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STATE OF TRAVEL

2014
Drawing on data from every sector of the travel industry (and beyond) this new Skift report
provides an overview of the ecosystem. From key verticals, such as airlines and hospitality,
to focused themes and new ideas e.g. China's rise as a force in tourism; the emergence
of "the silent traveler" this is the State of Travel, 2014.

!
!

Introduction

!
!
Marking Skift's second anniversary, welcome to our inaugural annual State of Travel report.

Evolving, in part, from our daily coverage of global travel industry, from our ongoing series of trend reports,
and from Skifts popular Daily Travel Stats Twitter-feed but also incorporating expert research from
throughout the travel industry we've collected and organized dozens of key data points, helping to frame
the recent and always changing travel landscape.
From developments and new steps in specific verticals to the wide-ranging and ever-shifting nature of
travelers' choices and passions, the following slides represent significant measures of the industry during the
past year (and beyond). The report also gives attention to emerging factors, including mobile apps and their
role in travel e-commerce, the sharing economy, the rise of the Chinese traveler, and the "silent traveler"
our own model for a digitally savvy consumer who is incrementally pulling away from older models of travel
service.
Learn even more about the business of going places by staying in touch with Skift's daily stats at @skiftstats,
and find our in-depth considerations of travel news and trends at skift.com.
Written & curated by James O Brien and Rafat Ali, Skift

About Skift
Skift is the largest industry intelligence and marketing platform in travel, providing
news, information, data and services to all sectors of the worlds largest industry.

!
Based in New York City, Skift has deep experience in identifying and synthesizing
existing and emerging trends, in its daily coverage of the global travel industry, through
its Skift Trends Reports and its data insight from SkiftIQ competitive intelligence service.

!
Within a short two years of its existence, Skift has become the lingo in the travel industry, and is
now a daily tool by the top strategists, technologists, and marketers in travel.

!
!
!
!

Simply love you guys. The freshest cogent ideas / POV's come from your team. Thanks.
Christopher Baer, head of innovation, Marriott.

As a 20 year veteran of technology and travel, Skift has become my must read of the day.
Michael McDowell, head of innovation, Hertz.

Talk about a gap in the market. Not sure where we in the travel industry got our news, insight & analysis from before
Rafat created Skift.
Chris Boden, former head of innovation, Lonely Planet.

TABLE OF CONTENTS
Introduction page 2
About Us page 3
Snapshots: Travel 201314 page 5
Airlines page 14
Airports page 24
Hospitality page 30
Bookings and Reservations: Methods and Motivations page 39
Travel Marketing and Technology page 49
Destinations page 53
Tourism page 61
Business Travel page 67
Travel and the Sharing Economy page 74
The Chinese Traveler page 80
The Mobile Traveler page 87
The Silent Traveler page 94
Horizons page 99
SkiftX Contact Us page 105

SECTION 1

SNAPSHOTS: TRAVEL 201314

Average Global Traveler Budget (201314)

2013

2014

$5,955

$6,136

Percent Change:

3.03%

SOURCE: TripAdvisor: 2014

Average U.S. Traveler Budget (201314)

2013

2014

$8,202

$8,272

Percent Change:

0.85%

SOURCE: TripAdvisor: 2014

U.S. Travel/Tourism Rates of Growth


Rate of Growth: Real Spending on Travel/Tourism
Q4 2013
Q3 2013

3.1%

Q3 2013

2013
2012

4.2%

2.8%

Rate of Growth: Real GDP Growth


2012

Q4 2013

4.1%

3.6%

2.4%

2013

2.8% 1.9%

Travel ranked as the second-fasting growing U.S. industry sector in 2013, behind agriculture.
Leading contributors to Q4 travel/tourism growth rate: traveler accommodations (+14.5% Q4);
food services and drinking places (+7.7% Q4)
SOURCE: Bureau of Economic Analysis: 2014

U.S. Travel Spending and Visitors

2011

2012

2013

Visitors

63M

66M

70M

Spend

$149B

$169B

SOURCE: International Trade Administration: 2014

$188B

Travel and GDP Impact

Financial Services

$14 trillion

Communication Services

$9 trillion

Banking

$8 trillion

Education

$7 trillion

Travel & Tourism

$6.8 trillion

Mining

$6.2 trillion

Chemicals Manufacturing

$6.2 trillion

Automotive Manufacturing

$5.8 trillion

Higher Education

$2.3 trillion

Amounts include direct and indirect/induced impact (2012 prices)


SOURCE: WTTC: 2014

U.S. Travel/Tourism Jobs Rebound

138%+

Percentage of U.S.
Travel Jobs Lost
During Recession that
Have Been
Recovered (2014):
Percentage of All U.S.
Jobs Lost During
Recession that Have
Been Recovered
(2014)

~100%*

Total

Direct
Indirect

No. of Travel/Tourism
Jobs (2013)

8M

5.7M
2.3M

Key to the boost in travel- and tourism-related jobs: recreation, entertainment, shopping, transportation.
*While the U.S. has recovered at least 100% of the jobs lost in the 20072009 recession, the distribution of recovered jobs across
states has left some with fewer jobs than before the recession.
SOURCE: Wall Street Journal: June 2014; Bureau of Economic Analysis: 2014; TravelPulse: April 2014; International Trade
Administration: 2014

Fastest-Growing Countries in Travel (201323)

Namibia

9.7%

China

8.7%

Montenegro

8.1%

India

7.8%

Gabon

7.8%

Angola

7.4%

Zambia

7.3%

Cambodia

7%

Mongolia

6.9%

Philippines

6.9%

Key to these stats: the travel industries of many countries represented are growing from relatively early stages.
SOURCE: WTTC: 2013

