1. US DIGITAL
TRAVEL
SALESMobile Drives Changes in
Mature Marketplace
MAY 2013
Dan Marcec
Contributors: Dan Munns, Monica Peart, Martín Utreras, Jeffrey Vasapolli, Haixia Wang
Read this on
eMarketer for iPad

2. US DIGITAL TRAVEL SALES: MOBILE DRIVES CHANGES IN MATURE MARKETPLACE ©2013 EMARKETER INC. ALL RIGHTS RESERVED 2
CONTENTS
3 The US Digital Travel Market: An Overview
5 Anatomy of a Maturing Online Marketplace
7 Mobile Drives Digital Travel Growth
12 eMarketer Interviews
12 Related eMarketer Reports
13 Related Links
13 Editorial and Production Contributors
EXECUTIVE SUMMARY
eMarketer estimates that US digital travel sales—
which include leisure and unmanaged business
travel purchased online and via mobile devices—
will slowly but steadily increase between 2013 and
2017, achieving a 5.36% compound annual growth
rate (CAGR).
Despite these gains, travel has been and will continue to
lose share as a subset of overall business-to-consumer
(B2C) ecommerce because online travel is considerably
more mature than other types of online retail.The number
of online travel researchers and bookers—on desktop and
laptop PCs, that is—will inch upward alongside internet
penetration growth. And as the economy improves, travel
companies will continue to jockey for finite market share
of online bookings.
Mobile travel sales will increase far more rapidly
than online sales, fueling growth in the digital travel
marketplace. In particular, tablets will be instrumental to
the expansion of digital travel sales.Though tablets are
categorized as mobile devices, consumers typically use
tablets more like PCs when planning trips, and tablets
likely will replace some PC researching and booking as
penetration increases.
Booking revenues from smartphones will continue to
increase alongside penetration as well, but consumer
research and booking on smartphones predominantly
occurs in a very specific-use case: last-minute, on-the-go
situations. Consumers typically associate “last minute”
with “discount” when it comes to travel products, and
mobile revenues could be protracted on a longer-term
basis if smartphone travel booking is pigeonholed for
this purpose.
eMarketer’s US digital travel forecast is based on the
analysis of estimates from other research firms, historical
trends, reported and estimated revenues from major
online travel companies, consumer online buying trends,
macro-level economic conditions and internet and mobile
adoption trends.
KEY QUESTIONS
■■ What consumer trends are influencing the growth
of US travel sales, both online and mobile?
■■ How many US consumers will research and book
travel on tablets and smartphones through 2017?
■■ In what ways do US travelers use smartphones and
tablets differently for travel research and booking?
billions and % change
US Digital Travel Sales, 2011-2017
2011
$113.9
15.1%
2012
$126.3
10.8%
2013
$136.4
8.0%
2014
$145.2
6.5%
2015
$153.2
5.5%
2016
$160.9
5.0%
2017
$168.1
4.5%
Digital travel sales % change
Note: includes online leisure and unmanaged business travel sales booked
via any device
Source: eMarketer, May 2013
156340 www.eMarketer.com

3. US DIGITAL TRAVEL SALES: MOBILE DRIVES CHANGES IN MATURE MARKETPLACE ©2013 EMARKETER INC. ALL RIGHTS RESERVED 3
THE US DIGITAL TRAVEL MARKET:
AN OVERVIEW
US digital travel sales—which include leisure and
unmanaged business travel purchased online
and via all mobile devices, including tablets and
smartphones—will reach $136.4 billion in 2013, an 8%
increase from 2012.
billions and % change
US Digital Travel Sales, 2011-2017
2011
$113.9
15.1%
2012
$126.3
10.8%
2013
$136.4
8.0%
2014
$145.2
6.5%
2015
$153.2
5.5%
2016
$160.9
5.0%
2017
$168.1
4.5%
Digital travel sales % change
Note: includes online leisure and unmanaged business travel sales booked
via any device
Source: eMarketer, May 2013
156340 www.eMarketer.com
The most notable change to eMarketer’s travel sales
estimates from previous forecasts is a breakout of mobile
travel sales, and thus a change in terminology from “online
travel sales” to “digital travel sales.” Another significant
update in this year’s digital travel forecast report is a
revision to our 2012 digital travel sales figures, which
increased from $119.2 billion to $126.3 billion.This change
is attributed to faster-than-expected growth of mobile
travel sales as well as pricing increases across travel
sectors; both of these factors are the chief contributors to
higher estimates throughout the forecast period.
DIGITALTRAVEL SALES:DEFINITIONSAND
COMPARATIVE ESTIMATES
eMarketer forecasts a slow but steady increase in digital
travel sales between 2011 and 2017 at a modest 6.7%
CAGR, slowing considerably toward the end of the
forecast period. Strong growth in 2011 and 2012 reflects
market recovery following the recession in addition to the
emergence of travel mcommerce.
