OnLine Readiness Study

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TourismTechnology.com

• On-Line Readiness Study
• OVERVIEW ? FINDINGS ? NEXT STEPS

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Table of Contents

• TourismTechnology.com Overview
• On-Line Readiness Study Overview
• Rationale
• Approach
• Findings
• Literature Review
• Primary Research
• Best Practices (Bottom Line Critical Website
  Success Factors)
• The Gap
• TourismTechnology.com Action Plan

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Overview
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TourismTechnology.com Overview

• Overview
• Government-industry partnership between ACOA, the
  four Atlantic Provincial Tourism Industry
  Associations, and the four Atlantic Provincial
  Tourism Departments.
• Mandate to increase global competitiveness of
  operators through enhanced use of technology
• Strong presence in Atlantic Canada since 1998
  increasing rate of connectivity and general IT
  awareness
• Technology Resource Coordinators (TRCs)
• Credible and unbiased sources of IT information
• Bridge the gap between suppliers and industry
• Best practices/education on emerging technology
  and trends

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On-line Readiness Study
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Study Rationale

• Overwhelming trend towards use of Internet
• Research
• Plan
• Book on-line
• Trend applies to virtually all segments
• Internet is the channel
• We need to be prepared to meet and do business
  with our
• customers on-lineor someone else will.

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On-Line Bookings
Incidence of Travel Reservations/Booking On-line,
20002005
Among on-line travel planners
Among on-line frequent travelers
Among on-line travelers
Among travelers
Source Travel Industry Association of America
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Approach
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Overview

• Focus
• Determine readiness of Operator to do business
  on-line
• Three-step Approach
• Assess local industry
• Assess consumers and future market trends
• Determine the gap between industry and consumer
  and market demands
• Results
• Develop strategic plan
• Assist industry to close the gap

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Approach Assess Consumers

• Focus groups with household travel decision
  maker,
• at least one trip in the past year
• Boston
• Toronto
• Montreal
• Insights provided into
• Inspiration
• Planning
• Booking

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Approach Assess Market

• Secondary research
• Demographic/baseline trend review (TIAs
  Travelers Use of the internet, 2005)
• Online travel best practices
• Future trends
• Emergent technologies
• Provided insight into
• Industry direction
• Consumer expectations
• Critical success factors
• Importance of booking on-line

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Approach Assess Local Industry

• Primary research
• 10-minute telephone interview
• 374 Telephone survey with Operator in Atlantic
  Canada
• Focused on
• Importance and role of website
• Administration of website
• On-line marketing activities
• Website content
• Website usability
• Website professionalism

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Approach Assess Local Industry (contd)

• Website evaluation
• Conducted by website/content experts
• Assessed criteria consumers listed as important
• Searchability (i.e. Google)
• Content
• Navigation
• Usability

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Approach The Gap
The Gap
Consumers
Operator Industry in Atlantic Canada
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Findings
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Overall

• Internet is becoming key channel for research,
  planning and now booking travel
• Consumer expectations are rising
• Google, Amazon, eBay setting the standard
• Operators must recognize their website as part of
  complex buying process
• Must be ready for the traffic
• Sell the product
• Close the deal!
• Consumers not satisfied with operator sites
• Professionalism
• Content
• Usability
• Booking
• We have work to do!

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Primary Research
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Primary Research Consumers

• Buying Cycle
• Inspiration
• Research
• Narrowing of options
• Booking

Consumers will only book on a website they like
and trust!
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Primary Research Consumers (contd)
Phase 1 Inspiration Goals Find wish list and
mustsee destinations Influences Friends and
advertising Marketing/advertising/
communications Operator website is not often a
source for inspiration Process Broad in-take of
information Looking for inspiration Something
to catch their eye
Friends are the best resources since you know how
they measure up against your own needs.
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Primary Research Consumers (contd)
Phase 2 Research Goal Sort out options
Select locations/activities to research Find
deals Influences Internet (search engines and
aggregators) Articles, guides, specialty TV
shows Use of Agents decreasing Process Use
aggregate sites to generate options Look on
property site for details/deals Scan site to
check for fit with tastes/standards Look for
deals/promotions/availability on specific and
flexible dates
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Primary Research Consumers (contd)
Phase 3 Narrowing Options Goal Find deals
Refine plans Confirm choice Influences
Internet (aggregators, operator sites) Process
Visit 3-6 sites Confirming details (activities,
price, dates) Jumping-on point to local site
Consumer is now going to operator site directly
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Primary Research Consumers (contd)
Phase 4 Booking Goal Confirm deal Complete
transaction Influences Safety Security
Accuracy Support (1-800 number) Process Look
for secure/recognized booking option Credit
card most popular
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Primary Research Consumers (contd)

• Conclusions (Success Factors for Operator Site)
• Professionalism
• Trustworthy
• Secure
• Content
• Convey charm
• Pricing
• Deals/packages
• Availability
• Amenities
• Photography
• Usability
• Site navigation
• Tools
• Mapping
• Calendars

Customers needs must be satisfied at each stage
of the cycle, or they will not proceed.
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Primary Research Operator Phone Survey

• Key Findings
• 99 of Operators have an independent website
• 52 can edit/change
• Strongly satisfied with website presence
• Not many roadblocks to improving websites
• Over half use search engine marketing
• Over half respondents use site visits and email
  inquiries to measure success of their website.
• Key Conclusions
• Operators happy with websites
• View websites as basic information tool
• Many content/quality elements missing from sites
• Room for growth

