The Resilience of Global Travel

Transcription

1 The Resilience of Global Travel TripAdvisor Strategic Insights ITB Berlin 7 March 2018

2 Why TripAdvisor?

3 Our Evolution

4 Who We Are Today

5 Who We Are Today Research & Compare Evaluate & Click to Book

6 About TripAdvisor A lot of people know TripAdvisor is the biggest travel website in the world 455M average unique monthly visitors ** 49 Markets Worldwide 600M Reviews and Opinions M Accommodations, Restaurants and Attractions *Source: comscore Media Metrix for TripAdvisor Sites, worldwide, Oct 20 **Source: TripAdvisor log files, Q Source: TripAdvisor log files, Q4 20 6

7 Total Unique Visitors (000) TripAdvisor Overview - Worldwide TripAdvisor s WW audience peaked in July 20 at 324m July 20: 297m July 20: 324m Denotes peak month for TripAdvisor Inc. in each year Source: comscore TDAN 7

8 TripAdvisor: Worldwide TAMG remains the largest travel player worldwide TripAdvisor Media Group TripAdvisor Sites Ctrip International Booking.com Expedia Airbnb Trivago Sites Hotels.com Sites Qunar MSN Travel Skyscanner Mafengwo Agoda Kayak.com EDreams Odigeo HomeAway Despegar-Decolar Sites Priceline.com Southwest Airlines Co. Ryanair LATAM.COM CheapOair Deutsche Bahn Marriott edreams TripAdvisor TAMG % of the Travel Market 19% of the Travel Market Source: comscore November 20, Desktop travel only 8

9 TripAdvisor s Share of Travel Bookers TripAdvisor reaches 23% of global travel visitors 75% of global hotel purchasers visit TripAdvisor 296 MILLION USERS 15% Global travel intenders end up purchasing with hotel site Source: comscore services 9

10 73% of all first travel searches are generic i.e. not brand or destination specific 2% of all first travel searches have a destination Source: comscore Worldwide Path To Purchase Study 20

11 TripAdvisor Internal Data

12 About TripAdvisor A lot of people know TripAdvisor is the biggest travel website in the world 455M average unique monthly visitors ** 49 Markets Worldwide 600M Reviews and Opinions M Accommodations, Restaurants and Attractions *Source: comscore Media Metrix for TripAdvisor Sites, worldwide, Oct 20 **Source: TripAdvisor log files, Q Source: TripAdvisor log files, Q

13 The Traveler Shopping Experience is Vast COMPLETED 34 Total Visits CONSUMED 182 Pages SPENT 4 Minutes Researching INITIATED 40 Searches OVER AN AVERAGE OF 89 Days Source: TripAdvisor Travel Buyer Activity, comscore Worldwide Path To Purchase Study 20 13

14 Global Interest in Germany The number of the international clicks to book on German content on TripAdvisor has grown significantly in 20: by 43% as compared to Global Sessions Viewing Germany January February March April May June July August September October November December Source: TripAdvisor Internal User Data

15 Top 20 Countries Viewing Germany Share of Worldwide Views of Germany Year Over Year Growth United States 14,6% United States +15% The Netherlands Italy France Switzerland Spain Belgium Austria Denmark Russia Japan Sweden Poland Canada Australia China Singapore Israel Brazil India 4,3% 3,7% 3,6% 3,2% 2,8% 2,5% 2,1% 2,0% 1,8% 1,8% 1,7% 1,6% 1,5% 1,4% 1,3% 8,2% 7,1% 6,6% 6,5% The Netherlands Italy France Switzerland Spain Austria Belgium Denmark Russia Japan Sweden Poland Canada Australia China Israel Brazil India Denmark +50% +% +23% +18% +% +33% +45% +42% +35% +31% +44% +42% +15% +11% +20% +6% +9% +30% +34% Source: TripAdvisor Internal User Data Confidential For Internal Use Only 15