Digital travel sales estimates from other research
firms and investment banks vary widely in dollar
amounts—mainly because of disparate definitions and
methodologies—but generally the growth rates follow
a similar trajectory: solid, steady growth tapering off
to midsingle digits.Travel sales growth estimates for
2012 from PhoCusWright Inc., comScore, RBC Capital
Markets and Cantor Fitzgerald all landed within a couple
percentage points of eMarketer’s 10.8% projection. Only
Barclays Capital had a much lower forecast, at 4%.The
latter assumed earlier market maturation and consistent
growth, predicting a growth rate similar to the other
estimates by the end of the forecast period.
% change
Comparative Estimates: US Digital Travel
Sales Growth, 2011-2016
Cantor Fitzgerald, Sep 2012
eMarketer*, May 2013
RBC Capital Markets, April 2013
Barclays Capital, Sep 2012
PhoCusWright Inc.**, Nov 2012
comScore Inc.***, Feb 2013
2011
8.0%
15.1%
10.0%
4.0%
-
10.6%
2012
12.0%
10.8%
8.0%
4.0%
11.0%
9.5%
2013
9.0%
8.0%
7.0%
4.0%
-
-
2014
8.0%
6.5%
7.0%
5.0%
-
-
2015
-
5.5%
-
5.0%
-
-
2016
-
5.0%
-
5.0%
-
-
Note: *includes online leisure and unmanaged business travel sales
booked via any device; **includes online leisure and unmanaged business
travel sales; includes airline, car rental, cruise, hotel, packages and rail;
***home and work locations
Source: eMarketer, May 2013; various, as noted, 2012 & 2013
156478 www.eMarketer.com
eMarketer’s 2012 digital travel sales estimate of
$126.3 billion is closely in line with PhoCusWright’s,
whose data has served as a benchmark for many in the
industry. In February 2013, PhoCusWright released its
“US MobileTravel Report: Market Sizing and Consumer
Trends,” in which it estimated that mobile travel sales
totaled $7.9 billion in 2012, or 6% of all digital travel
bookings for the year.Those numbers would suggest
overall digital travel sales of approximately $130 billion
for 2012.
eMarketer and PhoCusWright estimates are based on
the same definition: online and mobile sales for leisure
and unmanaged business travel. “Unmanaged” business
travelers—as opposed to “managed” or “corporate”
business travelers who must adhere to strict company
policies or book through company-approved suppliers and
travel agencies—are included in the estimates because
they research and book business trips through the same
channels as leisure travelers and exhibit similar consumer
behavior.Their transactions are therefore not tracked as
“corporate” by travel suppliers and third-party resellers
and are counted instead with “leisure” bookings.

4. US DIGITAL TRAVEL SALES: MOBILE DRIVES CHANGES IN MATURE MARKETPLACE ©2013 EMARKETER INC. ALL RIGHTS RESERVED 4
comScore’s online travel sales figure for 2012 was
approximately $103 billion, considerably lower than the
figures from eMarketer and PhoCusWright.Though
comScore technically has the same definition of online
travel—leisure and unmanaged business travel—its
estimates cover travel bookings exclusively from home
and work computers and do not include mobile. In
addition, comScore’s methodology typically tracks US
consumers based on site traffic supplemented by survey
data, while eMarketer includes transactions through
US-based businesses, which can include international
customers booking through US portals as well.
BREAKDOWN:CONSUMERSWHO LOOK
AND BOOK
The number of US digital travel researchers and bookers
is expected to mirror internet penetration and increase
only slightly over time. eMarketer estimates that nearly
two-thirds of internet users will research travel online
or through their mobile devices this year, and more
than half will book via digital channels. Because the
US internet user base has already eclipsed 75% of the
total population and will increase to 80% only by 2017,
there will not be a significant influx of new digital travel
researchers and bookers.
millions and % of internet users
US Digital Travel Researchers and Bookers, 2011-2017
2011
114.4
61.0%
93.8
50.0%
2012
119.3
62.0%
98.1
51.0%
2013
123.2
62.5%
101.5
51.5%
2014
126.9
63.0%
104.8
52.0%
2015
130.7
63.5%
108.0
52.5%
2016
133.9
64.0%
110.9
53.0%
2017
136.9
64.5%
113.6
53.5%
Researchers Bookers
Note: ages 18+; digital travel researchers defined as those who researched
travel information online prior to a trip via any device at least once during
the calendar year but did not necessarily book; digital travel bookers
defined as those who booked travel online via any device at least once
during the calendar year
Source: eMarketer, May 2013
156371 www.eMarketer.com
At first glance, these figures may suggest there’s more
room for growth in the market than there is. But the
base consumer for eMarketer’s digital travel estimates
is an internet user, and it’s important to note that not all
internet users travel, and all travelers don’t necessarily
take trips every year.
