ep - MNI | Targeted Media · 16% Print 2% Total (ages 18–55) Laptop. Magazines, Search Desktop, Mobile MNI Targeted Media Inc. | 2017 Travel Industry Factbook. Upper Funnel. Mid

Takea Trip

2017 Travel

Industry Factb

ook

Travel Industry Insights

Travel Planning Process

Travel Purchase Funnel The Upper Funnel—Magazines, Search The Mid-Funnel—Display, Video,

Retargeting, Personalization, Social, Influencers, Email

The Lower Funnel—Desktop, Mobile Post-Purchase Actions

2017’s Hottest Travel Trends

Engaging the American Traveler

Recap

Inside

MNI Targeted Media Inc. | 2017 Travel Industry Factbook

Travel

Industry

Insights

4

2017 is a good year for travel, thanks to economic growth, low fuel prices, and Millennials’ coming-of-age.

The U.S. travel industry is forecast to grow 22% from 2015 to 2020, from $232.9 billion to $284.5 billion.[1]

A growing economy, low fuel prices, a strong U.S. dollar, and an increasing willingness to spend more on vacations contribute to this growth pattern.[1]

Millennials’ increasing spending power and desire to travel, plus their growing families, are helping to boost the U.S. travel industry.[1]

The Travel Industry Continues to Soar


Best and Worst Case Forecast Value Sales of Vacations and Tourism, at Current Prices2010–2020

Note: Includes fares and travel overseas; domestic spend on traveler accommodations; scenic and sightseeing transportation services; travel arrangement and reservation services.

Source: based on Bureau of Economic Analysis, U.S. Office of Travel and Tourism Satellite Accounts

$306.4 B Best Case

$262.6 B Worst Case

$284.5 B Mintel Forecast

Tota

l Sal

es ($

bill

ion)

170

190

210

230

250

270

290

310

330

Actual Est. Projected

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

5

Travel Sales Go Digital

Digital travel sales are likely to exceed

$195 billion this year. The U.S. was the largest

digital travel market in the world in 2016, with over

$180 billion in sales, representing nearly

one-third of the worldwide digital

travel economy.[2]

Overall advertising expenditure

in the travel category saw

a growth of 11% last

year, over 2015.[3]

U.S. Digital Travel Sales, by Category, 2014–2020 Billions USD and % of total travel sales in each category

2014 2015 2016 2017 2018 2019 2020Airline $74.97 $76.92 $80.30 $85.30 $89.39 $93.26 $97.27

—% Total 54.3% 55.3% 56.1% 57.3% 58.3% 59.0% 59.8%

Hotel/Lodging $47.47 $52.54 $58.54 $64.17 $69.15 $74.60 $80.07

—% Total 35.7% 36.4% 37.4% 38.1% 39.1% 40.4% 41.6%

Vacation Rental $9.84 $12.34 $15.96 $20.82 $26.59 $32.58 $37.99

—% Total 32.6% 36.6% 41.1% 45.6% 50.1% 54.6% 59.1%

Car Rental $9.06 $9.56 $10.26 $10.74 $11.31 $11.89 $12.51

—% Total 49.2% 50.8% 53.0% 53.5% 54.0% 54.5% 55.0%

Cruise $3.09 $2.74 $2.96 $3.32 $3.61 $3.92 $4.26—% Total 20.0% 17.0% 17.0% 18.0% 18.7% 19.5% 20.2%

Rail $1.22 $1.27 $1.34 $1.41 $1.48 $1.55 $1.62—% Total 56.6% 59.1% 59.9% 60.9% 61.6% 62.4% 63.1%

Total Digital Travel

$152.40 $164.17 $179.79 $196.83 $213.03 $229.77 $264.16

Total Travel $355.50 $374.43 $399.62 $426.45 $449.04 $470.65 $490.06

Source: UBS, “US Internet & Interactive Gaming— Turning to ‘17: Growth vs. Investments Ahead,” Jan. 17, 2017.


6

Spending on travel will rise 8%, to $6.77 billion this year.[18]

U.S. travel marketers spent approximately $5.96 billion on digital advertising in 2016, a 21% gain from 2015.[18]

Digital ad spending in the travel sector is forecast to grow 13% through 2020, and travel brands will invest $8.9 billion.[18]

Online travel agencies will dominate spending over hotels, airlines, cruise lines, rental car companies, destination marketing organizations, and tour operators.[19]

Travel Brands Ramp Up Digital Ad Spending


U.S. Travel Digital Ad Spending, 2015–2020Billions USD, % of total digital ad spending, and % change

Note: CAGR (2015–2020)=12.5%; includes advertising that appears on desktop and laptop computers as well as mobile phones, tablets, and other internet-connected devices, and includes all the various formats of advertising on these platforms.

Source: eMarketer, Sept. 2016.

20.3% 20.5%13.4% 11.1% 9.6% 8.1%

7.9%8.0%8.1%8.2%8.3%8.3%

$4.95

$5.96

$6.77

$7.52$8.24

$8.90

2015 2016 2017 2018 2019 2020

7

More travelers seek experiences, balancing the vacation of their dreams with a price-conscious travel budget.

Nearly 60% of adults who planned at least one vacation in 2015, including a flight or hotel, said that a trip was their largest discretionary purchase in the last year.[4]

Between 2010 and 2015, travel spending grew a total of 27%.[5]

35- to 44-year-olds have the highest average spend on trips, at $879.[1]

Most travelers venture to destinations they’ve never visited before—53% of leisure travelers say they chose a destination to visit new places.[6]

The recent “sharing economy” trend resonates with travelers across demographics.[7]

“Sharing economy” refers to the sharing of assets or services between private individuals, either for free or for a fee, typically via the internet. Popular examples are Airbnb, HomeAway,and Uber.