15 Largest Publicly Traded Travel Companies


Priceline Group
Las Vegas Sands

$64.91B
$6.79B

Walt Disney

$47.19B
$14.1B

Galaxy Entertainment

$35.74B
$8.52B

Delta Air Lines


American Airlines Group
Carnival Corporation

$32.55B
$37.77B

$59.73
$13.76B

$29.41B
$25.8B
$28.36B
$15.45B

Hilton Worldwide

$25.19
$9.73B

Wynn Resorts
Southwest Airlines
Marriott
Amadeus

$21.3B
$5.62B

United Continental

$17.55B
$38.27B

Host Hotels & Resorts


Starwood

$20.53B
$17.69B
$19.35B
$12.78B
$18.17
$4.16B

$17.41B
$5.16B
$15.23B
$6.11B

Market Cap

Disneys total market cap was actually $150.77B,


and Skift attributed 31.3% of it, in 2013, to the companys travel business.
SOURCE: Skift: 2014

Revenue

SECTION 2

AIRLINES

Air Passengers: Global Volume Growth 201314


International Air Passengers

+1.8%

Domestic Air Passengers

+4.7%

+2.9%
Total Air Passengers

+2.49%

+4.2%

Mar. 2014 over Mar. 2013


SOURCE: ACI World Report: June 2014

YTD

+3.8%

Systemwide Airline Travel, U.S. 201314


2013

2014

Change

233.9M

237.7M

+1.6%

Flights

2.9M

2.8M

-3.9%

Revenue
Passenger Miles

260B

266.2B

+2.4%

Passengers

SOURCE: Bureau of Transportation Statistics: April 2014

Top 10 Airlines by U.S. Domestic Scheduled Enplanement


Change
Delta

39.121M
36.791M

+6.3%

Southwest*

38.460M
35.831M

+7.3%

United

28.358M
28.494M

-0.5%

American

28.298M
27.919M

+1.4%

US Airways

18.705M
18.545M

+0.9%

10.01M
9.836M

+1.8%

9.903M
10.282M

-3.7%

SkyWest

8.616M
8.72M

-1.2%

Alaska

6.414M
6.138M

+4.5%

Envoy

5.278M
5.617M

JetBlue
ExpressJet

Passengers (Jan-Apr 2014)

Jan-Apr 13 Passengers

-6.0%

*The merged Southwest and AirTran are now reporting separately although operating under a single certificate.
SOURCE: Bureau of Transportation Statistics: April 2014

Most Valuable Airline Brands (201213)


Emirates Airline

$3.7B
$4.098B

Lufthansa

$3.296B
$3.638B

Delta

$3.013B
$3.289B

Singapore Airlines

$3.218B
$3.117B

United

$2.763B
$2.992B

China Southern Airlines

$2.765B
$2.752B

China Eastern Airlines

$1.543B
$2.484B

Air France

NA
$2.457B

Air China

$2.395B
$2.419B

Cathay Pacific

$2.266B
$2.313B

British Airways

$2.011B
$2.211B

ANA

$2.448B
$2.051B

Korean Air

$2.003B
$2.043B
$1.422B

Southwest

$1.95B

Japan Airlines

NA
$1.85B

Turkish Airlines

$1.681B
$1.8B

American Airlines

$1.854B
$1.767B

2012 Value

TAM Airlines

$1.285B
$1.45B

Aeroflot

$1.308B
$1.423B

KLM

$1.278B
$1.368B

2013 Value

Methodology: net present value of estimated future cash flows attributable to the brand in question (Brand Finance).
SOURCE: Brand Finance/Skift: 2013

Top 10 Airlines by Annual On-Time Performance (U.S., 2013)

Hawaiian

93.3%

Alaska

87.2%

Delta

84.5%

Virgin America

82.1%

US Airways

81.1%

Endeavor Air

80.3%

SkyWest

79.7%

AirTran

79.4%

United

79.3%

American

78.1%

Industrywide annual on-time percentage: 78.4%


SOURCE: Embry-Riddle Aeronautical University: 2014

Top 10 Airlines by Full-Time Employees (U.S., 2013)

United

82,082

Delta

73,873

American

59,140

Southwest

45,000

US Airways

31,180

JetBlue

12,998

American Eagle

11,138

Alaska

9,525

Network

SkyWest

9,427

Low-Cost

ExpressJet

9,022

Regional

SOURCE: Bureau of Transportation Statistics: 2013

Top 10 North American Low-Cost Airlines, by Seats (2013)

Southwest

3,274,351

JetBlue

651,300

WestJet

455,671

AirTran

442,864

Spirit

263,868

Frontier

224,226

Allegiant

178,094

Virgin America

174,462

Sun Country
Sunwing

38,744
3,948

Consolidation in U.S. marketplace, accompanied by route reductions and higher fares, is opening up a broad spectrum of
opportunities for quality hybrid carriers and the new breed of ultra low-cost carriers (ULCCs).
Three distinct business models: full-service network carriers, hybrids, and ultra low-cost airlines.
SOURCE: Skift: 2013

U.S. Average Domestic Itinerary Fares (201113)

U.S. Average Domestic Fare


Q4 2011

Q4 2012

Q4 2013

$380.42

$379.85

$381.05

Percentage Change 201213

+0.3%

Percentage Change 200013

-16.3%

Dollar amounts are adjusted for inflation.


SOURCE: Bureau of Transportation Statistics: 2014

Top Concerns for Airlines (U.S., 2013)


Top responses to a U.S. Travel Association survey of travelers:
Delays/Cancellations
Safety
No Concerns

Fees (checked bags/extras)


Security Screening

6%
8%

39%

11%
39%

26%

Additional responses, those representing percentages lower than 6%, account for 10% of the respondents.
The U.S. Travel Association measured some 38 million domestic flights that passengers avoided due to "air travel hassles",
in 2013. The impact of that suppressed activity, according to the Association, is as follows.
Airfare: Spending Loss (2013): $9.5B