Data specifically identifying internet users who have
traveled in the past year shows higher digital researcher
and booker penetration levels across all travel categories.
In their May 2012 “Consumer Barometer” survey, Google,
Interactive Advertising Bureau (IAB) Europe andTNS
Infratest found that 81% of US internet users who had
booked travel in the past 12 months had researched their
trips online, while 74% of respondents had booked online.
Broken down by category, hotel researchers overindexed
the average traveler considerably in using digital channels
to look for travel (86% vs. 81%), and flight bookers were
slightly more likely to purchase online than consumers
buying other travel products (76% vs. 74%).
% of respondents in each group
US Travel Buyers* Who Research vs. Purchase Travel
Products Online, May 2012
Hotel stays
86%
73%
Package holidays
82%
70%
Leisure flights
81%
76%
Total travel**
81%
74%
Researched online before purchasing Purchased online
Note: responses reflect most recent travel product purchased; *who have
purchased travel products online or offline in the past 12 months;
**includes leisure and business travel
Source: IAB Europe, TNS Infratest and Google, "Consumer Barometer,"
Aug 28, 2012
155595 www.eMarketer.com

5. US DIGITAL TRAVEL SALES: MOBILE DRIVES CHANGES IN MATURE MARKETPLACE ©2013 EMARKETER INC. ALL RIGHTS RESERVED 5
ANATOMY OF A MATURING
ONLINE MARKETPLACE
Travel is losing share as a subset of overall B2C
ecommerce because online travel booking blossomed
earlier than other forms of ecommerce; those other
categories are now seeing faster growth.The online
travel space is mature, and suppliers and third-party
resellers are in an ongoing, heated competition for
finite market share of online bookings.
eMarketer estimates that travel made up approximately
36% of all B2C ecommerce sales last year, but by 2016,
that share will drop to less than 30% and continue to
fall steadily.
% of total
US B2C Ecommerce Sales Share, by Segment,
2011-2017
2011
63%
37%
2012
64%
36%
2013
66%
34%
2014
67%
33%
2015
69%
31%
2016
71%
29%
2017
72%
28%
Retail ecommerce* Digital travel**
Note: *excludes event tickets; benchmarked against the DOC data, for
which the last full year measured was 2011; **includes online leisure and
unmanaged business travel sales booked via any device
Source: eMarketer, May 2013
157052 www.eMarketer.com
DIGITALASA SUBSET OFTOTALTRAVEL
Digital travel sales accounted for more than 40% of total
travel sales in 2012, according to PhoCusWright figures
released in November 2012; the firm noted that total
travel sales would increase to $303 billion in 2012.
Digital penetration is even higher when focusing solely
on leisure travel. RBC Capital Markets estimated that
leisure travel will account for a little more than $200 billion
in 2013, and the firm’s estimate of $125.8 billion in online
sales for 2013 would represent 63% of all leisure sales.
billions, % change and % of total
US Online and Total Leisure Travel Sales, 2009-2014
Online travel
sales
—% change
Total leisure
travel sales
—% change
Online as %
of total
2009
$89.34
-6%
$160.23
-10%
56%
2010
$99.07
11%
$172.22
7%
58%
2011
$108.54
10%
$183.39
6%
59%
2012
$117.42
8%
$192.56
5%
61%
2013
$125.83
7%
$201.23
4%
63%
2014
$135.23
7%
$211.29
5%
64%
Note: 2012-2014 are RBC Capital Markets estimates
Source: RBC Capital Markets as cited by Advertising Age, "Ad Age Digital
Conference 2013," April 16, 2013
156148 www.eMarketer.com
These estimates stand in stark contrast with figures
for overall commerce. Retail ecommerce accounted for
just 6% of all retail sales in 2012, according to the US
Department of Commerce.
BREAKDOWN:ONLINETRAVEL BY
CATEGORY
Air travel accounted for nearly two-thirds of all US online
travel sales in 2012, according to comScore, which
breaks down online travel sales by category. Not only
did air travel garner by far the highest portion of sales, its
growth outpaced hotel reservations and car rentals.Travel
packages and “other” travel products—which include
cruise and rail—also saw a 10% growth rate, but the
increase came from a far smaller base than air travel.
