Travel Digital Summit - May 2021 - ADC Group
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Travel Digital Summit
May 2021
AGENDA 1. Context & introduction 2. Google searches emerging travel global trends 3. Three big shifts we’ve seen globally since the start of the pandemic 4. Decoding travellers online purchase decisions 5. Tr a ve l e r m i n d s e t a n d n e w p r e fe r e n ce s 6. Hypersegmentation as differentiating factor 7. What brands can do 8. Five travel marketing best practices
Hardship
Massive anxiety & risk aversion
A need for adaptability
A new meaning of support
The world has Digital acceleration
Jump in online consumption
changed
Even less reliance on paper money
New “no contact” offerings
New working model
Businesses going fully virtual
WFH the new normal
Travel restrictions changing habits
The 2020 outbreak is a Game Changer for the Travel Sector
-80% -50%
Max contraction Hotel revenue per
of bookings available room
during peak1 drop2
The industry experienced an overall The average occupancy dropped below 20%
contraction of flights with higher impact during April 2020 imposing different
in connections between Europe and Asia management polices till the complete recover
AIRLINES LODGING
INTERMEDIARIES CRUISES
The selective closings imposed by Cruise companies are affected by a huge
governments are making hotels more reduction of requests after years of continuous
dependent than ever on OTAs for bookings growth; relevant routes suspended for months
-90% ~400
Reduction of
Cruise liners
bookings for a major
lied at anchor
digital platform
Note: (1) Worldwide 2020 vs 2019 (2) 2020 vs 2019 | OTAs: Online Travel Agencies | Source: Euromonitor; CNBC; Bloomberg; IATA; WSJ; NYT; Reuters; DW; UN; Hotrec; Bain analysis;
Both analysis on marketing spend and sentiment of press &
operators are highlighting a potential recover of the industry
The Economist
2021 ADV spend growth forecasts by industry
Global % change | YoY at current prices The travel bug seems certain to outlast the virus. Its
first manifestation may be “revenge tourism” as people
get away after a year of lockdowns and quarantines
Experts are perceiving a
+28% demand rebound CEO, Expedia
Vacation deprivation will be replaced by a travel
boom… people are beginning to think about their
+15% future travel very quickly
+5% +5% Financial Times
+3% +2%
Cruise industry remains bullish about survival and
showing signs of resurgence… Regular cruise
Travel & Media & passengers are happy to book a long way in advance
Retail Telecom Food Pharma
Transport Entertainment
Source: Financial Times, The Economist, Bain Analysis on industry-related press | Note: Forecasts as of Jan-2021 for Australia, Brazil, China, France, Germany, Italy, Japan and the US
Four trends to focus on in order to intercept customer needs
and accelerate the recovery, leveraging on digital solutions
Anywhere, Experience Tailor-made offer “On flight” crisis
Anytime Enlargement and marketing management
Continuous touchpoints VR experience trials before Hypersegmentation for Real time position tracking
enabling access to services booking targeted marketing activities and geo-referenced
and experiences information enrichment
App-based AR/VR during 1-to-1 tailor made solutions
Travel planning through travel (e.g. interactive maps based on preferences Support by chatbots and
mobile devices and Apps through devices) call centers to constantly
Proximity Marketing / push solve issues
«Real time» adjustments Web communities and Social notifications for up/cross
to match clients’ needs integration selling based on behavior Digital passports and
insurances
Source: Adobe, Bain Analysis on industry-related press
Google Searches trends The traveller Hypersegmentation & decoding online mindset and the new as differentiating travellers behaviors preferences factor
The emerging Google travel searches' trends and the challenge of decoding travellers online purchase decisions
Proprietary + Confidential Google searches emerging travel global trends
Proprietary + Confidential
In 2020 travel searches declined consistently worldwide
YoY% growth of Travel queries globally (2020 vs 2019)
15% International Domestic
13%
2020 vs 2019 volumes (YoY%)
-30%
-58%
-70%
-72%
Google destination insights, air and accommodation origin & dest worldwide (international & domestic) Search growth rates represent y/y. from Jan 1 to 31st dec 2020 on 7 day rolling averageProprietary + Confidential
