Consumer Travel Insights by STR - Traveller Journey Report - Maravilla Los Cabos
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Consumer Travel Insights by STR Traveller Journey Report © 2019 STR, Inc. All Rights Reserved. Any reprint, use or republication of all or a part of this presentation without the prior written approval of STR, Inc. or STR Global, Ltd. trading as STR (collectively “STR”) is strictly prohibited. Any such reproduction shall specifically credit STR as the source. This presentation is based on data collected by STR. No strategic advice or marketing recommendation is intended or implied.
Background
The global travel industry continues to grow and transform as destinations expand and new technologies facilitate different approaches to travel. We have
already seen impressive growth in tourism arrivals in 2018 with a 6% increase between January and June, according to the World Tourism Organisation.
That growth path, therefore, looks set to eclipse the 5% projection made for 2018 by the UNWTO.
Tourism across the globe continues to be one of the fastest growing industries—in the U.K. alone, the sector now supports more than one in 10
jobs, according to VisitBritain. Tourism plays a vital role in the global economy and will be a key export and driver of inward investment for many
developed and developing countries in 2019 and beyond. With this in mind, it is more important than ever for businesses, governments and
other organisations to understand the travellers who make it all possible.
In this Consumer Travel Insight series, STR takes a deep dive into the traveller journey. Based on independent primary research conducted This report provides a high-level look at
in 2018, we examined each stage of this journey—planning, booking, budgeting, and how technology and travel brands interact with
travelling. This report series provides actionable intelligence to inform and drive tourism planning and decision making.
the vast insights gained from our study.
As always, we welcome any queries or
The research was conducted by STR’s Tourism Consumer Insights team—our tourism and hospitality researchers and analysts,
based in Edinburgh, Scotland. An online survey was conducted in October 2018 using STR’s Traveller Panel—a unique community comments. We look forward to discussing
of approximately 28,000 engaged travellers from across the globe. Overall, 2,228 panellists took part in the research and the data with you in more detail and helping
were asked about their behaviour and experiences regarding their most recent international holiday. This covered how they
interacted with certain travel brands and technology, how they planned and booked their holiday, and how the traveller’s you with your data and decision making needs.
money was spent in a destination.
Traveller Profile
A total of 2,228 travellers who had been on an international leisure trip in the past 12 months were surveyed and Average length of holiday: 13 nights
reflected broad demographics, such as likelihood to travel and a range of holiday types.
9% 30% 35% 26%
1-3 Nights 4-7 Nights 8-14 Nights 15+ Nights
45% 55% 21% 41% 20% 18%
Solo traveller Couples Families Large groups
4% 15% 17% 25% 23% 17%
16-24 25-34 35-44 45-54 55-64 65+
In this report series, travellers between 38% of holidays involved visiting Frequent travellers (three or more Infrequent travellers (one to two
the ages of 16-34 are grouped together to multiple international destinations in international holidays per year): 29% international holidays per year): 71%
form millennial travellers. the same trip
Travel Planning
and Motivations
© 2019 STR, Inc. All Rights Reserved.Travel Planning
A thorough understanding of when and how travellers plan their holidays is critical to the travel industry. This information Forms of information used to plan holiday
can advise the tone and timing of marketing campaigns and product/service launches, as well as identify the most suitable
channels for marketing and promotion efforts. We have set out to establish the timing and information sources that travellers
associate with travel planning. We also aimed to understand the proportion of travel planning that takes place before and after
holiday arrival.
Travel to/from The average travel planning process begins 69% 51% 37% 29% 20%
Choosing destination Accommodation Personal
destination almost six months in advance with the choice of Online review site Guidebooks Apps Social media
recommendation
destination. Notably, the planning of travel and
accommodation takes place simultaneously, Linked to the timings outlined above, travellers were most likely to turn to online review sites, in particular
5.88 4.53 4.51 on average four and a half months before (40%) and (15%). Personal recommendations were important to 51% of
months months months the holiday. The results suggest that holiday travellers whilst 37% relied on guidebooks and apps, and 20% turned to social media. These findings are very
planning is an ongoing process with travel similar to what we found in our 2017 survey suggesting a large degree of consistency.
in advance in advance in advance budget planning happening roughly four months
in advance and activity planning occurring In addition, 33% of travellers indicated that they would be interested in using a travel service that automatically
Travel money / budget Activities approximataely three months in advance. suggests destinations for visiting based on their browsing habits. This possibility was of more interest to millennials
(43%) than travellers 55 and older (27%).