US Online Travel Sales, by Category, 2012
Air travel
Hotel reservations
Car rental
Travel packages
Other
Total
Spending
(billions)
$66.53
$19.38
$9.70
$5.14
$2.20
$102.95
% share of travel
spending
65%
19%
9%
5%
2%
100%
% change vs.
prior year
10%
7%
6%
10%
10%
9%
Note: home and work locations
Source: comScore E-Commerce Measurement as cited in press release,
Feb 20, 2013
152976 www.eMarketer.com
Increasing flight prices have been a driving force for
online travel revenue increases. After several airlines
launched various airfare hike attempts in 2012, seven
were successful and contributed to a 4.5% increase in
fares through October, according to Rick Seaney, CEO of
FareCompare. Since 65% of online travel sales were flight
purchases, according to comScore, any increase in airfare
would inevitably lead to an increase in online travel sales.

6. US DIGITAL TRAVEL SALES: MOBILE DRIVES CHANGES IN MATURE MARKETPLACE ©2013 EMARKETER INC. ALL RIGHTS RESERVED 6
Similarly, the lodging and hospitality sector has seen hotel
room rates recovering steadily after the 2008 market
collapse. According to PricewaterhouseCoopers (PwC),
the US average daily rate (ADR)—the measure of hotel
room prices across the entire industry (not just online)—
increased approximately 4% year over year on a quarterly
basis in 2012. PwC estimated that ADR would increase
another 4.5% to 5% year over year on a quarterly basis
in 2013.
ONLINE PRICINGWARSABATEAS
ECONOMY STRENGTHENS
During the recession, depressed rates, combined with
low demand, contributed heavily to the drop-off in online
travel sales. Both hotel brands and online travel agencies
(OTAs) were apt to offer lower, discounted or special rates
through online sales portals in order to win bookings from
deal-seeking customers who were not brand loyal.
As demand recovered, consumers continued to seek out
last-minute, low-cost travel options that remained readily
available online—a behavior that has carried over into
the early days of mobile travel booking as well. In many
cases, travel suppliers sell last-minute, unused inventory
to OTAs, which typically are resold via discounted rates.
As the economy continues to strengthen, travel brands
are focusing on reversing this trend and driving more
full-price bookings directly from their own websites—a
model known as “direct distribution.” According to
PhoCusWright, this strategy has been successful, and
by 2014, two-thirds of all online bookings for hotels,
cruises and airline tickets will be made through suppliers’
websites, rather than through third-party OTAs.
% of total
US Online Travel Booking Revenues, by Segment,
2010 & 2014
2010 2014
Hotel
Cruise
Airline
Total
Supplier
websites
55%
43%
68%
61%
Online travel
agencies
45%
57%
32%
39%
Supplier
websites
59%
59%
75%
66%
Online travel
agencies
41%
41%
25%
34%
Note: leisure and unmanaged business travel bookings
Source: PhoCusWright, "US Online Travel Overview Twelfth Edition" as cited
by Travel Weekly, Nov 19, 2012
150289 www.eMarketer.com
That’s not to say OTAs are hurting. Booking revenues
for the top three OTAs in the US—Expedia, Orbitz and
Priceline.com—will continue to account for a considerable
portion of overall digital travel sales, totaling more
than $40 billion by 2017, according to a Barclays Capital
estimate. During that time, booking revenues for Expedia
will increase slightly ahead of the growth rate for digital
travel sales overall, and Priceline’s will track just behind
that growth pattern. While Barclays estimates that
Orbitz will retain its second-place position in the US OTA
market, its revenues will remain essentially flat during the
forecast period.
billions and % change
US Gross Travel Booking Revenues for Select Online
Travel Companies, 2012-2017
2012 2013 2014 2015 2016 2017
Expedia $19.96 $21.92 $23.67 $25.33 $26.85 $28.19
% change 13.5% 9.8% 8.0% 7.0% 6.0% 5.0%
Orbitz $8.95 $8.85 $8.84 $8.84 $8.81 $8.80
% change -1.6% -1.1% 0.0% 0.0% -0.3% -0.2%
Priceline.com $5.09 $5.48 $5.80 $6.05 $6.26 $6.42
% change 7.1% 7.8% 5.8% 4.4% 3.4% 2.6%
Total $33.99 $36.25 $38.31 $40.23 $41.92 $43.41
% change 8.1% 6.6% 5.7% 5.0% 4.2% 3.6%
Note: numbers may not add up to total due to rounding; 2013-2017 are
Barclays estimates
Source: Barclays Capital based on company reports, "Internet & Media 101:
March 2013 Edition," Jan 4, 2013
155647 www.eMarketer.com
Hotel data fromTravelCLICK confirmed that all online
channels are gaining market share in terms of actual
reservations as well. (TravelCLICK’s data covers the top
25 markets in North America, all of which are in the US
saveToronto.) Hotel websites—the leading reservations
channel for all online and offline bookings—gained more
than half a percentage point in market share in 2012,
growing from 26.1% to 26.7%. During that time, OTAs’
market share rose more sharply from a smaller base,
garnering 10.4% of total hotel bookings, up from 9.5%
in 2011.

