Accord - Travelbag Market Overview

Accord - Travelbag Market Overview

Market overview

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Contents

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OVERVIEW OF UK TRAVEL MARKET

04-05

THE SMARTPHONE

06-07

[ E K - S P E R - T E E Z ]

ADVOCACY INCREASING ITS INFLUENCE

08-09

NOUN

THE EXPERIENCE ECONOMY

10-11

A special skill or knowledge that is acquired by training, study, or practice.

A GROWING TRAVEL MARKET

12-13

THE EVOLVING MEDIA LANDSCAPE

14-17

AN EMERGING ‘LATES’ MARKET

18-19

30 years of accumulated knowledge, learnings and campaign delivery allow Accord to confidently position itself as the UK’s leading travel marketing agency.

IMPACT OF BREXIT

20

RISE OF THE SOLO TRAVELLER

21

IN SUMMARY

22

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Overview of UK travel market

The most notable observation to the once linear journey is that digital media has shifted the balance of power to the consumer, who can enter the journey at any point as well as bounce back and forth between stages. This pattern of behaviour has given voice to travel brands in newer and more impactful ways than ever before. In particular, brands are now able to take advantage of the experience and advocacy stages – with targeted messaging and brand awareness campaigns.

As Google highlight:

OVER 40% OF TRAVELLERS SAY

THEY BOUNCE BACK AND FORTH BETWEEN DREAMING ABOUT AND PLANNING THEIR NEXT TRIP, ZOOMING IN ON THE DETAIL FOR ONE DESTINATION AND THEN ZOOMING OUT TO RECONSIDER ALL THE OPTIONS AGAIN.

T ravel has changed beyond recognition, especially how we, as consumers, engage with the process of booking a holiday. What was traditionally a seller’s market, in which potential holidaymakers were restricted by the information available to them across a ‘linear consumer journey’ has now been turned on its head into what we now call a ‘digitally disrupted path to purchase’.

The journey has become digitally disrupted It has changed from a linear path to a disrupted cycle

Dreaming

Planning

Booking

Experience

Advocacy

N e w s

GOOGLE MICRO-MOMENTS, THINK WITH GOOGLE

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Source: ABTA, Holiday Habits, 2017

We now look to explore a number of factors we believe are influencing this trend as well as shaping the future of travel:

Integral in our daily lives

of holiday bookings were made via an online channel last year 83 %

Source: IPA TouchPoints

UNDERGROUND

1. The smartphone 2. Advocacy increasing its influence 3. The experience economy 4. A growing travel market 5. The evolving media mandscape 6. An emerging ‘lates’ market 7. The impact of Brexit 8. Rise of the solo traveller

Media consumption

Used to interact with posters

Used as a form of identity

Used to obtain more information about a product by using QR codes

Used as a travel card

Used to present a ticket for a flight or cinema etc

or video screens

The path to purchase is information rich

34 searches

5 videos

Amy had 419 digital moments researching her trip over 2 months

87 %

1. The smartphone

D isruption within the consumer path to purchase is largely the result of an unprecedented rise in technology, especially the smartphone which, for most, has become the first thing we look at in the morning and the last thing we see before we sleep at night. Not only has the smartphone become an integral part of our lives, it now enables us to understand consumers in ways previously unexplored.

380 web page visits

Mobile Total Digital Moments

of these digital moments

Desktop

happened on mobile

N OV

D E C

J A N

Source: Think with Google, 2016

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2. Advocacy increasing its influence

of travellers will post on social media following a return from holiday 40 %

This emphasis on post-holiday advocacy has also given rise to what is now known as ‘SET-JETTING’. 55% OF HOLIDAYMAKERS SAID THEY FELT INSPIRED TO VISIT A PLACE ON HOLIDAY AFTER SEEING IT ON A TV PROGRAMME OR FILM.

W hilst the consumer path to purchase has evolved, one of the most important changes can be seen in the growth of advocacy that occurs around travel. In the past, we would have had photos processed into a physical album after returning from

your trip; now 40% of travellers will post on social media following a return from holiday, potentially advocating for the brand or destination and, in turn, working to spread the word organically. We know that 46% of holidaymakers and 67% of millennial travellers have said that they

were inspired to visit a place after seeing photos/videos on people’s social media feeds. In essence, social media has unleashed the power of peer-to-peer influence in travel.

