The Traveler’s Appetite for Ancillary Products

Moderator:
Douglas Quinby
Principal Analyst
PhoCusWright Inc.
The Traveler’s Appetite for Ancillary Products
May 8, 2013 A PhoCusWright Webinar
Presenter:
Carroll Rheem
Principal Analyst
PhoCusWright Inc.
Sponsored by:
Presenter:
Blair Lyon
VP, Marketing
Monetate

2© 2013 PhoCusWright Inc. All Rights Reserved.
The Traveler’s Appetite for Ancillary Products
May 8, 2013
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PhoCusWright’s Consumer Travel Report: Fifth Edition
Custom Questions

© 2013 PhoCusWright Inc. All Rights Reserved. 4
Polling Question
What percentage of travelers are never interested in
purchasing ancillary products or upgrades?
a. 10%
b. 20%
c. 30%
d. 40%
e. 50%

Purchasing Interest in Additional Services or Upgrades
from Travel Companies
Question: How often are you generally interested in purchasing additional services or upgrades from the following types of travel companies? Please select
one option for each row.
Base: Travelers who purchased an airline ticket (N=1,665) Travelers who purchased paid lodging (N=2,203), Travelers who purchased a rental car (N=1,581)
Note: Totals may not add to 100% due to rounding.
Source: PhoCusWright’s Consumer Travel Report Fifth Edition
19%
13%
16%
33%
28%
25%
29%
35%
34%
11%
15%
15%
8%
9%
11%
Airlines
Hotels
Car rental
providers
Never interested Rarely interested Sometimes interested Often interested Always interested

from Travel Companies, by Age
Question: How often are you generally interested in purchasing additional services or upgrades from the following types of travel companies? Please select
11%
18%
21%
18%
28%
28%
38%
32%
30%
30%
33%
34%
33%
27%
28%
28%
24%
27%
10%
14%
12%
12%
8%
8%
8%
9%
9%
9%
7%
3%
18-24
25-34
35-44
45-54
55-64
65+
Never interested Rarely interested Sometimes interested Often interested Always interested
11%
11%
11%
12%
17%
22%
23%
29%
24%
27%
33%
36%
37%
34%
39%
37%
34%
30%
18%
18%
17%
16%
10%
8%
11%
9%
10%
8%
7%
5%
18-24
25-34
35-44
45-54
55-64
65+
11%
13%
14%
20%
19%
23%
25%
30%
22%
18%
25%
32%
32%
31%
40%
37%
31%
21%
16%
16%
14%
16%
16%
11%
16%
11%
9%
10%
9%
14%
18-24
25-34
35-44
45-54
55-64
65+
Air Ticket
Lodging
Car Rental

from Travel Companies, by Trip Frequency
Question: How often are you generally interested in purchasing additional services or upgrades from the following types of travel companies?Please select
24%
16%
10%
35%
33%
24%
27%
31%
35%
8%
11%
22%
6%
9%
10%
1-2 trips
3-5 trips
6+ trips
Never interested Rarely interested Sometimes Interested Often interested Always interested
15%
12%
8%
30%
26%
22%
35%
37%
32%
13%
17%
24%
7%
9%
14%
1-2 trips
3-5 trips
6+ trips
18%
16%
9%
24%
25%
24%
33%
34%
35%
15%
14%
21%
11%
11%
11%
1-2 trips
3-5 trips
6+ trips
Air Ticket
Lodging
Car Rental

Ancillary Services Purchased
Question: Which of the following products or services have you purchased from an airline (in addition to your ticket) for your leisure air travel in the past
12 months, and when did you typically purchase them? Please select all that apply.
Base: Flyers 2011 N=1,311, 2012 N=1,586
Source: PhoCusWright's U.S. Consumer Travel Report: Fourth Edition, PhoCusWright's U.S. Consumer Travel Report: Fifth Edition
16%
16%
19%
21%
22%
23%
39%
59%
13%
15%
16%
18%
19%
19%
34%
60%
Airport lounge access
Additional frequent flier program miles
In-flight wireless Internet access
Priority boarding
In-flight movies/entertainment
Preferred seats/extra leg room
In-flight meals/beverages snacks
Checked baggage
2011
2012

Timing/Placement of Additional Services or Upgrades
Question: When/where would you like to be offered additional services/upgrades? Select all that apply.
Base: U.S. Travelers who show interest in purchasing additional services/upgrades from travel companies (N=2,469)
57%
39%
19%
19%
17%
As part of the flight/hotel/car options
presented when I am shopping
After I make my shopping choices but
before I make my booking
Just after I make my booking
Sometime after I book but before I leave
for my trip
Just as I am leaving for my trip or while I'm
checking in

Timing/Placement of Additional Services or Upgrades, by
Advanced Booking Window of Last Trip
Question: When/where would you like to be offered additional services/upgrades? Select all that apply. How far in advance of your departure did you
decide on the destination for this trip? Select one.
Base: Independent destination selectors who show interest in purchasing additional services/upgrades from travel companies (N=1,387)
51%
34%
15%
15%
21%
56%
39%
22%
17%
16%
57%
43%
19%
23%
17%
62%
39%
17%
19%
17%
60%
31%
12%
21%
19%
As part of the flight/hotel/car options presented when I
am shopping
After I make my shopping choices but before I make my
booking
Sometime after I book but before I leave for my trip
Just as I am leaving for my trip or while I'm checking in
One week One month 1-2 months 3-5 months 6+ months