Hotels: Spending Loss (2013): $5.8B

Food Services: Spending Loss (2013): $3.4B

Recreation: Spending Loss (2013): $5.7B

Car Rentals: Spending Loss (2013): $2.8B

SOURCE: U.S. Travel Association: 2014

SECTION 3

AIRPORTS

Top 10 Busiest U.S. Airports by


Enplaned Passengers (JanApr 2014)
Change
14.056M
14.202M

+1.0%

Dallas/Fort Worth

9.031M
9.365M

+3.7%

Chicago OHare

8.985M
9.174M

+2.1%

Los Angeles

7.812M
8.429M

+7.9%

Denver

7.781M
7.959M

+2.3%

Charlotte

6.721M
6.672M

-0.7%

Phoenix

6.464M
6.648M

+2.8%

Las Vegas

5.874M
6.026M

+2.6%

San Francisco

5.591M
5.916M

+5.8%

Houston Bush

5.699M
5.828M

+2.3%

Atlanta

Jan-Apr '13

Jan-Apr 14

Ranked by January-April 2014 Systemwide (Domestic and International) Scheduled Enplanements on U.S. Airlines.
SOURCE: Bureau of Transportation Statistics: 2014

Most/Least Expensive Points of Origin (U.S., 2013)


Top 5 most expensive points of
origin, Q4 2013

Huntsville, AL

$527.52

Cincinnati, OH

$510.36

Washington Dulles

$505.62

Newark-Liberty, NJ

$498.71

Houston Bush, TX

$497.61

Untitled 1

Top 5 least expensive points of


Untitled
origin,2Q4 2013

Long

6.721M
6.672M
Beach,

CA

$248.63

6.464M
Las Vegas,
NV

$254.97

Burbank/Glendale/Pasadena, CA

$281.23$281.23

Fort Lauderdale, FL

$288.93$288.93

TX

$290.78$290.78

6.648M

5.591M
Dallas5.916M
Love,

5.828M

5.699M

U.S.-originating domestic passengers, ranked by average domestic itinerary fare.


Amounts include taxes, but not fees for checking bags, boarding early, or other extras.
SOURCE: DOT: Bureau of Transportation Statistics: 2014

Top 10 Most- and Least-Connected U.S. Airports (2013)


The top 10 most connected airports by percentage of passengers getting online via gogo:

1. San Francisco International Airport, San Francisco, CA


2. John F. Kennedy Airport, New York, NY
3. John Wayne Airport, Santa Ana, CA
4. Los Angeles International Airport, Los Angeles, CA
5. Washington Dulles International Airport, Sterling, VA
6. Newark-Liberty Airport, Newark, NJ
7. LaGuardia Airport, New York, NY
8. OHare International Airport, Chicago, IL
9 Seattle-Tacoma International Airport, Seattle WA
10. San Jose International Airport, San Jose, CA
The bottom 10 by percentage of passengers getting online via gogo:

1. Pensacola International Airport, Pensacola, FL


2. Savannah/Hilton Head International Airport, Savannah, GA
3. Akron-Canton Airport, Akron, OH
4. Birmingham-Shuttlesworth International Airport, Birmingham, AL
5. Buffalo Niagara International Airport, Cheektowaga, NY
6. Wichita Mid-Continent Airport, Wichita, KS
7. Colorado Springs Airport, Colorado Springs, CO
8. Piedmont Triad International Airport, Greensboro, NC
9. Greater Rochester International Airport, Rochester, NY
10. Charleston International Airport, Charleston, NC
Context: San Francisco handled 16.8M passengers and more than 16.4M enplanements in fiscal 2012, the
latest statistics available. By comparison, Pensacola International Airport handles 72 daily arrivals, on average,
has a 5,610 daily-seat capacity, and operates out of a single terminal.
SOURCE: Gogo: 2013; Global/Skift: 2013

Apps and Kiosks in Airports (201416)


% of airports investing in mobile apps
for flight info/navigation/retail

% of airports with kiosks


for self check-in

95%

80%

% expected to have kiosks


for self check-in by 2016

% expected to have self-tagging


and baggage drop by 2016

98%

80%+

SOURCE: Cisco Blog; Future Travel Experience

Like What You See?


Skifts new content studio SkiftX helps brands
such as Amadeus, American Express, Egencia,
Hilton, Peak Adventure Travel and others create
thought leadership in the global travel industry,
through trends reports, research, branded
content, social media audits and other content
marketing initiatives, and helps distribute through
its industry marketing platform.
Contact us for more details:
Rafat Ali,
Founder & CEO, Skift
ra@skift.com
212-564-5830

Skift Inc, 115, W 30th Street, #1213, New York NY 10001

SECTION 4

HOSPITALITY

U.S. Hotel Performance (2014)

All Hotels Occupancy:


All Hotels Avg. Daily Rate:
All Hotels Revenue Per Available Room:

SOURCE: Hotel News Now

June 2014

Change YTD

63.7%

+3.3%

$114.06

+4.1%

$72.64

+7.5%

Five Prestige Hotel Brands by Market Capitalization/Valuation (2014)

Hilton Worldwide
InterContinental
Hotels Group

Shangri-La
International Hotel
Management Ltd.

$9.97B

$6.6B

$22.36B

$15.43B
Starwood Hotels &
Resorts Worldwide, Inc.

SOURCE: L2 Think Tank Digital IQ Index: 2014

$9.55B
Hyatt Hotels
Corporation

Top 10 Hotel Groups by Room Inventory (2014)


Change
IHG (GB)

675,982
686,873

+1.6%

Hilton Worldwide (USA)

659,917
678,630

+2.8%

Marriott International (USA)

638,793
653,719

+2.3%

Wyndham Hotel Group (USA)

627,437
645,423

+2.9%

Choice Hotels International (USA)

502,663
497,023

+1.1%

Accor (FRA)

450,199
461,719

+2.6%

Starwood Hotels & Resorts (USA)

328,055
339,243

+3.4%

Best Western (USA)

307,305
314,318

+2.3%

Home Inns (CHI)

214,070
256,555

+19.8%

Carlson Rezidor Hotel Group (USA)

166,245
168,927

+1.6%

Rooms 2013

Rooms 2014

SOURCE: Hotel Online/MKG Hospitality Database: 2014

Airport Hotel Performance (2014)

U.S. Average Occupancy

Airport Hotel Occupancy

60.8%

71.7%

Percentage Dierence
(Occupancy: Airport to Average U.S.)

