TRIPBAROMETER BY TRIPADVISOR - THE WORLD'S LARGEST ACCOMMODATION AND TRAVELLER SURVEY
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TripBarometer by TripAdvisor - Winter 2012 / 2013
TripBarometer by TripAdvisor®
The World’s Largest Accommodation and
Traveller Survey
Winter 2012 / 2013
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TripBarometer by TripAdvisor - Winter 2012 / 2013
TABLE OF CONTENTS
INTRODUCTION
OBJECTIVES
EXECUTIVE SUMMARY
DETAILED FINDINGS
PART ONE: THE TOURIST PERSPECTIVE
1. THE TRAVEL EXPERIENCE AND PLANNING PROCESS
i. Motivation and travel companions
ii. The planning process
2. INFORMATION SOURCES
i. Main sources of information
ii. Social media information
3. THE ROLE OF SOCIAL MEDIA AND ONLINE REVIEWS
i. Influence of social media on trip plans
ii. Importance and impact of travel review websites on trip plans
iii. Importance of other travellers’ reviews on accommodation booking
4. ACCOMMODATION MONITOR
i. Number of properties considered
ii. Decision-making factors
iii. Booking channels
iv. Importance of amenities and services
v. Importance of environmentally sustainable practices
vi. Average cost
vii. Writing reviews and recommendations
5. TRAVEL AND TECHNOLOGY
i. Digital engagement before and after a trip
ii. Use of devices on trips and mobile bookings
6. 2013 PREDICTONS
i. Budget and barriers to travel
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TripBarometer by TripAdvisor - Winter 2012 / 2013
PART TWO: THE OPERATOR PERSPECTIVE
1. BUSINESS OUTLOOK
i. 2012 profitability
ii. Business mood for 2013
2. BOOKINGS
i. Channels of distribution
ii. Booking timescale
iii. Guest decision-making factors
3. GUEST REVIEWS
i. Reviews and bookings
ii. Monitoring reviews
iii. Encouraging guest reviews
iv. Positive and negative reviews
v. Actions taken after receiving reviews
4. AMENITIES AND SERVICES
i. Current amenities and services
ii. Plans for amenities and services
iii. Environmentally sustainable practices
5. SOCIAL MEDIA AND MOBILE
i. Prioritisation of social media within the marketing plan
ii. Importance of mobile bookings
iii. Mobile engagement
APPENDIX: METHODOLOGY
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TripBarometer by TripAdvisor - Winter 2012 / 2013
INTRODUCTION
As the world’s largest travel website1, TripAdvisor and its community of millions of travellers
and businesses is a key source of insight into the travel industry. Building on the success of
previous Industry Index and annual Travel Trends surveys, TripAdvisor has commissioned
this independent research amongst both accommodation businesses and consumers (who
research and book travel online), into one comprehensive study, the ‘TripBarometer by
TripAdvisor’.
This twice annual study covers the travel attitudes and behaviours of consumers as well as
the accommodation industry’s plans and expectations for the year ahead. Topics are as wide
ranging as accommodation providers economic outlook to their efforts to meet the
expectations of tech-savvy travellers, as well as tourists travel plans for 2013 and travel
budget predictions. A key element of this survey is to look at both sides of the story – the
tourist and the operator perspective.
The TripBarometer by TripAdvisor is based upon an online survey conducted in December
2012 – January 2013. A total of 35,042 people participated in the online survey from 26
countries spanning 7 regions. The sample is made up of 15,595 consumers2 and 19,447
businesses, making it the world’s largest combined accommodation provider and traveller
survey.
OBJECTIVES
The overarching objective of this research is to provide a detailed analysis of both traveller
and accommodation industry trends across various countries and regions.
The key areas of investigation for the consumer survey are:
‐ Travel decision-making factors
‐ Information sources when planning travel
‐ The use of technology on trips
‐ The role of reviews and social media in travel planning and booking
‐ Appetite for booking travel via mobile devices
‐ Demand for accommodation amenities and services
1 Comscore. Media Metrix for TripAdvisor sites, Worldwide, July 2012
2 7226 consumers were recruited to take part in the survey through a pop-up survey on the TripAdvisor website
and 8369 were recruited through an independent online panel.
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TripBarometer by TripAdvisor - Winter 2012 / 2013
The key areas of investigation for the accommodation business survey are:
‐ 2012 profitability and 2013 predictions
‐ Guest decision-making factors
‐ Importance of property amenities and services
‐ Property promotions
‐ The role of social media
‐ Capabilities and perceptions of mobile bookings
‐ Impact of guests’ reviews
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TripBarometer by TripAdvisor - Winter 2012 / 2013
EXECUTIVE SUMMARY
1. THE CONSUMER PERSPECTIVE
TOURISTS PLANNING TO SPEND MORE ON TRAVEL IN 2013
Nearly half of consumers (49%) plan on increasing their travel budget for 2013 compared to
2012. People around the world are also willing to invest in their touristic experience, and
value the accommodation they stay in, with a reported average nightly accommodation
spend for the last trip coming in at $117.