2021 is showing a recovery driven by domestic demand
Yo2Y% growth of Global Travel Searches
International Domestic
-5% Yo2Y
(apr 16th-23rd)
2021 vs 2019 volumes (Yo2Y%)
+20pp
-40% Yo2Y
(apr 16th-23rd)
+21pp
Google destination insights, air and accommodation origin and dest worldwide, (international & domestic) Search growth rates represent y/2y. from Jan 1 to 24th of April 2021 on 7 day rolling averageProprietary + Confidential
Demand Could Shift Quickly Due to Policy Changes (eg. UK)
UK | Air & Accommodation Yo2Y% Queries Growth
-55%
(Yo2Y)
United Kingdom
Feb 21’ -
UK Announcement of
reopening plan by Boris
2021 vs 2019 volumes (Yo2Y%)
Johnson
+15pp recover
in 1 week
-70%
(Yo2Y)
Google destination insights, air and accommodation origin UK, dest worldwide, (international & domestic) Search growth rates represent y/2y. from Jan 1 to 24th of April 2021 on 7 day rolling averageLooking at Vaccination Rates and Travel 2021 Searches Recovery
vs 2019 50% 21%
% of population % of population +54 pp
receiving at receiving at
least one least one
vaccine dose vaccine dose
+19 pp
United Kingdom Denmark
Germany % of population
23%
receiving at
+22 pp least one 62%
41% vaccine dose
% of population
% of population receiving at
US receiving at
least one
+46 pp least one
vaccine dose
vaccine dose (recovery of 2021 vs 2019
queries volume)
+22 pp
Change in travel query growth rate since Jan 1, 2021 in Yo2Y% Israel
Source: ourworldindata.org on 24th of April 2021,
Proprietary + Confidential
Google destination insights, air and accommodation origin country demand (international & domestic) Search growth rates represent y/2y. from Jan 1 to 24th of April 2021 on 7 day rolling averageProprietary + Confidential
Italy is following the global trend with a recovery on travel
searches in 2021 vs 2019 driven by accommodation
Yo2Y% queries growth (Air & Accommodation)
20%
-6% Yo2Y
% of population (4/16-23)
receiving at
least one
vaccine dose
+46 pp
2021 vs 2019 volumes (Yo2Y%)
(recovery of ‘21 vs ‘19)
-39% Yo2Y
(4/16-23)
-52% Yo2Y
+30 pp
(recovery of ‘21 vs 19 )
-69% Yo2Y
Source: ourworldindata.org on 24th of April 2021,
Google destination insights, air and accommodation origin and dest worldwide, (international & domestic) Search growth rates represent y/2y. from Jan 1 to 24th of April 2021 on 7 day rolling averageProprietary + Confidential Three big shifts we’ve seen globally since the start of the pandemic
Proprietary + Confidential
Looking back, we’ve seen three big shifts globally since the
start of the pandemic
Part 1 Part 2 Part 3
DESTINATIONS WAY OF TRAVELLING PRIORITIES
MAINLY MORE VACATION AND FREE CANCELLATION &
DOMESTIC CAR RENTALS FLEXIBILITY
Travelers more open to domestic Vacation and car rentals now Demand for free cancellation option
destinations and close by trips considered a top choice for travelers demonstrates need for flexibility
Proprietary + ConfidentialDestinations
Proprietary + Confidential
Travelers are more open to domestic
destinations
Pre-Covid 2021 so far
55% 79%
share of Italy’s travel
share of Italy’s travel
queries in all of 2021 so far
queries in Jan 2020 were
were for domestic
for domestic destinations
destinations
Source: Destination insights with Google, Accommodation and air, Jan 1 to 25th apr 2021, share of Italy as origin country for travels to Italy as a destinationDestinations
Proprietary + Confidential
Indeed close by and local trips are a
new element compared to 2019
+8%
“Places to visit near me”
queries in full 2021 vs 2019
worldwide
Source: Google Trends Data, Jan 1st 2021 to April 24 2021 vs Jan 1st to April 24 2019, worldwide in TravelDestinations
Proprietary + Confidential
Consumers are looking for help and for travel inspiration as they
are unsure of where to go
Google Trends “where to travel to”
Apr ‘16-Mar ‘21
“Where to travel to”
March ‘21
April ‘20
Source: Google Trends Proprietary + ConfidentialDestinations
Proprietary + Confidential
We see an acceleration in search interest for particular
destinations (~3x compared to 2020 levels)
Google Trends “Vegas flights” &
“Miami hotels” Apr ‘20-Mar ‘21
March ‘21
‘Vegas flights’
+10% share of vaccinated
population in US
‘Miami hotels’
Nov ‘20
Feb ‘21
Source: Google Trends Proprietary + ConfidentialWay Of Travelling
Proprietary + Confidential
Vacation and Car Rentals are the only
travel categories registering a growth in
2021 vs 2019
Source: Google Trends Data,first 16 weeks (1 Jan to 20th of April) of 2021 vs 2019.