Americans Have Been Bitten by the Travel BugAttitudes Toward Vacation(s)

All Ages vs. Millennials (by percentage)

I like to have new experiences

while on vacation.

Vacations are primarily

for relaxation.

I enjoy visiting

exotic destinations.

It’s less stressful to return

to the same destination

you’ve visited before.

83 83 66 5885 84 75 65

Based on responses from 1,550 internet users aged 18+ who have taken at least one vacation in the last 12 months.

Source: Lightspeed GMI/Mintel Seasonal Vacation Trends – U.S., June 2014.


8

They are more likely than other generations to take vacations, choosing travel experiences over material purchases. Nearly half of Millennials say that travel is an important personal goal.[1]

83% of Millennials traveled for leisure in the last 12 months, compared to 75% of the general population.[1]

In 2016, 32% of Millennials said they are spending more on vacations than they have in prior years, compared to 21% of the general population.[1]

Millennials are the most likely of all adult generations to have traveled internationally in the past three years (37% vs. 26%).[1]

Nearly one-quarter of Millennials are interested in using shared economy services, such as Airbnb, for accommodations and home rentals.[1]

Goals and Aspirations for the Next Three Years

Millennials Are the

Holy Grail

Healthier lifestyle

56% 47% 41% 41% 37% 32% 25% 22%

Travel Freedom from debt

Time mgmt

Interpersonal relationships

Big-ticket purchase

Start a family

Community services

Base: 708 internet users aged 20-37.

Source: Lightspeed GMI/Mintel Marketing to Millennials – U.S., February 2015.MNI Targeted Media Inc. | 2017 Travel Industry Factbook

9

Bleisure: Millennials Make the Most of Business TripsA passion for travel leads Millennials to squeeze quick vacations into business trips.

Of the 40% of global business travelers in 2016, 46% think they will travel even more for business in 2017.[9]

49% of business travelers extended their business trips in 2016, while 75% intendto do so this year.[9]

30% of travelers would accept a lower-paying job if it meant they could travel more for work.[9]

The bleisure movement has led the travel industry to target Millennials with new offerings, such as Marriott’s Experiences by Marriott packages that offer premium deals on curated experiences, made easily accessible through the free mobile app.

Combined Business and Leisure TravelMillennials, Gen X, and Baby Boomers


Source: Lightspeed GMI/Mintel March 2015.

I have added extra days to business travel for my own personal enjoyment.

I have scheduled a business trip to a place

that I wanted to travel for my own enjoyment.

I have scheduled a business trip to coincide with a fun non-business

event at that destination.

35% 20% 29% 25% 20% 26% 30% 17% 9%

10

As Consumers Age, Travel Expenditures RiseBaby Boomers revel in travel as a perk of higher income brackets, and younger Millennials seize the opportunity due to newly-acquired financial resources and free time. Older Millennials are more likely than younger

Millennials to be employed (85% vs. 74%, respectively), providing them more disposable income to spend on travel.[1]

Frequent business travel gives Millennials an opportunity to rack up airline miles or hotel loyalty points to utilize toward future personal trips.[1]

Baby Boomers spend a great deal on travel, primarily due to their relative wealth and time available.[1]


Median Household Income, by Age of Householder (in USD)

Source: U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement/Mintel.

$34,605

$54,243

$66.693$70,832

$60,580

$45,227

<25 (iGen,

Millennials)

25–34 (Millennials)

35–44 (Millennials,

Gen X)

45–54 (Gen X, Young Baby Boomers)

55–64 (Older Baby

Boomers)

65–74 (Older Baby

Boomers, Swing)

11

Millennial spending picks up as they embark on family vacations.

92% of married Millennials have traveled for vacation in the past 12 months, versus 69% of single Millennials.[1]

Nearly 90% of parents vacationed in the past year, compared to 70% of non-parents. Similarly, parents with children under 18 are more likely to go on multiple vacations throughout the year.[1]

Visiting friends and family is the most common type of vacation travel (47%).[1]

Family Matters for Millennial TravelersVacation Participation by

Quantity and Parent StatusParents of Minors vs.

Childless Adults & Empty Nesters

Based on 2,000 internet users ages 18+.

Source: Lightspeed GMI/Mintel Seasonal Vacation Trends – U.S., June 2014.


Any Vacation 2+ Vacations

85% 74% 44% 32%

Travel

Planning

Process

13

Great Trips Start with Great Research55% of leisure travelers only take one or two vacations a year, but they put a lot of thought into planning these trips.[4]

37% of U.S. travelers think about vacation planning once a month; 17% think about it at least once a week.[10]

For many travelers, planning begins with a blank page.

28% haven’t decided their destination when they start planning a trip.[11]

83% say it’s important to choose a destination where they can have a new experience.

Primary Device/Medium Used by Leisure Travelers to Conduct Travel Research (% total respondents in each group)

Millennials (ages 18–34)

vs.


Laptop35%

Smartphone 29%

Tablet 17%

Desktop 16%

Print 2%

Total (ages 18–55)

Laptop36%

Desktop 24%

Smartphone 20%

Tablet 18%

Print 1%

Note: numbers may not add up to 100% due to rounding.