HITTING THE BEACH AND CRAVING CULTURE
With consumers globally mostly travelling for leisure purposes (68%) they are in search of
sun, sea, surf and sand with 20% of consumers hitting the beach for their last holiday. The
next most popular types of holidays were cultural (16%) and city based (13%). This type of
experience away from the daily grind offers people the opportunity to connect with those
closest to them, with the vast majority of people travelling with their partners (58%), children
(18%) and other family members (17%).
When it comes to selecting accommodation for a trip, price (76%) and location (68%) are the
most important selection criteria. However, the importance of other travellers’ opinions is
also evident, with 44% choosing their last property solely based upon online reviews.
PLANNING AND BOOKING THE TRIP - ONLINE SOURCES THE ‘GO TO’ TRAVEL RESOURCE
The tourist planning and booking process varies considerably depending on the type of trip.
While short breaks are more spur-of-the-moment escapes (69% book these trips within four
weeks of travel), people invest a lot more time into the planning process for longer
getaways. For longer trips, people start the planning process well in advance, with 71%
starting to plan this type of escape at least two months beforehand, and 61% actually
booking the trip at least two months in advance.
When planning and researching their last trip, online platforms were the main source of
travel information (92%), and most people booked their accommodation through web based
travel agencies (27%) and accommodation provider’s website (23%). Less than one out of ten
(9%) booked their last trip through an offline travel agent.
Trust is essential in the tourist decision-making process. Online travel sources stand out as
being the most trusted source of travel information. In particular, travel review websites are
the most trusted (32%) and most useful (38%) source of information for people as they plan
and research their trips.
A COMMUNITY OF TOURISTS SPREADING THE WORD – USER GENERATED CONTENT IS KEY
Word-of-mouth is a powerful source of information in helping people devise their travel
plans. Tellingly, the vast majority of people (90%) placed importance on other people’s
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TripBarometer by TripAdvisor - Winter 2012 / 2013
reviews when booking the accommodation for their last trip. Other people’s evaluations on
travel review websites influenced most people’s travel plans (93%).
Consumers do not just read the travel reviews of others; they are also actively engaged in
writing reviews themselves. Upon return from a trip people tend to recommend their
accommodation to friends and family directly (58%), while 41% do so online. Over half (51%)
have written online reviews about the accommodation they stayed at and a third (34%) have
written a review for a website. Around a fifth (17%), have written about their travel
experience in a blog or forum.
THE TRAVEL EXPERIENCE AND BOOKING PROCESS GO SOCIAL AND MOBILE
While on a trip, people are still engaged digitally and connecting to their friends and family
back home. They connect to the Internet through their mobile (51%), upload photos to their
social network (39%) and update their social network status (34%) to keep their friends and
family up-to-date. Consumers also use their mobile to make their trip easier by using
mobile apps to find attractions or activities nearby (33%) and downloading mobile apps
specific to the destination (26%). Upon returning home, half (50%) of consumers upload
photos to their social network, and nearly four out of ten (37%) have written comments
about their trip on social networks.
A quarter (24%) used social media when planning and booking their last trip, and of these
three quarters (76%) utilised Facebook when planning and booking their last trip. Facebook
was also perceived as the most useful (54%) and trusted (48%) social media platform for
researching and planning travel.
Mobile is an important ‘go-to’ travel resource. People think it is beneficial that properties
allow them to book accommodation via a mobile device (72%) and they expect properties to
engage with them via mobile devices (54%).
WHAT TOURISTS WANT FROM ACCOMMODATION PROVIDERS
Perhaps not surprisingly, consumers love a ‘freebie’ and would be swayed to book one
property over another when they are offered room discounts (75%) and a free night’s stay
(49%).
Free breakfast (84%), free in-room Wi-Fi (80%), free lobby Wi-Fi (66%) and free parking (66%)
are the most important accommodation amenities and services in the eyes of guests, and
not having these would have a large impact on people’s final decision on whether or not to
book a certain property. Nearly two thirds (65%) indicated that the absence of free lobby Wi-
Fi would impact their accommodation decision-making.
In order to satisfy the demands of the increasingly discerning tourist market, it also pays to
‘go green’ and to be seen as an environmentally sustainable business. Nearly 8 out of 10
consumers (79%) place importance on properties implementing eco-friendly practices.
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TripBarometer by TripAdvisor - Winter 2012 / 2013
2. THE BUSINESS PERSPECTIVE
BUSINESS MOOD UPBEAT FOR 2013
2012 was a mixed year financially, with most businesses (53%) reporting that they were just
‘somewhat’ profitable. A minority of businesses (3%) claimed to have been ‘extremely
profitable’, while around a fifth (19%) were ‘very profitable’. On the other hand, 17% of
business reported to have been ‘not very profitable’ and 5% were ‘not profitable at all’.
However, nearly seven out of ten (68%) are optimistic about their business profitability in
2013.
Businesses are planning to implement a range of initiatives to attract guests in 2013, with
90% planning to use deals or offers to attract guests. The most common strategies for
attracting guests are free Wi-Fi (59%), room discounts (47%) and special offers (41%).
