November 9, 2011

A PhoCusWright Webinar

Traveler Technology Trends

Sponsored by:

Moderator: Cathy Schetzina Senior Research Analyst

Presenter: Carroll Rheem Director, Research

Traveler Technology Trends Sponsored by Kony Solutions November 9, 2011 To view the recorded presentation, please click here.
Note: If you download the Webinar, you will need a Webex player. If you do not have one installed, please download the player here.
All PhoCusWright Inc. publications are protected by copyright. It is illegal under U.S. federal law (17USC101 et seq.) to copy, fax or electronically distribute copyrighted material without explicit permission. Limited information in a report may be used in a presentation or similar, providing that PhoCusWright and the title of the report are referenced as the data source. You may not copy, reproduce, modify, republish, upload, post, transmit, or distribute, electronically or otherwise, any PhoCusWright research report in any form or by any means without prior written permission from PhoCusWright Inc. Any unauthorized use of the materials may violate copyright, trademark, and other applicable laws and could result in criminal or civil penalties. PhoCusWright

 2011 PhoCusWright Inc. All Rights Reserved.

Traveler Technology Trends

Attitudes Mobile Social

 2011 PhoCusWright Inc. All Rights Reserved.

 2011 PhoCusWright Inc. All Rights Reserved.

 2011 PhoCusWright Inc. All Rights Reserved.

Statement: I Tend To Be an Early User of New Technologies

11%

17%

Strongly Agree - "Cutting Edge" Slightly Agree - "Early Adopters"

19%

Neutral/Unsure - "Mainstream" Slightly Disagree - "Late Adopters"

30%
Strongly Disagree - "Resisters"

23%

Question: Please indicate how much you agree or disagree with the following statements. Base: U.S. online travelers (N=1,948) Source: Traveler Technology Survey 2011 2011 PhoCusWright Inc. All Rights Reserved. 8

Statement: I Tend To Be an Early User of New Technologies, by Age

59%

59%
53% 41% 34% 41% 35% 29% 24% 22% 49%

23% 18%

22%20%

24%23%

25%

18-24

25-34

35-44

45-54

55-64

65+

Resister/Late Adopter

Mainstream

Early Adopter/ Cutting Edge

Question: Please indicate how much you agree or disagree with the following statements. Base: U.S. online travelers (N=1,948) Source: Traveler Technology Survey 2011 2011 PhoCusWright Inc. All Rights Reserved. 9

Travel Behavior, by Technology Adoption

U.S. Online Travelers

Technology Adoption Late Adopters/ Resisters Percentage of Total Online Travelers Web-Enabled Devices Owned (Average) Percentage with Smartphones Annual Leisure Trip Frequency (Average) Annual Leisure Spend (Average)

30%

2.1
2.4 3.2

27%
43% 71%

2.9
2.7 3.3

$2,844

Mainstream Users
Cutting Edge/ Early Adopters

23%
47%

$2,328
$3,712

Question: Please indicate how much you agree or disagree with the following statements, I tend to be an early user of new technologies. Select one for each statement. Which of the following Web-enabled devices do you own/use? Please select all that apply. Which of the following, if any, have you done online (via computer or mobile device) for your leisure travel in the past twelve months? Please select all that apply. In the past 12 months, how many overnight trips of each type did you take that required the purchase of travel products (such as airline tickets and hotel rooms) ?Count each of your trips only once. What was the total amount your household spent on travel components (including airline tickets, paid accommodations, car rental, cruise tickets, railway tickets) for travel over 75 miles of your N leisure trips in the past year. Enter whole number without $ sign. What is your approximate household income? Select One. Base: U.S. online travelers (N=1,948) Note: Totals may not add to 100% due to rounding Source: PhoCusWright's Traveler Technology Survey 2011 2011 PhoCusWright Inc. All Rights Reserved. 10

General Statements

Privacy Versus Convenience

2011 PhoCusWright Inc. All Rights Reserved.

11

Statement: I Do Not Mind Companies Collecting General Information About Me to Provide Better Service (by Age)
58% 49% 41% 31% 26% 17% 20% 32% 27% 39% 32% 29% 35% 33%32% 35% 37%

28%

18-24

25-34

35-44

45-54

55-64

65+

Strongly/Slightly Disagree

Neutral/Unsure

Strongly/Slightly Agree

Question: Please indicate how much you agree or disagree with the following statements. Base: U.S. online travelers (N=1,948) Source: Traveler Technology Survey 2011 2011 PhoCusWright Inc. All Rights Reserved. 12

PhoCusWrights Creepy Line 2011 (Actual)

2011 PhoCusWright Inc. All Rights Reserved.

13

PhoCusWrights Creepy Line 2012 (Forecast)

2011 PhoCusWright Inc. All Rights Reserved.

14

General Statements

Going Off the Grid

2011 PhoCusWright Inc. All Rights Reserved. 15

Statement: I Like to Go Off the Grid (Detach from Computers/Mobile Phones) Whenever I Can, by Age
47% 38% 34% 24% 19% 41% 39% 35% 26%

38%

37%

37%

37%

38% 33% 29%

26%

22%

18-24

25-34

35-44

45-54

55-64

65+

Strongly/Slightly Disagree

Neutral/Unsure

Strongly/Slightly Agree

Question: Please indicate how much you agree or disagree with the following statements. Base: U.S. online travelers (N=1,948) Source: Traveler Technology Survey 2011 2011 PhoCusWright Inc. All Rights Reserved. 16

Normal? Or Nuts?