In general, travellers 55 and older plan much
3.98 2.93 further in advance than millennials. For
instance, travellers 55 and older choose their
Overall, travellers indicated that two-thirds of their
holiday activities were planned before they arrived at 65% 35%
months months
destination 6.46 months in advance compared their destination with one-third planned on arrival. This Pre-planned In destination
in advance in advance with 4.59 months for millennials. was broadly the case regardless of age or life stage.Motivations for Travelling
Some of the key motivations for international leisure travel are well known, for to travel. We sought to re-visit the core motivations for leisure travelling and also Value for money was a key factor in the choice of holiday destination regardless of age or lifestage,
example, to experience different cultures and to relax and unwind. These sorts of understand additional factors that influence the choice of a holiday destination. though of note, it was much more important to millennials than the over 55s. Millennials were also
motivations are often weighed against practical factors, such as cost and distance more likely than average to place importance on the safety of their destination, which may in part
be linked to the likelihood that they will be visiting new places and cultures as highlighted above.
In addition to value for money, over 55s placed great importance on ease of access to their
destination and the quality of accommodation, perhaps reflecting expectations linked to higher
48% 41% 39% 38% 36% 35% 35% spend levels.
Interesting history Always wanted Time with Experience new Relax & unwind Enjoy local Beautiful architecture
& heritage to go friends / family places/cultures food & drink & buildings Top factors in choice of holiday destination
1 Value for money
Almost 50% of all travellers were motivated by an interest in their In general, motivations were linked to the destination—heritage, culture, 2 Ease of access to destination
location’s history and heritage. This was especially the case for travellers cuisine and architecture—with friends & family time and relaxing &
3 Range of activities to undertake
aged 55 and older, whilst in contrast, millennials were more motivated unwinding also important. This is very similar to the motivations we found
by the opportunity to experience new places/cultures. This is perhaps a in our 2017 survey and suggests the travel industry can be confident in its 4 Quality of accommodation
reflection of the difference in life stage between the two age groups, with understanding of these underlying motivations. 5 Safety of destination
millennials more likely to be visiting destinations for the first time. 6 Ease / simplicity of booking
7 Food & drink in destination
8 Environmental impact of holidayInfluences on Travel Decisions
Over and above the traditional motivations and factors that inform travel planning, countries, security concerns and environmental occurrences. When considered
a new layer of issues have become influential recently. Increasingly, travellers need together, these issues can cast a shadow over the global tourism industry, but how
to be aware of issues such as over-tourism, travel bans, political tensions between important are they for travellers?
55% 43% 43% 24%
Have decided against travelling to a destination Travel always or often at quieter times of the Have lost interest in visiting a destination due to external Have cancelled a holiday because of unforeseen
because there will be too many tourists year in order to avoid other tourists events such as political tension or a terror threat or external events (usually personal circumstances)
Results suggest that high awareness and behaviour are linked to over-tourism with over 50% of all The influence of unforeseen and/or external events is clearly demonstrated by the finding that
travellers highlighting an occasion when they have decided against travelling due to concerns about over two-fifths of travellers have lost interest in a destination because of factors such as political
tourist numbers—43% stated that they always or often travel at quieter times of the year to avoid other tension or terror threats. The impact on travel decisions seems equally felt regardless of age with
tourists. Travellers 55 and older were much more likely than millennials to have acted in these ways. millennials, 35-54 year olds, and travellers 55+ all equally affected by these factors.The Role of Social Media
Social media platforms such as Facebook, Twitter and Instagram have become ubiquitous in daily life in many Use of social media in holiday planning Aspects of social media used for planning holidays
parts of the world. These platforms influence various aspects of our lives and inform a variety of decision-making highlights that the common trend is ‘research’,
processes, but to what extent is social media important when planning international leisure trips? We sought to find with travellers using social media to inspire See where other people have travelled 66%
out by asking travellers a series of questions on the role social media plays in travel decisions. and inform their holiday planning. In line with
Inspires ideas for holidays 57%
previous analysis, millennials are more likely
Almost half of travellers had used information on social media to help to use social media in this way, although the See the ‘real side’ of destinations 48%
plan a holiday at some point. As one might expect, millennials (59%) differences between millennials and travellers
were most likely to have done this, followed by 35-54 years olds 55 and older are quite small, suggesting these Constant source of travel information 44%
(51%) and 55 and older (36%). The difference between millennials habits are quite common across age ranges. Compare different places 30%
and over 55s (23 percentage points) suggests that the travel industry 47%
must continue to recognise the role and importance of social media Used information on social
as an aid to holiday planning. media to plan a holiday
The role of social media influencers (i.e. a Role of social media influencers
person/body who has established credibility in
a specific industry and has access to a large Follow travel social 21%
media influencers
audience), is an interesting development for
the travel industry. Our findings suggest that Increased trust in review sites if 17%
36% 17% 16% influencers do play a role in travel planning with content from travel influencer
More popular with Used quite equally Significantly more 21% of travellers following influencers who
millennials than over 55s regardless of age group popular with millennials Recently used travel influencer 11%
create travel content. Millennials (29%) were content to plan holiday
most likely to do so.
