SEVEN FOR '19 YEAR IN REVIEW & THE YEAR AHEAD TRENDS, CHALLENGES AND OPPORTUNITIES FOR DESTINATION AND TOURISM MARKETERS IN 2019 - Miles Partnership
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STARTING SHORTLY…
YEAR IN REVIEW & THE YEAR AHEAD
SEVEN FOR ’19
TRENDS, CHALLENGES AND
OPPORTUNITIES FOR DESTINATION
AND TOURISM MARKETERS IN 2019
DECEMBER 12, 2018
YEAR IN REVIEW & THE YEAR AHEAD
SEVEN FOR ’19
TRENDS, CHALLENGES AND
OPPORTUNITIES FOR DESTINATION
AND TOURISM MARKETERS IN 2019
DECEMBER 12, 2018
With You
Douglas Quinby Alice Jong Chris Adams
Phocuswright Phocuswright Miles Partnership
DQuinby@Phocuswright.com AJong@Phocuswright.com Chris.Adams@MilesPartnership.com
With You
Cees Bosselaar
Phocuswright
CBosselaar@Phocuswright.com
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25+ years experience
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Meet Miles
250+ travel 7+ year
100% travel
experts average client
By the relationship
numbers
100+ $33+ million
destinations & in industry
travel brands participation
A few of our clients
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2018 Recaps: Two Untrends
1. Blockchain
What enthusiasts like to highlight
1. Distributed or decentralized ledger
2. Unbreakable/un-hackable
3. Application: establishing contracts and transferring value
16 © 2018 Phocuswright Inc. All Rights Reserved.A few other data points
1. Blockchain startups: 3080 (AngelList)
2. Blockchain conferences: 350
3. Blockchain investment growth in 2018: 280%
17 © 2018 Phocuswright Inc. All Rights Reserved.We’ll know Blockchain has arrived when
Blockchain startups just call themselves
“startups” and established companies call
Blockchain projects “projects.”
18 © 2018 Phocuswright Inc. All Rights Reserved.2. How Real is Virtual Reality?
My Next Trip?
No thanks.
20 © 2018 Phocuswright Inc. All Rights Reserved.Planned Tech Investments by Travel Brands
Active/heavy development or investment Small development/experimentation A little planning
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Customer support Chat bots Artificial Voice Virtual Augmented
via messaging intelligence search reality reality
Base: Travel Companies who spend on online advertising: (N=165)
Source: Phocuswright and Microsoft, The Travel Marketer’s Guide to the U.S. Digital Travel Landscape, 2017
21 © 2018 Phocuswright Inc. All Rights Reserved.22 © 2018 Phocuswright Inc. All Rights Reserved.
Source: NPR/Six Flags 23 © 2018 Phocuswright Inc. All Rights Reserved.
For 2019: Seven Trends
Seven for ‘19
1. Standing with Giants
2. Media Madness
3. A Different Beast in the East
4. Asia Not China
5. Talk to Me
6. Experience This
7. Heads in Beds
25 © 2018 Phocuswright Inc. All Rights Reserved.1. Standing with Giants
The World We Live In
Source: New York Times
27 © 2018 Phocuswright Inc. All Rights Reserved.Global Share of OTA
Bookings, 2018 Expedia + Booking + Ctrip
Note: *Excludes gross bookings for Egencia, Expedia’s corporate travel business. Includes Travelocity, Wotif and Orbitz in 2015.
Source: Phocuswright Inc.
** Ctrip bookings are Phocuswright estimates
28 © 2018 Phocuswright Inc. All Rights Reserved.The Slow-Moving Giant
1. Giants are encumbered by size
2. Growth is slowing
3. Startups raising more money than ever,
and moving faster than ever
Source: Phocuswright Inc.
29 © 2018 Phocuswright Inc. All Rights Reserved.Takeaways:
1. There are more opportunities to work with the big players
and play them against one another.
2. Always keep an eye on the startup landscape. The next
Airbnb is out there…
3. There’s always room for great products.
Source: Phocuswright Inc.
30 © 2018 Phocuswright Inc. All Rights Reserved.INSIGHTS AND COMMENTARY
STANDING WITH GIANTS
GOOGLE DMO PARTNERSHIP PROGRAM RESULTS
DECEMBER 12, 2018Google DMO Google DMO Partnership Program:
Partnership 13 Free tools Destinations can use to make the most of their
Program
visibility within Google’s products.GOOGLE
PROGRAM
CONTENT
AUDIENCE
~350 IMAGES,
GOOGLE STREET VIEW
POSTS ON GOOGLE
EXAMPLE: GOOGLE PROGRAM DMO
12,000,000
Estimated annual views across Google
(based on views measured Nov. 2017 to Nov. 2018)EXAMPLE: DESTINATION WEBSITE
6,000,000+
Estimated website page views
(based on pageviews Year to November 2018)2. Media Madness
Digital travel IS travel. 36 © 2018 Phocuswright Inc. All Rights Reserved.