Search terms in vertical travel worldwide : “Vacation rentals”, “car rentals”, “Hotel”, “cruise”, “flight”Priorities
Flexibility is now a table stake
“No change fee” “Holiday Refund”
+58% +86%
growth of growth of
queries in 2021 so far vs queries in 2021 so far vs
2019 worldwide in Travel 2019 worldwide in Travel
Source: Google Trends Data,first 16 weeks (1 Jan to 20th of April) of 2021 vs 2019, search terms “no change fee” and “Holiday refund” in Travel worldwideProprietary + Confidential
To recap:
Leverage a data-driven approach to follow users’ demands
In this moment, users’ demands are dynamic and evolving rapidly. It is important to always keep an eye on travel search trends
in order to not miss any opportunities
Domestic and local demand is still key
Until national and international mobility returns back to normal, domestic and close by trips is still a key element
in travelers’ destination choices
Flexibility as a priority for travelers
Travelers now expect flexibility when buying a travel experience. It is therefore essential to re-adapt your travel offers
based on these new needsProprietary + Confidential Decoding travellers online purchase decisions
Decoding Decisions
IT
Read the full article on Think with GoogleThe “messy middle” Proprietary + Confidential
Common search ‘modifiers’ in the messy middle
We have an updated model that is explaining the consumer decision
Proprietary + Confidential
makingWe have an updated model and some behavioural of economics Proprietary + Confidential
principles explaining what is happening in the messy middle
Brand
OFF-LIMITS Strategy
Category Authority
Heuristics Bias
Scarcity Power
Bias of Free
PLAYABLE
Social Power
Norms of Now
Affect
OFF-LIMITS Pricing
strategyProprietary + Confidential Domestic Flights
Proprietary + Confidential Domestic Flights | Simulation Source: Google/The Behavioural Architects, “Untangling the Messy Middle”, Dec 2020, Italy, n=1,000 per category ages 18-65
Proprietary + Confidential
Domestic Flights | Mere Exposure
Mere Exposure
Effect
Source: Google/The Behavioural Architects, “Untangling the Messy Middle”, Dec 2020, Italy, n=1,000 per category ages 18-65Proprietary + Confidential
Category Heuristics
Most punctual Full refund upon
airline cancellation
LIkely particularly motivating
given the COVID 19 pandemic
1st choice brand 2nd choice brand situation was ongoing at the time
of fieldwork.
Source: Google/The Behavioural Architects, “Untangling the Messy Middle”, Dec 2020, Italy, n=1,000 per category ages 18-65Proprietary + Confidential
Power of Free
Free choice of seat Free 20kg checked
during check-in baggage
Again, a tangible free benefit of a
free checked bag is much more
1st choice brand 2nd choice brand motivating than free delivery
which leads in other categories.
Source: Google/The Behavioural Architects, “Untangling the Messy Middle”, Dec 2020, Italy, n=1,000 per category ages 18-65Proprietary + Confidential
2nd choice brand ‘charged’
Mere Exposure Effect
Category Heuristics
Power of free
Source: Google/The Behavioural Architects, “Untangling the Messy Middle”, Dec 2020, Italy, n=1,000 per category ages 18-65Proprietary + Confidential Authority Bias Scarcity Affect Social Norms Power of Now Source: Google/The Behavioural Architects, “Untangling the Messy Middle”, Dec 2020, Italy, n=1,000 per category ages 18-65
Proprietary + Confidential
2nd choice brand ‘supercharged’
Mere Exposure
Effect
Authority Bias
Power of
Now
Scarcity
Bias
Social
Norms
Category
Heuristics
Power of
Free
Affect
Source: Google/The Behavioural Architects, “Untangling the Messy Middle”, Dec 2020, Italy, n=1,000 per category ages 18-65Proprietary + Confidential Test Brand
Proprietary + Confidential
Test brand ‘supercharged’
Mere Exposure
Effect
Authority Bias
Power of
Free
Scarcity
Bias
Social
Norms
Category
Heuristics
Power of
Now
Affect
Source: Google/The Behavioural Architects, “Untangling the Messy Middle”, Dec 2020, Italy, n=1,000 per category ages 18-65THE TRAVELER MINDSET AND THE NEW PREFERENCES
TR AV EL HYPER
S U RV E Y # 1 HABITS S U RV E Y # 2 S E G M E N TAT I O N
2.469 ANSWERS* 2.554 ANSWERS
Country
20% 20% 20% 20% 20% 20% 20% 20% 20% 20%
Age
19% 20% 20% 20%
18% 18% 18% 18%
13% 14%
10% 12%
18-24 25-34 35-44 45-54 55-64 65+ 18-24 25-34 35-44 45-54 55-64 65+
Gender
46% 54% 45% 55%
Note: Surveys delivered by means of Google proprieties in 03/2021 in 5 European countries (IT;DE;FR;UK;ES); (*) excl. countries unknown
All logos, trademarks and brandMIL
names are the property of theirTravel Digital
respective Summit_final
owners 41One out of two respondents claim they have significantly
changed their travel habits; In UK more than 60%
The perception of high changes in travel habits is spread across
different ages, gender and countries
From 1 to 11 (1 = not at all; 11 = completely) how much have your travel habits changed over
the last year? – 1261 responses “High” (excl. country unknow)
Age
46% 54%
Low
Medium
High
50%
Perceived High
Gender
changes in
Travel habits
during 2020
Country
