The Evolving Travel Shopping Journey: Travel Research, Planning & Validation
Travel Hotel Consumers
1. Travel Hotel Consumers: How Online
Research Affects Bookings
Google Compete
U.S., November 2010
2. Background and Objectives
Background
• Online research influences both online and offline bookings. However, there remain challenges in
quantifying the role of the online channel – whether via search, display, or non-advertising content –
in driving bookings.
Objectives
• Assess the online and offline resources shoppers use when shopping for and booking travel as well
as the relative importance of different resources
• Quantify the impact online research has on consumer purchase (both online and offline)
• Analyze differences between bookers who purchase online and bookers who purchase offline
Google Confidential and Proprietary
2
3. Methodology
Recruitment
• A survey was launched to Compete panelists who had researched hotels online between
December 2009 and April 2010
• Surveys were fielded to 1,266 Compete panelists in April/May 2010 targeting consumers who
completed and qualified for the survey under the following requirements:
– Respondents who indicated they had conducted online research for overnight accommodations
at a hotel within the past six months
– Respondents indicated they researched for personal (non-business) travel
Significance Testing
• For 2-variable significance testing, two asterisks (**) indicates significance at the 95% level and one
asterisk (*) indicates significance at the 90% level
• For multiple variable significance testing, uppercase letters indicate significance at the 95% level
and lowercase letters indicate significance at the 90% level
• Base sizes under 30 were removed from the study and any base sizes between 30-50 marked as
low sample
Searcher vs. Non-Searcher Segment Definition
• A “Searcher” is defined as a respondent who was search referred to a hotel supplier website or
OTA hotel path within the 60 days prior to booking (based on observed online clickstream behavior
and not self-reported)
Google Confidential and Proprietary
3
4. Executive Summary
• Half of all hotel researchers indicated researching exclusively online
– Friends, families and colleagues were the most-used offline sources to learn about hotels
• Half of hotel shoppers reported using search engines in their research
– Online clickstream behavior indicated that a third hotel shoppers are referred by search to a
hotel website
• Price was the leading reason for why consumers booked on a specific hotel website
– Receiving rewards/points was also a strong driver
• Higher costs per night and longer stays increased the length of time consumers spent
researching hotels online
– The share of researchers using online sources also increased for longer hotel stays
• Nearly a third of hotel shoppers indicated viewing an online advertisement during their
research process
• Booking online was the most dominant channel
– Only 1 in 6 bookers indicated booking over the phone or in person
• Hotel bookers are using fewer travel sites to conduct research than year-ago levels
indicating more focused shopping activities
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
4
6. 1 in 3 hotel shoppers are referred to a hotel site
by search. We see a bump up in search
referral in summer months.
Aggregate Online Hotel Shoppers & % Search Referred to a Hotel Site
(Volume of Hotel Shoppers & Share that were Search Referred to a Hotel Site, Jun 2009 – Jun 2010)
40M
31%
31%
35M
31%
29%
28%
28%
29%
28%
35%
30%
31%
31%
30%
29%
30%
30M
25%
25M
20%
20M
34M
15M
30M
31M
30M
27M
25M
10M
23M
23M
23M
25M
33M
27M
15%
29M
10%
5M
5%
0M
0%
Jun
Jul
Aug
Sep
Oct
Hotel Shoppers
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Share of Hotel Shoppers Ref erred by Search
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
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7. Search Consistently Drove Hotel Bookings
Aggregate Online Hotel Bookers & % Search Referred to a Hotel Site
(Volume of Hotel Bookers & Share that were Search Referred to a Hotel Site, Jun 2009 – Jun 2010)
4.M
3.5M
30%
24%
26%
23%
23%
24%
24%
23%
23%
22%
22%
22%
22%
23%
25%
3.M
20%
2.5M
2.M
4M
3M
15%
4M
1.5M
3M
3M
3M
2M
1.M
3M
3M
4M
10%
3M
2M
2M
5%
0.5M
0.M
0%
Jun
Jul
Aug
Sep
Oct
Hotel Bookers
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Share of Hotel Bookers Ref erred by Search
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
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8. Google Referred One Quarter of All Shoppers
Share of Hotel Shoppers Search Referred by Google Search
(Share of Online Hotel Shoppers, Jun 2009 – Jun 2010)
40M
35M
30%
24%
24%
23%
24%
22%
22%
23%
23%
23%
24%
24%
24%
23%
25%
30M
20%
25M
20M
15%
34M
15M
30M
31M
30M
27M
25M
10M
23M
23M
23M
25M
33M
27M
29M
10%
5%
5M
0M
0%
Jun
Jul
Aug
Sep
Oct
Hotel Shoppers
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Share of Hotel Shoppers Ref erred by Google
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
8
9. Hotel Bookers More Focused Year-Over-Year
Sites Visited by Online Hotel Bookers
(Average Travel Sites Visited Among Hotel Bookers Within the Month of Booking, Jun 2009 – Jun 2010)
25
20
15
10
20
22
20
20
20
19
17
18
13
14
14
Feb
Mar
Apr
16
16
May
Jun
5
0
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
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11. Half of Shoppers Research Exclusively Online
Offline Hotel Research Resources Used by Online Hotel Shoppers
(Share of Online Hotel Shoppers, n=1266)
Family, f riends, or colleagues
29%
800 or toll-f ree numbers
16%
Magazines
14%
Inf ormational brochures or catalogs
14%
TV
8%
Travel agents
8%
Newspapers
7%
Travel groups
7%
51% used no offline sources
Books
6%
Radio
3%
0%
5%
10%
15%
20%
25%
30%
35%
S5. Thinking about the last hotel you researched, which of the following sources of information did you use in
addition to the Internet, if any? Please select all that apply.
