 passengers

THE CAMPAIGN

+ £699 for a seven night cruise to Dubai,

Oman and Abu Dhabi

+ Included return flights, free onboard

spend of £100 and airport transfers

+ Various departures between November

and January

THE OBJECTIVES

+ Upsell to balcony and outside cabins

+ Upgrade passengers to all-inclusive

+ Fill capacity on key dates

CASE STUDY

THE CAMPAIGN

+ 799 € five night package in new 5-star

hotel Ajman Saray with sea view room,

half board and flights

+ For a one week stay, the package costs

999 € per person

+ Valid for travel in February & March

Emirates: luxury holiday at newly opened 5-star hotel

CASE STUDY

THE OBJECTIVES

+ Increase room occupancy of a new hotel

with plenty of availability

+ Promote the new property

+ Cross-sell one week stay to generate

additional revenue

CASE STUDY

OBJECTIVES

+ Brand Abu Dhabi as leading leisure

travel destination

+ Stimulate visits to the destination

+ Support trade partners in each market

“We have received several enquires for Abu

Dhabi due to Travelzoo’s promotion and there

is an increased interest in Abu Dhabi. We

definitely would like to participate in this

promotion again”

Deputy Managing Director of Orient FlexiPax

ADTA Trade Partner

BRANDING RESULTS

30.1 million in total exposure

+ Users spent 2.13 minutes on page

+ User engagement drove:

2,276+ hour in total viewing time

= 273,120 thirty second TV spots

+ Flight searches increased by 412%

compared to the previous year

+ 406% increase YoY searches for

Abu Dhabi on Travelzoo

TACTICAL FEEDBACK

• European travel is on a recovery, especially in the UK and Germany

• There is a growing propensity with the major markets in Europe to visit the region and

return.

• Suppliers and Tourism Boards will have to be innovative and persistent to break through

some of the challenging perceptions that still exist.

• Content marketing, demographic targeting and broader communications directly to the

consumer or via trade partners is essential to gain market share. Word of mouth should

be encouraged and rewarded.

• There are some specific nuances with each of the European markets with how they

travel, what they expect and which sources they refer to for inspiration, advice and

confirmation.

• Mobile footprint is critical to gain share and to differentiate during all phases of the

research and booking process and in-destination.

• There is high fragmentation of distribution within Europe. Suppliers should use them to

attract customers in different states of propensity to travel.

The four states of leisure consumer

SUMMARY AND CONCLUSIONS

Richard Singer

Managing Director, Europe

rsinger@travelzoo.com

51 www.travelzoo.co.uk

Visit our trade microsite http://solutions.travelzoo.com/uk/

attracting the european market by richard singer - arabian travel market 2014

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