Note: Low 1-4, Medium 5-8, High 9-11New travel habits emerged: 1/2 preferred to travel to his own
country; in Italy 1/4 have booked a house as a home office
Change in travel habits in 2020
61% Which of the following statements best reflect your travel habits during 2020? – 1396
responses (multiple choices, excl. country unknown and answer “None”)
1 out of 2
51%
Booking houses or rooms
«SOUTH in B&B or farmhouses to
WORKING»
customers
work from locations usually
TREND dedicated to holidays,
26% especially in Southern Italy
changed
significantly 14%
12%
travel habits 10% 10%
9% 8%
HOW? Book a house Travel in
Luxury
Purchase Use new
Travel within solution for
for Home smaller travel platforms to
home country hygiene &
Office groups insurance book a trip
safety
Source: Il Sole 24 Ore, Corriere della Sera, Bain Analysis on industry-related pressAssessment of consumers’ preferences along the journey Preferences for Preferences for Preferences on Get around when booking method travel how to reach arrived at selection planning destination destination
BOOKING METHOD
SELECTION
95%
Preferred booking method selection
What is the last digital platform you used to book a trip? – 1117 responses “High” (excl. country unknown,
respondents who did not express an opinion, respondents declaring not to have traveled)
Online travel agencies & price Airlines & Hotels Traditional
of total respondents plan their comparison websites owned websites agencies
trip through digital options
BUT… 72/100 23/100 5/100
NPS
6/10
Net Promoter Score = % of Promoters - % of Detractors
20% 10% 30%
are not satisfied with the provided
online experience Would you recommend using this platform / website to a friend or colleague? (0 = not at all; 10 = absolutely) –
1117 responses “High” (excl. unknown, respondents declaring not to have traveled)
Note: Detractor 0-6, Neutral 7-8, Promoter 9-10BOOKING METHOD
SELECTION
To p 5 d r i v e r s t o e v a l u a t e a p r o v i d e r
Two main issues drive low NPS
PROMOTERS DETRACTORS
for brand websites:
Why would you recommend using this platform / website to a friend or colleague?
Ease of use 50% Transparency/Reliability 33% Service
Reliability
Quality
45% 35%
Price 20% Service quality 27%
“The hotel room I got was not the one
Offer 13% Refund/Cancellation 14% shown in the website photos”
“I spent most of my time searching for
Service Readiness 10% Price 13% cancellation conditions, they are not
visible neither clear”
“I could not find information about
Refund/Cancellation 7% Service Readiness 4% safety measures taken”
Note: excl. country unknown, respondents who did not express an opinion, respondents declaring not having traveledTRAVEL
ORGANIZATION
Flexibility is king Asks for the possibility to cancel
at last 1 week before
1 out of 4 respondents wants to have the 62% departure
possibility to cancel the travel the day before …and they
departure receiving a reimbursement are willing to
pay a higher
price
2-3 months 1 month 2-3 weeks 1 week 3-4 days 1 day
before before before before before before
DEPARTURE
13% 12% 13% 21% 16% 25%
Given the current situation of uncertainty, what is the minimum time limit for free cancellation that
would convince you to book a trip?– 2469 responses (excl. country unknown)TRAVEL
PREFERENCES
When you will start travelling again, which means of transport will you prefer to get
to your destination? – 3027 responses (excl. country unknown, multiple choices) Car as best travel companion…
Preferred mean of transport to reach
destination for short-haul travels, thanks to
Airplane its flexibility and the high hygiene level
CAR
31%
Less than 30%
for Gen Z
People are not afraid of airplanes!
Car Many campaigns to communicate the anti-
Covid measures adopted to guarantee
36% safety when flying
AIRPLANE
Cruise
7%
Cruise is always a good idea
Coach
~40% who would enjoy a Cruise showed
6% also a high perception of change…
Despite the disruption in the sector,
Trai n
CRUISE
Ship Cruise is still loved
14% 6%
Source: Wunderkind, Simpliflying, Bain Analysis on industry-related pressMEANS OF TRANSPORT
AT DESTINATION
MaaS penetration focuses on specific areas; New consumers are
pushing towards new paradigms in terms of mobility solutions
When you go on a trip, which means of transport do you mostly use to move
around the city? – 2686 responses (excl. country unknown, multiple choices)
40%
Personal vehicle (car, scooter) 37%
12%
Public Transport 30%
Private Taxi/Shuttle 11% 44%
Car/ Scooter Sharing 10%
12%
Micro-mobility Sharing service 6%
Personal electric bicycle / scooter 6%MEANS OF TRANSPORT
AT DESTINATION
People that wouldn’t use smart mobility
are mainly from countryside (77%) vs
What is the main reason why you use / would use Smart Mobility big cities (23%)
Sharing mobility services? – 2450 responses (excl. country unknown and “Other”)
utilization rate %
When you go on a trip, which means of transport do
you mostly use to move around the city? – 2686
responses (excl. country unknown, multiple choices)
Average
7 out of 10 respondents affirm that would Only
use smart mobility because: 4 out of 10 in UK!