ONLINE IS AN ESSENTIAL CHANNEL OF DISTRIBUTION
Having a strong online presence is essential for businesses as they compete to attract
consumer spend. Two-thirds of businesses (65%) now allow guests to book with them
directly on their website, and over a third (35%) indicated that most reservations are
generated via this platform. The next most common booking channel is through online
travel agencies (18%) followed by direct telephone reservations (11%).
Three quarters of businesses (73%) are engaging with potential guests via social media
platforms, and this is now a marketing priority for nearly 4 out of 10 properties (38%). Not
surprisingly, properties want to know what people are saying about them on social media,
with the vast majority monitoring this (87%). In line with this, online travel reviews are of
upmost importance in generating bookings for nearly all businesses (96%), and more than
eight out of ten (84%) are concerned that negative online reviews will impact their business.
EMERGING ROLE OF MOBILE ENGAGEMENT
Three quarters of businesses (74%) think it is important to allow guests to book their
property on a mobile device. Despite the perceived importance of mobile booking
capabilities and consumer demand for this, just a quarter of businesses (25%) currently
engage with guests via mobile devices, and mobile marketing is only a priority for around a
third of businesses (36%).
BUSINESSES OFFER GUESTS A RANGE OF PERKS AND ARE GOING GREEN
Properties offer guests a range of free amenities and services. In particular, the vast majority
are offering free lobby Wi-Fi (79%) and free in-room Wi-Fi (76%). Again, in line with
consumer sentiment, the vast majority of businesses (91%) agree that operating in an eco-
friendly manner is important, with the most common initiatives being energy-efficient light
bulbs (87%) and towel / linen reuse programmes (82%).
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TripBarometer by TripAdvisor - Winter 2012 / 2013
3. THE CONSUMER AND BUSINESS RELATIONSHIP – IN SYNC ON MOST
AREAS BUT MOBILE IS AN AREA OF DISCONNECT
Overall, consumer behaviour is in line with business operations and perceptions of what
guests want. There are, however, a few areas of disconnect – by addressing these,
businesses should be able to better target customers and cater to the needs of their guests,
leading to increased customer satisfaction.
Consumers show a strong appetite for accommodation providers having mobile booking
capabilities (72%) and for properties to engage with them via mobile devices (54%). However,
mobile marketing is currently only a priority for just over a third of businesses (36%).
Despite the fact that around three quarters of businesses agree it is important to offer a
program that allow guests to book their property on a mobile device (74%), currently only a
quarter (25%) offer any program to engage with current or potential guests using mobile
devices. Among businesses currently offering a program to engage with guests using
mobile devices, nearly two-thirds (64%) allow guests to book rooms via their website on a
mobile device and over half (52%) have a mobile-friendly website (e.g. easy to navigate
using mobile devices).
Businesses are aware of the importance of securing positive online guest reviews in order to
have a positive online reputation. This will become increasingly important as social media
and online reviews are key drivers in people’s travel decision-making process. Over four
fifths (84%) of businesses are concerned that negative online reviews will impact their
business, which is understandable as 93% of consumers indicated that other people’s
evaluations on travel review websites influenced their travel plans.
Looking at room rates and consumer travel budgets for 2013, it appears that while most
businesses have no plans to increase their room rates (52%), there is a good proportion of
consumers who plan on increasing their travel budget this year (49%).
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TripBarometer by TripAdvisor - Winter 2012 / 2013
1. DETAILED FINDINGS
PART ONE: THE TOURIST PERSPECTIVE
1. THE TRAVEL EXPERIENCE AND PLANNING PROCESS
i. Motivation and travel companions
Tourists are in search of sun, sea, surf and sand. Globally, the majority of tourists’ last trip
was for leisure purposes (68%) and the most popular type of holiday was to ‘hit the beach’
(20%). The next most popular tourist experiences were those for culture and city breaks.
Travellers from Africa, South America and North America are the most likely to prefer beach
holidays (30%, 25% and 24% respectively vs. 20% overall), while Asian travellers prefer the
excitement of a city break (16% vs. 13% overall).
Women are more likely than men to be ‘beach bums’ (22% vs. 19% males preferring beach
holidays) and are also slightly more inclined to be ‘culture vultures’ (18% vs. 13% males
preferring culture based trips).
Not surprisingly, people over 65 years are more likely to prefer cultural based trips (22% vs.
16% overall), while younger respondents are more likely to travel in search of adventure /
activities (20% vs. 13% overall).
PREFERRED TYPE OF TRIP
Travel allows for time spent with loved ones, with the vast majority of people travelling with
someone else (86%), especially close family members such as partners (58%) and children
(18%).
Middle Easterners are the most likely to travel with their extended family members (30% vs.
17% overall), while South Americans are the most likely to travel with their children (26% vs.
18% overall).
Men are more likely than women to travel on their own (16% vs.12%). Those aged over 65
are significantly more likely to travel with their spouse / partner (70% vs. 58% overall), while
those aged 18-24 are the most likely to escape the daily grind with their friends (30% vs.
18% overall).
10TripBarometer by TripAdvisor - Winter 2012 / 2013
TRAVEL COMPANIONS
ii. The planning process
When it comes to planning for longer trips, people put a lot of time into the planning
process and book well in advance of departure. Seven out of ten (71%) start planning two
months or more in advance of departure and six out of ten (61%) book their trip at least 2
months before their trip.
