Digital TravelTransformationImproving Your Marketing in Southeast Asia’s Travel and Leisure Landscape

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Introduction

The digital traveller has a borderless existence. They don’t see channels, devices, and publishers – they just see their perfect holiday or next adventure. This eBook will provide you with key insights and initiatives to simplify and person-alise the customer journey, helping you seize opportunities across marketing dimensions, making your customers’ dreams a reality.

Table of Contents

Overview of the Travel Industry in Southeast Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Travel Trends & Insights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Industry Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Marketer Spotlight: Divya Ramaswamy | Vice President of Digital | Wego . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Advertising Recommendations to Boost your Brand and Drive Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

What’s Next for the Travel Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Success Story: Wego . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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eMarketer’s forecasting analyst Christopher Bendtsen comments

“Mobile booking’s rising popularity, combined with the success

of online travel agencies, will fuel significant digital travel sales

in China, India and the major developing countries in Southeast

Asia. This creates huge opportunities in the digital travel

space, and in particular, mobile.”

Digital Travel Sales Share Worldwide, by Region, 2015% of total

Source: eMarketer

Overview of the Travel Industry

The travel industry has unmistakably evolved over the last decade due to the development of the web and impact of digital marketing, with many people acting as their own travel agent. The web makes it convenient to research, compare deals, and book your own travel, especially while on the go with a smartphone or tablet. Digital has spurred a complete overhaul in our approach to travel. Globally, internet travel booking revenue has grown by more than 73% over the past five years to reach a staggering 57% of all travel bookings. A holiday overseas is no longer a once-in-a-lifetime opportunity, with multiple trips and “gap years” now the norm. The average traveller is now more discerning and travel hungry than ever.

Furthermore, research published by leading travel site Expedia, found that Millennials were more likely to blend work trips with leisure, adding on a few days for tourism on to business trips. This trend creates a whole new type of semi-business tourism, spurred on by connected consumers quickly finding hotels, flights, and tourist information sometimes on the same day.

As marketers, it is becoming increasingly difficult to keep up with the spontaneity and movement of the average traveller. Southeast Asia in particular has become a tourism superpower over the last 10 years, transforming from what many believed was an alternate destination for budget back-packers, to a major destination for serious international travellers. The region recently dominated MasterCard’s 2015 top 10 Global Destination Cities Index, which tracks airline ticket purchases and other travel spending data, with 4 Southeast Asian countries making the top 10. Southeast Asia is extremely well connected with TechinAsia reporting 42% of the world’s internet users reside in Asia. This high concentration of web users has been instrumental in opening up the region to tourism. Take Singapore for example, where almost 50% of web users regularly access travel services on the web, more than the worldwide average of 35%.

eMarketer research also reveals that digital travel sales in Asia-Pacific rose by almost 20% to $139 billion in 2015 with the region set to outpace Western Europe and North America by 2018. Indonesia is leading the pack with an estimated 33% growth for 2016.

With the region showing no signs of slowing down, marketers need to embrace the power of digital marketing in order to keep up with today’s gallivanting consumers – remaining nimble and adapting to change to build a loyal brand and profitable business.

Asia-Pacific26.1%

North America33.6%

Western Europe28.4%

Central & Eastern Europe1.8%

Middle East & Africa4.5%

Latin America5.6%

3© 2016 Kenshoo Ltd.

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Spend (adjusted)

Nor

mal

ized

Vol

ume

1.801.601.401.201.000.800.600.400.200.00

+12% YOY

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Spend (adjusted)

Nor

mal

ized

Vol

ume

2.50

2.00

1.50

1.00

0.50

0.00

+83% YOY

Travel Trends and Insights

Kenshoo global data with Asia Pacific and Southeast Asia breakouts reveal some key insights into the digital marketing trends for search, social, and mobile advertising. The research highlights the key engagement metrics that are driving the growth in the travel industry.