2011 PhoCusWright Inc. All Rights Reserved.

17

Statement: I Like to Detach from Computers/Mobile Phones Whenever I Can

48% 42% 36% 29% 29% 29% 35% 33%

19%

Resister/Late Adopter

Mainstream

Early Adopter/ Cutting Edge

Strongly/Slightly Disagree

Neutral/Unsure

Strongly/Slightly Agree

Question: Please indicate how much you agree or disagree with the following statements. Base: U.S. online travelers (N=1,948) Source: Traveler Technology Survey 2011 2011 PhoCusWright Inc. All Rights Reserved. 18

Leisure Travel Planning Statements

82%

I can find everything I need to plan and book my vacations on the Internet
6%

12%

22%

I have developed a travel planning routine from which I do not deviate

25% 53%

Strongly/Slightly Agree

Neutral/Unsure

Strongly/Slightly Disagree

Question: Please indicate how much you agree or disagree with the following leisure travel-related statements. Base: U.S. online travelers (N=1,948) Source: Traveler Technology Survey 2011 2011 PhoCusWright Inc. All Rights Reserved. 19

Traveler Technology Trends

Attitudes Mobile Social

More Devices, More Platforms, More Interfaces

2011 PhoCusWright Inc. All Rights Reserved.

21

Polling Question
Which of the following web-enabled devices grew the most in ownership in 2011?

a. Video game consoles b. Tablets c. e-Readers d. Portable music/video players

2011 PhoCusWright Inc. All Rights Reserved.

22

Ownership of Web-Enabled Devices

25%

21%
20%

17%
15%

18% 16%

13%

12%

10%

6%
5%

4%

0%

Web-enabled video game console

Web-enabled portable music/video players 2010 2011

E-readers

Tablets

Question: Which of the following Web-enabled devices do you own/use? Select all that apply. Base: U.S. online travelers (2010 N= 792)(2011 N=1,948) Source: PhoCusWright's Traveler Technology Survey 2010, PhoCusWrights Traveler Technology Survey 2011 2011 PhoCusWright Inc. All Rights Reserved. 23

What about me? :-(

2011 PhoCusWright Inc. All Rights Reserved.

24

Ownership of Web-Enabled Devices

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

79%
72% 71%

77%

Desktop computer 2010 2011

Laptop computer

Question: Which of the following Web-enabled devices do you own/use? Select all that apply. Base: U.S. online travelers (2010 N= 792)(2011 N=1,948) Source: PhoCusWright's Traveler Technology Survey 2010, PhoCusWrights Traveler Technology Survey 2011 2011 PhoCusWright Inc. All Rights Reserved. 25

Smartphones are Officially Mainstream

2011 PhoCusWright Inc. All Rights Reserved.

26

Smartphone Ownership, by Age

35% 63%

Feature Phone Only SmartPhone

65% 37%

18-44

45+

Question: Please indicate what type(s) of mobile phone(s) you currently have. Select one phone type from the drop down list next to each appropriate phone option. How old are you? Base: U.S. online travelers who use a mobile phone (2010, N=715) (2011, N=1,885) Source: PhoCusWrights Traveler Technology Survey 2011 2011 PhoCusWright Inc. All Rights Reserved. 27

Apple Takes a Bite out of BlackBerry

2011 PhoCusWright Inc. All Rights Reserved.

28

Ownership of Smartphones, by Manufacturer

18% 16%

2010

2011

12%
10% 7% 9% 9%

5%

5% 5%

4%

5%
3% 1% 3% 1% Palm

Apple

Blackberry

Samsung

HTC

LG

Motorola

Nokia

Question: Please indicate what type(s) of mobile phone(s) you currently have. Select one phone type from the drop down list next to each appropriate phone option. Base: U.S. online travelers who use a mobile phone (2010, N=715) (2011, N=1,885) Source: PhoCusWright's Traveler Technology Survey 2010, PhoCusWrights Traveler Technology Survey 2011 2011 PhoCusWright Inc. All Rights Reserved. 29

Put Yourself in The Travelers Shoes

2011 PhoCusWright Inc. All Rights Reserved.

30

Activities Conducted Via Mobile Phone

6%

10%
12% 79% 9%

62%
43% 42%

View maps/get directions Research local activities such Research travel products as restaurants and shows such as hotel rooms or flights Have done in past 12 months