7. US DIGITAL TRAVEL SALES: MOBILE DRIVES CHANGES IN MATURE MARKETPLACE ©2013 EMARKETER INC. ALL RIGHTS RESERVED 7
% of total
Transient* Hotel Reservations in North America,
by Channel, 2011 & 2012
2011
26.7% 22.5% 22.7% 17.7% 10.4%
2012
26.1% 23.3% 22.8% 18.2% 9.5%
Brand website
Direct
Global distribution system (GDS)
Central reservations system (CRS)
Online travel agency (OTA)
Note: reflects bookings from participating brands in top 25 markets in
North America; numbers may not add up to 100% due to rounding;
*individual business and leisure travelers
Source: TravelCLICK, April 22, 2013
156484 www.eMarketer.com
“All channels are integral for travel booking, and we’re
not going to see a huge movement away from offline
channels,” saidTim Hart, executive vice president for
enterprise research and development atTravelCLICK. “But
there’s been a constant shift toward hotel brand websites
and OTAs that hasn’t abated.”
In a stronger economy, hotels don’t feel the need
to offload unsold rooms because they have healthy
occupancy and pricing power. When suppliers gain
better control of their inventory, they can set the terms
for their own product if they choose to work with online
travel agencies, which drives up pricing (and thus
revenues) across the board. Fewer discounts and more
reservations mean higher rates and revenues through all
online channels.
MOBILE DRIVES DIGITAL
TRAVEL GROWTH
While digital travel sales overall will experience
slow, steady growth during the next few years, one
component will grow sharply: mobile booking.
eMarketer’s estimate for mobile travel sales—which
includes both tablets and smartphones—will nearly
double this year, increasing from $7 billion to $13.6 billion.
The 2013 estimate will account for 10% of the total digital
travel market and through 2017, mobile travel sales will
increase far more rapidly than online sales. eMarketer
estimates that mobile travel sales will more than triple
between 2013 and 2017, totaling nearly $50 billion in 2017,
when they will account for almost 30% of all digital travel
sales. Online travel sales essentially will remain flat during
that time period.
billions, % change and % of digital travel sales
US Mobile Travel Sales, 2011-2017
2011
$3.4
130.2%
3.0%
2012
$7.0
104.8%
5.5%
2013
$13.6
94.8%
10.0%
2014
$23.2
70.4%
16.0%
2015
$32.2
38.5%
21.0%
2016
$40.2
25.0%
25.0%
2017
$48.8
21.2%
29.0%
Mobile travel sales % change % of digital travel sales
Note: includes leisure and unmanaged business travel sales booked via
mobile device
Source: eMarketer, May 2013
156341 www.eMarketer.com
According to Internet Retailer’s “Mobile 400” guide—
which detailed the combined US mcommerce sales of
the 400 largest retail, ticket and travel companies in the
US, Latin America and Europe—the top 10 companies
on the list accounted for $8.19 billion in US mcommerce
sales in 2012, doubling from $4.1 billion in 2011 and
comprising 39.3% market share. Six travel companies—
Expedia, Orbitz, Marriott International, Hilton Worldwide,
InterContinental Hotels Group (IHG) and easyJet—were
among those top 10 companies.

8. US DIGITAL TRAVEL SALES: MOBILE DRIVES CHANGES IN MATURE MARKETPLACE ©2013 EMARKETER INC. ALL RIGHTS RESERVED 8
Thirty-eight travel companies made Internet Retailer’s
Mobile 400 list, and US mobile travel sales among those
companies grew 149.5% to $2.57 billion in 2012. Mobile
travel sales for these companies made up 23.7% of US
sales volume among the Mobile 400, increasing travel’s
share from 18.7% in 2011.
billions and % of total
US Mcommerce Sales for the Mobile 400, by Category,
2011 & 2012
2011 2012
Retailer $4.36 $7.99
Travel company $1.03 $2.57
Ticket company $0.11 $0.29
Total $5.50
% of total
79.3%
18.7%
1.9%
100.0% $10.85
% of total
73.7%
23.7%
2.7%
100.0%
Note: numbers may not add up to 100% due to rounding
Source: Internet Retailer, "The Mobile 400," Sep 26, 2012
156519 www.eMarketer.com
“In 12 short months, the ongoing shift from desktop to
mobile and tablet devices has created a sense of urgency
to improve the hotel’s presence on these devices,”
wrote Max Starkov, president and CEO of hotel internet
marketing firm HeBS Digital, in an April 2013 blog post.