Global Search Advertising Spend

Global Travel Search and Social Performance

2014–2015

Year on Year

17%

83%

66%

56%

-6%

Quarter on Quarter

-12%

-19%

-6%

-8%

-2%

Cost per Click

Spend

Impressions

Clicks

Click-through Rate

Year on Year

-18%

12%

21%

30%

7%

Quarter on Quarter

-9%

-27%

-35%

-20%

22%

Search Advertising Social Advertising

Across the travel industry globally, search is still very strong, with year-on-year (YOY) growth for spend, clicks, and click-through rate (CTR), while cost per click (CPC) was down 18%. The decrease in the quarterly metrics reflect the seasonal drop in Q1 after a busy Q4 period.

Global Social Advertising Spend

Global mobile spend has more than doubled YOY from 10% to over 20%, but still has room for growth. Clicks from mobile devices reached over 30% share in Q3 and Q4 in 2015, indicating the rate of consumer adoption versus advertising spend growth and the lower cost of mobile clicks.

4© 2016 Kenshoo Ltd.

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Spend (adjusted)

APJ Share of Search Spend and Clicks from Mobile Devices

Cost per click in Asia Pacific and Japan reflects closely to what is happening globally with CPC decreasing 10% last quarter in the region, compared to 9% globally. YOY CPC data also mirrored what is happening globally with a 26% decrease in APJ, compared to an 18% decrease globally. This indicates that, as a whole, campaigns are becoming more optimised over time.

Nor

mal

ized

Vol

ume

1.801.601.401.201.000.800.600.400.200.00

+24% YOY

APJ Search Advertising Spend

Spend in APJ was up 24% year on year compared to 12% globally, showing strong growth and confidence in paid search advertising with travel marketers in the region.

In APJ, travel marketers are increasing mobile investments more with these devices accounting for 29% share of paid search spend in Q4 2015, compared to 23% globally. Clicks from a mobile device steadily increased throughout the year from 32% in Q4 2014 to an impressive 46% in Q3 and Q4 2015.

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Spend Clicks

% o

f Tot

al fr

om

Sm

artp

hone

s O

NLY

50%45%40%35%30%25%20%15%10%5%0%

16% 19%

32% 37%

24%

42%

28%

46% 46%

29%

Cost per Click Spend Impressions Clicks Click-through Rate

Quarter on Quarter | Year on Year

Asia Pacific and Japan (APJ) Search Performance

-10% -26% -20% 24% -13% -9% -10% 68% 4% 85%

Social has also seen some solid gains YOY with the global data revealing an increase of 83% in spend and a 56% increase in clicks. The increase in CPC is reflective of the increasing competition on social platforms.

5© 2016 Kenshoo Ltd.

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

CPC CTR

Aver

age

CP

C (U

SD

)

$0.34

Clic

k-th

roug

h R

ate

5.0%4.5%4.0%3.5%3.0%2.5% 2.0% 1.5% 1.0% 0.5%0.0%

$0.50$0.45$0.40$0.35$0.30$0.25$0.20$0.15$0.10$0.05$0.00

4.5%

Cost per Click Spend Impressions Clicks Click-through Rate

Quarter on Quarter | Year on Year

Southeast Asia (SEA) Search Performance

The standout metric in APJ was click-through rate with a substantial 85% YOY increase compared to -6% globally, potentially driven by both impression-to-click ratios and an increased focus on engagement by travel marketers in the region.

APJ Search Cost per Click and Click-through Rate

-16% 62% -21% 758% -4% 70% -7% 428% -3% 210%

6© 2016 Kenshoo Ltd.

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

CPC CTR

Aver

age

CP

C (U

SD

)

$0.40

$0.35

$0.30

$0.25

$0.20

$0.15

$0.10

$0.05

$0.00

$0.18 Clic

k-th

roug

h R

ate

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

SEA Search Cost per Click and Click-through Rate

Cost per click in SEA averaged $0.25 USD in 2015 with a seasonal peak in Q2 of $0.35 USD, reflecting the competitive time for travel bookings. The SEA region has lower average CPCs than Asia Pacific (averaging $0.41 USD) and globally (averaging $0.55 USD). Click-through rates are also remarkably high in SEA averaging 8.1% over the 5 quarters, compared to 3.5% in APJ and 3.2% globally. This is reflective of highly engaged audiences and efficient paid search advertising campaigns in the region.

While the overall spend levels are not stable enough for proper analysis, we can see that mobile search is booming in SEA, with the first two quarters in 2015 revealing over 50% of clicks from a mobile device. This reflects the mobile-first landscape in the region and exceeds the share of clicks from a mobile device in both Asia Pacific and globally.

Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Spend Clicks

% o

f Tot

al fr

om

Sm

artp

hone

s O

NLY

60%

50%

40%

30%

20%

10%

0%

SEA Share of Search Spend and Clicks from Mobile Devices

28%

39%

48% 54%

39%

56%

32%

46% 42%

33%

9.8%

7© 2016 Kenshoo Ltd.

Industry Challenges

The travel sector faces challenges every year with increasing competition and fluctuating market trends. As such, marketers need to be top if their game to drive consistent performance despite a volatile market, remaining nimble enough to handle any challenge or opportunity in their path.

Consumer Feedback & Reviews

To face these challenges head on, travel brands need to adopt an agile marketing approach. This is Kenshoo’s mentality: It’s not about the channel, the publisher or even the tech; it’s about empowering you, the marketer, to perform – to help keep up with your customers today and wherever they go next.

Positive reviews are now imperative to driving travel bookings, with many travel

organisations finding managing this very time consuming. Research on Statisticbrain indicates that 81% of travelers find user reviews important and that 49% of people won’t book a hotel without reviews. Brand reputation and review monitoring have become crucial factors to success with sites like TripAdvisor making a big impact on the bottom line of travel organisations.

The travel industry has been one of the most affected industries when it comes to social media. This has a lot to do with the per-sonalised experience from photos, check-ins, and status updates, but even more dramatically for customer service, as customers can now vent frustrations directly to a brand, which can go vi-ral very quickly. One leading airline in APAC has empowered their social media response team to make key decisions and take action immediate-ly from a complaint, helping alleviate the chal-lenging nature of such an open platform.

Social Media Influence

Measurement & Attribution

Initial results of a survey of travel marketers Kenshoo has been running

during early 2016 identified the main challenges in the industry as ‘attribution and customer journey mapping’ and ‘proving ROI across channels.’ Attribution is becoming more important as marketing teams become less siloed in their view of the customer journey and want to be able to see the ‘bigger picture’ and how each marketing touchpoint impacts one another. In addition, while digital budgets are increasing, travel marketers continue to struggle to show the impact of their investments and the value their programs are providing.

The weakness and potential volatility of many currencies against the US dollar is likely to have an impact on travel in the region but this could also promote more travel inside Southeast Asia. Improved Visa processes will also help increase travel, with the World Tourism Organisation showing proposed visa improvements in ASEAN (Association of Southeast Asian Nations) could generate 6 to 10 million visitors in 2016. The report also indicates that Southeast Asia is now one of the most open in the world in terms of tourist visa requirements, further helping promote travel in the region.

Market Forces

8© 2016 Kenshoo Ltd.

Marketer Spotlight:

Southeast Asia as a region is a fascinating and exciting place to be at any time, and the travel market continues to grow exponentially. Some of these countries are experiencing huge changes in the number of people who travel, which is also facilitated by proximity and intense competition between hotels and airlines, especially low-cost-carriers (LCCs). Asia has the largest LCC network in the world and both domestic and international travel activity continues to climb.

As a marketer, it’s important to differentiate and customise the Wego user experience to suit each country, as each has unique languages, travel trends, and tastes. It’s a great challenge to not only cater to, but connect and engage with, such a diversity of travel audiences.

Divya Ramaswamy | VP, Digital Marketing

Why do you believe Southeast Asia in particular is a great place to be a travel marketer?

Wego has developed a great localisation strategy that has been very well received by travellers and clearly resonated with our users through 50 country sites. Our commitment to developing the best possible user experience through both product and design helps put Wego ahead, and we’re now the leading travel search site in the Asia Pacific and Middle East.

Wego’s travel app for iOS and Android consistently is featured in the top five downloaded apps in the region and regularly featured by both iTunes and Google Play stores.

Smartphone penetration continues to increase in our markets, as is demand for convenient and tailored methods of finding the best travel options online. As a result, product development is a key commitment of our team.

The travel industry is booming in Southeast Asia; with more and more travel service providersentering the market, how does Wego stay head of the competition and the evolving ecosystem?