GEN Z
16% Social benefit is a
22% 26% 21%
16%
more relevant driver to
use sharing mobility
13% 13% than personal
11%
interests
Digital Natives
“I do not Higher Access to
express a higher Environ-
mental
Flexibility
and
have a hygiene
More
affordable
areas with
personal than public mobility
propension to MaaS sustainability convenience
vehicle” transport
solution
restrictionsHYPERSEGMENTATION AS DIFFERENTIATING FACTOR
Hypersegmentation - 5 main Axes that enable data-driven
analysis on traveler preferences
CLASSIFICATION ALGORITHMS
ITERATIVE MACHINE LEARNING PROCESSES " SPORT
QUANTITATIVE HYPERSEGMENTATION AXES I want to spend my holiday
CUSTOMER ARCHETYPES IDENTIFICATION time to do physical activities
"
Next slide focus and always be healthy!
" EXOTIC RELAX
5
"
I like Europe, but when it’s possible While travelling I want to
I prefer long-haul travels to recharge myself, spending
" "
discover remote destinations time in quite places
Travelers’
Behaviors
ALL-INCLUSIVE
" " DISCOVER
Why wasting time organizing I do not accept to only pass-
the trip and planning details? through; I want to deepen my
Someone can do the job for me knowledge about destinationsSport Relax Discovery All Inclusive Exotic
Archetypes 1990 responses (excl. travelers with no preferences)
GOLD VORACIOUS COMF- SPORTS LAZY
DIGGER TRAVELER TROTTER ADDICTED VOYAGER
Spending level Very high High Medium Medium Low
Digitaliz. level Very high High Medium Medium Medium
Segment size 14% 18% 20% 28% 20%
Covers high distances, is Does not accept Prefers relaxing locations Sport is what matters; Older than average and
a high spender and an compromises in comfort, and all-inclusive for the rest just the bare prefers quiet places to
intensive digital user experiences and services accommodations minimum deepen and spend time in
Travelling trip Plane +11% 4/5 star hotel Plane +7% 4/5 star hotel Seaside Mountain Camping Car +19% House for rent
+11% vs AVG vs AVG +9% vs AVG vs AVG +16% vs AVG +12% vs AVG +5% vs AVG +4% vs AVG vs AVG +7% vs AVGStart from the customer… to design ad hoc strategies and
experiences and maximize value
DETAILS FOR EACH ARCHETYPE IN BACKUP e.g. link segment pricing to time-based
BACKUP Dynamic price pricing; set flexible prices depending on
strategy market demands and amplify the effect of
BACKUP
Gold digger BACKUP
Gold digger your mix of commercial levers (urgency, …)
Gold digger
TRAVELLING PREFERENCES
TRAVELLING PREFERENCES
MEANS OF
ACCOMODAT ION LOCATION
TRASPTRAVELLING
ORTATION PREFERENCES
MEANS OF
ACCOMODAT ION LOCATION
+25% TRASPORTATION
14% ACCOMODAT ION
vs AVG
L O C A T I O N+25%
MEANS OF
14% e.g. leverage on probabilistic value
TRASPORTATION
vs AVG
+8% vs
+11%
273 14%
273 responses AVG
+8% vs
Tailored value
vs AVG
propositions thanks to Artificial Intelligence
responses AVG +11%
+8% vs vs AVG
AVG +11%
273 responses
proposition
vs AVG
+11%
vs AVG
to meet clients needs (customized content,
images, ranking, …)
CONSUMER ATTITUDE DEMOGRAPHIC COMPOSITION
CONSUMER ATTITUDE
YEARLY PR OPENSIT Y TO GENDER SHARE VS AGE C L U S T E R S H A R E DEMOGRAPHIC COMPOSITION
e.g. build around customer DNA, gathering
DIGITALIZAT ION LEVEL COUNTRY
SPEND VS. AVG AVG VS AVG
YEARLY PROPENSIT Y TO GENDER SHARE VS AGE CLUSTER SHARE
CONSUMER
S P E N D ATTITUDE
VS. AVG
DIGITALIZAT ION LEVEL
AVG VS AVG DEMOGRAPHIC
COUNTRY
COMPOSITION
YEARLY PROPENSIT Y
SPEND VS. AVG
TO
DIGITALIZAT ION
% of High
LEVEL
+2%
GENDER SHARE
AVG
VS AGE CLUSTER SHARE
VS AVG
COUNTRY
Data driven data in each touchpoint (transactional,
41%
41%
% of High
Digital
Digital
Traveler
+2%
+2%
segments attitudinal, behavioural, life moments,
% of High
Traveler environmental, …)
41% Digital -2%
Traveler -2%
Source: Bain Analysis on Google Survey | AVG Travel cluster: Sports Addicted 28%, Experience digger 14%, Comftrotter 20%, Lazy voyager 20%, Voracious traveler 18% | AVG Gender share: Female 45%, Male 55% | AVG Age cluster share: 18-24 18%, 25-34 18%, 35-44 18%, 45-54 21%,
-2%
55-64 14%, 65+ 12% | AVG. Propensity to spend: Less than 250€ 35%, From 250 to 500€ 15%, From 500 to 1.000€ 18%, From 1.000 to 2.500€ 17%, From 2.500 to 5.000€ 9%, From 5.000 to 10.000€ 6% | AVG Digitalization level: 31% High Digital Traveler