16 Top 20 Viewed German Destinations Share of Worldwide Views of Germany Year Over Year Growth Berlin Munich Hamburg Frankfurt Cologne Dusseldorf Germany Stuttgart Nuremberg Dresden Heidelberg Leipzig Hannover Freiburg im Breisgau Bremen Bonn Baden-Baden Dortmund Aachen Mannheim 4,0% 3,6% 2,7% 2,1% 1,9% 1,6% 1,3% 1,1% 0,8% 0,7% 0,7% 0,6% 0,6% 0,6% 0,5% 0,5% 0,5% 0,5% 6,2% 11,1% Berlin Munich Hamburg Frankfurt Cologne Dusseldorf Stuttgart Nuremberg Dresden Heidelberg Leipzig Hannover Freiburg im Breisgau Bremen Bonn Baden-Baden Dortmund Aachen Mannheim Essen +8,3% +15,1% +,4% +20,3% +13,4% +14,9% +,8% +23,5% +,2% +15,3% +19,7% +21,0% +19,7% +19,4% +24,2% +24,3% +21,7% +19,8% +25,4% +42,6% Source: TripAdvisor Internal User Data Confidential For Internal Use Only

17 Top Other Countries Viewed When Viewing Germany 20 UK IPs FR IPs IT IPs US IPs France 26,6% Italy 18,6% Austria 10,4% France,6% Spain 11,4% United Kingdom 13,9% United States 8,9% Italy 13,3% Austria 9,8% United States 10,7% France 8,6% United Kingdom 10,1% Greece 8,5% Spain 10,3% United Kingdom 8,0% Spain 7,6% Australia 7,6% Greece 4,4% Spain 7,6% China 4,1% Italy 5,9% Austria 3,9% Switzerland 6,4% Greece 3,2% South Africa 3,1% Switzerland 3,3% Poland 4,7% Austria 2,8% Switzerland 3,0% Poland 3,2% Denmark 3,8% Switzerland 2,6% United States 2,4% The Netherlands 2,7% Greece 3,6% Russia 2,5% The Netherlands 1,6% Russia 2,6% The Netherlands 3,5% Japan 2,5% Source: TripAdvisor Internal User Data Confidential For Internal Use Only

18 Top Competitors: Ritz Carlton Competitors w/ Most Page Views From Users Viewing Ritz-Carlton Source: TripAdvisor Internal Site Data

19 Ritz-Carlton vs. Park Hyatt Source: TripAdvisor Internal Site Data

20 Top Competitors: Ritz Carlton Competitors w/ Most Page Views From Users Viewing Ritz-Carlton Share of Clicks Won By Competitor From Users Comparing Both Source: TripAdvisor Internal Site Data

21 Ranking the top 20 tourism markets by total spend Country rankings on total spend, 2007 to 20 United States 1 United States 20 Largest Tourism Markets Germany United Kingdom 2 3 China Germany The United States has been the largest tourism destination worldwide for the last 11 years Japan France China Italy Spain Japan India United Kingdom France Italy Emerging markets have increased in the rankings of top markets Mexico India Brazil Mexico Brazil Spain China has risen from the 6th largest tourism market in 2007 to the 2nd largest today Germany has been displaced by China from the #2 market to #3 Australia Canada Russia South Korea Turkey Austria Netherlands Switzerland Australia Thailand Canada South Korea Russia Philippines Switzerland Austria Philippines 20 Turkey Source: Oxford Economics 21

22 Oxford Economics: Arrivals by Destination International travel has doubled over the past 20 years and continues to grow International Tourism Evolution 20 will be the eighth consecutive year of international growth in global travel demand. Annual average growth has been 4.6% over this period. Demand is accelerating in 20 from the moderate slowdown in from in 20. This is consistent with the improvement in economic activity. Almost 1.3 billion visits are expected in 20; roughly twice as many trips as were taken 20 years ago. Roughly half of all international trips are to European destinations. Destinations in the Asia-Pacific region are taking a greater share of travel Global Tourist Arrivals by Destination Millions MEA Asia Pacific Americas Europe Source: TDM, UNWTO 22

23 $138 $144 $149 $144 $142 $138 $138 $138 $142 $145 $154 $156 $156 $154 $150 $159 $156 $153 $154 $152 $151 $155 $2 $5 Germany Booking Data: Average Nightly Rate o o Average nightly rate tends to decrease at the close of summer, to attract more visitors during the colder months Large increases in average nightly rate can be seen starting in winter, as users are actively booking for peak season travel $5 $150 $125 Average Nightly Rate $100 Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Source: TripAdvisor Internal Site Data 23