Source: AMP Agency and Blitz, “Targeting Moments of Need in the New Travel Landscape” conducted by Survey Sampling International (SSI), Oct. 5, 2016.

14

Travel Research is a Complex ProcessTop criteria include cost, reviews, pictures, availability, flight length, travel schedules, and activities at the destination.[13]

Not surprisingly, price is the most common reason for choosing one airline over another. Flight schedule (57%) and free bag check (48%) are distant second- and third-place considerations.[8]

When presented with a deal, 30% would take a trip when they weren’t planning to, 25% would go to a destination they weren’t familiar with, 25% would consider booking a last-minute flight, and 32% would book a hotel they’re unfamiliar with.[4]

For Millennials, 70% consider quality over price as the key criterion for choosing flights, hotels, and even destinations.[1]

Most Critical Factor on Destination Decision Making


Source: comScore survey, CritContent—What Information Was Most Critical In Helping You Decide On Your Destination?, among Total U.S. Online Travel Bookers (n=805).

Travel Costs 36%

27%

16%

14%

13%

12%

12%

12%

Hotel/ Accommodation

Activities Available

Recommendations from Family/Friends

Reviews/Ratings

Weather/ Climate Info

Time to Reach Destination

Hotel/Airfare Loyalty Programs

15

Travel Inspiration Comes from EverywhereResearch is a cross-channel activity—

from magazines and TV programs to social media and online reviews.

40% of travelers draw travel inspiration from peers, 42% from online travel

providers, and 59% from online videos.[14]

Reviews rule—over 95% of leisure travelers read approximately seven

reviews before booking, spending an average of thirty minutes on

sites like TripAdvisor.[15]

Tech-savvy Millennials are more likely to use travel

agents and print media, as well as online sources.[1]

TV and movies also inspire would-be travelers, and

have a greater influence on Millennial vacationers

(36%) than on total vacationers (27%).[1]

Research Source for Most Recent Vacation Travel Online / Print / Travel Agent

Base: 910 internet users aged 22-39 who have traveled for leisure in the last 12 months.

Source: Lightspeed GMI/Mintel.

51%

42%

36%

22%

22%

19%

19%

Online research via desktop/laptop

Online research via smartphone

Online research via tablet

Print travel book

Print travel magazine

Print materials from travel agent

Direct contact w/travel agent


16

Digital Remains Key to Travel ResearchDigital media drives awareness and education, pushes transactions, andaffects post-purchase touch-points.

An average trip-buying journey includes fifty-six visitsto travel-related digital touchpoints before booking.[14]

Reading articles and watching travel-related videos ranked among the top activities.[16]

While desktop and laptop computers are most likelyused (51%) for online research, mobile devices are catching up.[1]

Technology-based recommendations, like Booking.com’s search feature based on interests or passions, resonate with nearly 40% of Millennial vacationers.[1]

84% of travel booking is done through online channels.[11]

Almost one-third of leisure travelers said they used at least one mobile app in planning travel.[17]


Mobile apps from airlines for upgrade status alerts

Mobile apps or text alerts on flight status (incl. delays)

Digital Tools That Help U.S. Internet Users Manage Holiday Travel, Sep. 2016% of respondents

Notes: n=1,106 ages 18+

Source: Sequence, “Technology and Holiday Traditions: The New Normal,” Nov. 4, 2016.

Weather apps to track for potential delays

Mobile boarding apps/digital boarding passes

Texting or chat apps

Mobile travel booking apps to book flights

Twitter to track airport activity, incl. long lines or other issues 10%

24%

29%

33%

48%

51%

57%

Travel’s

Multimedia

Purchase

Funnel

18

Travel’s Multimedia Purchase Funnel

Upper Funnel—AwarenessMagazines, Search

Mid Funnel—Consideration, PreferenceDisplay, Video, Retargeting, Personalization,

Social, Influencers, Email

Lower Funnel–PurchaseDesktop, Mobile

Engagement/ Advocacy

Mobile Search, Apps

Intent

Post-Purchase Behaviors

Refe

rral


19

Travelers Trust MagazinesUpper Funnel

Travel intenders and affluents seek the opinions of trusted print media about travel.

U.S. travel intenders are heavy consumers of magazines, using more of this medium than any other.[20]

U.S. travel influentials are 60% more likely than the general population to read travel magazines, while affluents are 33% more likely to do so.[20]

Travel influentials are three times more likely to seek information on costs, travel arrangements, sightseeing, and travel activities from magazines, while affluents are 74% more likely to do so.[20]

Affluents: HHI of $100,000+

Travel Influentials: Business or vacation travel category influentials

Travel intenders: Likely to take a domestic or foreign vacation in the next 12 months

Heavy consumers of media (Magazines, Newspaper, Radio, TV, Internet): refer to top quintile consumers

Index of Travel Characteristics of Devoted Media UsersMagazines / Internet* / TV / Radio / Newspapers


Index: Top quintile of users of each medium vs. adults 18+ * Includes internet magazine activity. ** Defined as Hawaii, Florida, theme parks, and other U.S. destinations.

Source: GfK MRI, Spring 2015.