Online vs. Offline Leisure Travel
Advertising Spend
100%
Offline
80%
60%
40%
Online
20%
0%
2016
2016 2018
2018 2020
2020 2016
2016 2018
2018 2020
2020 2016
2016 2018
2018 2020
2020 2016
2016 2018
2018 2020
2020
U.S.
U.S. France
France Germany
Germany U.K.
U.K.
Note: *Singapore, Thailand, Malaysia, Indonesia
Base: Online Travelers: (U.S. N = 857; U.K. N=795; AU N=786; IN N=777; FR N=762, DE N=760; BR N=740; JP N=811; KR N=753)
Sources: Phocuswright’s Google Travel Study 2017; Phocuswright’s The Southeast Asian Traveler;
Phocuswright’s China Unbounded: The Rapid Rise of China’s Outbound Millions
37 © 2018 Phocuswright Inc. All Rights Reserved.Social media is
getting lots of Likes
Source: Phocuswright Inc.
38 © 2018 Phocuswright Inc. All Rights Reserved.Social Media Advertising Use, 2018
Facebook page
Facebook paid ads
Instagram business account
Instagram sponsored ads
Twitter account
Twitter paid ads
Snapchat account
Snapchat paid ads
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Currently using Experimenting/ Plan to experiment Don't plan to use Not sure
Base: U.S., U.K., Germany France Leisure Travel Advertisers
Source: Phocuswright’s Travel Advertising in U.S. and Europe: Industry Sizing and Trends
39 © 2018 Phocuswright Inc. All Rights Reserved.Rising Star award
goes to…
Source: Phocuswright Inc.
40 © 2018 Phocuswright Inc. All Rights Reserved.Video Medium Advertising Use, 2018
YouTube
Online video advertising
Social live video streaming
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Currently using Experimenting/ plan to experiment Don't plan to use Not sure
Base: U.S., U.K., Germany France Leisure Travel Advertisers
Source: Phocuswright’s Travel Advertising in U.S. and Europe: Industry Sizing and Trends
41 © 2018 Phocuswright Inc. All Rights Reserved.Takeaway:
Consumers are engaging with travel at all stages everywhere
digitally. That means marketers need to be everywhere. New
products and targeting options are abound, start testing new
techs. Visually engaging mediums like social and video are
especially relevant and effective for brand engagement.
Source: Phocuswright Inc.
42 © 2018 Phocuswright Inc. All Rights Reserved.INSIGHTS AND COMMENTARY
MEDIA MADNESS
HYPER-INFORMED TRAVELER
DECEMBER 12, 2018General search engines were the most popular type of
website/app used when researching destinations.
General search engines 45%
Traveler review websites/apps 37%
Online travel agency websites/apps 36%
Travel provider websites/apps 23%
Travel search engine websites/apps 19%
Destination websites/apps 13%
Social networking websites/apps 12%
Deals emails websites/apps 11%
Home/apartment rental websites/apps 10%
Source: U.S. Consumer Travel 2018
44 © 2018 Phocuswright Inc. All Rights Reserved.HYPER-INFORMED TRAVELER
www.milespartnership.com/how-we-think3. A Different Beast in the East
Mobile Share of Online Travel
2013- 2022, China and U.S
China U.S.
100%
80%
60%
40%
20%
0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Source: Phocuswright’s Global Mobile Market Sizing: Focus on U.S., APAC and Europe, 2017
47 © 2018 Phocuswright Inc. All Rights Reserved.Google 48 © 2018 Phocuswright Inc. All Rights Reserved.
China’s Top Tech, Monthly Average Users
Search
Social
Baidu – 80% market share. Mobile
QQ (Tencent) Instant messaging –
App – 665M MAU (2017)
800M MAU
Messaging Commerce
WeChat (Tencent) Mini-Apps for Taobao (Alibaba) – Shopping &
everything – 1B MAU payments – 634 MAU
Social
Meituan (Tencent) On-demand
Weibo (Sina) Microblogging –
delivery – 320 MAU
431M MAU
Source: Phocuswright Inc. and Company Reports
49 © 2018 Phocuswright Inc. All Rights Reserved.Ctrip Fliggy
Ready to dream
search, shop, buy,
experience, share
50 © 2018 Phocuswright Inc. All Rights Reserved.