On average, women are more likely than men to start planning longer trips well in advance
(3 to 4 months on average compared to 2 to 3 months on average for men).
PLANNING AND BOOKING A LONG TRIP
Short breaks tend to be more ‘spur of the moment’ getaways, with most people starting to
plan for the trip and actually booking everything relatively close to their departure date.
Nearly two thirds (63%) start planning less than a month beforehand, while around seven in
ten (69%) book within 4 weeks of departure.
Middle Easterners are the most likely to book short breaks with less than a week to go (58%
vs. 26% overall). Younger respondents (18-24) are also more likely to be last minute
bookers, finalising their short break less than a week before they leave for their trip (32%
vs. 26% overall)
11TripBarometer by TripAdvisor - Winter 2012 / 2013
PLANNING AND BOOKING FOR A SHORT TRIP
In terms of travel personalities, people tend to ‘go with the flow’ when taking a domestic
trip in terms of planning and booking travel, but like to be more organised for longer trips.
For a domestic trip nearly half claim to stick to the basics; booking flights, arranging transit
and accommodation (49%), while a quarter (26%) just book flights and arrange everything
else at the destination. However, when taking a longer trip people do tend to engage in
more detailed planning, with half booking most of the trip components before departure.
BOOKING PERSONALITIES
Tourists from Australasia and Europe are the most likely to stick to the basics when
planning and booking international trips (46% and 45% respectively vs. 39% overall), while
South American, Middle Eastern and African tourists are the most likely to have everything
planned and booked (34%, 33% and 32% respectively vs. 25% overall).
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2. INFORMATION SOURCES
i. Main sources of information
Online platforms are the main source of travel information, with 92% 3 of people referring to
online sources when planning and researching their last trip. Travel review websites are the
most popular information source (69%) followed by web based travel agencies (57%) and
travel operator websites (56%). Less than a fifth (18%) turned to an offline travel agency to
plan their last trip.
Europeans are most likely to have used travel review websites (76% vs. 69% overall), while
Australasians are the most likely to have used web based travel agencies when planning
their last trip (62% vs. 57% overall).
INFORMATION SOURCES
Online sources are not only the most utilised source of travel planning information; they are
also considered the most useful and trustworthy. In particular, travel review websites were
rated as the most useful (38%) and trustworthy (32%) information sources, followed by web
based travel agencies (19% most useful, 14% most trustworthy). Traditional offline travel
agencies fared less well, with just 4% rating them as most useful and 7% considering them
the most trustworthy.
North Americans and Europeans were the most likely to rate travel review websites as the
most trustworthy when researching and planning their last trip (36% and 34% respectively
vs. 32% overall)
3 Net score of travel review websites, social media, travel operator websites, web based travel agencies
13TripBarometer by TripAdvisor - Winter 2012 / 2013
MOST USEFUL AND TRUSTED SOURCES OF INFORMATION
ii. Social media information4
Among those who used social media to research and plan their last trip (e.g. Facebook,
blogs, forums), Facebook was the most commonly used social media platform (76%),
followed by Google+ (40%) and Twitter (21%).
Middle Eastern tourists are the most likely to have used Facebook to research and plan their
last trip (98% vs. 76% overall). Younger tourists (18-24) are more likely than their older
counterparts to have used Facebook (90% vs. 49% 65+) and Twitter (29% vs. 12% 65+) to
research and plan their last trip. Men are more likely than women to have used Facebook
and Twitter (78% vs. 74% and 25% vs. 18%, respectively).
UTILIZATION OF SOCIAL MEDIA PLATFORMS
Facebook was also the most useful and trustworthy social media platform when people were
planning the last trip. Those from South America were the most likely to rate Facebook as
the most trustworthy (61% vs. 48% overall).
4 Social media refers to Facebook, blogs and forums not travel review websites such as TripAdvisor
14TripBarometer by TripAdvisor - Winter 2012 / 2013
MOST USEFUL AND TRUSTWORTHY SOCIAL MEDIA PLATFORMS
3. THE ROLE OF SOCIAL MEDIA AND ONLINE REVIEWS
i. Influence of social media on trip plans
Among those who used social media to plan their last trip, the views of others on this
channel were influential when making travel plans. Over eight out of ten (85%) said that
other people’s comments, videos and photographs on social media influenced their plans.
Middle Easterners, Asians and South Americans are the most likely to say that other people’s
comments on social media influenced their plans for their last trip (92%, 92% and 91%,
respectively, vs. 85% overall), while Europeans and Australasians were the least likely (77%
and 78%, respectively).
SOCIAL MEDIA INFLUENCE
ii. Importance and impact of travel review websites on trip plans
When researching and planning their last trip, the majority who had used social media in
their information search, said that other people’s reviews and opinions in travel review
websites influenced their plans.
15TripBarometer by TripAdvisor - Winter 2012 / 2013
TRAVEL REVIEW WEBSITE INFLUENCE
iii. Importance of other travellers’ reviews on accommodation booking
Other travellers’ reviews are a vital source of information for people looking to book their
accommodation. Nine out of ten (90%) said that other people’s reviews were important in
their decision to book their accommodation for their last trip, with this being ‘very’
important for four out of ten (40%).