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Primary Research Operator Phone Survey (contd)

• Sites not updated frequently

Weekly
Monthly
Quarterly
Every 6 Months
Yearly
Never
Time Period
Frequency of Site Updates
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Primary Research Operator Phone Survey (contd)

• No perceived problems with improving website

Investment in Design
Equipment
Marketing
Photography
Connectivity
Hosting Issues
Other
No Perceived Problems
Roadblocks to Improving Websites
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Primary Research Operator Phone Survey (contd)

• Investment in site maintenance is low

lt 100
101249
250499
500999
1,0002,499
2,5004,999
gt 5000
Website Marketing Spend
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Primary Research Operator Phone Survey (contd)

• Traditional advertising most popular, search
  engine marketing happening too

No
Yes
Web Banner Advertising
Traditional Advertising(Visitors Guides)
Co-operative Advertising(Events Sponsors)
SearchEngines(Google)
Marketing Investment
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Primary Research Operator Phone Survey (contd)

• Measuring Results
• 33 of Operators do not measure results
• 67 currently run analytics on their websites
• 65 use unique visits to measure success
• 57 use email inquiries
• 46 use actual bookings

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Primary Research Website Evaluations

• Key Findings
• Many elements consumers want are not found on
  majority of Operator websites.
• Gap between consumers and Operators perception
• Users rate website experience an average of 6/10
• Operator rate own websites 8/10
• Key Conclusions
• Need to raise the bar
• Online delivery not meeting consumers needs
• Action must be taken quickly or consumers will
  go elsewhere

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Primary Research Website Evaluations (contd)

• Navigation
• Key information regarding rates is not always
  there

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Primary Research Website Evaluations (contd)

• Mapping
• 59 of sites had at least one map on site
• 40 had driving instructions
• But of those that had mapping, most only scored
  6/10 in terms of experience
• Conclusion
• Consumers expect good maps, driving directions
  and tools to help plan their trip

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Primary Research Website Evaluations (contd)

• Content
• Information is sometimes there, but not high
  quality

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Primary Research Website Evaluations (contd)

• Photos were not ranked as high quality (avg.
  6.5/10)
• Yet Operators were satisfied with images
• Good photography helps sell
• Builds trust
• Conveys charm/feeling of property
• Allows consumer to form opinion
• Consumer expectations are
• Photos of every room, linked to a description
  with a rate
• Only 38 of evaluated sites had photos of every
  room, and only 24 linked to rates and
  descriptions
• High quality images, or they leave the site/dont
  call

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The Gap
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What is The Gap?
The Gap
Consumers will go elsewhere if they continue to
receive the current level of experience on
Operator websites. A change in perception of the
Operator is mandatory to the success of any
program.
Consumer Expectation
Industry Website
PLEASURE EMOTIONAL SATISFACTION
THE GAP
USABILITY
FUNCTIONALITY
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Gaps on Websites

• Content
• Quality of images/information was not high
• Links to deals, packages and specials were often
  missing
• Links to other local events, restaurants, shops,
  night life often not available
• Usability
• Websites reviewed were not
• Easy to use
• Easy to navigate
• Easy to find information
• Did not provide a showcase or summary of
  features

Consumers require these elements to be present,
and of a high quality or they will move on.
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Gaps on Websites (contd)

• On-Line Booking is key
• Majority of transactions will occur on-line
  within the next 3-5 years
• Source, eMarketer 62 of travelers will book
  directly with the supplier by 2010
• Operators need capability to remain competitive
• The telephone is not enough

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Gaps on Websites (contd)

• On-line Booking

Among on-line travel planners
Among on-line frequent travelers
Among on-line travelers
Among travelers
Source Travel Industry Association of America
Incidence of Travel Reservations/Booking On-line,
20002005
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Gaps on Websites (contd)

• Conclusions
• Most Operator websites do not meet the needs of
  on-line consumers
• A successful website is
• Easy to use
• Provides meaningful content
• Communicates the experience
• Makes the consumers want to buy
• Unless action is taken quickly, this will get
  worse, and have a negative impact on bookings

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Action Plan
Action Plan
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TourismTechnology.com Action Plan

• Education
• Develop and deliver education about the gap
• PowerPoint presentation to industry groups
• Industry trade shows and annual meetings
• Options
• Consult Industry on available options
• Content management systems
• On-line booking/e-commerce options
• Tools
• Develop and deliver best practice tools to close
  the gap
• Best practice website template
• Best practice checklist
• Mentoring and support
• Provide on-going support to industry and
  operators to adopt, implement and successfully
  use new on-line tools
• Consult operators on new technology trends within
  the industry to help them continuously deliver a
  positive customer experience

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TourismTechnology.com Contact Information

• Jamie Vander KooiTechnology Resource
  CoordinatorTourism Industry Association of PEI -
  TIAPEI(902) 566-5008jamie_at_tourismtechnology.com
• Bernard GauvinTechnology Resource
  CoordinatorTourism Industry Association of New
  Brunswick(506) 344-0183bernard_at_tourismtechnology
  .com

Craig FoleyTechnology Resource
CoordinatorHospitality Newfoundland and
Labrador(709) 722-2224 Ext. 32craig_at_tourismtechn
ology.com  Michelle Sears Technology Resource
CoordinatorTourism Industry Association of Nova
Scotia(902) 423-4480michelle_at_tourismtechnology.c
om