On-Line Readiness Study OVERVIEW ► FINDINGS ► NEXT STEPS

1. On-Line Readiness Study OVERVIEW ► FINDINGS ► NEXT STEPS TourismTechnology.com

2. 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

3. Overview

4. 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 (TRC’s) • Credible and unbiased sources of IT information • Bridge the gap between suppliers and industry • Best practices/education on emerging technology and trends

5. On-line Readiness Study

6. 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-line—or someone else will.

7. On-Line Bookings Incidence of Travel Reservations/Booking On-line, 2000–2005 Among on-line travel planners Among on-line frequent travelers Among on-line travelers Among travelers Source: Travel Industry Association of America

8. Approach

9. 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

10. 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

11. Approach: Assess Market Secondary research • Demographic/baseline trend review (TIA’s 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

12. 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

13. Approach: Assess Local Industry (cont’d) Website evaluation • Conducted by website/content experts • Assessed criteria consumers listed as important: • Searchability (i.e. Google) • Content • Navigation • Usability

14. Approach: The Gap The Gap Consumers Operator Industry in Atlantic Canada

15. Findings

16. 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!

17. Primary Research

18. TRAVEL PLANNING AND BOOKING CYCLE INSPIRATION RESEARCH NARROWING OPTIONS BOOKING Primary Research: Consumers Consumers will only book on a website they like and trust! Buying Cycle Inspiration Research Narrowing of options Booking

19. TRAVEL PLANNING AND BOOKING CYCLE INSPIRATION RESEARCH NARROWING OPTIONS BOOKING Primary Research: Consumers (cont’d) 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.

20. TRAVEL PLANNING AND BOOKING CYCLE INSPIRATION RESEARCH NARROWING OPTIONS BOOKING Primary Research: Consumers (cont’d) 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

21. TRAVEL PLANNING AND BOOKING CYCLE INSPIRATION RESEARCH NARROWING OPTIONS BOOKING Primary Research: Consumers (cont’d) 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

22. TRAVEL PLANNING AND BOOKING CYCLE INSPIRATION RESEARCH NARROWING OPTIONS BOOKING Primary Research: Consumers (cont’d) 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

23. Primary Research: Consumers (cont’d) • 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.

24. 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 • Operator’s happy with websites • View websites as basic information tool • Many content/quality elements missing from sites • Room for growth

25. Primary Research: Operator Phone Survey (cont’d) • Sites not updated frequently Weekly Monthly Quarterly Every 6 Months Yearly Never Time Period Frequency of Site Updates

26. Primary Research: Operator Phone Survey (cont’d) • No perceived problems with improving website Investment in Design Equipment Marketing Photography Connectivity Hosting Issues Other No Perceived Problems Roadblocks to Improving Websites

27. Primary Research: Operator Phone Survey (cont’d) • Investment in site maintenance is low < $100 $101–$249 $250–$499 $500–$999 $1,000–$2,499 $2,500–$4,999 > $5000 Website Marketing Spend

28. Primary Research: Operator Phone Survey (cont’d) • Traditional advertising most popular, search engine marketing happening too No Yes Web Banner Advertising Traditional Advertising(Visitor’s Guides) Co-operative Advertising(Events Sponsors) SearchEngines(Google) Marketing Investment

29. Primary Research: Operator Phone Survey (cont’d) • 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

30. 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

31. Primary Research: Website Evaluations (cont’d) Navigation • Key information regarding rates is not always there

32. Primary Research: Website Evaluations (cont’d) • 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

33. Primary Research: Website Evaluations (cont’d) • Content • Information is sometimes there, but not high quality

34. Primary Research: Website Evaluations (cont’d) • 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/don’t call

35. The Gap

36. 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

37. 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.

38. Gaps on Websites (cont’d) • 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

39. Gaps on Websites (cont’d) • 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, 2000–2005

40. Gaps on Websites (cont’d) • 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

41. Action Plan Action Plan

42. 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

43. TourismTechnology.com Contact Information Craig FoleyTechnology Resource CoordinatorHospitality Newfoundland and Labrador(709) 722-2224 Ext. 32craig@tourismtechnology.com Michelle Sears Technology Resource CoordinatorTourism Industry Association of Nova Scotia(902) 423-4480michelle@tourismtechnology.com Jamie Vander KooiTechnology Resource CoordinatorTourism Industry Association of PEI - TIAPEI(902) 566-5008jamie@tourismtechnology.com Bernard GauvinTechnology Resource CoordinatorTourism Industry Association of New Brunswick(506) 344-0183bernard@tourismtechnology.com