Overall, 36% of travellers had used Facebook for travel- and holiday-related content, with YouTube and Instagram
used by 17% and 16% of travellers, respectively.Conclusions
Our overview of travel The survey has established clear timescales associated
with holiday planning processes, from choice of destination
to resolve all the motivations and factors that go into the
holiday planning process.
planning and motivations has (typically six months in advance) to planning of activities
established clear lessons for (typically three months in advance). Travellers also told us
that online review sites, especially TripAdvisor, and personal
In addition to the above, newer influences on travel planning,
such as over-tourism and political/environmental impacts,
the travel industry. recommendations, were key sources of travel planning are clearly on the minds of travellers. The travel industry
information. Around a third of travellers were interested in a needs to consider addressing these concerns more openly in
travel service that sends them holiday suggestions based on order to assure travellers that their holiday experiences are
their browsing habits, and we also established that two- likely to be feasible, enjoyable and safe.
thirds of holiday planning is conducted pre-holiday. These
results highlight the timings and extent of holiday planning The fact that millennials are much more likely to use social
and re-emphasise what travellers want at their fingertips media in their travel planning than older age groups suggests
when planning holidays. The results also highlight travellers’ this is a trend which is likely to continue. When we also
willingness to receive this help in a variety of ways. consider the immediacy of social media, it is possible to see
how these channels can be used to inform holiday planning,
Core motivations for travelling are often linked to the but also to address day-to-day factors such as political/
destination (heritage, culture, cuisine, etc.). Many environmental changes. Around one-fifth of travellers follow
destinations promote these elements, however, a travel influencers—this is one obvious mechanism for
differentiator would be to align these motivations with other communicating up-to-date and topical travel information
key factors such as affordability, ease of access, range of with travellers.
activities, and quality of accommodation and safety, in orderTravel Booking
and Convenience
© 2019 STR, Inc. All Rights Reserved.Booking Behaviour and Experience
Booking accommodation and travel is integral to any international break. Additionally, understanding and reacting to traveller
expectations during these decisions and transactions is essential for the travel industry if repeat bookings and customer
loyalty are to be engendered. We asked travellers about their recent booking experiences with a goal of understanding their
preferences and expectations.
Traveller booking habits highlight a fundamental difference in approaches to flights and accommodation, with direct on airline’s
website by far the most common booking method for flights, whilst Online Travel Agencies (OTAs) are much more evident in
accommodation bookings.
Flights Accommodation
51% 23% 13% 44% 27% 9%
Direct booking on
airline’s website Online Travel Agent High street travel agent Online Travel Agent Direct booking on High street
accommodation website travel agent
On flights, direct on airline’s website was equally popular, regardless of age. The main differences in flight-booking methods With regards to accommodation, millennials were much more likely than average to prefer booking via an OTA, whereas
concerned the balance between OTAs and high street travel agents with millennials much more likely than average to use OTAs travellers 35-to-54 years old were much more likely to book direct on accommodation websites, and travellers 55 and over were
whereas those over 55 displayed above average usage of high street travel agents. more likely than average to book using a high street travel agent.Focus on Booking Accommodation
Looking specifically at accommodation bookings, we set out to understand the key drivers in traveller It is encouraging for the accommodation sector that 40% of travellers found their accommodation
accommodation choices and how the experience measured up to pre-booking expectations. better than expected and only 5% rated their accommodation worse than expected. These ratings
were virtually uniform across different age groups.
These results suggest that, in the main, the range of accommodation provided to travellers is
addressing the key drivers involved in booking processes. As the international hotel pipeline
continues to expand, it appears to do so from a solid base of customer satisfaction.