Very likely next 12 mos.: take a cruise (2+ days)

Very likely next 12 mos.: vacation abroad

Agree completely/somewhat: people ask my

advice about vacation travel

Very likely next 12 mos.: vacation in U.S.**

114 105 82 103 107 113 103 78 98 98 110 107 96 109 101 108 101 85 102 104

20

Consumers and Advertisers Swear by SearchUpper Funnel

Following consumer trends, travel advertisers allocated more than half of their budgets toward paid search efforts in 2016.[19]

48% of U.S. travelers said they used search engines when beginning to research a trip, compared to 20% using a property’s website and 14% using an online travel agency.[17]

The travel industry spent approximately $3.12 billion on paid search in 2016,up 18.6% from 2015.[19]

Search accounted for 58% of the U.S. travel industry’s digital ad spending in 2016, while display accounted for 34%.[19]

The focus on driving transactions leads paid search to dominate travel ad budgets.

U.S. Marketers Who Use Paid Search Advertising% of respondents, by industry

2015 2016Travel/hospitality 35% 46%

Healthcare/pharmaceutical 42% 38%

Technology 41% 37%

Retail 37% 35%

B2B services 33% 27%

CPG 37% 25%

Financial services—banks or credit unions – 25%

Financial services—insurance – 25%

Nonprofit 18% 21%

Publishing & media 18% 8%

Automotive 36% –

Building/construction 25% –

Financial services 16% –

Education 13% –

Entertainment 3% –

Other 27% 35%


Note: 2015 n=143, 2016 n=203

Source: Direct Marketing Associaction (DMA) and Demand Metric, “2015 Response Rate Report” & “2016 Response Rate Report,” April 2, 2015 & July 28, 2016.

21

Mobile Search Has ArrivedUpper Funnel

The availability of smartphones makes mobile increasingly important for travel.

70% of travelers with smartphones use them to research travel options.[22]

40% of the visits to U.S. travel sites and 60% of destination information searches now come from mobile.[22]

U.S. mobile travel sites are securing more frequent and shorter sessions, resulting in a 10% rise in conversion rates.[23]

The increasing time spent, and growing sales via mobile devices, is pushing travel’s mobile ad spending ever higher, to over 63% in 2016.[19]

2016 U.S. Travel Industry Digital Ad Spendingbillions USD and % total, by device


Total=$5.69

*Includes classified, display (banners and other, rich media, and video), email, lead generation, messaging-based advertising, and search advertising; ad spending on tablets is included.

Note: digital ad spending includes advertising that appears on desktop and laptop computers as well as mobile phones, tablets, and other internet-connected devices, and includes all the various formats of advertising on those platforms; numbers may not add up to total due to rounding.

Source: eMarketer, April 2016.

Desktop/Laptop $2.09 (36.6%)

Mobile* $3.61 (63.4%)

22

Mobile Search and MillennialsUpper Funnel

Four-out-of-ten Millennials conduct travel research on smartphones and tablets.

More than one-third of travelers have discovered a new travel company through mobile search. This figure is even higher (50%)for Millennial travelers.[13]

Searching for coupons or deals is the most common mobile travel-related activity for U.S. Millennials.[16]


Travel-Related Smartphone Activities Conducted by U.S. Smartphone Users (% of respondents)

Looked for discounts/offers 44%

Looked at things to do/tourist info before visiting a place 35%

Looked at things to do/tourist info while traveling 32%

Looked at flight options 29%

Checked flight times 28%

Looked at accommodation options 25%

Watched videos about accommodations or the local area 24%

Checked into flight or accommodation 22%

Found address/contact info for a travel agency 20%

Booked accommodation 20%

Looked at rental car options 19%

Booked a flight 18%

Used a mobile ticket/boarding pass 18%

Used a loyalty program 15%

Made a last-minute booking 14%

Wrote a review for a destination 11%

Note: n=500 ages 18–64 who used their smartphone for travel activities in the past month; in the past 30 days; via mobile app or website.

Source: Think with Google and Ipsos, “How People Use Their Phones for Travel,” Nov. 30, 2016.

23

Display Ads Capture AttentionMid Funnel

After paid search,display dominates.

Travel industry spending on display will amount to $1.95 billion this year.[19]

Digital display and rich media remained a significant portion (34%) of the category’s total digital spendingin 2016.[19]

Most of this spending is moving away from standard banner units and heading toward rich media and display ads purchased programmatically.$1.5 billion (77%) of the $1.95 billionin digital display ads purchased bytravel advertisers in 2016 was purchased programmatically.[19]

2016 U.S. Travel Industry Digital Ad Spendingbillions USD and % total, by transaction method


Total=$1.95

*Digital display ads transacted via an API, including everything from publisher-erected APIs to more standardized RTB technology.

Note: includes advertising that appears on desktop/laptop computers as well as mobile phones, tablets, and other internet-connected devices; includes banners, rich media, sponsorship, video, and other.


Programmatic* $1.5 (77%)

Non-Programmatic $0.45 (23%)

24

Video Aids in Purchase ConsiderationMid Funnel

Travel advertisers spent 11% of digital ad spending on digital video in 2016[19], as 64% of travel intenders watch travel-related videos.[12]

Digital video spending by travel advertisers amounted to $610 million in 2016.[19]

Three-out-of-five travelers who watch online video use it to narrow down their brand, destination, or activity choices.[12]

In any given month, over 100 million of YouTube’s unique visitors are travelers[12], and video-watch time on Instagram is up 40%.[24]

YouTube searches for ‘travel hack’ videos grew 115% year-over-year, with over half coming from mobile devices.[25]

Watch time on mobile devices has grown by over 65% year-over-year.[12]

2016 U.S. Travel Industry Digital Ad Spendingbillions USD and % total, by format

2016 % totalSearch $3.12 54.9%Display* $1.95 34.3%

—Video $0.61 10.8%

Other** $0.62 10.8%Total $5.69 100%


*Includes banners, rich media, sponsorships, video, and ads such as Facebook’s New Feed Ads and Twitter’s Promoted Tweets