+10.9%

As investors look for new opportunities, a location type with below-average supply growth is attractive,
which makes airports targets for new development.
SOURCE: STR/SkiftStats: Jun 28 2014

Traveler Types and Hotel Rates/Occupancy (2013-14)

Average
Daily Rate

Reserved
Occupancy

All Travel Segments: +2.6%


Group Only: -1.1%

+5.7%

Transient Only (Business & Leisure): +4.7%

+7.2%

Transient Business: +3.8%

+4.3%

Transient Leisure: +5.7%

+9.6%

Percentage Growth: Apr 2014 compared to Apr 2013.

SOURCE: TravelClick/SkiftStats: Apr 30 2014

+2.8%

Perceptions of Service (2014)


Price is Important to Booking

Amenities Important to Booking


Special Oers Important to
Booking

44%

4%

77%

50%

95%

Previous Experience Important to


Booking

86%

Online Travel Reviews Important to


Booking

33%

% of Global Travelers

89%

64%

% of Global Hoteliers

SOURCE: TripAdvisor/SkiftStats: Apr 25 2014 (1), (2)

25%

Hotel Customer Satisfaction Benchmarks (201314)

Ease of Reservation

88%
88%

Ease of Check-in

89%
87%

Sta Courtesy

87%
86%

Website Satisfaction

84%
83%

Room Quality

84%
82%

Loyalty Program

80%
80%

In-room Internet Service

79%
77%

Amenities

78%
77%

In-room Entertainment

80%
77%

Food Services

76%
77%

2013

2014

SOURCE: ACSI/SkiftStats: Apr 23 2014

Top 10 Digitally Savvy Hotels by Digital IQ Score

W Hotels

152

Westin Hotels & Resorts

142

Sheraton Hotels & Resorts

140

St. Regis

139

Le Meridien

134

Hyatt

129

InterContinental Hotels & Resorts

129

Marriott

129

The Luxury Collection Hotels & Resorts

128

Four Seasons

122

Scores are a digital IQ number created by L2 Think Tank in their 2014 Digital IQ Index.
Ranked by site/ e-commerce; digital marketing; social media; and mobile efforts/effectiveness.
SOURCE: L2 Think Tank Digital IQ Index: 2014

SECTION 5

BOOKINGS AND RESERVATIONS:


METHODS AND MOTIVATIONS

Online Bookings Growth (Q3 201213)

Car Rentals

+17.4%

Hotels

Total

+11.8%

+10.7%

+13.5%

+7.2%
Airlines

Travel Agencies

Slower rate in the airline category correlates with its lead position in overall online bookings.
SOURCE: Adobe Digital Marketing Blog: 2013

Choices of Online Travel Reservations by Site Type (201013)

2010

2011

2012

2013

Online travel agency (e.g. Expedia, Travelocity, Orbitz): 66%

62%

60%

58%

Brand travel-service supplier (e.g. American Airlines, Hilton, Hertz): 48%

46%

45%

45%

Comparison-shopping site (e.g. Kayak or Dealbase): 15%

14%

18%

28%

Traditional travel-agent site: 8%

9%

7%

6%

Collective-buying website (e.g. LivingSocial): NA

5%

7%

6%

American Express Travel Services online: 5%

6%

6%

5%

Private-sale/invitation-only deals site (e.g. Jetsetter, Vacationist): NA

5%

4%

4%

Other: 7%

7%

13%

15%

SOURCE: MMGY Global/Skift: 2013

Choices of Online Travel Reservations by Age Group

Millennial

Gen X

Baby
Boomer

Online travel agency (e.g. Expedia, Travelocity, Orbitz):

64%

61%

53%

41%

Brand travel-service supplier (e.g. American Airlines, Hilton, Hertz):

41%

42%

50%

55%

Comparison-shopping site (e.g. Kayak or Dealbase):

39%

25%

23%

14%

Traditional travel-agent site:

7%

6%

6%

1%

Collective-buying website (e.g. LivingSocial):

7%

4%

6%

12%

American Express Travel Services online:

6%

5%

4%

5%

Private-sale/invitation-only deals site (e.g. Jetsetter, Vacationist):

6%

4%

3%

1%

Other:

6%

14%

22%

26%

SOURCE: MMGY Global/Skift: 2013

Mature

Top 10 Popular Online Travel Booking Sites (2014)


Booking.com

166M
210.5M

TripAdvisor Sites

159.5M
159.6M

Expedia Sites

59.3M
63.5M

Hotels.com

34.5M
34.5M

Airbnb Sites

NA
32.5M

Agoda.com

30.7M
31.6M

Priceline.com

31.3M
28M

Skyscanner Sites

NA

Kayak Sites

NA

MakeMyTrip.com

23.4M
23.2M
17.5M
18.4M

Est. Desktop Visits (Jan '14)


Est. Desktop Visits (May '14)

"Sites" groupings do not represent all companies under one rank (as in, all Priceline Group components or all Expedia Group
components). Sites groupings represent one-brand-specific country-based sites (brand sites), taken together (hence all of
TripAdvisor's individual country-based sites appear under one ranking).
SOURCE: SimilarWeb/Skift: 2014

Key Influences on Travel Bookings

Visit a new place 76%


Flight fares 73%
Online traveler reviews 65%
In-destination activities 64%
Changes in personal circumstances 64%
Hotels/properties in-destination 63%
Weather 62%
Transportation in-destination 51%
Restaurants/shops in-destination 48%
Contact with previous visitors to destination 48%

SOURCE: SkiftStats: Apr 29 2014

Search-to-Booking Lag Times

Days, SearchBook
Chicago

4.4

Las Vegas

4.7

London

4.1

Los Angeles

3.7

New Orleans

4.5

New York

4.9

Orlando

4.4

San Francisco

4.5

Toronto

3.5

SOURCE: Adara/Skift Report #14: 2014: "Evolving Strategies in Travel Ad Tech Bookings"

U.S. Mobile and Desktop Travel Bookings (201115)

Desktop

$114B

$126B

$135B

$145B

$158B

2011

2012

2013

2014

2015

$23B

$40B

Mobile

$2B
2011

$7B
2012

$13B
2013

2014
2015

SOURCE: Business Intelligence/WYSE Travel Confederation: 2014

U.S. and Europe Mobile Bookings,


Market Penetration (201315)