“In Q1 2013, compared to Q1 2012, website revenue
from mobile devices increased by 58%, while tablet
revenue almost doubled (+95%) across HeBS Digital’s
hotel client portfolio. During the same period, desktop
website revenue dipped by 5.1%.”
Meanwhile, travel mcommerce, like the online travel
market before it, is outpacing general mobile commerce
in the early days of adoption. In 2012, travel mcommerce
comprised 22% of all B2C mcommerce. By 2015,
eMarketer estimates, travel’s share will increase to 31%
and then begin to even out.
% of total
US B2C Mcommerce Sales Share, by Segment,
2011-2017
2011
80%
20%
2012
78%
22%
2013
74%
26%
2014
70%
30%
2015
69%
31%
2016
70%
30%
2017
69%
31%
Retail mcommerce* Mobile travel**
Note: *excludes event tickets; **includes leisure and unmanaged business
travel sales booked via mobile device
Source: eMarketer, May 2013
157053 www.eMarketer.com
BREAKDOWN:MOBILE RESEARCHAND
BOOKING BY DEVICE
Increases in mobile travel sales will be due in part
to consumer confidence in making larger purchases
through mobile devices. But the main growth driver will
be tied simply to mobile penetration and usage trends.
eMarketer estimates that in 2013, nearly 50 million US
consumers will research travel on their smartphones and
tablets, accounting for approximately 40% of all digital
travel researchers.

9. US DIGITAL TRAVEL SALES: MOBILE DRIVES CHANGES IN MATURE MARKETPLACE ©2013 EMARKETER INC. ALL RIGHTS RESERVED 9
millions, % change and % of digital travel researchers
US Mobile Travel Researchers, 2011-2017
2011
27.8
38.3%
24.3%
2012
37.9
36.3%
31.8%
2013
49.6
30.8%
40.2%
2014
59.5
20.0%
46.8%
2015
70.9
19.3%
54.3%
2016
83.4
17.5%
62.3%
2017
93.0
11.6%
67.9%
Mobile travel researchers
% change % of digital travel researchers
Note: ages 18+; mobile device users who researched travel information
prior to a trip via mobile device at least once during the calendar year but
did not necessarily book
Source: eMarketer, May 2013
156372 www.eMarketer.com
About half that number—25.5 million consumers—will
purchase travel via mobile devices in 2013, representing
one-quarter of US digital travel bookers. During the
forecast period, growth of mobile bookers will outpace
growth of mobile researchers, and by 2017, the number of
mobile bookers will more than double to total 56.8 million,
making up half of all US digital travel bookers.
millions, % change and % of digital travel bookers
US Mobile Travel Bookers, 2011-2017
2011
11.6
69.1%
12.3%
2012
18.3
58.1%
18.6%
2013
25.5
39.8%
25.2%
2014
32.7
28.1%
31.2%
2015
40.3
23.1%
37.3%
2016
48.7
20.8%
43.9%
2017
56.8
16.7%
50.0%
Mobile travel bookers % change % of digital travel bookers
Note: ages 18+; mobile device users who booked travel via mobile device
at least once during the calendar year
Source: eMarketer, May 2013
156373 www.eMarketer.com
Travel’s online maturity will translate to mobile platforms
as well. As more people use their mobile devices, travel
providers will improve mobile offerings to serve their
customers.This progression will lead to more and better
mobile travel information, which will translate to more
transactions and higher mobile booking revenues.
Barriers to Revenue Growth via
Smartphone Bookings
Though mobile has huge potential, there are considerable
challenges for smartphone users booking through those
devices, including the inconvenience of a small screen
and security concerns around mobile transactions. In
a May 2012 survey, Google and Ipsos MediaCT found
that 36% of US travelers who researched but did not
book on mobile devices said that mobile websites
were too difficult to navigate, and another 28% said
that booking takes too long because the pages load too
slowly. Moreover 22% of respondents said they weren’t
comfortable with security on mobile devices.
% of respondents
Reasons US Travelers Do Not Book Travel Through
Their Mobile Devices, May 2012
The websites are hard to see/read/navigate on a mobile device
36%
It takes too long to book on a mobile device/the pages load too
slowly
28%
Too cumbersome
25%
Don't trust the security on mobile devices
22%
Needed to confirm with someone else before booking
19%
The mobile version of the site did not allow me to book
15%
Didn't have credit card accessible
7%
Other
4%
Note: n=502 mobile users who accessed the internet on their mobile
device while planning travel, but didn't book anything via mobile; in the
past year
Source: Google and Ipsos MediaCT, "The 2012 Traveler," Aug 10, 2012
146035 www.eMarketer.com

10. US DIGITAL TRAVEL SALES: MOBILE DRIVES CHANGES IN MATURE MARKETPLACE ©2013 EMARKETER INC. ALL RIGHTS RESERVED 10
Even when travel shoppers use their smartphones to
book a trip, they tend to be looking for a last-minute flight,
car rental or hotel room, and many expect last-minute
purchases to come at a discount. Some OTA models
(think Hotwire or Priceline.com’s “Negotiator”) became
popular by offering deals to consumers who were willing
to wait until the last minute to book, so long as they didn’t
care which particular hotel they booked or which car
they drove.