82% 65% 38% 37% 22%
Location Value for money Positive reviews Free Wi-Fi Food & drink options Accommodation experience vs expectations
Better than 40%
The location of the accommodation was clearly the most (compared to 65% on average). Millennials were also expected
important driver in booking with over 80% of travellers much more concerned with positive reviews and free Wi-Fi, As
citing this factor. This was the case regardless of age or life reinforcing findings from elsewhere in our report series that 55%
expected
stage. As one might expect, millennials were much more travellers in this life stage are more engaged with online
price sensitive with 77% concerned with value for money information sources and social media. 5% Worse than
expectedDirect Booking vs OTA
As highlighted earlier in the report, accommodation bookings via OTAs outstrip those made directly with the provider. Reasons for booking via providers website
This is not the case in the airline sector, so what is it about OTAs that makes them so attractive to travellers when
booking accommodation? And what can accommodation providers learn from OTAs? Convenience / 50%
ease of booking
Reasons for booking via OTA
Offered the 38%
best deal
To see all 55%
accomodation options Rewards / loyalty 25%
scheme
Convenience / 48%
ease of booking Booked direct
to benefit hotel 10%
Offered the 29%
best deal
Special promotion /
incentive 13% Convenience and the best deal are clearly important regardless of booking platform, as many direct bookers highlight these
as key reasons—in fact, 66% of millennials highlight convenience as their reason for booking directly with the provider and
50% of 35-to-54 year olds feel the same way about accessing the best deal.
Results showed that 55% of travellers who had booked through an OTA cited a desire to see all accommodation It is difficult for accommodation providers to address traveller desire to see all accommodation options, however,
options as a reason for using the service, regardless of age. Convenience is also important to travellers of all ages, developments in online booking platforms (convenience) and the ability to offer deals (value) are both avenues
whereas millennials are more likely than average to book via OTAs because of potential savings. open to accommodation providers. In the case of value, there is an opportunity to further develop reward and
loyalty strategies, an area which has been under-utilised by the accommodation sector in recent years.Booking: New Influences
Our research has established the importance of convenience and value in the booking process. These
influences have been used as yardsticks to measure the importance of other potential influences on the
booking process. Our aim was to determine if travel legislation or the implications of political events (such
as Brexit) would affect booking habits.
Agreement with statement
Overall, convenience is paramount for travellers when booking holidays, regardless of age or life stage. However,
Convenience is the most important aspect 3.78 of note, protection against unforeseen circumstances is also rated very high, suggesting that travellers value the
for me when booking a holiday ability to incorporate insurance into their holiday bookings. Travellers 55 and over were more likely to seek out
I prefer to book holidays that offer protection against unforeseen protected holidays than millennials.
circumstances such as airlines or accommodation provider bankruptcy 3.52
The results also suggest that travellers are prepared to book their holidays via multiple platforms/providers
I would use a site that allows me to book everything 2.89 if it leads to savings. This is especially true for millennials who are much more willing to shop around than
in one place even if it costs a little more
travellers 55 and over.
I am less likely to travel to destinations that
require visas or other additional paperwork 2.72
Finally, the majority of travellers are not put off by the prospect of travelling to destinations that require visas
or other additional paperwork. This was particularly true of U.K. travellers, who despite the spectre of Brexit
(expected spring 2019), and possible travel complications, did not feel inhibited by these kind of restrictions.
Scores out of 5 ( 1= ‘Disagree strongly’ and 5 = ‘Agree strongly’ )Conclusions
In studying booking habits and expectations, There was a clear dichotomy in booking approaches for
flights and accommodation, with flights most likely to be
The main drivers for using OTAs in the accommodation
booking process are a desire to see all accommodation
we have highlighted key traveller booked direct with airlines and accommodation primarily options in one place and convenience/ease of booking. This
considerations and also looked at the booked via an OTA. Within these findings there are some
clear age-related trends for the travel industry to be wary
tells us that booking processes are driven by convenience.