South Americans are the most likely to say that other people’s reviews were important in
their decision to book their accommodation for their last trip (96% vs. 90% overall)
4. ACCOMMODATION MONITOR
i. Number of properties considered
People do not just chose the first property they come across, with people looking at seven
properties on average before making their final decision.
Europeans tend to look at the most hotels before making a decision, considering nine
properties on average before booking their accommodation. Middle Eastern travellers
consider the least (5 on average).
NUMBER OF PROPERTIES CONSIDERED
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ii. Decision-making factors
Several factors are taken into consideration before making a decision on accommodation. Of
these, price (76%) and location (68%) are the most important elements of the marketing mix
in driving bookings. Online reviews are the third most important factor (44%).
Africans and Asians are the most likely to consider price as the main decision-making factor
when booking accommodation (85% and 81% respectively). Europeans are the most likely to
say that online reviews had the biggest impact on their decision (51% vs. 44% overall).
ACCOMMODATION DECISION-MAKING FACTORS
iii. Booking channels
Most consumers booked the accommodation for their last trip online. The most common
way people booked accommodation was through a web based travel agency (27%), followed
by the accommodation’s website (23%). Less than one out of ten (9%) booked via offline
travel agents.
Australasians were the most likely to book accommodation through properties websites
(35% vs. 23% overall), while Middle Easterners and Africans were the most likely to telephone
the property directly (36% and 38% respectively vs. 15% overall).
BOOKING CHANNELS
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iv. Importance of amenities and services
As travellers become more discerning they are demanding more amenities and services,
especially free add-ons. People are particularly motivated to book accommodation when
they are offered room discounts (75%) and a free night’s stay (49%).
Free Wi-Fi would convince around four out of ten people (39%) to choose a particular
property. Asians are the most likely to book accommodation if they were offered special
offers (35% vs. 20% overall), while more Africans would do so if they were offered a free
night stay with advanced booking (68% vs. 49% overall).
APPEAL OF ACCOMMODATION PROMOTIONS
When booking accommodation, people want multiple amenities and services, especially
‘freebies’. Free Wi-Fi (80% important), and Free Breakfast (84% important) are the two most
important hotel offerings. People are less concerned with health and well-being oriented
amenities such as a Gym (33% important) and Spa/Beauty treatments (32% important).
South Americans and North Americans are most likely to consider free in-room Wi-Fi
connection as important (89% vs. 86% respectively vs. 80% overall). Middle Eastern travellers
are most likely to consider a Gym (57% vs. 33% overall) and spa/beauty treatments (50% vs.
32% overall) as important.
IMPORTANCE OF ACCOMMODATION AMENITIES AND SERVICES
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A lack of free amenities has a considerable impact on people’s decision to book at a certain
property. In particular, the absence of free in-room Wi-Fi is likely to have a considerable
impact on people’s choice of accommodation with nearly half (46%) saying this would have a
large impact and a further third (35%) saying this would have a ‘little’ impact. People also
seem to enjoy a free breakfast, with 84% admitting this would have an impact on their
accommodation decision.
South Americans are the most likely to say that not having free in-room Wi-Fi and free
lobby Wi-Fi would have a large impact on their decision to book their accommodation (62%
and 35% respectively).
LACK OF AMENITIES AND SERVICES IMPACT
v. Importance of environmentally sustainable practices
Nearly 8 out of 10 consumers think it is important that properties implement eco-friendly
practices. South Americans place the most importance on properties having eco-friendly
practices in place (58% very important vs. 34% overall).
IMPORTANCE OF ECO-FRIENDLY PRACTICES
19TripBarometer by TripAdvisor - Winter 2012 / 2013
vi. Average cost
AVERAGE COST PER NIGHT (USD)
170
152 149 142 139 135 134 133 129 120 117 117 115 114 112 106 97 96 93 93 88 86
vii. Writing reviews and recommendations
Upon returning home from travel, consumers are keen to spread the word about their
accommodation with others, with nearly six out ten people (58%) recommending the
accommodation they stayed at to friends and family. In addition, half (51%) have written a
review about the accommodation they stayed at and two-fifths (41%) have recommended
the accommodation to friends and family online.
Africans are the most likely to have recommended accommodation to friends and family
offline (80% vs. 58% overall) and online (66% vs. 41% overall), while Europeans are the most
likely to have written a review about the accommodation (61% vs. 51% overall).
ACCOMMODATION REVIEWS AND RECOMMENDATIONS
5. TRAVEL AND TECHNOLOGY
i. Digital engagement before and after trip
While on a trip, many people are engaged digitally: they connect to the Internet through
their mobile (51%), upload photos to social networks (39%) and update their social network
status to keep their friends and family up to date (34%). They also use digital tools to make
their trip easier such as finding activities and attractions (33%) and download apps specific
to the destination (26%).
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USE OF TECHNOLOGY ON TRIP
Consumers want to share memories of their trip with others, with half (50%) having
uploaded pictures of a holiday to their social network. Nearly two-fifths (37%) have added
comments about their holiday to their social network and a third (34%) have written a review
of their experience for a website.