Est. Mobile Bookings Market Penetration

U.S., 2015

Europe, 2015

25%

20%

Est. Average Annual Growth Rate,


Europe, 201315

+8%

SOURCE: WYSE Travel Confederation: 2014

Top 5 Online Booking Sites by


Mobile-App Reviews (Global, 2013)

iTunes

Google Play

Total App Ratings

TripAdvisor: 161,214 425,856

587,070

Booking.com: 154,028 136,825

290,853

Hotels.com: 156,206 70,013

126,219

Expedia: 11,157

34,190

45,317

Airbnb: 12,390

23,258

35,648

SOURCE: Skift: 2013

SECTION 6

TRAVEL MARKETING
AND TECHNOLOGY

Marketing Tech by Travel Categories

Avg. No. Marketing Technologies Deployed


Online Travel
Agencies
Airlines

18.2

Rental Cars

11.2

8.3

Average number deployed across all categories:

SOURCE: : Lima Consulting: 2014

Hotels

7.1

10.8

Ad Networks and 5 Major OTAs

Priceline

5%

Intent
14%

Expedia

Orbitz

5%3%

1%
5%

Intent
Media 86.08%
Google
Display 7.09%
Misc Ads 5.44%

Sendori 70.4%
Intent
Media 21.2%
Google
Display 5.44%

Media 66.33%
Criteo 14.91%
Google
Display 13.57%

6%
4%
Intent
Media 83.45%
Superfish 6.57%
Google
Display 4.34%

Travelocity

6%

Google
17%

Display 41.09%
Intent
Media 35.49%
Criteo 17.1%

CheapOair

SOURCE: Skift Report #14: 2014: "Evolving Strategies in Travel Ad Tech Bookings

Travel Digital-Advertising Spend (U.S. 201118)

2011

$2.4B

2012

$2.94B

2013

$3.42B

2014

$4.15B

2015

$4.77B

2016

$5.38B

2017

$5.89B

2018

$6.4B

SOURCE: Statista: 2014

SECTION 7

DESTINATIONS

Top 20 Global Destinations by Visitors (201314)


London

17.3M
18.69M

Barcelona

7.18M
7.37M

Bangkok

18.46M
16.42M

Amsterdam

6.74M
7.23M

Paris

15.29M
15.57M

Milan

6.85M
6.82M

Singapore

12.1M
12.47M

Rome

6.63M
6.79M

Dubai

11.12M
11.95M

Taipei

5.8M
6.29M

New York

11.08M
11.81M

Shanghai

5.66M
6.09M

9.87M
11.6M

Vienna

5.67M
6.05M

9.56M
10.81M

Riyadh

5.52M
5.59M

Hong Kong

8.26M
8.84M

Tokyo

5.05M
5.38M

Seoul

8.24M
8.63M

Lima

4.91M
5.11M

Istanbul
Kuala Lumpur

Measured by international overnight visitors.


SOURCE: Mastercard GDCI: 2014

2013
2014

Top 20 Global Destinations by Visitor Spend (201314)

London

$17B
$19.3B

Hong Kong

$7.6B
$8.3B

New York

$16.4B
$18.6B

Kuala Lumpur

$7.3B
$8.1B

Paris

$15.8B
$17B

Los Angeles

$7B
$7.8B

Singapore

$13.3B
$14.3B

Tokyo

$6.3B
$7.4B

Bangkok

$15.8B
$13B

Miami

$6.1B
$6.6B

Seoul

$10.8B
$11.5B

Madrid

$5.4B
$6.3B

Barcelona

$10.1B
$11.2B

Sydney

$6.2B
$6B

Dubai

$10B
$10.9B

Rome

$5.2B
$5.6B

Taipei

$9.6B
$10.8B

San Francisco

$5.1B
$5.6B

Munich

$5.2B
$5.6B

Istanbul

$8B
$9.4B

SOURCE: Mastercard GDCI: 2014

2013
2014

Top 8 Destination Countries by


Total Tourism Receipts (201213)
Change
United States
Spain
France
China
Macao
Italy
Thailand
Germany

$126.2B

+10.6%

$139.6B
$56.3B

+7.4%

$60.4B
$53.6B

+4.8%

$56.1B
$50B

+3.3%

$51.7B
$43.7B

+18.1%

$51.6B
$41.2B

+6.6%

$43.9B
$33.8B

+24.4%

$42.1B
$38.1B

+8.1%

$41.2B

2012

2013

SOURCE: World Tourism Organization: 2014

Global European Tourist Destinations (2012)


Europe
North America

Asia
Central and South America
1.9%

4.1%
4.5%

Africa
Oceania

0.4%

3.8%

0%

85.4%

Of Europeans picking a destination in Europe, 75.3% visit an EU country; 6.3% visit another European country;
3.7% visit an EFTA country.
SOURCE: Eurostat/SkitftStats : June 30 2014

Destinations for Tourists Originating


from Pacific & Asian Countries

33% of Indian tourists said


New Zealand was their first
pick for a destination.

33%

27%
29%
29% of Chinese tourists
polled indicated that
destinations in China
topped their list.

SOURCE: TripAdvisor/SkiftStats: April 27 2014

27%
27%

27% of Malaysian,
27% of Thai, and
27% of Indonesian
tourists ranked Japan
at top of their
destinations list.

Other Global Destinations

+22.6%

Egypt: Visitors
Feb 2013Feb 2014

Japan: Visitors
Mar 2013Mar 2014

-28%

Kenya: Visitors
20132014

-11.7%

SOURCE: ETN Global Travel Industry News: 2014 (1), (2)

5 Destinations for Millennials

Italy

Australia

United States

37%

35%

33%

33%

33%

United Kingdom

France

SOURCE: TripAdvisor/SkiftStats: Apr 27 2014

SECTION 8

TOURISM

Global Inbound Tourism by Purpose (2013)

Visit Friends/Relatives
(or Health/Religion/Other)

Leisure/Recreation/Holidays

52%

27%

Business/Professional

Not Specified

14%

7%

SOURCE: World Tourism Organization: 2014

U.S. Inbound Tourism by Purpose (2013)


The following statistics represent respondents who gave multiple purposes for a trip.