24 Germany Booking Data: Room Nights Booked o Fewer rooms are sold during the winter months, as peak travel season for Germany normally occurs during the late spring and summer Germany Room Nights Booked Through TripAdvisor 0 Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Source: TripAdvisor Internal Site Data 24

25 $5,5M $5,4M $6,7M $6,8M $6,1M $6,1M $5,2M $4,8M $6,2M $6,3M $5,7M $8,0M $8,5M $8,8M $8,5M $7,9M $7,5M $7,7M $9,3M $9,0M $9,8M $9,1M $10,6M $10,8M Germany Booking Data: Total Hotels Revenue o o Estimated hotels revenue driven by TripAdvisor shows a decrease in winter, due to a decline in average nightly rate and fewer clicks Estimated revenue sees a large increase over the spring and summer, likely with people booking for peak season travel Total Est. Hotel Revenue Booked Through TripAdvisor, Last 12 Mos $ $ $89.8 million $ $ $ $ $0. Jan. Feb. Mrz. Apr. Mai. Jun. Jul. Aug. Sep. Okt. Nov. Dez. Jan. Feb. Mrz. Apr. Mai. Jun. Jul. Aug. Sep. Okt. Nov. Dez Source: TripAdvisor Internal Site Data 25

26 Germany s Share of Europe Hotels Revenue o Italy booking revenue driven by TripAdvisor consistently comprises between 4% and 8% of all TripAdvisor booking revenue for Europe as a whole 12% 10% Germany as % of European Hotels Revenue 8,4% 8,0% 8% 6% 4% 7,3% 5,0% 5,0% 4,6% 4,5% 4,3% 4,3% 4,8% 3,6% 7,0% 5,0% 5,1% 5,0% 4,8% 3,7% 5,1% 4,9% 4,2% 5,3% 6,1% 6,2% 5,4% 2% 0% Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan 18 Source: TripAdvisor Internal Site Data 26

27 The Resiliency of Online Travel

28 The 45 Effect 28

29 Nov 14 Dez 14 Jan 15 Feb 15 Mrz 15 Apr 15 Mai 15 Jun 15 Jul 15 Aug 15 Sep 15 Okt 15 Nov 15 Dez 15 Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Views of US Destinations, Total Volume All Users worldwide Nov 8 20 US Election No apparent decline in viewing traffic 29

30 Nov 14 Dez 14 Jan 15 Feb 15 Mrz 15 Apr 15 Mai 15 Jun 15 Jul 15 Aug 15 Sep 15 Okt 15 Nov 15 Dez 15 Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan 18 Views of US Destinations, Total Volume Excludes US Users Nov 8 20 US Election Still no apparent decline Drop in December is seasonal each year Growth still apparent 30

31 Nov 14 Dez 14 Jan 15 Feb 15 Mrz 15 Apr 15 Mai 15 Jun 15 Jul 15 Aug 15 Sep 15 Okt 15 Nov 15 Dez 15 Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan 18 Clicks to US Destinations as % of Global Travel Excludes US Users 8,0% 7,0% Nov 8 20 US Election 6,0% 5,0% 4,0% 3,0% 2,0% 1,0% Clear slow decline visible However decline began prior to 2014 Most likely due to growth in APAC & other options 0,0% 31

32 Nov 14 Dez 14 Jan 15 Feb 15 Mrz 15 Apr 15 Mai 15 Jun 15 Jul 15 Aug 15 Sep 15 Okt 15 Nov 15 Dez 15 Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan 18 12,0% Clicks to US Destinations as % of Outbound Travel German Users Only 10,0% Nov 8 20 US Election 8,0% 6,0% 4,0% 2,0% 0,0% German interest down but trend started earlier If anything drop slowed Likely reflects growing interest in other markets 32