Those from North America are the most likely to have written a review about their
experience for a website after a trip (39% vs. 34% overall).
USE OF TECHNOLOGY AFTER A TRIP
ii. Use of devices on trips and mobile bookings
Consumers want to stay connected while away, with travel parties taking an average of four
devices with them on a trip. Mobile devices are a "Go To" travel resource and booking
mechanism. Consumers think it is beneficial that properties allow them to book
accommodation via a mobile device (72%) and they expect properties to engage with them
via mobile devices (54%).
Middle Eastern consumers are the most likely think it is beneficial for accommodation
providers to allow them to book their accommodation via mobile device (95% vs. 72%
overall).
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IMPORTANCE OF MOBILE BOOKINGS
6. 2013 PREDICTIONS
i. Budget and barriers to travel
Consumers have the travel bug, with nearly half of consumers (49%) planning on increasing
their travel budget for 2013 compared to 2012.
African and Middle Eastern consumers are the most likely to say that their travel budget will
increase this year (76% and 75% respectively vs. 49% overall).
BUDGET FOR 2013
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PART TWO: THE OPERATOR PERSPECTIVE
1. BUSINESS OUTLOOK
i. 2012 profitability
2012 was a mixed year financially, with most businesses being just ‘somewhat’ profitable.
European businesses are the most likely to report an unprofitable 2012 (29% vs. 22%
overall), while those from North America are the most likely to have had a profitable 2012
(29% vs. 22% overall).
Franchised businesses are most likely to say that their business was profitable in 2012 (32%
vs. 22% overall). Country house properties were the most likely to be unprofitable (32% vs.
22% overall).
BUSINESS PROFITABILITY IN 2012
ii. Business mood for 2013
Overall, business mood is positive for a profitable 2013, with over two-thirds (68%) being
optimistic about their business profitability for the upcoming year. North American
businesses are the most optimistic regarding business profitability (82%), while European
and Middle Eastern businesses are the most pessimistic (both 15% vs. 10% overall).
BUSINESS MOOD FOR 2013
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In line with the generally positive economic outlook, a fifth of businesses (19%) are planning
to add new jobs and just four out of ten (39%) are planning to increase their room rates.
ADDING NEW JOBS
68%
19%
9%
4%
I will add new jobs I do not plan to make any I will downsize my staff Don’t know
substantial changes to my staff
2013 ROOM RATES
52%
38%
2% 4% 4%
0%
Increase a lot Increase a little Remain the same Decrease a little Decrease a lot Don’t know
Asian businesses are the most likely to add new jobs in the next six months (32% vs. 19%
overall). South American businesses are the most likely to be planning to increase their
room rates in the next six months (47% vs. 39% overall), while European businesses are the
least likely to be planning to do so (32%).
2. BOOKINGS
i. Channels of distribution
Two thirds of businesses (65%) indicated their website offers a booking function which
allows people to book rooms online. Businesses own websites now generate the most
bookings (35%), followed by online travel agencies (18%). Only a small amount of bookings
are taken directly over the telephone (11%), email (10%) or via an offline travel agent (7%).
Businesses from Australasia and North America are the most likely to say that their website
generates the most bookings (48% and 45% respectively vs. 35% overall). Australasian
businesses are more likely to allow guests to book their accommodation online (79% vs. 65%
overall), while those from South America are the least likely (47%).
24TripBarometer by TripAdvisor - Winter 2012 / 2013
CHANNELS THAT GENERATE THE MOST BOOKINGS
ii. Booking timescale
Most businesses think that guests book with them relatively close to the time of the stay –
estimating that around six in ten bookings (59%) are made within four weeks of stay.
BOOKING TIMESCALE
iii. Guest decision-making factors
Location (66%) and price (61%) are perceived as the most important factors driving
accommodation bookings. Online reviews are also perceived as important with over half
(54%) of businesses thinking these have an impact on tourists choice of accommodation.
Asian businesses are more likely than their international peers to say that online reviews
have the biggest impact on travellers’ decision to book their accommodation (59% vs. 54%
overall), while those from South America say that friends and family have the biggest
impact (56% vs. 45% overall). More Australasian businesses think that attractions or activities
nearby have an impact on travellers’ decision (40% vs. 30% overall).
25TripBarometer by TripAdvisor - Winter 2012 / 2013
DECISION-MAKING FACTORS
3. GUEST REVIEWS
i. Reviews and bookings
Online travel reviews are important to generating bookings for nearly all businesses
surveyed (96%) - 75% said these were ‘very’ important and 21% said these were ‘somewhat’
important.
South American businesses are the most likely to think that traveller reviews are ‘very’
important for generating bookings (85% vs. 75% overall). Australians (64%) and Europeans
(65%) are the least likely to think traveller reviews are very important.
IMPORTANCE OF ONLINE REVIEWS
Given the importance of online reviews, businesses are understandably concerned that
negative online reviews may impact their business (84%), rising to 94% in businesses from
the Middle East. European and Australasian businesses are the least concerned about the
impact of negative reviews on their business (both 79% vs. 84% overall).