**Includes classifieds and directories, email, lead generation, and mobile messaging.


25

Retargeting and Personalization Go a Long Way

Mid Funnel

61% of travelers thought that retargeting ads were helpful for completing purchases in general.[19]

85% of travelers said that customized itineraries are far more appealing than one-size-fits-all solutions.[26]

83% of Millennials said they would allow travel brands to track their habits in exchange for a better, more personalized experience.[26]

Travel brands are taking note—43% of travel companies named ‘targeting and personalization’ as the top priorities in their digital strategy. 25% of companies are focused on mobile optimization of their online properties.[26]


74% of travelers were more likely to

click on a travel ad if it was for a vacation

or destination they had previously

searched for.[19]

Retargeted and personalized interactions boost brand consideration, and even conversion.

26

Travel Intenders Flock to Social MediaMid Funnel

Social media provides everything from travel tips and blog trip experiences to inspirational photos and videos.

52% of travelers said that social media influenced a change in their travel plans, while 80% are more likely to book a trip from a company “liked” by a friend than a conventional Facebook ad.[15]

While 43% of all vacationers look at photos and videos of destinations on social media, this trend is more popular among tech-savvy Millennials (49%).[1]

Programmatic growth across the travel category is due to the rapid adoption of social media advertising on Facebook and Twitter, via programmatic direct buying.[19]

46% of U.S. travel and hospitality brands invested in social media advertising in 2016, up from 41% in 2015.

Information Sources Used by Travelers to Plan Trips, Sep. 2016% of respondents


Note: n=1,000 ages 18+; after they have decided to take a trip.

Source: Signal, “Signal Cross-Device Traveler Survey,” Oct. 12, 2016.

62.9%

58.2%

56.2%

53.9%

39.2%

35.9%

33.4%

27.8%

26.1%

25.0%

16.8%

14.9%

14.8%

0.7%

Search engines

Third-party travel sites

Friends and family

Hotel sites

Reviews from other travelers

Social media

Airline sites

Online articles and blogs

Travel guidebooks

Travel ads

Travel agencies

Newspapers & magazines

TV shows

Other

27

User-Generated Content Is KingMid Funnel

Travel content from bloggers and influencers is a credible source of information for travel intenders, because they marry personal experiences and authentic imagery.

Influencers generate snackable travel-related content pieces that are shorter and easier to read—interspersed with photos and videos.

This content creates top-of-the-funnel awareness on Instagram and Pinterest, is featured in ads to accelerate the journey, and on-site to help drive bookings.

Blogs covering both food and travel are among the most popular content types,as food tourism gains popularity.


Earned media value for every $1 spent on paid media from influencer marketing campaigns.

Source: eMarketer | RhythmOne, “Influencer Marketing Benchmarks Report Full Year 2015”, March 30, 2016.

Earned Media Value of U.S. Influencer Marketing Campaignsby advertiser category, in USD

Alcohol

CPG food

Grocers

Toys & games

Home & garden

Bath & beauty

Health & pharma

Retailers & apparel

CPG non-food

Casual dining

Baby care

Telecom

Electronics

Travel

$21.03

$12.03

$18.98

$10.59

$10.51

$10.26

$7.04

$6.72

$6.66

$6.01

$5.29

$3.15

$0.48

$1.37

28

Email Marketing Propels the Purchase Process

Mid Funnel

91% of U.S. travel brands invested in email marketing in 2016, focusing on targeted offers and incentives.

Targeted emails offering an incentive, such as priority booking passes, have proven successful.[7]

The most read emails from air carriers often mention loyalty membership status and program details.[25]

Top promotional emails also focus on savings and limited-time offers.[8]


Attitudes Toward Email Marketing, March 2016

Will only open an em

ail

from a travel brand if subject

header is relevant to me.

Receive too many em

ail

offers from travel brands.

Tend to ignore emails from

travel brands who em

ail

2+ times a w

eek.

30% 27% 22%

Base: 1,764 internet users aged 18+ who have booked any travel in the last 12 months.


29

Large Screens Enjoy the Top Spot BookingsLower Funnel

75% of travelers who shop for hotels or flights on their smartphone typically end up purchasing on a PC.[4]

Desktop and laptop bookings exceed bookings via mobile device (76% versus 24%, respectively).[8]

Smartphone and tablet bookings (13% and 11%) indicate that functionality may be as much of a barrier as screen size.[8]

After shopping on a smartphone, nearly two-out-of-three double-check flight prices on a computer, and half double-check hotel prices.[4]

Devices/Channels Used by U.S. Travelers to Research vs. Purchase Hotel Rooms and Airline Tickets Digitally, September 2016% of respondents

Researched airline options

digitally

Researched hotel options

digitally

Bought an airline ticket

digitally

Booked a hotel

digitallyDesktop/Laptop 83.4% 80.7% 81.5% 79.5%

Smartphone 54.5% 57.0% 36.6% 46.5%Tablet 27.5% 28.7% 20.6% 20.5%

Called a Travel Agent 6.9% 6.0% 7.2% 7.8%

None of These 0.0% 0.2% 0.4% 0.3%


Note: ages 18+ who have conducted each activity.

Source: Signal, “Signal Cross-Device Traveler Survey,” Oct. 12, 2016.