Monetate Custom Question: Timing/Placement of
Additional Services or Upgrades, by Purchase Intent
Question: When/where would you like to be offered additional services/upgrades? Select all that apply.
Base: U.S. Travelers who show interest in purchasing additional services/upgrades from travel companies (N=2,469)
61%
35%
16%
16%
14%
65%
43%
23%
26%
22%
63%
44%
26%
21%
16%
As part of the flight/hotel/car options presented when I am shopping
After I make my shopping choices but before I make my booking
Never or Rarely intersted
Sometimes interested
Often or Always interested
Interest In Purchasing Additional Services from Airlines
55%
33%
14%
16%
16%
59%
41%
20%
20%
19%
63%
45%
23%
22%
18%
Interest In Purchasing Additional Services from Hotels
60%
37%
17%
16%
19%
68%
46%
19%
19%
16%
70%
45%
26%
29%
14%
Interest In Purchasing Additional Services from Car Rental Company

Portion of Time Spent on Devices to Plan Travel
Question: Considering all of the time you spent planning travel online in the past 12 months, approximately what portion of time did you spend on the
following devices?
Base: U.S. Travelers (2012 N=2,502)
86%
8%
7%
Desktop
Smartphone
Tablet
63% of travelers ONLY use a desktop to plan travel…

Portion of Time Spent on Devices to Plan Travel Among
Travelers Who Plan Trips Using Mobile Devices
following devices?
Base: U.S. Travelers who plan trips using mobile devices (2012 N=876)
64%
19%
17%
Desktop
Smartphone
Tablet

Portion of Time Spent on Devices to Plan Travel, by Trip
Frequency
following devices?
Base: U.S. travelers (N=2,520)
6%
10%
10%
5%
8%
10%
89%
82%
79%
1-2 trips
3-5 trips
6+
Smartphone Tablet Desktop

Portion of Time Spent on Devices to Plan Travel, by Travel
Spend
following devices?
7%
6%
7%
8%
9%
10%
5%
6%
7%
7%
8%
11%
88%
88%
86%
85%
83%
79%
Less than $1,000
$1,000-1,999
$2,000-2,999
$3,000-3,999
$4,000-5,999
$6,000+

Portion of Time Spent on Devices to Plan Travel, by Age
following devices?
13%
11%
8%
5%
2%
2%
8%
8%
9%
5%
5%
2%
78%
81%
83%
90%
92%
96%
18-24
25-34
35-44
45-54
55-64
65+

Portion of Time Spent on Devices to Plan Travel, by
Purchasing Interest in Ancillaries
Question: How often are you generally interested in purchasing additional services or upgrades from the following types of travel companies. Please select
one option for each row. Considering all of the time you spent planning travel online in the past 12 months, approximately what portion of time did you
spend on the following devices? Considering all of the time you spent planning travel online in the past 12 months, approximately what portion of time did
you spend on the following devices?
6%
9%
14%
6%
9%
12%
89%
82%
74%
Never or rarely
interested
Often or Always
interested
Airlines
Hotels
5%
8%
12%
5%
7%
11%
90%
85%
77%
Never or rarely
interested
Often or Always
interested
7%
10%
14%
7%
9%
13%
86%
81%
73%
Never or rarely
interested
Often or Always
interested
Car Rental

Website Choice Motivation
Question: Why did you choose the particular Web site(s) you used? Select all that apply.
Base: Online shoppers (2011 N=1,587; 2012 N=2,041)
59%
48%
47%
35%
32%
28%
27%
20%
18%
12%
10%
56%
50%
46%
35%
29%
26%
24%
20%
18%
14%
10%
It is easy to use
It has the best prices/offers
I have had a good experience with this Web site before
I trust this brand
It gives me good trip ideas and options to consider
It offers the widest selection of travel options
It has no booking fees
It provides the most information and photography
It was the official Web site for the brand or destination
I am a member of the company’s frequent traveler…
It has my personal information stored
2011 2012

Website Usability
Question: What makes a travel website easy to use? Select all that apply.
Base: U.S. Travelers (N=2,520)
70%
60%
58%
47%
46%
22%
20%
14%
1%
Total prices displayed clearly
Finding what I want is easy (e.g. useful search filters)
Easy comparison between options (two or more hotels,
flights, etc.)
Clean design/not too much clutter
Speed (e.g. pages load quickly)
Offers that are personalized for me (e.g. flight deals
from my hometown)
Saved preferences and payment information (e.g. flight
deals from my hometown)
Prominent buttons
Other

Website Usability, by Age
0% 10% 20% 30% 40% 50% 60% 70% 80%
Finding what I want is easy (e.g.,useful search filters)
flights, etc.)
Speed (e.g., pages load quickly)
Offers that are personalized for me (e.g., flight deals
from my hometown)
Saved preferences and payment information (e.g., flight
Prominent buttons
Other
18-24 25-34 35-44 45-54 55-64 65+

Website Usability, by Annual Travel Spend
0% 10% 20% 30% 40% 50% 60% 70% 80%
Finding what I want is easy (e.g.,useful search filters)
flights, etc.)
Speed (e.g., pages load quickly)
Offers that are personalized for me (e.g., flight deals
from my hometown)
Saved preferences and payment information (e.g., flight
Prominent buttons
Other
Less than $1,000 $1,000-1,999 $2,000-2,999 $3,000-3,999 $4,000-5,999 $6,000+

Polling Question
Does your company optimize its website experience
across devices (desktop/smartphone/tablet)?
a. Yes, and we have for years
b. Yes, we just started in the past year
c. We’re in the midst of doing it now
d. Not yet, but later this year
e. Not yet, but sometime in the next couple of years
f. No plans to do so

Questions?
Douglas Quinby
Principal Analyst
PhoCusWright Inc.
Carroll Rheem
Principal Analyst
PhoCusWright Inc.
Sponsored by:
Blair Lyon
VP, Marketing
Monetate

Related Release:
www.phocuswright.com/products/4251

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