Change
Vacation/Holiday
Visit Friends/Relatives
Business
Convention/Conference/
Trade Show
Education

67%

-0.4%

67%
29%

-0.2%

29%
16%

-0.3%

15%
10%

-0.4%

10%
7%

0%

7%

The net results for trip purposes, as given by the same respondents, are expressed in the following statistics.

Leisure and VFR


Business and Convention

80%

-0.4%

79%
23%

-0.8%

22%

2012

2013

SOURCE: OTTI/SkiftStats: 2014

Top 20 Countries Fueling U.S. Tourism, by Visitors (201213)


Change

Canada

22,697,345
23,387,275

+3%

Mexico

14,198,645
14,342,722

Change

India

724,433
859,156

+19%

+1%

Italy

831,343
838,883

+1%

United Kingdom

3,763,381
3,835,308

+2%

Venezuela

674,754
788,069

+17%

Japan

3,698,073
3,730,287

+1%

Colombia

602,338
748,116

+24%

Brazil

1,791,103
2,060,291

+15%

Argentina

614,504
686,098

+12%

Germany

1,875,952
1,916,471

+2%

Spain

607,273
619,860

+2%

China

1,474,408
1,806,553

+23%

Netherlands

591,746
589,296

-0.4%

France

1,455,720
1,504,654

+3%

Sweden

442,013
476,571

+8%

South Korea

1,251,432
1,359,924

+9%

Switzerland

476,637
473,064

-1%

Australia

1,122,180
1,205,060

+7%

Taiwan

290,163
384,581

+33%

SOURCE: National Travel and Tourism Office: 2013

Millennials and Tourism

Millennials planning more


overnight leisure trips in
next 12 months

Millennials planning fewer


overnight leisure trips in
next 12 months

24%

14%

Millennials who prefer...


beach-oriented
trips

culture-oriented
trips

36%

35%

educationoriented trips

28%

group-oriented
trips

adventureoriented trips

26%

24%

SOURCES: MMGY Global/SkiftStats: Jun 25 2014; TripAdvisor/SkiftStats: Apr 25 2014

Tourism and Accessibility

Average annual tourism


spend of disabled/reduced
mobility American adults

$13.6B

No. of trips special-access


travelers took within EU, 2012

783M

No. of euros revenue


generated by those
travelers, 2012

394B

Annual euros not captured


by European tourism due
to accessibility obstacles

142B

SOURCES: UNWTO/SkiftStats: June 22 2014; Science Daily: 2014

SECTION 9

BUSINESS TRAVEL

Top 20 International Destinations for Business Travelers (2012)

Total Avg. Spend

London $514.69

23,387,275

Montreal $345.15

Shanghai $281.61

Bangalore $227.83

Singapore $414.48

Amsterdam $393.61

Being $278.70

Calgary $323.46

Tokyo $540.51

Vancouver $354.52

Toronto $391.52

Shenzhen $237.76

Hong Kong $428.63

Sydney $522.12

Paris $463.76

Dubai $456.90

Mexico City $288.22

Bangkok $284.20

So Paulo $371.34

Mumbai $238.37

Ranked by number of overnight hotel stays ; spend given as total average in USD.
SOURCE: Concur Expense IQ Report 2013

Top 10 International Business-Spend Categories (201112)


Avg. Trans.

Lodging

24.03%
23.44%

Airfare

23.18%
22.22%

Airfare

Dining

10.97%
10.33%

Dining

Ground Transportation
Entertainment

7.13%
7.08%

$140.60
$135.77

Lodging

$587.69
$583.02
$43.65
$40.29
$31.04
$29.29

Ground Transportation

5.12%
5.20%

$120.67
$114.42

Entertainment

Meetings

1.13%
2.07%

Meetings

Telecom

2.20%
2.04%

Telecom

$73.03
$69.75

Gas

1.95%
1.82%

Gas

$72.60
$69.18

Car Rental

1.83%
1.71%

Car Rental

Rail

1.47%
1.55%

Rail
2011

$280.99
$280.60

$228.81
$215.20

2012

SOURCE: Concur Expense IQ Report 2013

$62.34
$64.98

U.S. Inbound Business Travel Trends (2013)

Estimated no. of business


travelers to U.S.

Percent change from 2012

4.9M

+6%

SOURCE: Office of Travel and Tourism Industries: 2014

Top 10 U.S. Destinations for Business Travelers, by Spend (2013)

New York City

$470.16

Las Vegas

$336.88

Chicago

$347.33

San Francisco

$405.42

Houston

$259.46

Orlando

$289.03

Atlanta

$277.63

San Diego

$304.14

Charlotte

$248.22

Dallas

$276.74

Ranked by number of overnight hotel stays ; spend given as total average USD.
SOURCE: Concur Expense IQ Report 2013

Top 10 U.S. Business-Spend Categories (2013)


Avg. Trans.

Airfare

26.38%
25.03%

Airfare

Lodging

19.07%
19.48%

Lodging

Dining

10.05%
9.22%

Dining

Entertainment

5.78%
5.75%

Entertainment

Ground Transportation

4.15%
4.16%

Ground Transportation

Car Rental

3.82%
3.63%

Car Rental

$418.66
$423.61
$89.33
$93.88
$38.52
$37.17
$100.84
$100.73
$35.92
$36.37
$178.94
$174.69

Telecom

1.95%
1.97%

Telecom

Oce

1.99%
1.84%

Oce

Training

1.64%
1.6%

Training

$371.47
$385.22

Meetings

1.61%
1.45%

Meetings

$394.12
$356.21

2011

2012

SOURCE: Concur Expense IQ Report 2013

$75.94
$78.31
$103.17
$105.37

Like What You See?