The digital space is intensely competitive and continues to be the world over. Each channel requires a unique approach, in a landscape that seems to evolve every day. The most important factor is to remain creative and evolve with it.

It’s important to deliver messages in a unique and uncluttered manner, which requires marketers to be extremely clever. There is no one formula that works for all, which adds to the challenge for marketers to remain fresh and flexible.

What are the biggest challenges you encounter with your digital marketing strategies?

Mobile has changed everything, especially in Southeast Asia. We know that travellers spend more of their time researching travel options on their smartphone than on a desktop, which is why our talented mobile team has invested so much time in developing Wego’s travel app.

We’ve found that we need to be responsive to a variety of purchasing behaviour unique to mobile, and more conscious of the different touchpoints during the buying cycle. Messaging needs to be non-intrusive and specifically tailored for relevance, in what some might call mass customisation.

How has mobile changed the way you reach and engage your audience?

9© 2016 Kenshoo Ltd.

There are so many businesses supplying first and third party data, and it’s important that it’s used effectively. It’s necessary to understand how that data is beneficial to you, and in what situations it can be applied.

At Wego, data helps us to make strategic and informed decisions in all our marketing approaches. There are a variety of market segments in the travel business, and we need to know the path in which different travellers take online, and understand why. For instance, business and leisure travel intentions are completely different, along with age groups, target country, and origin. Data provides us with an ability to better understand each of our markets so we can deliver relevant marketing messages to them.

What are some steps or best practices you can share on how marketerscan make data a bigger part of what informs their marketing strategy?

Travel, particularly for pleasure, is an immersive and emotive experience, and it’s important to connect with users at that personal level. Experimenting with different formats, making more use of video, creating compelling content, and combining user generated content with brand messaging should be priorities for online travel marketers.

What are some of the priorities you think digital marketers inthe travel industry should focus on in 2016?

Improvements in technology, particularly in the media buying and bidding areas, are interesting. Various third party platforms, such as Kenshoo, help in attaining a healthy balance between automation and manual ops. These advancements have the most impact in increasing efficiency and helping marketers spend more time on strategy and analysis, which is where focus should be directed.

How has technology impacted your digital marketing campaigns?

Online travel is the one space that will continue to grow and expand in scope. Users’ expectations are also changing and evolving. The focus is on unique experiences, with the social and sharing aspects assuming unprecedented importance, and solo travel is becoming popular again.

The travel industry is required to provide more than just booking facilities or act as information providers. Brands need to differentiate themselves, either with value added services, offering the best prices, providing tailored itineraries to suit different preferences, or combining different modes of transport to offer the most cost effective trip. It’s about being creative and providing great service.

Digital marketing however is likely to follow a more personalised route. We now have more understanding of our users through data than ever before, so it follows that we continue to deliver more relevant and useful communications to our users, and efficiently meet their needs.

What’s next for the travel industry? How will this affect your digital marketing strategies?

10© 2016 Kenshoo Ltd.

Recommendations to Boost Your Brand & Drive Performance

As travel marketers you need to be as emotionally attached to the travel dream as your customers, but being there at the right apertures in the customer journey can be difficult. In order to keep up, you have to fortify yourself, remain nimble, and constantly adapt to fluctuating market trends, technologies, and opportunities.

Here are a few tips from Kenshoo to help you piece this all together – allowing you to maximise investments in one channel by using insights to boost cross-channel performance.

The majority of consumers now start their travel journey on a search engine. A study from Ipsos MediaCT found that 57% of leisure travellers and 64% of business travellers always start their travel booking with a search, illustrating the importance of a strong paid search presence.

Advanced algorithms can help ensure that every dollar spent will be the best investment across your entire search portfolio. Automated workflow solutions can simplify the burden of managing millions of keywords. Bulk management tools and proactive alerts also allow you to keep focused on other more strategic activities while you scale your efforts across engines to maximum efficiency and visibility in a competitive market.

Search

TIP

1

Seasonality is key, especially in the travel industry. Historical trends and market dynamics should be incorporated into your bidding and budgeting strategies to boost bids on high-traffic keywords on key days or times to help increase conversions. Technology such as Kenshoo can help scale and schedules these actions.