Source: Bain Analysis on Google Survey | AVG Travel cluster: Sports Addicted 28%, Experience digger 14%, Comftrotter 20%, Lazy voyager 20%, Voracious traveler 18% | AVG Gender share: Female 45%, Male 55% | AVG Age cluster share: 18-24 18%, 25-34 18%, 35-44 18%, 45-54 21%,
55-64 14%, 65+ 12% | AVG. Propensity to spend: Less than 250€ 35%, From 250 to 500€ 15%, From 500 to 1.000€ 18%, From 1.000 to 2.500€ 17%, From 2.500 to 5.000€ 9%, From 5.000 to 10.000€ 6% | AVG Digitalization level: 31% High Digital Traveler
Source: Bain Analysis on Google Survey | AVG Travel cluster: Sports Addicted 28%, Experience digger 14%, Comftrotter 20%, Lazy voyager 20%, Voracious traveler 18% | AVG Gender share: Female 45%, Male 55% | AVG Age cluster share: 18-24 18%, 25-34 18%, 35-44 18%, 45-54 21%, e.g. leverage on the right channels for the
Balanced
55-64 14%, 65+ 12% | AVG. Propensity to spend: Less than 250€ 35%, From 250 to 500€ 15%, From 500 to 1.000€ 18%, From 1.000 to 2.500€ 17%, From 2.500 to 5.000€ 9%, From 5.000 to 10.000€ 6% | AVG Digitalization level: 31% High Digital Traveler
right customers to reach specific audiences
media mix and improve ROMI, thanks to advanced
Consumers are not all the same and segments are measurement methods
identifiable by very specific characteristics (preferred
accommodation, location and means of transport, level of e.g. customize clients experiences wowing
CX & episodes their journeys and maximizing their
spending, level of digitization, demographics, ...)
optimization probability to purchase (ad hoc landing
pages, subscription forms, …)LAY THE GROUND TO COMPETE IN THE NEW WORLD
Retool for the new world leveraging on the math and the magic
ACCELERATE AND RETOOL FOR THE NEW WORLD
1 OFFER 2 MARKETING 3 EXPERIENCE
Today’s scenario “One fits all packages” instead of
personalized offers
Suboptimal performance; high
spend deployed inefficiently
UX is not fine-tuned; inability to
deliver “right-first-time”
How to accelerate Need for customized offers (price,
services, …) based on specific needs
1:1 conversations and rapid fire,
autonomous decision making through
Rapid design sprints and focus on
delivering live solutions to test, learn,
and expected (spending, behavior, preferences, …) a test & learn approach improve and launch at scale
results
↑ ARPU ↑ Customer base ↓ CAC ↑ NPS ↓ Costs
Advanced Analytics
Relentless focus on data and
analytics capabilities combined
Dynamic price Tailored value Data driven Balanced Customer journey and
with a culture of test and learn
strategy proposition segments media mix episodes optimization
Design to Build Discovery of customers
characteristics (through ethnography,
Review / improvement of the digital
assets (landing pages, website,
Episodes redesign through rapid
prototyping and users’ validation,
Designed for speed, with clear
heuristic eval., focus groups, …) to mobile app, …) to deliver effective ensuring a continuous improvements
processes, decision rights, and
design tailored solutions messages and maximize resutls thanks to nonstop feedback loops
interdependencies
Use digital to accelerate transformation, evolve the operating model to enable higher innovation and higher productivity
56Multiple, fragmented initiatives Focused priorities & business outcomes
Piecemeal approach (digital vs.
Onstage powered by Backstage,
other channels, policy, process,
This is not technology)
front-to-back levers by customer episodes
your typical Cross-functional, agile teams
Siloes and committees
digital empowered to deliver rapid change
program Decisions by committee Aggressive test for results with rapid
or historical results feedback cycles
Major technology transformation Work within existing technology
with long timelines (for now) / quick winsProprietary + Confidential
Five travel marketing best practices
How to maximize profitable growth in the age of automation
Nicolas Darveau-Garneau, Chief EvangelistProprietary + Confidential
By focusing on
profit optimization and
automation, HomeAway saw
a dramatic impact
on their business.