21

13

6

15 write a hotel review

13

6

%

%

%

%

%

%

posted photos on Social App

posted status update on a Social App

posted videos on a Social App

write a restaurant review

write a destination review

Source: Expedia, British Travellers Digital Landscape, 2016

Source: Mintel - Holiday Planning and Booking Process, UK, May 2018

1 0 | T H E E X P E R I E N C E E C O N O M Y

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Source: Mintel: Holiday Planning and Booking Process, UK, May 2018

There are growing opportunities for brands around capturing the ‘full traveller journey’ CONSUMERS SEEK TRUSTED ONE-STOP SHOPS, ONLINE AND OFFLINE, WHERE THEY CAN MAKE THEIR ARRANGEMENTS QUICKLY AND EASILY .

3. The experience economy

Another example of a brand that has placed added emphasis on the experience is Sandals. Sandals have transformed their retail store on Fulham Road, London into an interactive space that completely immerses you in the Luxury Included concept through a range of educational and sensory experiences .

I n 2016, the UK’s ‘experience economy’ rose by 8%, with people choosing to spend more on eating out, day trips and holidays. Almost 80% prefer to spend their disposable income on unique, spontaneous and immersive entertainment wherever they are. They crave these experiences to escape from the norm and experience things that are uniquely memorable. In this evolved ‘economy’, travel brands not only have to provide customers with great holiday experiences, they also must make the booking process a positive and seamless experience – especially at the initial engagement stage. An example of this approach is the Scottish Tourist Board who in October 2017 took over a retail space in Charlotte Street, London and created an ‘Instagram Travel Agency’ - allowing prospective customers to

browse different types of holidays based on visitors’ Instagram photos that featured a specific hashtag.

Source: (sandals.co.uk/store)

There is an opportunity for independent shops to sell a greater diversity of products, and to proactively promote their individuality as a key point of differentiation .

Source: Mintel: Holiday Planning and Booking Process, UK, May 2018

Source: Canvas8

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4. A growing travel market

Across the travel market, spend onmarketing continues to grow

Leading travel brands have led the charge of increased marketing investment, illustrated by increases of 9.9% and 7.7% over the past two years. This growth in spend from brands is replicated by consumer spending which also rose by 6.5% to £46.2 billion in 2017 .

D espite a climate of relative uncertainty, research shows that people will continue to book holidays, both domestically and internationally, well into the future. Last year over 105 million trips were taken, with overseas holidays growing by 3% to reach 46.4 million trips taken by 51% of all adults in the UK. This is over a million more than the previous high recorded before the financial crash in 2008. Mintel anticipates this volume to increase around 2% per annum.

Holiday taking in the past 12months

7.7 Y/Y

%

+

%

9.9 Y/Y

%

+

54

UK

£900,000,000

55

40

Overseas

51

£700,000,000

38

Europe

42

£500,000,000

19

Outside Europe

18

50

£300,000,000

Short break (1-3 nights)

55

57

Longer holiday (4+ nights)

55

£100,000,000

£-

2013

2014

2015

2016

2017

Apr 16 - Mar 17

Mar 17 - Apr 18

*Not including PPC, SEO, DM or Paid Social

Base: 2,000 internet users aged 16+ Source: Mintel, Holiday Planning and booking process, May 2018

Source: Nielsen Ad Dynamix

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Source: IPA Touchpoints 2017

5. The evolving media landscape

AVERAGE TIME SPENT OF 50 MINUTES A DAY CONSUMING DIGITAL NEWSBRAND CONTENT

Digital

People still have an unprecedented need to consume news, and with an average time spent of 50 minutes a day consuming digital newsbrand content. It is then no surprise Mail, Guardian and Telegraph Online have helped to pioneer the 49% year-on-year growth in digital spend. Additionally the new consumer-led research journey plays into the strength of sites such as TripAdvisor - now travel industry’s largest site with approximately 98m visits per month.

W hat is particularly noteworthy are the trends behind choice of media that the travel industry choose to invest in. Spend >Page 1 Page 2-3 Page 4-5 Page 6-7 Page 8-9 Page 10-11 Page 12-13 Page 14-15 Page 16-17 Page 18-19 Page 20-21 Page 22-23 Page 24

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