The challenge for accommodation providers is how to create
accommodation sector in more detail. of, for instance: millennials are more likely than other age booking processes that compete with OTAs, and how can
groups to book accommodation via OTAs. Millennials are they use other factors, such as deals and incentives, to
We have identified pros and cons also much more likely than other age groups to use OTAs for attract travellers away from their dependence on OTAs.
associated with booking direct, flight booking. These trends suggest that OTAs’ share of the
booking market (for both accommodation and flights) is likely Our research also looked at more unusual influences on
compared to booking via an OTA. to grow as millennials age. holiday booking and found that messages linked to protection
We’ve also established the Our focus on accommodation booking highlighted the overall
against unforeseen circumstances may land well as this was
important to over half of all travellers when booking holidays.
importance of other booking importance of location in the booking process. Our results Encouragingly, for the travel industry overall, travellers were
also highlighted age-related differences, with millennials not put off destinations that require visas or other additional
influences such as travel much more price sensitive and interested in reviews and paperwork, though in a U.K./Europe context, Brexit could
legislation and political events. Wi-Fi availability than older travellers. Needless to say, the
accommodation sector must monitor evolutions in traveller
offer a very real test of these perceptions.
preferences in order to maintain relevance and popularity.Travel Budgeting
and Spending
© 2019 STR, Inc. All Rights Reserved.Holiday Budgeting
Consumers in many developed economies have faced increasing cost pressure in recent years, as wage growth has struggled to Approximate share of travel budget:
outpace rising costs. In this report we set out to examine if and how travellers budget for their holidays.
Did you set a budget for your last trip? 32% 31% 21% 16%
Transport Accommodation Food & drink Other
Financial planning for holidays was a common feature among travellers,
with 52% setting a budget in advance of their last international holiday.
52% 44% Likely a reflection of greater financial challenges, millennial travellers were Transport (to, from and within the destination) and accommodation accounted for over 60% of travellers’ budgets. A
Yes No most likely to establish a budget for their holiday, while the opposite was reflection of their wish to engage with new experiences, younger travellers allocated proportionally less of their budget
true among older travellers aged 55 or above. It was interesting to observe to these core components and more budget to other areas, including eating and drinking.
4% stricter financial planning among those who went on longer holidays as
I can’t remember opposed to short breaks.
Was your budget adequate?
How far in advance did you start planning aspects of your trip?
59% 29% 12%
My budget covered I spent over I spent under
Av. 6 Av. 5 Av. 5 Av. 4 Av. 3 my costs my budget my budget
months months months months months
Most travellers (59%) generally stuck to their budgeted amount. However, of those who did not, there was a greater
Choice of Travel to/from Accommodation Budget / travel money Activities prevalence for overspending on holidays than underspending (29% versus 12%, respectively). Families were more likely
destination destination
to spend more than originally planned, whilst travellers aged 55 or above were most likely to limit their spending to
Travellers started to think about their holiday budget, on average, four months before their trip. Decisions about holiday budgeted amounts. Holidays longer than two weeks were the hardest for which to budget, as only 50% who went on a
budgets were commonly made alongside or shortly after decisions regarding transport and accommodation. trip like this successfully managed to stick to their budget—37% needed to spend more than they planned.Contactless Payments
Contactless payment methods and a growing range of prepaid travel cards (also known as currency cards) have made spending Which contactless payment methods have you used?
money abroad easier and, often, more cost effective in recent years. Our research sought to investigate the role of contactless
payment methods in tourism and evaluated the use of cryptocurrencies—digital currencies operating independently of banks. 92% 36%
Credit /Debit Mobile device
Have you ever made a contactless payment? card app
There is widespread adoption of contactless payment methods as 63% of
Looking at overall usage of contactless payment, not just during holidays, the most common contactless payment
63% 32% respondents stated that they made a contactless payment—either on holiday or
at another time—at least once in the past. Younger consumers were most familiar
method was credit or debit cards, including travel cards (92%). Mobile device contactless payment methods were much
Yes No less common (36%), although Americans were notably more likely to have paid via a mobile device app compared with
with this form of payment –more than seven of 10 millennials have completed
other nationalities (64%).
a contactless payment compared to fewer than six of 10 travellers aged 55 and
5% over. U.S. consumers showed a significantly lower uptake of contactless payment
Not sure What type(s) of contactless payments have you made?
compared with other developed world nationalities. This is likely a reflection of a
slower launch of contactless payment technologies in the United States.
Did you make a contactless payment during your last international holiday?