+115%
YoY revenue
Source: HomeAwayProprietary + Confidential
1. Focus on the right metric...
Hotel A Hotel B Hotel C
€100K invested 10%
€1Mcost
invested
of sale Maximum
€10M invested
profit
€2M revenues €10M revenues €50M revenues
20:1 ROI 10:1 ROI 5:1 ROI
€1.9M profit €9M profit €40M profit
Source: Fictitious exampleProprietary + Confidential
… the overall profits of your Google investment
Profits generated by Google ads
Align entire C-suite,
marketing team,
agency, Google
team
Source: Fictitious exampleProprietary + Confidential
2. Share profit data
Transaction Revenues Profit Share the profit of
each transaction
Hotel booking €1000 €150 with Google’s ML
tools
Package €1000 €300
Source: Fictitious exampleProprietary + Confidential
3. Focus on longer term profits
Cruise A Cruise B Cruise C
15% of cost sale 15% of cost sale 15% of cost sale
20% for 65+ 20% for 65+
25% for wealthy 65+
Source: Fictitious exampleProprietary + Confidential
4. launch a full-funnel performance strategy
YouTube
Display
Search
Rmktg
Invest across the funnel Measure overall results
Source: Fictitious exampleProprietary + Confidential
5. create more useful ads
+ 60%
bookings
Source: Think with GoogleProprietary + Confidential ask your Google team for a bespoke profit maximization plan & execute it in a small region in partnership with your finance team
Travel Digital Summit
Thank you!Contributors
• Pierluigi Serlenga, Senior Partner – Aerospace & • Fabio Vaccarono, Vice President, Managing Director Italy
Defence Sector Leader
• Fabio Galetto, Sector Leader Travel & Automotive
• Emanuele Veratti, Partner & Digital Practice Leader
• Furio Gianforme, Senior Industry Head Travel, App & Education
• Andrea Buonomo, Partner – Advanced
Manufacturing & Services, Travel Practice • Marcello Pertosa, Senior Industry Manager Travel & Education
• Andrea Alori, Associate Partner – Advanced • Giovanni Benassi, Analytical Consultant
Manufacturing & Services, Travel Practice
• Laura Lampugnani, Product Marketing Manager
• Alessandro Lo Martire, Consultant
• Giovanna Valvo, Marketing Event manager
• Andrea Radicioni, Senior Associate Consultant
• Elisa Rancilio, Communications Manager
• Marta Di Battista, Associate Consultant
• Marta Mirannaldi, Associate Consultant • Michele Chicco, Head of Consultancy Partnerships
• Lara Visini, Director, Industry Marketing and Market • Marco Gallo, Partner Manager
Reputation
• Giulia Baroni, Digital PR & Social Media
CoordinatorAppendix
HYPERSEGMENTATION
ANNEXES
Archetypes Deep DiveBACKUP
Gold digger
TRAVELLING PREFERENCES
MEANS OF
ACCOMODATION LOCATION
TRASPORTATION
+11%
14% vs AVG
+8% vs
273 responses AVG
+11%
vs AVG
CONSUMER ATTITUDE DEMOGRAPHIC COMPOSITION
YEARLY PROPENSITY TO GENDER SHARE VS AGE CLUSTER SHARE
DIGITALIZATION LEVEL COUNTRY
SPEND VS. AVG AVG VS AVG
% of High +2%
41% Digital
Traveler
-2%
Source: Bain Analysis on Google Survey | AVG Travel cluster: Sports Addicted 28%, Experience digger 14%, Comftrotter 20%, Lazy voyager 20%, Voracious traveler 18% | AVG Gender share: Female 45%, Male 55% | AVG Age cluster share: 18-24 18%, 25-34 18%, 35-44 18%, 45-54 21%,
55-64 14%, 65+ 12% | AVG. Propensity to spend: Less than 250€ 35%, From 250 to 500€ 15%, From 500 to 1.000€ 18%, From 1.000 to 2.500€ 17%, From 2.500 to 5.000€ 9%, From 5.000 to 10.000€ 6% | AVG Digitalization level: 31% High Digital TravelerBACKUP
Voracious Traveler
TRAVELLING PREFERENCES
MEANS OF
ACCOMODATION LOCATION
TRASPORTATION
18%
High
interest
for
Travelling
335 responses Trip,
+9% vs Seaside
AVG and
Cruises
CONSUMER ATTITUDE DEMOGRAPHIC COMPOSITION
YEARLY PROPENSITY TO GENDER SHARE VS AGE CLUSTER SHARE
DIGITALIZATION LEVEL COUNTRY
SPEND VS. AVG AVG VS AVG
High
digital
clients
% of High -4% Younger
clients
57% Digital
Traveler
+4%