Source: Ctrip, FliggyTakeaway:
What you thought was top of the funnel, does not exist in China.
Instead, China’s mobile-first, app-friendly environment means
inspiration and itinerary planning apps are a vital part of its
travel ecosystem. Ideally, DMOs should be working with all of
them.
Source: Phocuswright Inc.
51 © 2018 Phocuswright Inc. All Rights Reserved.4. Asia Not China
Who’s obsessed
with China?
Source: Phocuswright’s U.S. Traveler Technology Survey Eighth Edition
53 © 2018 Phocuswright Inc. All Rights Reserved.Meanwhile… Source: Phocuswright’s U.S. Traveler Technology Survey Eighth Edition
India Total Travel and OTA Gross
Bookings (US$B, 2005- 2017)
12
10
8
6
4
2
-
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
OTAs Total Online Travel Market
Source: Phocuswright’s U.S. Traveler Technology Survey Eighth Edition
55 © 2018 Phocuswright Inc. All Rights Reserved.Source: Phocuswright’s U.S. Traveler Technology Survey Eighth Edition, PhocusWire 56 © 2018 Phocuswright Inc. All Rights Reserved.
Takeaways:
1. There’s more to Asia than China, and it’s heating up across
the region.
2. Digital transformation is happening rapidly in more mature
markets (Japan, Korea, Taiwan).
3. Southeast Asia is on the cusp of being serious. Now is the
time to start planting seeds – or at least checking the soil.
Source: Phocuswright Inc.
57 © 2018 Phocuswright Inc. All Rights Reserved.INSIGHTS AND COMMENTARY
ASIA NOT CHINA
MARKETS OF OPPORTUNITY
DECEMBER 12, 2018ASIA NOT CHINA 5 Other Markets of Opportunity: 1. India 2. Indonesia 3. Taiwan 4. Singapore 5. Korea
KOREA: 2012-2017 INTO THE US 87% growth
5. Talk to Me
73%
of online travelers message
on a messaging app or through
social media while traveling.
Source: Phocuswright’s U.S. Traveler Technology Survey Eighth Edition
62 © 2018 Phocuswright Inc. All Rights Reserved.Comfortable Using Messaging
for Travel- Related Actions
Contact a hotel front desk 62%
Customer service
Interact with customer service 57%
Get local recommendations 58%
Interact with a concierge 53%
Human touchpoints
Compare/choose travel products 57%
Book travel products 51% Planning & booking
Chat with a computer-powered “assistant” 43%
Chat-bot
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Source: Phocuswright’s U.S. Traveler Technology Survey Eighth Edition
63 © 2018 Phocuswright Inc. All Rights Reserved.47%
of online travelers regularly
use an AI- powered voice-
activated assistant.
Source: Phocuswright’s U.S. Traveler Technology Survey Eighth Edition
64 © 2018 Phocuswright Inc. All Rights Reserved.Online Traveler Interest in Using
a Digital Assistant to Plan Travel
50%
40%
30%
20%
10%
0%
U.S. U.K. France Germany
Base: Leisure Travelers: U.S. N=857; U.K. N=795; France N=762, Germany N=760
Source: Phocuswright’s Google Travel Study 2017
65 © 2018 Phocuswright Inc. All Rights Reserved.Takeaway:
“We tend to overestimate the effect of a technology in the short
run and underestimate the effect in the long run.”
— Roy Amara, researcher and futurist
Travel brand needs to think carefully about how chat and voice
are changing the industry, how these tools and platforms can be
leveraged in their own mobile presence and across all customer
touchpoints, and how they might pose threats to the way
business is done. Brands must not fall behind as customers
expect to use chat and voice more.
Source: Phocuswright Inc.
66 © 2018 Phocuswright Inc. All Rights Reserved.6. Experience This
8% Other*
8% Rail
9% Activities
Global Travel Market
Share by Segment 7% Private
accommodation
31% Hotels
37% Airlines
Note: *Other includes car rental, cruise and package tour operators in select markets.
Source: Phocuswright’s The State of Digital Travel 2017
68 © 2018 Phocuswright Inc. All Rights Reserved.It’s growing faster Source: Phocuswright’s Tours & Activities Come of Age: Global Travel Activities Marketplace 2014-2020
More than $600M Raised Since 2017
$300M $75M $40M
$12M $26M
$60M
$10M $33M $6M
$8M $5M
$6M
$4M N/A
Source: Phocuswright’s The State of Digital Travel 2017
70 © 2018 Phocuswright Inc. All Rights Reserved.Experiences
Source: Airbnb
71 © 2018 Phocuswright Inc. All Rights Reserved.Source: Airbnb 72 © 2018 Phocuswright Inc. All Rights Reserved.