Franchised properties are the most likely to be concerned about negative traveler reviews
(93% vs. 84% overall). Independently owned properties are the least concerned (82%).
26TripBarometer by TripAdvisor - Winter 2012 / 2013
CONCERNS ABOUT NEGATIVE ONLINE REVIEWS
ii. Monitoring reviews
Given the importance of securing good online reviews, the majority of properties monitor
guest mentions and reviews on social media (87%). Over three-quarters of businesses (76%)
monitor these mentions themselves, 15% have their staff do it and 5% outsource this to a
third party or agency.
Middle Eastern businesses are the most likely to monitor guest mentions / reviews of their
property on social media (95% vs. 87% overall), while Australasian and African properties are
the least likely to do so (82% and 83% respectively).
MONITORING GUEST MENTIONS/ REVIEWS
iii. Encouraging guest reviews
Businesses want to hear about their guests stay at the property, with 81% inviting their
guests to share feedback about their experiences.
27TripBarometer by TripAdvisor - Winter 2012 / 2013
Businesses from the Middle East, North America and Australasia are more likely to invite
their guests to share their feedback (89%, 87% and 85%, respectively, vs. 81% overall), while
European businesses are the least likely (77%).
Franchised properties are the most likely to invite their guests to share their feedback (89%
vs. 81% overall). Single properties are less likely than multiple properties to invite their
guests to share feedback (80% vs. 85%).
INVITING GUESTS TO SHARE FEEDBACK
When it comes to different ways of encouraging guests to share their feedback about their
experiences, email stands out as the number one means of collection (51%), followed by
links on the company site (39%) and guest books (37%).
COLLECTING / ENCOURAGING REVIEWS
28TripBarometer by TripAdvisor - Winter 2012 / 2013
iv. Positive and negative reviews
The majority of businesses receive traveller reviews online, on both their company website
(63%) and on external websites (91%). Encouragingly, the majority of businesses have
received positive online reviews (93%), while just over half indicated they have received
negative online reviews (51%).
Asian and North American businesses are more likely to say that their property has received
a negative online review on their website and/or external website (both 56% vs. 51% overall),
while Australasian businesses are the most likely to have received a positive online review
(95% vs. 93% overall).
Franchised properties are the most likely to have received a negative online review (81% vs.
51% overall).
REVIEWS
v. Actions taken after receiving reviews
As a result of having received a positive review, over two-thirds of businesses (67%) have
responded to the positive review, either online or in private, and over half have
congratulated or rewarded the staff (55%).
When it comes to negative online reviews, businesses are also proactive in response. Nearly
8 out of 10 (78%) have responded to the negative online review – 65% have done so online
and 43% have done so in private. Over 6 out of 10 (62%) have addressed the contents of the
negative review with the staff. A further 45% have invested in staff training as a result of
receiving a negative online review and 41% have reviewed/changed operations.
Middle Eastern businesses are more likely to have responded to negative and positive
reviews (95% and 81% respectively) whilst European businesses are the less likely to have
done so (70% and 59% respectively).
29TripBarometer by TripAdvisor - Winter 2012 / 2013
ACTIONS TAKEN AFTER RECEIVING NEGATIVE/POSITIVE REVIEW
4. AMENITIES AND SERVICES
i. Current amenities and services
In order to meet guest expectations, businesses offer a wide range of both free and paid for
amenities and services. The vast majority offer tourist information brochures or deals (91%)
and parking (90%). Wi-Fi is among the top service provided, with 85% of businesses offering
Lobby Wi-Fi and 84% offering in-room Wi-Fi.
South American, North American and European businesses are the most likely to offer free
in-room Wi-Fi connection (84%, 83% and 81% vs. 76% overall). South American businesses
are the most likely to offer free lobby Wi-Fi (90% vs. 79% overall) whilst Australasian
businesses are the least likely to offer this type of Wi-Fi for free (47%).
AMENITIES OR SERVICES OFFERED
30TripBarometer by TripAdvisor - Winter 2012 / 2013
ii. Plans for amenities and services
Nine out of ten businesses are planning to use deals or offers in 2013 to attract guests to
their property. Free Wi-Fi connection and discounts on room are set to be the main draw
cards for 2013, with 59% and 47% of businesses respectively planning to attract guests in
these ways.
Businesses in the Middle East and North America are more likely to use special amenities
(38% and 34% respectively vs. 25% overall) and reward points (22% and 21% respectively
vs.12% overall) to attract guests. Australasian businesses are the most likely to use free
parking deals to attract guests (47% vs. 39% overall).
DEALS FOR 2013
iii. Environmentally sustainable practices
In line with consumer sentiment, the majority of businesses agree that operating in an eco-
friendly manner is important (91%). North American and South American businesses are the
most likely to think that it’s important to have eco-friendly practices in place (both 93%).
IMPORTANCE OF ECO-FRIENDLY PRACTICES
31TripBarometer by TripAdvisor - Winter 2012 / 2013
Over three-quarters of businesses (77%) currently have practices in place to reduce the
impact their business has on the environment.