30

Mobile Booking Is RisingLower Funnel

31% of leisure travelers and 53% of business travelers book via smartphone.[22]

Of travelers who researched their last trip on mobile, 38% also booked it on mobile.[14]

Travelers who booked their last trip on mobile did so due to convenience (52%), and time-savings (44%).[14]

Mobile airline bookings were split almost evenly between smartphones (53%) and tablets (47%). For hotels, smartphones dominated with 81% of the reservations, while tablets won out at 60% for packages.[27]

Compared to non-mobile bookers, mobile travel-bookers are 1.9x more likely to be frequent travelers, 1.3x more likely to prefer personalized advertising, and 1.5x more likely to consider booking on a mobile app.[11]


Opportunities from Implementing a Mobile Strategy According to U.S. Travel Managers, May 2016% of respondents

Note: n=216.

Source: Global Business Travel Association (GBTA), “A Mobile Effect: Setting a Clear Mobile Travel Strategy” in partnership with Carlson Family Foundation, Aug. 25, 2016.

Increase traveler engagement

Increased compliance

Reduced off- program bookings

Lower transaction costs

Don’t see any opportunity

Other

78%

55%

43%

34%

8%

7%

31

Mobile Travel Sales to BoomLower Funnel

Overall mobile travel sales were expected to hit $65 billion—nearly 36% of total U.S. digital travel sales—in 2016.[27]

Bookings from mobile devices are anticipated to make up almost halfof total digital travel sales by 2020.[27]

In the past year, conversion rates have grown 88% on mobile travel sites,and mobile’s share of travel visits has grown by 48%.[10]

Mobile ad spending among U.S. travel brands reached $3.61 billion in 2016, making up more than 63% of total digital ad spend. This is a significant increase over 2015’s figures, when the mobile ad spend made up 49% of the total.[19]

U.S. Mobile Travel Sales, 2014–2020billions USD, % change, and % of digital travel sales


Note: includes leisure and unmanaged business travel sales booked via mobile device.

Source: eMarketer, May 2016.

$31.95

21.3%31.0%

63.0%

95.3%

24.8%

36.0% 40.0% 43.5% 46.0% 48.0%

16.7% 13.6%10.0% 8.0%

$65.01

$75.85

$86.20$94.80

$102.38

$52.08

2015 2016 2017 2018 2019 20202014

32

Search phrases in local language

Ways U.S. Travelers UseMobile Devices After Arrivingat Their Travel Destination% of respondents

Mobile is the Go-To Tool While on VacationEngagement/Advocacy

85% of leisure travelers decide on activities only after having arrivedat the destination, [25] and they employ their mobiles for assistance.

Travelers are using mobile to be spontaneous—half of international travelers use smartphones to look for things to do once they’ve arrived at a destination.[25]

More than half of travelers said they would check in using a mobile app if they could, and use it to purchase additional services during their stay. Almost two-thirds (61.4%) said they would use a mobile app to purchase a late checkout.[17]

Since smartphones are location-aware, travelers often search for “things to do near me.” Search interest in queries related to “places to eat near me” has more than doubled since 2015, offering opportunity for hospitality advertisers.[6]


Note: ages 18+.

Source: Colloquy, “Travel and Loyalty: On a Journey Together,” Aug. 25, 2016.

Find attractions

Check hotel reservations

Navigate a downtown area

73%

71%

66%

54%

33

Digital Activities Conducted by U.S. Internet Users When Traveling, August 2016% of respondents

Social Helps Spread the WordEngagement/Advocacy

Nearly one-in-five use social media while traveling, sharing snippets of their experiences with peers.

When Millennials travel, many reach for their smartphones to tweet and Instagram pictures in real-time, and to post comments about the restaurants they’ve tried and experiences they’ve had.Half of U.S. internet users shared their vacations with family and friends through Facebook, and another 14% posted on Instagram.[19]

Advertiser interest in paid social complements consumers’ increasing use of social sites to share personal travel content.


Note: n=814 ages 18+

Source: AYTM Market Research, “Travel Wifi,” Aug. 30, 2016.

Looking up directions/navigation

Social media

Looking up travel info

Streaming music

Gaming

Streaming videos/TV

Work

School

Other

None of these

21.0%

8.6%

15.7%

7.8%

4.3%

17.9%

8.4%

10.0%

3.5%

2.9%

2017’s

Hottest

Travel

Trends

35

Data-driven targeting gains popularity as travel advertisers invest in data collection and analytics.

The use of Bluetooth beacons to deliver proximity-based messaging to smart devices is growing quickly, and could be mainstream in the next several years.[28]

More granular demographic and logistical data will enable delivery of more personalized offers, while real-time feedback will improve product development, predict problems, and enhance user experiences.[28]

As travelers seek more relevant and trusted content, online travel agencies are increasing their investment in Big Data analytics. Robust data capabilities help identify visitors across different channels and devices, driving personalized marketingand customer journeys.[26]

Programmatic is a crucial tactic for incorporating customer data and utilizing audience intelligence. Executives in the travel category place high importance on leveraging first-party data to power their programmatic efforts.[19]

Data-Driven TargetingMethods Used to Collect

Traveler Data According to Travel/Hospitality Decision-

Makers in the U.S.


Source: eMarketer | Mindtree, “Winning in the Age of Personalization” conducted by Vanson Bourne, Feb. 10, 2016.

Customer Profile Data

Loyalty Social Media Usage

87% 83% 80%

36

Internet-of-things (IOT) will provide a seamless travel experience, from research to travel purchases.