Reference existing travel reservation information

Likely to do in the next 12 months and have not in the past

Question: Please indicate which of the following travel-related activities you have done online using your mobile phone in the past 12 months, and through which medium. Select all that apply for each row. Which, if any, of the following online travel-related activities (which you have not done in the past 12 months) are you likely to do in the next 12 months using your phone? Base: U.S. online travelers who access mobile Internet using a mobile phone (N= 1,125) Source: PhoCusWright's Traveler Technology Survey 2011 2011 PhoCusWright Inc. All Rights Reserved. 31

Practicality Is the Priority

2011 PhoCusWright Inc. All Rights Reserved.

32

Traveler Technology Trends

Attitudes Mobile Social

Polling Question
What percentage of travelers participate in at least one online social network?

a. 70% b. 79% c. 84% d. 91%

2011 PhoCusWright Inc. All Rights Reserved.

34

Participation in Online Social Networks

70%

Participate in at least one online social network

79%

Do not participate in any online social networks

21%

30%

2010

2011

Question: In which of the following online social networks, if any, have you actively participated in the past 12 months? Base: U.S. online travelers (2010 N= 792)(2011 N=1,948) Source: PhoCusWright's Traveler Technology Survey 2010, PhoCusWrights Traveler Technology Survey 2011 2011 PhoCusWright Inc. All Rights Reserved. 35

Even Grandma Is on Facebook

2011 PhoCusWright Inc. All Rights Reserved.

36

Facebook Participation, by Age

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

90% 93% 77%

82%
67%

80%
68% 70% 67% 66% 49% 54%

75%

47%

18-24

25-34

35-44

45-54 2010 2011

55-64

65+

Average

Question: In which of the following online social networks, if any, have you actively participated in the past 12 months? How old are you? Base: U.S. online travelers (2010 N= 792)(2011 N=1,948) Source: PhoCusWright's Traveler Technology Survey 2010, PhoCusWrights Traveler Technology Survey 2011 2011 PhoCusWright Inc. All Rights Reserved. 37

Travel Brands Should Aim to be More Likable

2011 PhoCusWright Inc. All Rights Reserved.

38

Social Media Activities, General and Traveler Related

84%
29% 83% 43% 78% 33% Have done in relation to travel

"Like" or "follow" a company on a social network

Post comments/photos on a social network at home or work

Solicit tips/advice from "friends" on a social network Have done generally

Question: In the last 12 months, which of the following activities have you done on an online social network generally and/or specifically related to travel? Please select all that apply for both columns. Base: U.S. online travelers who are active users of online social networks (N=1,454) Source: PhoCusWright's Traveler Technology Survey 2011 2011 PhoCusWright Inc. All Rights Reserved. 39

Questions?

Moderator: Cathy Schetzina Senior Research Analyst

Presenter: Carroll Rheem Director, Research

Related Releases:

Go to
www.phocuswright.com/products

for more information!

Thank You!
Todays Webinar deck and recording will be emailed in a few days to all registered attendees Interested in becoming a subscriber? Send an email to sales@phocuswright.com Please fill out the short survey thank you!

Sponsored by:

Age and Gender

65+ (16%) 55-64 (17%)

18-24 (14%)
Female 50% Male 50%

25-34 (17%)

45-54 (18%)

35-44 (17%)

Question: How old are you? Are you male or female? Base: U.S. online travelers (N=1,948) Note: Totals may not add to 100% due to rounding. Source: PhoCusWright's Traveler Technology Survey 2011 2011 PhoCusWright Inc. All Rights Reserved. 43

Household Size and Number of Children in Household

Household Size
None

Children in Household
53%

1 person (myself)

17%

1 2 people 39% 2

21%

18%

3-4 people

35%

5%

4 5-6 people 8% 5 7 or more people 1%

2%

0%

More than 5

0%

Question: How large is your household? Select one. How many children live in your household? Base: U.S. online travelers (N=1,948) Note: Totals may not add to 100% due to rounding. Source: PhoCusWright's Traveler Technology Survey 2011 2011 PhoCusWright Inc. All Rights Reserved. 44

Household Income and Education Level

Household Income
Under $50,000 33%

Education Level
Less than high school 0%

$50,000 - $74,999

25%

High school graduate Some college or Associate's degree Bachelor's degree

13%

$75,000 - $99,999

20%

35%

$100,000 - $149,999

10%

33%

$150,000 - $199,999

4%

Master's degree Doctorate or professional postgraduate degree

14%

Over $200,000

2%

4%

Question: What is your approximate household income? What is the highest level of education you completed? Base: U.S. online travelers (N=1,948) Note: Totals may not add to 100% due to rounding. Source: PhoCusWright's Traveler Technology Survey 2011 2011 PhoCusWright Inc. All Rights Reserved. 45