Online hotel shoppers, n=1266
Google Confidential and Proprietary
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
11
12. Half of Researchers Use Search to Find Hotels
Online Hotel Research Resources Used by Online Hotel Shoppers
(Share of Online Hotel Shoppers, n=1266)
Hotel websites
76%
Online travel agency websites
61%
Search engines
50%
Travel review websites
30%
Travel guide website
13%
Travel-specif ic websites
13%
Video sharing websites
4%
Social networking websites
4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Q1. Specifically, which of the following online sources did you use to research this hotel? Please select all that apply.
Online hotel shoppers, n=1266
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
12
13. Online Sources Used More for Longer Stays
Online Hotel Research Resources Used by Online Hotel Shoppers
(Share of Online Hotel Shoppers, n=1266)
62% A
51%
46%
14% AB
13% AB
2%
Search engines
3%
Video sharing websites
1-2 Nights (n583) (A)
3-5 Nights (n520) (B)
1%
3%
Social networking websites
6 Nights or More (n163) (C)
Q1. Specifically, which of the following online sources did you use to research this hotel? Please select all that apply.
Online hotel shoppers, n=1266
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
13
14. 1 in 3 Researchers Recall Viewing Online Ads
Advertising Recalled by Online Hotel Shoppers
(Share of Online Hotel Shoppers, n=1266)
Online ad *
29%
TV ad
19%
Magazine ad
15%
Inf ormational brochures or pamphlets
*Online ad includes the following:
•Online website ad: 22%
•Paid search engine listings: 13%
•Online video ad: 8%
11%
Newspaper ad
8%
Billboard or outdoor ad
6%
53% do not recall any advertisements
Radio ad
5%
0%
5%
10%
15%
20%
25%
30%
35%
Q3. In addition to all of the research that you did to learn about your most recently researched hotel, which of the following
advertisements do you recall seeing or hearing, if any? Please select all that apply. Online hotel shoppers, n=1266.
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
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15. 1 in 6 Researchers Booked Offline
Channel Used to Book Hotel
(Share of Hotel Shoppers That Booked a Hotel in Q4, n=892)
100%
2%
15%
17% Booked
Offline
80%
60%
In person
Over the phone
40%
83%
Online
20%
0%
Total (n=892)
Q5. How did you book this hotel? Please select one answer only.
Online hotel shoppers who booked a hotel in Q4, n=892.
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
15
16. 1 in 5 Bookers Choose Site for Rewards/Points
Why Online Hotel Bookers Booked With Specific Site
(Share of Online Hotel Bookers That Did Not Select “Other” in Q6, n=711)
Best prices
34%
I received rewards/points
21%
Good promotions and of fers
12%
Easy to f ind hotels
9%
I was able to view videos
5%
Best selection
4%
Able to book a package
4%
Able to select hotels f rom a map
4%
Able to read reviews by other travelers
3%
0%
10%
20%
30%
40%
Q9. Which of the following best describes why you booked this hotel on a/an [type of site]? Please select one answer only.
Online hotel bookers, n=711.