Skifts new content studio SkiftX helps brands
such as Amadeus, American Express, Egencia,
Hilton, Peak Adventure Travel and others create
thought leadership in the global travel industry,
through trends reports, research, branded
content, social media audits and other content
marketing initiatives, and helps distribute through
its industry marketing platform.
Contact us for more details:
Rafat Ali,
Founder & CEO, Skift
ra@skift.com
212-564-5830

Skift Inc, 115, W 30th Street, #1213, New York NY 10001

SECTION 10

TRAVEL AND
THE SHARING ECONOMY

The Sharing Business Traveler

Auent business travelers who plan


to use peer-to-peer sharing
alternatives in next year

48%

SOURCE: Skift: 2014

Lens on Airbnb (NYC, 201213)

Average Airbnb Stay: Nights: 6.4 Average Rate: $145 Citywide Domestic Spend: $880

!
Average Domestic Hotel Stay: Nights: 3.9 Average Rate: $256 Citywide Domestic Spend: $690

Revenue Generated, 2012-2013


New York City

Paris

$632M
$240M

SOURCE: Skift: 2013

Lens on Europe: Sharing Economy (2013)

% Travelers Sharing
Accommodation (Europe)

20%

$15.4B
$3.5B
Estimated Value of Share
Economy (Europe, 2013)

Estimated Value of Private Travel


Accommodation (Europe, 2017):

SOURCE: Skift Report #7: 2013: "What the Sharing Economy Means to the Future of Travel"

Top Countries Open to Sharing Economy (2014)

China

94%

Indonesia

87%

Slovenia

86%

Philippines

85%

Thailand

84%

Mexico

79%

Bulgaria

79%

Hong Kong

78%

India

78%

Brazil

78%

Percentages represent respondents' willingness to participate in a sharing community.


SOURCE: Skift: 2014

The Sharing Economy Across Generations (2014)

Global Average
Generation Z
(<20)

7%

Millennials
(2134)

Generation X
(3549)

35%

17%

Baby Boomer
(5064)

Mature (65+)

7%

1%

Percentages represent individuals who said they are likely to participate in a sharing community.
SOURCE: Skift: 2014

SECTION 11

THE CHINESE TRAVELER

The Chinese Traveler


No. of Chinese Outbound Travelers:
2012: 83M 2013: 97M Change: +16.8%

Q1 2013: 22.5M Q1 2014: 26.49 Change: +17%

45%

53%

61%

74%

47%

54%

36%

43%

45%

53%

61%

74%

47%

54%

36%

43%

Global

APAC

North
America

Europe

Hoteliers citing increased number of


Chinese guests

2013

2014

SOURCE: Hotels.com: Chinese International Travel Monitor 2014

27%

30%

Latin
America

Chinese Outbound Tourism Spend (201314)

Overseas Tourists: 2012: $102B 2013: $129B Change: +26.4%

12%

18%

16%

8%

6%

Global

APAC

North
America

Europe

Latin
America

Hoteliers attributing 610% of


business to Chinese guests

SOURCE: Hotels.com: Chinese International Travel Monitor 2014

China Expands Travel Horizons: Infrastructure (201315)


Airports

2015

2010

175

230

Percent Change: +31.4%


No. of new Boeing-made aircraft delivered to China in 2013:
No. of Boeing long-range 787 Dreamliners delivered to China in 2013:
No. of Airbus SAS aircraft delivered to China in 2013:
% of Airbus SAS global deliveries that went to China in 2013:

SOURCE: Hotels.com: Chinese International Travel Monitor 2014

143
14
133
20%

China: Travel and Mobile Search/Reservations (201213)

Mobile Search Users (China): 2012: 291.38M 2013: 365.03M Change: +25%
Mobile Payments (China):

2012: 55.31M

2013: 125.48M Change: +126%

Mobile Travel
Reservations (China):

2012: 5.9%

2013: 9.1%

Mobile Travel Search incl. bookings (China, 2013):


Desktop: 50.4%
Mobile: 41.0%

SOURCE: Incitez China: 2014 China Internet Insights Report

Change: +54%

Mobile Usage and the Chinese Traveler (2013)

Contact Family/
Friends

Check Itinerary

Navigation

60.6
%

59.8
%

93%

Share During
Travel

45.3
%

Share After Travel

36.6
%

SOURCE: Incitez China: 2014 China Internet Insights Report

The Passport Percentage


Per Capita Disposable Income
2013
2012

$2,993

$2,700
Percent Change:

+10.9%

Population of China: >1.36B

Population w/ Passport:

5%

The figures surrounding the growth of the Chinese outbound market are highly notable; the potential for future growth
(especially regarding the number of Chinese who could possess a passport but don't yet have one) is more notable still.
SOURCE: Hotels.com: Chinese International Travel Monitor 2014

SECTION 12

THE MOBILE TRAVELER

U.S. Mobile-App Usage and Travel (2014)

Total Internet Time

Mobile Apps

46.6%

Desktop

45.1%

Mobile Browser

8.3%

SOURCE: Marketing Charts: 2014

The Mobile Travel Audience

18-24

25-34

35-44

10%

45-54

55-64

65+

5%

9%
27%

12%

Audience
by Age

12%

Audience
by Income

35%

18%

19%
21%
19%

14%
<$25K
$25K<$75K

$25K-<$40K
$25K<$100K

The mobile travel audience is 60% male overall and 62% male among smartphone users.

SOURCE: Millennial Media/comScore Report: 2014

$25K<$60K
>$100K

Mobile Travel Research by Device (2013)

Hotel
Flight
Rental Car
Train
Bus
Cruise
Package Deal

83%
74%
69%
65%
47%
40%
21%
19%
18%
16%
19%
17%
22%
19%

Smartphone

SOURCE: Millennial Media/comScore Report: 2014

Tablet

Travel Purchases by Device (2013)

Hotel
Flight
Rental Car
Train
Bus
Cruise
Package Deal

67%
64%
49%
49%
36%
31%
11%
14%
12%
14%
12%
14%
13%
16%

Smartphone

SOURCE: Millennial Media/comScore Report: 2014

Tablet

Top Travel Mobile Experiences, by Customer Satisfaction (2013)

Southwest Airlines

82%

Hertz 77%

Choice Hotels Intl.