73% 69% 63% 57% 56%
Grocery shopping Eating / drinking out Visiting attractions Clothes or other Local transport
Suggesting that there are limited contactless payment technologies and options
35% 65% in the travel sector, there was a much lower incidence of contactless payment
high st shopping
Yes No during holidays as just 35% made a contactless payment on their last holiday. Grocery shopping (73%) and eating or drinking out (69%) were the two most popular types of contactless transactions
made, followed by visiting attractions (63%).Cryptocurrencies
There was high awareness of cryptocurrencies, but evidence of low usage. Results showed that 76% of respondents To what extent do you agree or disagree with the following:
were aware of digital currencies, but only 2% had ever used them and a further 5% were considering using them. North
American and Australian travellers were more likely than Europeans to be aware of cryptocurrencies, but there was Cryptocurrencies need to be more widely 67% Reinforcing the findings above, respondents highlighted
little evidence to suggest greater interest among different traveller nationalities. Meanwhile, millennials were more accepted before I would use them agree limitations in the use of digital currencies, believing that
likely to show interest in using cryptocurrencies compared to older segments. This result is likely a reflection of their they’re not widely enough accepted and vulnerable to
The volatility of cryptocurrencies 59% value fluctuations.
closer relationship with digital technologies. discourages me from using them agree
Are you aware of cryptocurrencies?
Yes and Events such as the depreciation of Pound Sterling following the EU referendum and the subsequent surge in tourism
2% I use them show that currency volatility can be an important issue for destinations. To assess the impact of this factor, we asked
about the extent to which currency exchange rates generally influence traveller planning decisions.
Yes and I am considering
5% using them
To what extent do currency exchange rates influence your travel planning decisions?
Yes but I am not considering 70% As shown opposite, a quarter stated that currency
using them No influence 49%
volatility generally influences their travel behaviour,
No, I am Some influence 25% whilst conversely, for just under 50%, exchange rates do
not aware 24%
not influence holiday planning. Currency exchange rates
Not sure 26% were perceived to play a greater role in holiday decisions
among those who had recently experienced longer trips
of over two weeks.Conclusions
Varied degrees of holiday financial planning Overall, the findings show that budgets are
commonly set as key decisions are made, rather
security in destinations. Increased adoption of
secure contactless payment technologies by
were evident with younger travellers than at the outset of the travel planning process. travel businesses will help drive this engagement
most likely to establish a budget before This suggests that travellers commonly adapt their
budget according to their final holiday preferences.
internationally.
their trip but, despite this, often over- This is a reassuring finding for the travel industry Cryptocurrencies are well known but are currently
as they seek to maximise traveller spending. of little interest to travellers. Millennials appear
spending their budget. Meanwhile, Highlighting discounts and special offers is likely to most likely to embrace digital currencies, but there
the opposite was true among older be a particularly effective tactic to entice travellers
who may be willing to stretch their budget.
is a requirement for greater acceptance of these
currencies and more stability in the market for this
travellers aged 55 and over who form of payment to grow.
demonstrated a more stringent The prevalence of contactless payments was high
in general day-to-day expenditure, but relatively
approach when sticking to low in international holiday expenditure. There are
likely to be a number of factors influencing this
planned budgets. result, including negative perceptions of financialTechnology and
Travel Brands
© 2019 STR, Inc. All Rights Reserved.Online Travel Brand Usage
Travellers today engage with an increasing range of online travel and technology brands during all stages of the holiday Overall, five of six travellers engaged with an online travel brand during the planning stage. Those who solely used offline
experience, from planning to post-visit reviews. Our research set out to quantify travellers’ relationships with online travel sources of information to plan their holiday (14%) were more commonly aged 55 and over.
brands, including online travel agents (OTAs) and metasearch sites.
Planned holiday aspect using
Did you use any of the following websites? TripAdvisor and Booking.com were, in line with our 2017 online travel brand 86%
research findings, identified as the two key resources during
the planning process. Travellers going on shorter and longer Booked holiday aspect
using online travel brand 69%
breaks engaged with the sites differently, with Booking.
54% 49%
com being the site of choice among short-break travellers
whereas TripAdvisor was used more extensively by those who
went on longer stay trips. Although most did make a booking using an online travel brand (66%), there were much lower levels of engagement
31% 20% with online travel brands during the booking stage. This highlights opportunities to increase conversions, but is also a
Expedia was the third-most popular site, and second-most reflection of the role of metasearch sites that direct travellers to separate sites to book.
popular OTA overall, used by 31% of travellers. However, a
reflection of the strength of the brand in North America, Expedia
20% 17% was the most popular OTA among North American travellers.
Skyscanner, the U.K.-founded flight metasearch site, was
the fifth-most popular online brand which, as to be expected,
10% 10% was extensively used by U.K. travellers but poorly utilised by
North Americans and Australians. It was interesting to note
None growing adoption of the site among younger travellers—33% of
14% millennials used the site when planning their last holiday.Online Travel Brand Usage
Did you use / book any aspect of your holiday on any of the following websites?