TIP

Portfolio-level bid management optimises towards an overarching performance goal, leveraging advanced algorithms to compile historical data and build hundreds of thousands of statistical models to gain insights into the impact of each bid change upon your entire keyword portfolio. You set the portfolio goal, such a decrease in cost per acquisition (CPA), and the algorithms go to work to maximise the campaign results.

TIP3

2

Leverage Algorithms and Automation

Boost Bids on Key Dates and Times

Drive Performance with Portfolio-Level Bid Management

11© 2016 Kenshoo Ltd.

Mobile apps can help build loyalty and repeat business with customers. Technology can help drive mobile app installs and lifetime value through unique algorithms designed specifically for this unique environment.

TIP

1

Mobile can be activated across both search and social to reach audiences by geo, device type, and OS across mobile web and native apps.

TIP

Facebook’s new Lead Ads format is designed to improve the mobile signup and form-fill experience. The new design enables consumers who have clicked the ad link to fill in the lead form in Facebook, resulting in some very strong click through rates and conversions so far since its launch. In the travel industry this could be especially valuable to get people to sign up to a newsletter, travel quote or offer.

TIP3

2

Social media platforms are becoming increasingly influential in inspiring today’s traveller, specifically in Southeast Asia where 2015 research from the W&S Group ranked social media as the most popular media for researching travel destinations across Indonesia, Thailand, and Vietnam.

Leverage a technology platform to allow you to quickly create and launch thousands of ads and campaigns, and efficiently make mass changes and duplicate high-performing campaigns. You can also schedule and automate changes to keep your program running as desired.Social

TIP

1

Engage your most relevant audiences based on key demographics such as age, gender, interests etc on the most popular social media destinations such as Facebook and Instagram. You can also target your database directly through Facebook’s Custom Audiences where you can upload your known customers for more 1:1 messaging. Technology like Kenshoo can further improve your per-formance by easily saving, reusing, and updating libraries of your most profit-able and influential audiences.

TIP

Look to broaden your social advertising efforts across publishers, as con-sumers are spending increasing amounts of time on a variety of social destina-tions.. The travel industry especially lends itself to the photographic nature of Instagram so don’t miss out on engaging key audiences for both branding and performance potential on this influential site. Through the Kenshoo platform, you can manage ads across all publishers to reduce setup time.

TIP3

2

Mobile is a behaviour not just a technology. Consumers are finding a simpler and easier path to purchase through booking their trips on their mobile devices. In the US, eMarketer predicts that 51.8% of travellers who book trips via digital means will do so using a mobile device in 2016—up from 43.8% in 2015.

Mobile

Diversify Your Efforts

Target Your Best Audiences

Automate the Creation, Management & Optimisation of Social Ads

Drive Mobile App Installs

Execute Pinpoint Targeting

Acquire New Customers with Facebook Leads Ads

12© 2016 Kenshoo Ltd.

Recreate your search success through extending your reach across channels to social advertising by automating crossover ads for your best performing products and offers. If you are finding it challenging to anticipate which products are likely to perform well on Facebook and maintain consistent performance and spend, technology like Kenshoo can make Facebook an ‘always-on’ channel and remove much of the guesswork and expense by leveraging powerful performance signals from other channels.

TIP

1

Leverage the intent signals from your search campaigns to create Custom Audiences on Facebook. This will allow you to show ads to consumers that have searched for specific keywords and also use Facebook’s targeting capabilities to find more customers like them. This can help you drive a higher return on investment for Facebook ads while, at the same time, improving search engine marketing campaigns.

TIP

Facebook Dynamic Product Ads can help you promote relevant products to consumers browsing your product catalogue on your website or mobile app. As travel marketers, this could be be used to target customers who have abandoned their shopping cart when purchasing a hotel or flight, showing them the same abandoned products on Facebook.

TIP3

2

As the consumer path-to-purchase continues to become more dynamic and varied in the travel industry, you must adjust strategies to ensure you are present across key marketing moments.

Cross Channel

For all of these best practices, an agile marketing suite like Kenshoo can help your marketing efforts in search, social, mobile, and beyond really takeoff, providing you with the strategy, speed, power, and ingenuity to reach new heights.