33 Nov 14 Dez 14 Jan 15 Feb 15 Mrz 15 Apr 15 Mai 15 Jun 15 Jul 15 Aug 15 Sep 15 Okt 15 Nov 15 Dez 15 Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan 18 10,0% Clicks to US Destinations as % of Outbound Travel French Users Only 9,0% 8,0% Nov 8 20 US Election 7,0% 6,0% 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% France interest down Trend started earlier Clear seasonal pattern opposite beach weather 33

34 Nov 14 Dez 14 Jan 15 Feb 15 Mrz 15 Apr 15 Mai 15 Jun 15 Jul 15 Aug 15 Sep 15 Okt 15 Nov 15 Dez 15 Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan 18 10,0% Clicks to US Destinations as % of Outbound Travel Spanish Users Only 9,0% 8,0% Nov 8 20 US Election 7,0% 6,0% 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% Spain interest down slightly Could be 1pt lower interest in Sept-May 20/ Difficult to say is specific to election 34

35 Nov 14 Dez 14 Jan 15 Feb 15 Mrz 15 Apr 15 Mai 15 Jun 15 Jul 15 Aug 15 Sep 15 Okt 15 Nov 15 Dez 15 Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan 18 8,0% 7,0% 6,0% 5,0% 4,0% Clicks to US Destinations as % of Outbound Travel Russian? Users Only Russia interest significantly up Fell back to lower than ever after four months Might be interesting to analyse the hotels chosen Nov 8 20 US Election 3,0% 2,0% 1,0% 0,0% 35

36 Nov 14 Dez 14 Jan 15 Feb 15 Mrz 15 Apr 15 Mai 15 Jun 15 Jul 15 Aug 15 Sep 15 Okt 15 Nov 15 Dez 15 Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan 18 12,0% Clicks to US Destinations as % of Outbound Travel UK Users Only Nov 8 20 US Election 10,0% Brexit Referendum 8,0% 6,0% 4,0% 2,0% 0,0% Definitely a drop after election However, drop seemed to start earlier in June June 20 was Brexit & drop in With weak, trips to the US far more expensive 36

37 Nov 14 Dez 14 Jan 15 Feb 15 Mrz 15 Apr 15 Mai 15 Jun 15 Jul 15 Aug 15 Sep 15 Okt 15 Nov 15 Dez 15 Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan 18 Share of clicks to book hotels in Europe going to Paris 14,00% ISIS Attack 12,00% 10,00% Global United States United Kingdom Italy Spain Germany 8,00% 6,00% 4,00% 2,00% 0,00% Source: TripAdvisor Session Data 37

38 Nov 14 Dez 14 Jan 15 Feb 15 Mrz 15 Apr 15 Mai 15 Jun 15 Jul 15 Aug 15 Sep 15 Okt 15 Nov 15 Dez 15 Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan 18 6,00% 5,00% Share of clicks to book hotels in Europe going to Barcelona Global United States United Kingdom France Italy Germany Las Ramblas Attack 4,00% 3,00% 2,00% 1,00% 0,00% Source: TripAdvisor Session Data 38

39 Nov 14 Dez 14 Jan 15 Feb 15 Mrz 15 Apr 15 Mai 15 Jun 15 Jul 15 Aug 15 Sep 15 Okt 15 Nov 15 Dez 15 Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Jan 18 14,00% 12,00% Share of clicks to book hotels in Europe going to London Global Spain Italy United States France Germany Westminster Attack Manchester Attack London Bridge Attack 10,00% 8,00% 6,00% 4,00% 2,00% 0,00% Source: TripAdvisor Session Data 39

40 Conclusions 1. The world of travel only continues to grow 2. Be sure to know your real competitors 3. Europe remains in top spot as the number one destination on Earth 4. Price and brand still matters far more than politics 5. In the long run we are unafraid 40

41 2018 New Hotels Insights

42 How important is the hero photo??

43 Oddly Performing Properties Click Share index -12% Review Score Index +3%

44 Oddly Performing Properties Click Share index -51% Review Score Index +11%

45 Oddly Performing Properties Click Share index -31% Review Score Index +12%

46 Oddly Performing Properties Click Share index -60% Review Score Index +8%

47 Oddly Performing Properties Click Share index -60% Review Score Index -14%

48 Tinder Auto-Optimisation

49 Top Swaps

50 Top Swaps

51 Top Swaps

52 Top Swaps

53