Most Used site for: 1st Reason 2nd Reason 3rd Reason
It is an easy to use I know the site well They find the best
38%
Used: 20% site (70%) (54%) deals (38%)
Used: 54% Used: 49% Used: 31%
Booked: 12% Booked: 33% Booked: 16% Booked: 10%
It is an easy to use I know the site well They find the best
Conversion rate: 22% Conversion rate: 67% Conversion rate: 51% Conversion rate: 50% 15%
site (63%) (48%) deals (34%)
Reward me with
None It is an easy to use I know the site well
8% points / special
site (50%) (38%)
Used: 20% Used: 17% Used: 10% Used: 10% 14% offers (53%)
Booked: 8% Booked: 5% Booked: 7% Booked: 3%
Conversion rate: 40% Conversion rate: 29% Conversion rate: 70% Conversion rate: 30%
Among the three most popular OTAs—Booking.com, Expedia and Hotels.com—Booking.com achieved the highest conversion We asked travellers why they had chosen to use these three key OTAs. As can be seen above, a recurring theme in OTA
rate as 67% of those who browsed the site went on to make a specific booking. Meanwhile, lower conversion rates of around usage was user experience and, more specifically, simplicity and familiarity of using the site.
50% were achieved for Expedia and Hotels.com. These findings highlight the strength of the offer provided by Booking.com and
hint at the need for improved design, functionality and a broader product range among competitor sites. Research shows that OTAs benefit from repeat visits and customer loyalty, as they are known and trusted by users to
find the best accommodation and holiday deals. In addition to these drivers in OTA usage, Hotels.com offers an insight
into how a brand can secure its place in a competitive market through successful loyalty programmes and rewards.Home-Sharing Platforms
Many travel and tourism sectors have experienced rapid change and innovation in recent years, in response to changing Travellers were asked about their attitudes towards the world’s largest accommodation brand, Airbnb. As shown, there
consumer behaviour. The growth of online travel brands coupled with increased consumer demand for new, unique and was mild agreement that Airbnb tends to offer more authentic experiences than hotels, as an average level of agreement
authentic experiences has fuelled the development of the sharing economy. The accommodation and transport sectors, in score above the mid-point of 3.0 was achieved (3.30). However, compared to 2017, this marked a slight decline from
particular, have seen the greatest levels of transformation or, put differently, disruption in response to these trends. To take 3.46, which is perhaps an impact of improved hotel marketing and product offerings in providing more individual
the pulse on this issue in the accommodation sector, we set out to evaluate awareness and usage of a range of home- sharing experiences. Similar to last year, there was also mild agreement that hotels offer a more reliable form of accommodation
platforms and gauged consumer attitudes to Airbnb. in terms of cleanliness and safety.
Did you use any of the following websites? To what extent do you agree or disagree with the following:
Airbnb offers guests Disagree 14%
Used 41%, Used or Used 9%, Used or Used 2%, Used or Used 1%, Used or Avg. 3.30
Aware of 92% Aware of 35% Aware of 24% Aware of 7% a more authentic
Neither 48% vs 3.46
experience than hotels
in 2017
can offer Agree 37%
Used 1%, Used or Used 1%, Used or UsedPerceptions of Airbnb
Airbnb offers guests a more authentic experience than hotels can offer What concerns you about Airbnb?
Lack of confidence in the landlord 24%
47%
Agree Disagree Sharing accommodation with unknown guests 18%
36% 35% Properties not being as advertised 18%
Lack of facilities compared to a hotel 13%
Concerns over safety 10%
15% 14% 15%
7% Reduced levels of cleanliness
6% Insufficient health and safety measures
Other 5%
16-34 35-54 55+
Overall, there was evidence of moderate support for Airbnb. Assessing the attitudes of traveller segments in more detail, it Around half of respondents cited potential issues with Airbnb. A lack of trust with the landlord was the key area of concern
is evident, as indicated earlier, that younger travellers are particularly strong proponents of Airbnb. This is highlighted in the (24%), followed by worries about sharing accommodation with guests (18%) and a lack of confidence in the accommodation
adjacent chart which shows much greater recognition of authentic experiences at Airbnb (compared to hotels) among this being of the standard advertised (18%). Interestingly, issues associated with reduced safety and lower levels of cleanliness—
cohort. U.S. travellers also demonstrated a warmer relationship with the brand compared to other nationalities. two areas which anecdotally tend to be associated with Airbnb—were notably less referenced by these travellers.Hotel Room Technology
Brands such as CitizenM and The Peninsula Hotels, are good examples of hotels embracing technology and using it to enhance the What were important drivers on your accommodation decision?
guest experience. Technology can add not only a ‘wow factor’ to the in-room experience, but it can also put the guest in control and help
82% Location
personalise their experience. As hotel chains continue to invest in new and innovative technologies to enhance the guest experience, we
65% Price / value for money
wanted to gauge sentiment among travellers about in-room technology services. Does it form part of their ‘ideal hotel room’?