Retarget Interested Customers with Dynamic Product Ads

Match Clicks on Search Engine Ads to Audiences on Facebook

Translate Search Ads to Social

13© 2016 Kenshoo Ltd.

What’s Next for the Travel Industry

It is an exciting time to be a travel marketer in Southeast Asia. The industry is booming which paves the way for some exciting opportunities to grow your brand. Find below some of the key initiatives that can help take your marketing to the next level in 2016.

As Wego’s Divya Ramaswamy pointed out, it’s important for travel marketers to connect with users on a personal level. Luckily, marketers have access to more data than ever and technology continues to improve to better activate those insights throughout the customer journey. Travel marketers must strive to provide a relevant and connected experience across key apertures. Some ways to do this include: offering customised deals and upsells based on search and purchase history and creating opportunities to drive loyalty with frequent customers.

Deliver More Personalisation

The dominance of mobile is set to further increase this year with research indicating more than 50% of travel booking will be made through the mobile device. Travellers are looking for convenience and mobile fits the bill. Marketers need to make sure that mobile forms a large part of their overall strategy this year. While a mobile optimised site is essential, custom mobile apps enable consumers instantaneous access to the services they need while building brand loyalty. Kenshoo’s initial survey of global travel marketers indicates that these advertisers are upping mobile budgets, so increased attention to targeting, messaging and optimisation across these devices will be paramount.

Be More Mobile

A smooth and easy customer experience is another key factor for success in 2016. Customers don’t see channels; they just want a seamless experience, so being able to provide a consistent message and offer across channel is essential to building a strong and profitable brand. A great example of this is Expedia’s recent ScratchPad technology that tracks a logged-in user’s searches regardless of device, so users can continue their search activity seamlessly, even if they switch devices partway through the process.

Make Booking Easier

14© 2016 Kenshoo Ltd.

Success Story

Increase traffic and conversions to the Wego country sites in priority regions

Reach and exceed ROI targets

Understand the impact of SEM on overall sales

Objectives

Challenge

Wego’s audience is diverse and active in its core regions of Southeast Asia, the Middle

East and India, and the program requires the team to be able to efficiently manage large volumes of traffic and increase ROI.

Solution

Adopt best-in-class bid management and optimisation tools to increase conversions

and revenue

Performance results have been impres-sive since implementing Kenshoo in early 2012, seeing double-digit decreases in CPA over the years and a triple-digit increase in conversion rates.

A look at January 2016 performance also un-covered continued incremental gains in per-formance across key metrics such as Clicks, Conversions, ROI, and Revenue.

ResultsImprove the efficiency of the SEM team through flexible campaign management tools

Increase productivity with time saving tools such as tracking and scheduled reports

Key program elements were catego-rized and grouped through Dimen-sions and Categories labelling for more efficient tagging, improving the overall manageability of campaigns.

Leveraged tracking pixels to improve measurement and scheduled the deliv-ery of reports on key performance met-rics to help fine-tune performance and automatically take action on insights.

Overview

Wego is the leading travel search site in Asia Pacific and Middle East and is available in more than 50 localised country sites in 20 languages. Headquartered in Singapore, the travel giant has regional offices in Jakarta, Bangalore and Dubai. Wego searches hundreds of global travel websites including airlines, hotels, and online travel agents, presenting an unbiased and channel neutral view of travel prices.

Optimised for relevance to high-value actions and audiences.

15© 2016 Kenshoo Ltd.

Travel Trends & Insights are based on five quarters of performance data from Kenshoo advertiser and agency accounts specific to the travel industry, spanning Google, Bing, Baidu, Yahoo!, Yahoo! Japan and the Facebook® Audience Network. Some outliers have been excluded. Globally, the resulting sample includes more than 60 billion impressions, 1.8 billion clicks and $1 billion (USD) in advertiser spend.

For charts showing spend and impressions/clicks, volume metrics have been normalized to a factor of 1 based on the initial volume for the first quarter of data. Data points from subsequent quarters are based on a multiplier from the first quarter. For example, 1.6 means that volume is 60% greater than volume on the initial quarter measured.

Ad spending and CPC are measured using Ex-FX or “Constant Currency” adjustments, where results are based on native currency, and only translated to common currency after aggregation.

Methodology

16© 2016 Kenshoo Ltd.