#WMTC18: Keynote Mike Thomas, Google Travel

The Tours & Activities segment is growing faster than ever and is even outpacing the total travel market growth. By 2020, total global revenue of Tours & Activities is expected to grow to $185 billion, representing nearly one quarter of projected global travel online revenue. Driven by the growing consumer shift towards experiences and digital expectations, it is the third largest segment of Travel behind Accommodations and Flights, with online booking overall is growing especially fast. In this session, Michael will discuss these trends in more detail and address how wineries and others in the industry can start thinking about taking advantage of these trends.

Transcript

1. Confidential + Proprietary Confidential + Proprietary Travel’s Next Frontier Michael Thomas | Oct 2018
2. Proprietary + Confidential Proprietary + Confidential Macro Trends in Travel Growth Competition Evolving Demand 95% Expedia + Booking online agency market share $147B Tours and Activities Mutually dependent Everyone wants a piece! $1.6T industry 44% Online penetration
3. Proprietary + Confidential Proprietary + Confidential $147B $185B Overall Tours and Activities Market is growing quickly 2017 2020
4. Proprietary + Confidential Proprietary + Confidential $38B
5. Proprietary + Confidential Proprietary + Confidential +3% annually Wine consumption is growing +2% annually Source: https://www.wineinstitute.org/resources/statistics/article86
6. Proprietary + Confidential Proprietary + Confidential +7% YoY +18% YoY Confirmed by search data
7. Proprietary + Confidential Proprietary + Confidential +38% YoY! People want information on the go, in real time
8. Proprietary + Confidential Proprietary + Confidential $1 $3
9. Proprietary + Confidential Proprietary + Confidential 78% Percentage of millenials that would rather purchase a desirable experiences/events vs. buying something desirable
10. Proprietary + Confidential Proprietary + Confidential *Phocuswright study State of Digital Travel 2017 “Travelers are increasingly shopping and trying to plan and book their experiences online, but it is the industry that is not yet ready, because it is so fragmented. But this is changing … ”
11. Proprietary + Confidential Proprietary + Confidential Proprietary + Confidential • Be where your customers are
12. Proprietary + Confidential Proprietary + Confidential 59% of searches are on mobile +10% YoY growth of online bookings
13. Proprietary + Confidential Proprietary + Confidential “Vacations in California” “Best wineries in Sonoma” Facebook retargeting ad Booked reservation! The consumer journey is complex “Winery Virtual Tour” on Youtube More touchpoints 100+ Touchpoints before making a hotel booking More Research 18+ Websites visited before making a hotel booking* More devices 30% of people in the US use 5 or more devices
14. Proprietary + Confidential Proprietary + Confidential Proprietary + Confidential • Be where your customers are • Tell the right story
15. Proprietary + Confidential Proprietary + Confidential Leverage video platforms to tell your story
16. 5-35% of ROI is from targeting 50-80% of ROI is from creative Source: Nielsen Catalina Research via the Advertising Research Foundation, 2017 Creative is serious business
17. Proprietary + Confidential Proprietary + Confidential Proprietary + Confidential • Differentiate and create loyalty • Be where your customers are • Tell the right story
18. Proprietary + Confidential Proprietary + Confidential 1. Customer Service [60%] 2. Easy to Use website [55%] 3. Online Reviews [50%] 4. Loyalty / Rewards Program [46%] Top Reasons for choosing a brand Source: Google/Greenberg High Value Travelers, 2018
19. Proprietary + Confidential Proprietary + Confidential Proprietary + Confidential • Differentiate and create loyalty • Be where your customers are • Tell the right story
20. Proprietary + Confidential Proprietary + Confidential Progress, not perfection
21. Confidential + Proprietary Confidential + Proprietary Questions?