Travel companies worldwide expect to spend an average of$109 million each on IoT initiatives in 2018.[29]

Consumer-facing initiatives are primarily aimed at delivering more personalized and frictionless experiences to travelers. For example, airlines are experimenting with app projects that streamline check-in, help passengers navigate an airport, improve baggage handling, track pets in transit, and send other personalized alerts to travelers.[14]

On the enterprise side, many in the travel category have IoT systems already in place to boost efficiency and streamline operations. Hotels manage use-and-maintenance of their heating, ventilation, and air conditioning (HVAC), security, plumbing, elevator and other facilities-related systems. Airlines employ sensors to gather real-time information from aircraft parts and systems that are then used to track flight data, optimize fuel consumption and anticipate maintenance issues.


Source: Tata Consultancy Services, “Internet of Things: The Complete Reimaginative Force” conducted by Research Now, July 22, 2015.

Ways in Which Their Company is Using IOT Technologies According to Travel, Transportation, and Hospitality Executives Worldwide, April 2015% of respondents

In production & distribution ops, to track product flow to customers

Through mobile apps that customers use on smartphones, tablets, or other digital devices

Through digital sensors & other devices in locations where business is

conducted (e.g. stores, offices, branches)

Through digital sensors in products that send data to the company on

how those products are performing

Through digital devices (e.g. digital bracelets) customers can wear, allowing the company to

track usage of products & services

Don’t currently use digital tech to monitor products, but plan to do so by 2020

71.9%

32.8%

20.3%

14.1%

12.5%

7.8%

Internet of Things

37

The travel industry is on the cusp of developments in the virtual reality, virtual assistant, and artificial intelligence space.

Millennials are a tech-savvy generation, and interest in using technology to experience destinations prior to visiting is of greater interest to them than to vacationers in general. Virtual reality is beginning to be well-utilized by hospitality, cruise, and destination marketers to entice Millennials.[1]

By combining big data with artificial intelligence, the industry will employ ‘virtual travel assistants‘ to offer advice, such as suggesting nearby restaurants according to travelers’ personal tastes and budget.[15]


Select Attitudes Toward Travel Improvements, March 2016% of respondents

Base: 1,764 internet users aged 18+ who have booked any travel in the last 12 months.


Single app to plan the entire trip

Mobile app to suggest activities

before & during trip

Mobile device travel booking improvements

Voice-assisted technology to help

w/travel booking

21%

18%

17%

13%

VR, VA, and AI

The Smart

Way to Reach

the American

Traveler

39

With our online and targeted magazine solutions to help travel brands reach

their consumers, we create touchpoints at each stage of the travel purchase

funnel, for richer and smarter advertising experiences.

Our Media Solutions


40

MNI Magazine Networks reach

nearly half of all travel intenders,

and influence fifty-four cents for every

dollar spent on vacation travel.[20]

Magazine Solutions, MNI SearchDrive Brand Awareness Through

Our magazine networks, custom packages, and Cover Wraps drive awareness, and our search solution provides brand visibility.

MNI Magazine Networks reach half of all travel decision makers, over half (57%) ofall travel influentials, and more than half (55%) of all travel bloggers.[20]

Over half of our readers have noted travel ads in MNI Magazine Networks, and nearly 63% have taken actionafter noting these ads, including visiting the advertiser’s website, looking for additional information, considering transacting with the advertiser, and actual purchases.[21]

MNI Search works across three leading search platforms, to execute travel campaigns that can be optimized across any or all of these platforms.


Travel bloggers: frequent travelers AND bloggers.

Travel and travel-related ads: advertisers under the industry classes— aviation (excluding freight), public transportation, and hotels & resorts.

41

MNIx, MNI Video SolutionsResearch is a cross-channel activity—from magazines and TV programs to social media and online reviews. MNIx makes it simple for travel brands to harness

the power of programmatic, through access to open exchanges, private marketplaces, ad networks, advanced targeting technologies, and cross-platform capabilities. Ads on travel-specific sites reach defined audience profiles, and

provide content alignment for a less-intrusive ad experience.

Campaigns across display, video, native, social, mobile/tablet, and connected TV create cross-platform opportunities to engage the right audience at the right time.

Extensive targeting capabilities and data management solutions work to zero-in on the exact audience groups.

MNI Video Solutions work across channels and platforms, to provide advanced targeting capabilities, extensive inventory, and the ability to push travel video-ads to target audience groups while they are engaged with specific, relevant content.

Trigger Brand Consideration via


42

MNI Social

Trigger Brand Consideration via

Our social solution delivers cross-platform social campaigns, at scale.

MNI Social works across all major social media channels, using the latest targeting capabilities, so travel brands can engage the right audience across their social media accounts.

Unique targeting technologies help travel advertisers reach specific audience groupsat the right time, on the right platform.


43

MNI Mobile SolutionsOur mobile solutions connect travel brands directly with their audience, wherever they go. MNI Mobile Solutions let travel advertisers

reach specific consumers on their trusted and indispensable mobile devices, using advanced targeting capabilities. Travel-specific mobile channels can be leveraged to get the right message in front of the target audience engaged with the relevant content and context.

Location-based targeting tactics drive engagement advocacy— eye-catching creatives, coupons, and offers can be served to travelers when they are at the destination, or close to a specific location.

MNIx offers mobile-first solutions with targeted digital inventory across both mobile web and in-app.

