From increased mobile booking to local search, digital will continue to revolutionize the travel industry in 2015. Topics in this webinar include: What digital channels, platforms and tools will see the most rapid adoption by travelers in 2015? How will travel marketers adapt their marketing and business strategies to emerging opportunities? How is digital opening up new geographic markets for travel brands? What digital ad formats will see increased investment in 2015?

1. © 2014 eMarketer Inc.
Made possible by
Travel Trends for 2015—How Digital
Will Drive New Opportunities for
Revenue and Distribution
Jeremy Kressmann
Analyst
December 2014

2. © 2014 eMarketer Inc.
Agenda
 Seven trends for 2015
1. Mobile, mobile and more mobile
2. Travel gets more local
3. Everybody wants to sell extras
4. Strong headwinds for online travel agencies
5. Marketers experiment with new ad formats
6. Travel industry looks east
7. Rise of the do-it-yourself traveler
 Key takeaways

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1. Mobile, Mobile and
More Mobile

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Travel is
undergoing a
key shift:
Desktop sales
will begin to
shrink in
2014, while
mobile sales
continue to
grow

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These days,
travelers aren’t
just looking on
mobile, they’re
also booking

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Use cases for smartphones and tablets are
diverging, particularly for travel
“ At least in the travel industry what we’ve
seen is that the use cases for
smartphones and tablets can be
quite different … But to me the
tablet experience, the tablet use
case, is just a different animal
than the phone.”
—Blake Clark, director of mobile at Travelocity

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Hotels lead the way for mobile commerce
“ When you think about the product
categories that are a great fit for
mobile, hotels are the leading
category. They really benefit
from proximity and mapping
capabilities; there are a lot of
choices you make in-market and
there are lots of potential
deals.”
—Chris Brown, group vice president for
mobile at Orbitz

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New business models cater to last-minute
travelers

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Travel industry
mobile ad
spend is likely
to grow
alongside
rising attention
and purchases

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2. Travel Gets More Local

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As travelers get more mobile, so does the
importance of “on the go” local business search

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Mobile ad spend on local is growing in parallel
with the rise in local searches

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Industry deals point to a land grab for control of
local travel planning and purchases

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“ Travelers want to explore local
attractions while on their trip, and
Viator’s depth and breadth in global
attractions combined with their
seamless booking experience will
provide immediate benefit to our
community, whether in the planning
phase or on the trip.”
—Stephen Kaufer, CEO of TripAdvisor
Local attractions content helps travel marketers
increase ad revenue and ecommerce spend

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3. Everybody Wants
to Sell Extras

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Travelers are
increasingly
willing to pay
for extra
services that
were once free
with a ticket
purchase

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Airlines are returning to profitability thanks to
the growth in sales of these “ancillary” services

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Mobile is
still largely
unexplored as
a channel for
purchasing
ancillary
services

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However, travel brands need to use a soft touch
in deciding how and where extras are sold

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4. Strong Headwinds for
Online Travel Agencies

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In the OTA
space, it’s
Priceline,
Expedia …
and everybody
else

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But competition for clicks is fierce
 Some travel ad
spend is even
shifting back to
TV as a result of
online ad
competition

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New
challengers
like TripAdvisor
are competing
for a share of
digital travel
sales

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Google, which profits handsomely from travel ad
spend, may also start competing more directly

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5. Travel Marketers
Experiment with New
Ad Formats

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Travel ad
spend often
emphasizes
paid search,
but new
formats are
shaking
things up

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Digital video, which is under-represented in the
travel category, is poised for growth
“ I would say video
is our largest growth
percentage in terms
of formats.”
—Susan Schiekofer,
president of digital at MEC
North America

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Even digital
display is
seeing new life,
thanks to the
efficiencies
made possible
by
programmatic
buying

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6. Travel Industry
Looks East

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China is
already the
world’s
second-largest
market for
digital travel
sales …

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… and
Chinese
consumers’
appetite for
travel
spending is
still growing

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Most of the
growth in
China’s online
travel market
is happening
on mobile

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International tourism by Chinese travelers is
also on the rise
 Outbound Chinese tourists spent an average of $3,252
per person during trips
 57% of their spending was for shopping (!)
 Seoul, London, Paris, Berlin and Zurich are their top
destinations as ranked by total spend
Source: China Internet Watch, Sep 2014

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Major deals, like Priceline Group’s $500 million
investment in Ctrip, reinforce China’s potential
“ Our primary way of growing as a
company has and will be organic
growth, and the commercial side of
this deal is critical to helping us keep
up the fast pace of organic growth.”
—Darren Huston, CEO of Priceline Group

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7. Rise of the “DIY”
Traveler

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Many travel
brands are
turning to
digital and
mobile
channels to
automate
offline
services

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Hotels are
pioneering a
range of
mobile-enabled
guest services

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As the user base of social platforms like Twitter
grow, they become a service channel for brands

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Many airlines now even list their estimated wait
times in their Twitter profile

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Travel companies like Airbnb and Uber, with
digital-only products, are helping drive the trend

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Key takeaways
 Mobile usage is growing rapidly, transforming everything
from digital travel sales to ad spending and how travel
marketers serve customers.
 Ancillaries, China and local have huge potential: Travel
brands are rushing to build partnerships and services
that help drive new sources of growth.
 Priceline and Expedia still dominate, but existing
competitors and new players could cause a shake-up.
 Digital video is ready for a breakout: Consumer
engagement and creative opportunities suggest
potential.

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Learn more…
Stay tuned for Quantcast’s Real-
Time Advertising Best Practices
for Travel Advertisers Guide

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Jeremy Kressmann
Travel Trends for 2015—How Digital
Will Drive New Opportunities for
Revenue and Distribution
 Travel Purchases On the Go: Mobile Hotel Booking Surges,
but Other Transactions Lag
 The US Travel Industry 2014: Digital Ad Spending Forecast
and Trends
 Airbnb and Business Travelers: Gauging the Impact on the
Hotel Market
 Digital Initiatives for Airlines: Mobile Devices and In-flight
Media Offer Revenue Opportunities