80%

Hilton Worldwide 77%

Marriott Intl.

79%

Starwood 77%
Hotels & Resorts

Avis Rent-a-Car

78%

Best Western Intl. 76%

Enterprise Rent-a-Car

78%

Expedia.com 76%

Hyatt Corp.

78%

Priceline.com 76%

InterContinental
Hotels & Resorts
Wyndham Hotels & Resorts

78%

Amtrak 76%

78%

United Airlines 75%

Kayak.com

78%

Dollar 75%

Travelocity.com

78%

Hotels.com 75%

American Airlines

77%

Orbitz.com 75%

Delta Airlines

77%

US Airways 74%

Budget

77%

Scored on 100-point scale.


Industry average: 77.
SOURCE: ForeSee/Skift: 2013

Travel-Related Businesses and Mobile Buy-In

Mobile-Friendly
Website

Special Oers to
Mobile Users

Branded App for


Smartphones

10%

6%

38%

Branded App for


Tablets

None of Above

5%

20%

SOURCE: TripAdvisor/SkiftStats: Apr 26 2014

SECTION 13

THE SILENT TRAVELER

Who is the Silent Traveler?

The silent traveler is the travel consumer who turns to their


mobile devices first, seeking solutions to in-trip challenges that
have traditionally been the domain of customer-service sta.

!
Research suggests that these travelers are not simply using
their mobile devices to keep tabs on work, or read e-mail, or
download a film to watch for the evening. Rather, they are
looking for flight information and the ability to check in and out
without waiting in a line at either the airport or their hotel. They
are looking for restaurant reservations. They are looking to
discover what to do at the places they visit.

Silent Travelers Solving Problems

% of individuals (by age) who prefer search/


social media to resolve a travel problem
18-24

25-34

35-44

30.4
%

39.6
%

29.2
%

45-54

55-64

65+

15.3
%

19.7
%

15.8
%

SOURCE: Skift Report #20: "The Rise of the Silent Traveler"

Silent Travelers: Gender and Points of Origin


% of individuals (by age) who prefer search/
social media to resolve a travel problem

% of men,
urban

% of men,
suburban

% of men,
rural

35.6%

% of women,
urban

40%
50.9%

% of women,
suburban

25%
12.5%

% of women,
rural

37.5%
25-34

35-44

SOURCE: Skift Report #20: "The Rise of the Silent Traveler"

44.1%
31.8%
25.6%
22.7%
42.9%
16.7%

Changing Ideas, Changing Behaviors

Check-in desk

3.97

Concierge

2.93

Room service

2.61

Bellman
Housekeeping

2.5

% of respondents who
strongly agreed that the
check-in desk is an
important in-person
experience during their stay

81%

% of respondents
who said they'd
instead use selfservice check-in, if
it saved them time

59%

2.48

Egencia posed the following question to more than 200 hotel consumers: how did they value certain in-person assistance
at a hotels? Answers were based on a score of 15.

SOURCE: Skift Report #20: "The Rise of the Silent Traveler"

SECTION 14

HORIZONS

Top Emerging Global Destinations (2013)

1. Havana, Cuba
2. La Fortuna de San Carlos, Costa Rica
3. Kathmandu, Nepal
4. Jerusalem, Israel
5. Cusco, Peru
6. Ambergris Caye, Belize
7. Sapporo, Japan
8. Hanoi, Vietnam
9. Corralejo, Spain
10. Fortaleza, Brazil

Criteria: destinations have seen the greatest increase in positive traveler feedback and traveler interest,
based on millions and millions of searches and reviews.
SOURCE: TripAdvisor/Skift: 2013

Top Emerging U.S. Destinations (2013)

1. Kailua-Kona, Hawaii
2. Anchorage, Alaska
3. Destin, Florida
4. Bar Harbor, Maine
5. Santa Fe, New Mexico
6. Jackson, Wyoming
7. Galveston, Texas
8. Brooklyn, New York
9. Moab, Utah
10. Gettysburg, Pennsylvania

Criteria: destinations have seen the greatest increase in positive traveler feedback and traveler interest,
based on millions and millions of searches and reviews.
SOURCE: TripAdvisor/Skift: 2013

Top 10 Fastest-Growing European Destinations (2013)


Percent Change from 2012
Iceland

+20.7%

Latvia

+14.3%

Serbia

+12.8%

Greece

+12.3%

Slovakia

+10.1%

Malta

+9.8%

Lithuania

+7.1%

Ireland Rep.

+7.1%

Croatia

+6.3%

Hungary

+5.5%

SOURCE: European Travel Commission: 2014

U.S. Mobile Travel Sales (201218)


All Travel Purchases,
Smartphone/Tablet Combined

2012
2013

Percent change

NA

$8B
$16.36B

+104.5%

$26.14B

2014

+59.8%

2015

$36.77B

+40.7%

2016

$46.65B

2017

$55.47B

+18.9%

2018

$64.69B

+16.6%

+26.9%

SOURCE: eMarketer: 2014

Toward 2030: Tourism in the Long View

International tourist arrivals worldwide are expected to


increase by +3.3% per year, from 2010 to 2030, to reach 1.8B by
2030, according to UNWTOs long-term forecast, Tourism
Towards 2030.

!
Between 2010 and 2030, arrivals in emerging destinations
(+4.4% per year) are expected to increase at twice the rate of
those in advanced economies (+2.2% per year).

!
The market share of emerging economies increased from 30%
in 1980 to 47% in 2013, and is expected to reach 57% by 2030,
equivalent to over 1B international-tourist arrivals.

SOURCE: World Tourism Organization: 2014

Like What You See?


Skifts new content studio SkiftX helps brands
such as Amadeus, American Express, Egencia,
Hilton, Peak Adventure Travel and others create
thought leadership in the global travel industry,
through trends reports, research, branded
content, social media audits and other content
marketing initiatives, and helps distribute through
its industry marketing platform.
Contact us for more details:
Rafat Ali,
Founder & CEO, Skift
ra@skift.com
212-564-5830

Skift Inc, 115, W 30th Street, #1213, New York NY 10001

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