38% Positive reviews
To what extent do you agree or disagree with the following: 37% Free Wi-Fi
Agree Disagree 22% Food and drink services / facilities
19% Positive previous experience staying there
68% 14% Family friendly
55%
9% Reward points / loyalty scheme
39% 37%
30% 31% 5% Health / wellbeing facilities
15% 11% 5% Activities and entertainment facilities (e.g. golf, casino, etc.)
5% Environmental credetials
My ideal hotel room My ideal hotel room offers advanced My ideal hotel room My ideal hotel room enables
allows me to disconnect in-room hotel technologies, such as a provides many me to be in control of the room 4% In-room technology
from technology connected app or an in-room tablet entertainment options environment (e.g. lighting & sound)
Guests demonstrated a strong relationship, call it a companionship, with technology, but there was a sense that overly sophisticated As shown above, in-room technology was least important, among the 12 factors evaluated, in the decision to choose international
in-room technologies go beyond the needs and preferences of most travellers. As shown opposite, travellers by and large disagreed holiday accommodation. This finding supports the evidence above that advanced technologies tend to have a generally weak role on
that their ideal hotel room would allow them to disconnect from technology. This finding highlights the intrinsic relationship travellers the overall guest experience. Meanwhile, key attributes which led to the final decision were location and price. However, whilst in-room
have with their mobile devices and their need to be connected at all times. However, highlighting that travellers have modest technology was not a key driver in the decision to choose accommodation, the provision of free Wi-Fi was. This was the fourth-most
expectations regarding in-room technology, there was mild disagreement that their ideal hotel room would have a multitude of important factor in choosing accommodation, and ranked more prominently than accommodation food and beverage facilities, and
technology services. Meanwhile, clever technologies to control and set the room environment enthuse travellers the most. even a previous positive experience at the accommodation.Conclusions
Technology touches all stages of traveller In the planning and booking phase, our research has
highlighted the dominance of OTAs—in particular, Booking.
a concern about Airbnb which highlights potential gaps in the
market and audience groups that might be better served.
experiences—it’s used to inform and com and Expedia, the two most common online travel brands
execute their booking decisions in used to book holiday components. Convenience continues
to be a key driver of behaviour among travellers and the
Whilst technology plays a key role in influencing and shaping
tourism experiences during the planning stage, there was a
the planning process and plays feedback captured shows that OTAs are successfully offering sense from our ‘ideal hotel room’ analysis that technology
customers easy, simple and trusted solutions for booking plays a weaker role in contributing to the overall experience
an important role in providing holiday experiences. and levels of satisfaction. Travellers see technology,
information and keeping them The home-sharing sector has seen increased focus and
most commonly, their mobile device(s) paired with Wi-Fi
connectivity, as a travelling companion, and therefore they
connected during attention in recent years, as Airbnb has continued to grow at generally wish to be connected with it at all times. However,
their holidays. a remarkable rate. Our analysis of the sector indicates that
competitor sites have much ground to make up against this
there was limited evidence to support the adoption of
overly sophisticated in-room technology, including a wide
formidable competitor. However, assessing the next most- range of entertainment options. That said, as brands seek
popular sharing accommodation option, HomeAway, there to differentiate and offer unique personalised experiences,
is a sense that opportunities exist to grow by attracting older technologies that allow guests to create their own ambiences
travellers, typically in the 55 and over age ranges, who until through, for example, sound and lighting adjustments, seem
now have demonstrated some reluctance to embrace Airbnb. likely to generate increased guest satisfaction.
Indeed, travellers aged 55 and over were most likely to raiseThank you © 2019 STR, Inc. All Rights Reserved. Any reprint, use or republication of all or a part of this presentation without the prior written approval of STR, Inc. or STR Global, Ltd. trading as STR (collectively “STR”) is strictly prohibited. Any such reproduction shall specifically credit STR as the source. This presentation is based on data collected by STR. No strategic advice or marketing recommendation is intended or implied.
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