Drive Conversions with


44

DataMatch™

Our big data solution defines and targets niche audiences across platforms. DataMatch™ leverages proprietary first-party data

to identify adults seeking their next getaway, and targets them on a deterministic, one-to-one level via cross-platform campaigns. First-and third-party data from Omnipoint, mobile data, and offline data are harnessed, to identify individual user-profiles who make up the best audience for travel brands.

This niche audience is activated on channels where they are most likely to engage, across programmatic and list-based activations.

Drive Conversions with


Recap

46

Travel Insights Recap The vacation and tourism market is slated for 22% growth from

2015-20, to reach $284.5 billion, with growth aided by a strong economy, low fuel prices, a steady U.S. dollar, and an increasing willingness to spend more on vacations.

U.S. consumers are keen on traveling more this year, hoping to visit new destinations, while embracing the sharing economy.

Millennials are a key consumer group for the travel industry, as they prioritize gaining experiences over acquiring possessions.

The bleisure trend is expected to rise, as Millennials seek to strike a balance between their careers and the need to immerse themselves in experiences that only travel can provide.

Older Millennials are in a better position to spend more on vacations, owing to their career achievements and their possession of more disposable income than their younger counterparts.

Families play a critical role in travel decision making, with children having a key role in destination decision making.

While travel intenders start their decision-making process on a blank page, they are quick to fill up the spaces through prioritizing their selection criteria, which include cost, reviews, pictures, availability, flight length, travel schedules, and activities at the destination.


47

Travel Insights Recap When it comes to travel decision making, travel intenders amass

information from all possible channels and media types, choosing a media-agnostic approach by embracing print, TV, and online sources. Digital media plays an important role at all stages of the purchase funnel.

Magazines and search work at the top level of the purchase funnel, to build brand awareness and inform travel intenders of the various travel options available at their disposal.

When at the mid-funnel level, travel intenders choose to explore various media channels, across both mobile and desktop, to aid in their decision making. They engage with display and video ads, emails, influencer and user generated content, and social media sites. They are more likely to engage with ads that are retargeted based on their previous interactions, and communications and offers that are personalized to their tastes and preferences.

At the lower-funnel stage, desktop bookings currently reign, while mobile bookings are ascending the ranks, as travel intenders are becoming increasingly cross-device savvy.

Once at the destination, travelers are more likely to use their smartphones for additional research and travel-related purchases. They also turn to social media to share their travel experiences real-time.

Key trends to watch out for in 2017 include employing consumer data, IoT developments, and advancements in the AI, VR, and Virtual Assistants space.


48

Sources[1] Millennial Travelers – U.S. | Mintel | April 2016

[2] Worldwide Digital Travel Sales | eMarketer | July 2016

[3] Multimedia Spend Report—2015 vs. 2016

[4] New Research Shows How Brands Can Win Travel Micro-Moments | October 2016 | think with Google

[5] American Lifestyles: Balance Or Bust—U.S. | Mintel | April 2016

[6] How Mobile Influences Travel Decision Making in Can’t-Wait-to-Explore Moments | July 2016 | think with Google

[7] Travel Booking - U.S. | Mintel | May 2016

[8] Airlines – U.S. | Mintel | July 2016

[9] 8 Big Travel Predictions for 2017 | Booking.com | November 21, 2016

[10] Travel Trends: 4 Mobile Moments Changing the Consumer Journey | November 2015 | think with Google

[11] Navigating the Multidevice Travel Path to Purchase | January 27, 2016 | Facebook IQ

[12] I-Want-to-Get-Away Moments: What They Mean for Travel Marketing | July 2016 | think with Google

[13] How the Travel Research Process Plays Out in Time-to-Make-a-Plan Moments | July 2016 | think with Google

[14] The Mobile Compass: How Smartphones Guide the U.S. Travel Path to Purchase | September 26, 2016 | Facebook IQ

[15] 5 digital marketing trends transforming the travel industry | Smart Insights | November 29, 2016


[16] U.S. Millennials Use Mobile for Travel Content,but PCs Still Lead | eMarketer | January 29, 2016

[17] Most Travelers Use Search Engines When Planning a Trip | eMarketer | March 24, 2016

[18] The U.S. Travel Industry H2 2016 Update | eMarketer | December 2, 2016

[19] The U.S. Travel Industry 2016 | eMarketer | May 2016

[20] 2016 Spring GfK MRI; Base: U.S. Adults 18+

[21] Magazine/Advertiser Detail Report 1/1/2016–12/19/2016

[22] Travel Infographic: How Mobile Shapes the Customer Journey | July 2016 | think with Google

[23] How Micro-Moments Are Reshaping the Travel Customer Journey | July 2016 | think with Google

[24] 10 Digital Marketing Trends in Travel and Hospitality | Curalate | March 2016

[25] Travel Trends 2016: Data Reveals Hot Spots and New Consumer Insights | September 2016 | think with Google

[26] 2017 Travel Marketing Trends | Smart Insights

[27] Smartphones Lead Mobile Bookings for Hotel, Flights | eMarketer | June 14, 2016

[28] The Internet Of Travel Things | eMarketer | January 2016

[29] Internet of Things: The Complete Reimaginative Force | TCS Global Trend Study | July 2015

Bon

Voyage!

© 2017 MNI Targeted Media Inc. | A Time Inc. Company | 225 High Ridge Road, Stamford, CT 06905 | 800.225.3457 mni.com

ep - MNI | Targeted Media · 16% Print 2% Total (ages 18–55) Laptop. Magazines, Search Desktop, Mobile MNI Targeted Media Inc. | 2017 Travel Industry Factbook. Upper Funnel. Mid

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