Australasian and North American businesses are the most likely to have eco-friendly
practices in place (both 84% vs. 77% overall), which falls to 73% among European properties.
PROPORTION OF BUSINESSES THAT HAVE ECO-FRIENDLY PRACTICES IN PLACE
Businesses are doing their bit for the planet by implementing a wide range of eco-friendly
practices. The most common initiatives are more small scale initiatives such as energy-
efficient light bulbs (87%) and towel / linen reuse programs (82%). However, only a minority
of properties have a ‘green’ certification (14%) and just a quarter of properties (25%) have
been built using energy friendly materials.
ECO-FRIENDLY PRACTICES
32TripBarometer by TripAdvisor - Winter 2012 / 2013
5. SOCIAL MEDIA AND MOBILE
i. Prioritisation of social media within the marketing plan
Nearly 4 out of 10 (38%) indicated that social media is a priority for them within the overall
marketing plan.
Middle Eastern and Asian businesses are more likely to be prioritising social media within
their marketing plans (56% and 50% respectively vs. 38% overall), whilst Australasian
businesses are the least likely to do so, with only 20% considering social media as a priority.
PRIORITIZATION OF SOCIAL MEDIA WITH THE MARKETING PLANS
ii. Importance of mobile bookings
Properties are aware of the importance of ‘booking on the go’ with nearly three-quarters of
businesses (74%) thinking it is important to offer a program that allows guests to book their
accommodation via a mobile device.
Asian businesses are the most likely to think that it is important to offer a program that
allows guests to book their accommodation through mobile device (79%).
IMPORTANCE OF OFFERING A PROGRAM TO BOOK ACCOMMODATION VIA MOBILE DEVICE
33TripBarometer by TripAdvisor - Winter 2012 / 2013
iii. Mobile engagement
Despite the perceived importance of mobile booking capabilities and consumer demand for
this, just a quarter (25%) currently offer programs to engage with current and/or potential
guests through mobile devices.
South American and African businesses are the least likely to offer programs to engage with
current or potential guests through mobile devices (17% and 19% respectively vs. 25%
overall).
Franchised businesses are the most likely to offer programs to engage with customers using
mobile devices (46% vs. 25% overall), while independently owned properties are the least
likely (22%).
BUSINESSES OFFERING A PROGRAM TO ENGAGE THROUGH MOBILE DEVICES
Among businesses currently offering a program to engage with guests using mobile devices,
nearly two-thirds (64%) allow guests to book rooms via their website on a mobile device and
over half (52%) have a mobile-friendly website (e.g. easy to navigate using mobile devices).
The minority (22%) use special offers for mobile device users.
Again, franchises are the most likely to allow guests to book rooms via their website on a
mobile device (73% vs. 64% overall), while resorts are the least likely (62%).
34TripBarometer by TripAdvisor - Winter 2012 / 2013
HOW BUSINESSES ENGAGE WITH CONSUMERS THROUGH MOBILE DEVICES
Despite many consumers highlighting the importance of booking accommodation via a
mobile device and expecting properties to engage with them via mobile devices, mobile
marketing is a priority for just over a third of businesses (36%).
African and Australasian businesses are the least likely to prioritise mobile marketing (31%
and 32% respectively, vs. 36% overall).
PRIORITIZATION OF MOBILE MARKETING WITH THE MARKETING PLANS
35TripBarometer by TripAdvisor - Winter 2012 / 2013
APPENDIX:
METHODOLOGY
The research was conducted online from 7th December 2012 to 7th January 2013. The total
sample for the consumer sample is 15,595 and the total business sample is 19,447.
The sample breakdown is as follows:
CONSUMER SAMPLE:
TripAdvisor Pop-up survey. A total of 7226 completes were obtained from the TripAdvisor
panel
Online Panel Survey. A total of 8369 completes were obtained from an external sample of
adults who plan and book travel online.
BUSINESS SAMPLE
A total of 19,447 businesses on the TripAdvisor for Business panel responded to the survey.
The table below outlines the sample structure.
36TripBarometer by TripAdvisor - Winter 2012 / 2013
Table 1: Sample Profile
In terms of the consumer sample, please note that as a proportion of the sample was
obtained directly from the TripAdvisor panel, the influence of online travel review websites
may be higher than for the general population. In particular, the following questions show
the stronger prevalence of online travel review websites among the TripAdvisor sample
compared to the external sample.
37TripBarometer by TripAdvisor - Winter 2012 / 2013
Q11 Which of the following sources of information did you use when researching and
planning your last trip?
- “Travel review websites” – external sample 48%, TripAdvisor sample 85%
Q12 Which source of information was the most useful/trustworthy when researching and
planning your last trip?
- “Travel review websites” Most useful - 18% external sample and 54%
TripAdvisor sample
- “Travel review websites” Most trustworthy - 15% external sample and 45%
TripAdvisor sample
Q17 Thinking about your last trip, which three of the following had the biggest impact on
your final decision to book your accommodation?
- “Online reviews” - 26% external vs. 58% TA sample
WEIGHTING
The consumer data has been weighted to be reflective of the online population in each
country. The business data has been weighted to ensure each participating country has
equal representation within the global figures.
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