In addition to these well-known and widely used online
travel services that have migrated their successful
strategies to mobile, some new-to-market mobile apps
also perpetuate consumers’ propensity to associate
last-minute bookings with discounts. Consider Hotel
Tonight, a mobile app that trumpets the fact that
“hotels give us last-minute deals on their unsold rooms,
with discounts up to 70%.” In response to the startup’s
early success, many of the major OTAs launched
“tonight-only” apps in 2012 to supplement their regular
business, “with promises of discounts ranging from 40%
to 70%,” according to travel industry news site Skift.com.
Suppliers have gained control of their inventory via online
sales channels. But with mobile, that’s still not the case.
The situation that suppliers faced online during the
recession—selling rooms to third parties at a discount in
order to improve transaction volume—is replaying in the
mobile space. PhoCusWright estimated that OTAs made
up about 64% of gross mobile hotel bookings in 2012,
compared with 36% for hotels’ own mobile sites—the
opposite of what the firm discovered online and what
suppliers have struggled to reverse.
In other words, third-party mobile deals may help usher
in more total smartphone bookings more quickly, but if
the platform becomes entrenched as primarily a place
to find last-minute discounts, smartphone sales will be
less lucrative in the longer term. As accomplished online,
if travel companies devise better ways to monetize
smartphone bookings and control inventory through
their own channels, dollar amounts per transaction will
likely rise and contribute to more substantial mobile
revenue growth.
Tablets to Surpass Smartphones for
TravelActivities
eMarketer added tablet researchers and bookers to
this year’s forecast, which adds a wrinkle to the mobile
discussion.Tablet usage in the US is growing significantly,
and almost three in five internet users will access a
tablet by 2016, eMarketer estimates. Alongside a general
usage increase, eMarketer expects tablets to outpace
and surpass smartphone usage for travel research and
booking, which will have a significant influence on the
growth of the mobile travel space.
millions and % of mobile travel researchers
US Mobile Travel Researchers, by Device, 2011-2017
2011
26.2
94.2%
5.8
21.0%
2012
35.4
93.4%
26.8
70.7%
2013
45.9
92.6%
39.0
78.6%
2014
54.5
91.6%
51.0
85.7%
2015
63.7
89.7%
63.7
89.7%
2016
73.4
88.0%
74.9
89.8%
2017
82.0
88.1%
83.6
89.9%
Smartphone Tablet
Note: ages 18+; mobile device users who researched travel information
prior to a trip via mobile device at least once during the calendar year but
did not necessarily book; numbers do not add up to 100% due to overlap
among smartphone, tablet and other mobile device users
Source: eMarketer, May 2013
156374 www.eMarketer.com
eMarketer estimates that more than 46 million US
internet users will book travel using tablets in 2017,
just more than the 42.9 million expected to book
via smartphone.

11. US DIGITAL TRAVEL SALES: MOBILE DRIVES CHANGES IN MATURE MARKETPLACE ©2013 EMARKETER INC. ALL RIGHTS RESERVED 11
millions and % of mobile travel bookers
US Mobile Travel Bookers, by Device, 2011-2017
2011
11.0
95.1%
2.6
22.7%
2012
15.5
84.8%
12.2
66.7%
2013
20.4
79.9%
19.0
74.2%
2014
25.4
77.7%
25.5
77.9%
2015
30.6
76.0%
31.8
79.0%
2016
36.7
75.4%
39.6
81.3%
2017
42.9
75.5%
46.3
81.5%
Smartphone Tablet
Note: ages 18+; mobile device users who booked travel via mobile device
at least once during the calendar year; numbers do not add up to 100%
due to overlap among smartphone, tablet and other mobile device users
Source: eMarketer, May 2013
156375 www.eMarketer.com
These devices are often used in different scenarios, and
it’s likely that there will be crossover among consumers
who own and use both.That’s why smartphone
researchers and bookers, and tablet researchers and
bookers, can account for such a large percentage of all
mobile researchers and bookers.
Travel Planning viaTablets Is NotTypically
‘Mobile’
As tablets proliferate and tablet-specific travel content
becomes more sophisticated, traveler usage of tablets
and smartphones will divide into clearer distinctions.