Source: Bain Analysis on Google Survey | AVG Travel cluster: Sports Addicted 28%, Experience digger 14%, Comftrotter 20%, Lazy voyager 20%, Voracious traveler 18% | AVG Gender share: Female 45%, Male 55% | AVG Age cluster share: 18-24 18%, 25-34 18%, 35-44 18%, 45-54 21%,
55-64 14%, 65+ 12% | AVG. Propensity to spend: Less than 250€ 35%, From 250 to 500€ 15%, From 500 to 1.000€ 18%, From 1.000 to 2.500€ 17%, From 2.500 to 5.000€ 9%, From 5.000 to 10.000€ 6% | AVG Digitalization level: 31% High Digital TravelerBACKUP
Comftrotter
TRAVELLING PREFERENCES
MEANS OF
ACCOMODATION LOCATION
TRASPORTATION
20% +12%
+8% vs
vs AVG
AVG
390 responses
+16% vs
AVG
CONSUMER ATTITUDE DEMOGRAPHIC COMPOSITION
YEARLY PROPENSITY TO GENDER SHARE VS AGE CLUSTER SHARE
DIGITALIZATION LEVEL COUNTRY
SPEND VS. AVG AVG VS AVG
Most
female
clients
% of High +9%
25% Digital
Traveler
-9%
Source: Bain Analysis on Google Survey | AVG Travel cluster: Sports Addicted 28%, Experience digger 14%, Comftrotter 20%, Lazy voyager 20%, Voracious traveler 18% | AVG Gender share: Female 45%, Male 55% | AVG Age cluster share: 18-24 18%, 25-34 18%, 35-44 18%, 45-54 21%,
55-64 14%, 65+ 12% | AVG. Propensity to spend: Less than 250€ 35%, From 250 to 500€ 15%, From 500 to 1.000€ 18%, From 1.000 to 2.500€ 17%, From 2.500 to 5.000€ 9%, From 5.000 to 10.000€ 6% | AVG Digitalization level: 31% High Digital TravelerBACKUP
Sports Addicted
TRAVELLING PREFERENCES
MEANS OF
ACCOMODATION LOCATION
TRASPORTATION
28%
-5% vs
567 responses AVG
+4% vs
AVG +5% vs
AVG
-7% vs
AVG
CONSUMER ATTITUDE DEMOGRAPHIC COMPOSITION
YEARLY PROPENSITY TO GENDER SHARE VS AGE CLUSTER SHARE
DIGITALIZATION LEVEL COUNTRY
SPEND VS AVG AVG VS AVG
% of High -8%
18% Digital
Traveler
Most male
clients
+8%
Source: Bain Analysis on Google Survey | AVG Travel cluster: Sports Addicted 28%, Experience digger 14%, Comftrotter 20%, Lazy voyager 20%, Voracious traveler 18% | AVG Gender share: Female 45%, Male 55% | AVG Age cluster share: 18-24 18%, 25-34 18%, 35-44 18%, 45-54 21%,
55-64 14%, 65+ 12% | AVG. Propensity to spend: Less than 250€ 35%, From 250 to 500€ 15%, From 500 to 1.000€ 18%, From 1.000 to 2.500€ 17%, From 2.500 to 5.000€ 9%, From 5.000 to 10.000€ 6% | AVG Digitalization level: 31% High Digital TravelerBACKUP
Lazy Voyager
TRAVELLING PREFERENCES
MEANS OF
ACCOMODATION LOCATION
TRASPORTATION
+10%
20% vs AVG
+7% vs -15%
405 responses +19%
AVG vs AVG
vs AVG
-11% +4% vs
vs AVG AVG
CONSUMER ATTITUDE DEMOGRAPHIC COMPOSITION
YEARLY PROPENSITY TO GENDER SHARE VS AGE CLUSTER SHARE
DIGITALIZATION LEVEL COUNTRY
SPEND VS. AVG AVG VS AVG
Low
spending % of High +5%
clients
25% Digital
Traveler Older
clients
-5%
Source: Bain Analysis on Google Survey | AVG Travel cluster: Sports Addicted 28%, Experience digger 14%, Comftrotter 20%, Lazy voyager 20%, Voracious traveler 18% | AVG Gender share: Female 45%, Male 55% | AVG Age cluster share: 18-24 18%, 25-34 18%, 35-44 18%, 45-54 21%,
55-64 14%, 65+ 12% | AVG. Propensity to spend: Less than 250€ 35%, From 250 to 500€ 15%, From 500 to 1.000€ 18%, From 1.000 to 2.500€ 17%, From 2.500 to 5.000€ 9%, From 5.000 to 10.000€ 6% | AVG Digitalization level: 31% High Digital TravelerBACKUP
14% 18% 20% 28% 20%
GOLD DIGGER VORACIOUS TRAVELER COMFTROTTER SPORTS ADDICTED LAZY VOYAGER
PRODUCT PRAGMATIC
Accommodation by archetype (%) Location by archetype (%) Means of transp. by archetype (%)BACKUP
14% 18% 20% 28% 20%
GOLD DIGGER VORACIOUS TRAVELER COMFTROTTER SPORTS ADDICTED LAZY VOYAGER
PRODUCT PRAGMATIC
Gender share by archetype (%) Age cluster by archetype (%) Country cluster by archetype (%)BACKUP
14% 18% 20% 28% 20%
GOLD DIGGER VORACIOUS TRAVELER COMFTROTTER SPORTS ADDICTED LAZY VOYAGER
PRODUCT PRAGMATIC
Propensity to spend by archetype (%) Digitalization level by archetype (%)You can also read