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
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17. Searchers as Likely to Book as Non-Searchers
Searchers vs. Non-Searchers That Booked a Hotel
(Share of Total Respondents, n=1409)
100%
90%
9.5%
12.0%
80%
26.5%
26.6%
70%
60%
50%
40%
30%
61.4%
64.0%
Searchers (n=391)
Non-Searchers (n=1018)
20%
10%
0%
Yes
No, but plan to
No, and do not plan to
Q4. Did you book your most recently researched hotel? Please select one answer only.
Total respondents, n=1409; Searchers n=391, Non-Searchers n=1018.
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
17
18. Likelihood to Book Declines as Cost Increases
Hotel Bookers by Cost of Hotel Per Night
(Share of Hotel Shoppers That Did Not Select “Not Sure” in Q24, n=1239)
Read as: Of shoppers who
researched hotels priced $150+
per night, 65% booked
85%
80%
67%
65%
60%
40%
20%
0%
Under $75 Per Night (n=297)
$75-$150 Per Night (n=676)
$150+ Per Night (n=266)
Q4. Did you book your most recently researched hotel? Please select one answer only.
Online hotel shoppers; Spent < $75 per night, n=297; spent $75-$150 per night, n=676; spent $150+ per night, n=266.
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
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19. Singles Most Certain About Hotel Choice
Certainty of What Hotel You Booked or Plan to Book
(Share of Hotel Shoppers, n=1266, Top 2 Box)
70%
60% B
60%
53%
51%
53%
50%
40%
30%
20%
10%
0%
Total (n1266)
Single (n251) (A)
Couple (n450) (B)
Family (n173) (C)
Q10 - Which of the following best describes how certain you were about what hotel you would book or booked with at the beginning of your research?
Online hotel shoppers, n=1266; single stay, n=196; couple stay, n=636; family stay, n=434. Significance testing does not include Total segment.
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
19
20. Research Time Increases with Length of Stay
Time Spent Researching Hotel Before Booking By Length of Stay
(Share of Hotel Shoppers That Booked a Hotel in Q4, n=892)
100%
10%
21%
14%
80%
27%
48%
15%
18%
18%
2 Weeks or more
60%
1 Week to less than 2 weeks
21%
31%
40%
26%
11%
3 Days to less than 1 week
1 Day to less than 3 days
20%
24%
Less than 1 day
19%
20%
12%
27%
19%
11%
9%
0%
Total (n892)
1-2 Nights (n452) (A)
3-5 Nights (n324) (B) 6 Nights or More (n115) (C)
Q25. How much time passed from when you first started researching for a hotel online to when you actually booked it? Please select one
answer only. Online hotel shoppers who booked a hotel, n=892; 1-2 night stay, n=452; 3-5 night stay, n=324; 6+ night stay, n=115. Significance
testing does not include Total segment.
Google Confidential and Proprietary
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
20
21. Higher Costs Increased Research Time
Time Spent Researching Hotel Before Booking By Cost Per Night
(Share of Hotel Shoppers That Booked a Hotel in Q4, n=892)
100%
18%
16%
12%
21%
17%
40% AB
80%
15%
15%
60%
2 Weeks or more
24% a
21%
13%
1 Week to less than 2 weeks
3 Days to less than 1 week
40%
31% C
21%
24%
24%
1 Day to less than 3 days
Less than 1 day
20%
18%
23% C
19%
20%
C
8%
0%
Total (n892)
< $75 (n251) (A)
$75-$150 (n450) (B)
$150+ (n173) (C)
Q25. How much time passed from when you first started researching for a hotel online to when you actually
booked it? Please select one answer only.
Online hotel shoppers who already booked a hotel, Total n=892, Significance testing does not include Total
segment.
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
21
22. Summary
• Half of all hotel researchers indicated researching exclusively online
– Friends, families and colleagues were the most-used offline sources to learn about hotels
• Half of hotel shoppers reported using search engines in their research
– Online clickstream behavior indicated that a third hotel shoppers are referred by search to a
hotel website
• Price was the leading reason for why consumers booked on a specific hotel website
– Receiving rewards/points was also a strong driver
• Higher costs per night and longer stays increased the length of time consumers spent
researching hotels online
– The share of researchers using online sources also increased for longer hotel stays
• Nearly a third of hotel shoppers indicated viewing an online advertisement during their
research process
• Booking online was the most dominant channel
– Only 1 in 6 bookers indicated booking over the phone or in person
• Hotel bookers are using fewer travel sites to conduct research than year-ago levels
indicating more focused shopping activities
Source: Google/Compete Hotel Online/Offline Study, Nov 2010
Google Confidential and Proprietary
22
23. Like what you learned?
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