Though categorized as mobile devices, tablets
are typically used more like PCs for seeking travel
information. As a result, tablets are likely to replace some
PC research and booking over time. In addition to the fact
that tablet use spikes in the evenings—when consumers
are more likely to be browsing leisurely and shopping
for travel—tablets solve several of the main barriers to
smartphone travel booking:
■■ Most tablets have considerably larger screens than
smartphones, allowing for richer display and more
user-friendly navigation.
■■ When accessed at home through aWi-Fi network,
devices should receive a more reliable connection
than on cellular data networks.Travelers spend
much more time with their tablets connected
viaWi-Fi than through mobile broadband, which
is an advantage for travel research and booking
considering the bandwidth often required for
detailed, media-heavy travel content.
■■ Finally, “last-minute” and “discount” are still
conflated in the traveler lexicon, and tablet
research and booking is more likely to take place
at home in a “lean-back” context, in contrast
to the more urgent travel needs of the typical
smartphone booker.
“On a smartphone device, anywhere from 40% to 65%
of bookings are same day, but that’s not what happens
on a tablet. We’re all including tablet as mobile, but
fundamentally, I don’t actually view the tablet as a mobile
device,” said Bill Keen, director of mobile solutions for
IHG. “We refer to tablets as couch commerce [because]
around 70% of our tablet traffic comes from Wi-Fi, not
a mobile network—so that tells us that the customer is
actually very sedentary, and the context in which it’s used
is not truly mobile.”
US travelers who use digital devices to book trips are
already using tablets more often than smartphones for
that purpose, according to Expedia Media Solutions and
comScore. In an August 2012 survey, 34% of travelers
said they had purchased travel on a tablet within the past
six months, compared with 28% of travelers who used a
smartphone. A higher percentage of these mobile-toting
travelers booked hotels, air travel, ground transport and
attractions/activities on tablets than on smartphones.

12. US DIGITAL TRAVEL SALES: MOBILE DRIVES CHANGES IN MATURE MARKETPLACE ©2013 EMARKETER INC. ALL RIGHTS RESERVED 12
% of respondents
US Travelers Who Use Select Devices to Book Travel,
by Category, Aug 2012
PC Tablet Smartphone
Hotel 51% 17% 11%
Air travel 46% 11% 9%
Ground transport 21% 10% 7%
Attractions/activities 14% 10% 10%
Restaurant 10% 9% 10%
Total 77% 34% 28%
Note: ages 18+; in the past 6 months; 56% of respondents who used a
smartphone/tablet to book a hotel booked through an app; 58% of
respondents who used a smartphone/tablet to book air travel booked
through an app
Source: Expedia Media Solutions and comScore, "The Rise of Mobile:
Adoption, Sentiment & Opportunity," Nov 14, 2012
148344 www.eMarketer.com
In addition, the study found that nearly 60% of
mobile bookers purchased hotel and air travel through
apps, whether on tablet or smartphone. If that trend
continues—app purchasing over mobile web booking—
travel marketers will be even more inclined to tailor their
product offerings to particular devices.
EMARKETER INTERVIEWS
InterContinental Finds Booking viaTablet Is Part of
the Holiday
Bill Keen
Director, Mobile Solutions
InterContinental Hotels Group (IHG)
Interview conducted on September 5, 2012
Tim Hart
Executive Vice President, Enterprise Research
and Development
TravelCLICK
Interview conducted on April 23, 2013
RELATED EMARKETER REPORTS
US OnlineTravel Sales and Booking Forecast: Mobile
Offers Opportunities to Shift Share in a Mature Market
Marketing to MobileTravelers: Device Usage During
Travel Offers NewTouchpoints
The Cruise Industry: Does Online Engagement
Drive Sales?

13. US DIGITAL TRAVEL SALES: MOBILE DRIVES CHANGES IN MATURE MARKETPLACE ©2013 EMARKETER INC. ALL RIGHTS RESERVED 13
RELATED LINKS
Barclays Capital
BusinessTravel News
Cantor Fitzgerald
comScore
Consumer Barometer
Expedia Media Solutions
FareCompare
HeBS Digital
HotelTonight
Internet Retailer
PhoCusWright
PricewaterhouseCoopers
RBC Capital Markets
Skift.com
The 2012Traveler
Tnooz
TravelCLICK
US Department of Commerce
EDITORIAL AND
PRODUCTION CONTRIBUTORS
Cliff Annicelli Senior Editor
Kaitlin Carlin Copy Editor
Joanne DiCamillo Senior Production Artist
Stephanie Gehrsitz Senior Production Artist
Dana Hill Director of Production
Nicole Perrin Associate Editorial Director
Heather Price Copy Editor
Allie Smith Director of Charts