73 © 2018 Phocuswright Inc. All Rights Reserved.
Source: Airbnb 74 © 2018 Phocuswright Inc. All Rights Reserved.
Which Which
NY?
NY?
75 © 2018 Phocuswright Inc. All Rights Reserved.Takeaways:
“Experiences” and “connecting with locals” is important, but do
not overlook the need to offer and innovate around the classic
touristic experiences. Travelers want both.
76 © 2018 Phocuswright Inc. All Rights Reserved.INSIGHTS AND COMMENTARY
EXPERIENCE THIS
DECEMBER 12, 2018Overtourism Tool Kit Best Practices & Resources on: o Management (and Marketing) Role of DMOs o Destination Strategies o Visitor Responsibility Codes o Measurement incl. Resident Surveys o Research, Reports, Resources & Links www.milespartnership.com/how-we-think
7. Heads in Beds
The Airbnb effect
81 © 2018 Phocuswright Inc. All Rights Reserved.
Source: Phocuswright's U.S. Consumer Travel Report Tenth EditionHotel Stayers Who Considered
a Rental During Last Hotel Booking
France Germany Italy Spain U.K. U.S.
72% 76% 85% 81% 85% 66%
Online Offline
Source: Phocuswright’s A Market Transformed: Private Accommodation in the U.S; Private Accommodation in Europe: 2010-2020
82 © 2018 Phocuswright Inc. All Rights Reserved.NOT just heads in beds.
65% of U.S. hotel guests
place high importance on
hotels investing in tech to
enhance the guest
experience. Hotel guests now have enhanced
experience expectations.
Source: Phocuswright Inc.
84 © 2018 Phocuswright Inc. All Rights Reserved.Importance for Hotels to Continue
Investing in New Technology
100%
80% Not important
60%
Moderately
important
40%
Very important
20%
0%
Virtual check-in/ Information Keyless room In-room Requests Concierge/ room Control room
check-out about local entry entertainment delivered by robot service via mobile climate/lights
activities
Source: Creating the Coveted Hotel Guest Experience; Phocuswright/Oracle Hospitality Study
85 © 2018 Phocuswright Inc. All Rights Reserved.When Travelers Want In- destination
Product Offers
47% 48%
When I am booking my hotel online When I am checking in at my hotel
Source: Phocuswright’s Consumer Travel Report Ninth Edition in partnership with iSeatz
86 © 2018 Phocuswright Inc. All Rights Reserved.Takeaway:
Traditions change. What travelers readily think of as “lodging” is
changing. Furthermore, travelers want more from their stay, and
hotels are uniquely positioned to leverage technology to help them
get the most out of their trip. DMOs should showcase the breadth
of its lodging options that is evolving with consumer tastes.
Source: Phocuswright Inc.
87 © 2018 Phocuswright Inc. All Rights Reserved.Phocuswright
Research & Upcoming
Events 2019
Cees Bosselaar
Vice President, Business Development
and Destination Marketing Specialist
Phocuswright Inc.
88 © 2018 Phocuswright Inc. All Rights Reserved.Data Points & Reports Used Today
1. Phocal Point: Global Market Sizing
2. Travel Advertising in U.S. and Europe: Industry Sizing and Trends
3. U.S. Traveler Technology Survey Eighth Edition
4. A Market Transformed: Private Accommodation in the U.S.
5. Private Accommodation in Europe: 2010-2020
6. U.S. Consumer Travel 2018
7. Asia Pacific Online Travel Overview Tenth Edition
8. Tours & Activities Come of Age: Global Travel Activities Marketplace 2014-2020
9. The Wild World of Blockchain in 2018
10. Escaping the Sidelines: Tours & Activities Get Going
For more information, contact Cees Bosselaar at cbosselaar@Phocuswright.com
89 © 2018 Phocuswright Inc. All Rights Reserved.Phocal Point 90 © 2018 Phocuswright Inc. All Rights Reserved.
91 © 2018 Phocuswright Inc. All Rights Reserved.
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Resources
Webinar Resources Research, slides and other resources will be available at www.milespartnership.com/phocuswright
Google DMO Partnership Program: Webinars, Best Practices & Apply
www.milespartnership.com/GoogleDMOProgramSpotlight Webinar: TripAdvisor’s New UGC Platform & Opportunities
For Tourism Marketers
Steven Paganelli
Head of Destination Marketing, TripAdvisor
www.milespartnership.comResources: “How We Think” Stay Connected: o Follow our blog o Explore white papers and research o Sign up for upcoming webinars o Watch past webinars www.MilesPartnership.com/How-We-Think
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