Consumers' path of purchasing a travel product

Hotels have been working hard to win more travelers to "book direct" on their companies' websites, but are consumers listening?

In fact, hotels are not alone. All service providers in the hospitality and tourism industry want their customers to make purchases directly on their websites, but consumers want to search and compare various options before making a decision.

So, to convince customers to purchase directly on the service providers' websites, companies must understand where their customers "hang out" in the cyber marketplace before they make the purchasing decision, as well as where they end up buying their services.

The white paper "Understanding the Travel Consumer's Path to Purchase" by Eye for Travel provides some business intelligence in that regard. The report combined a large panel consumer data of online transactions and surveys into the analysis, revealing the following results:

The places where customers purchase a travel product

With an analysis of about 200,000 bookings in the U.K. and the U.S., online travel agents (OTAs) such as Expedia and Priceline are winning big in the competition.

In the U.S. market, 42 percent of purchases came from OTAs, leaving 39 percent for airline brands and 19 percent for hotel brands. In the U.K. market, 73 percent of purchases came from OTAs, 23 percent from airline brands and only 4 percent from hotel brands.

The devices used for buying the travel product

Devices being used for hotel reservations:

• Desktop or laptop (49.9 percent from the U.K. sample / 62.1 percent from the German sample)
• Face-to-face (6.1 percent / 11 percent)
• Tablet browser (17.3 percent / 5.5 percent)

Devices being used for flight bookings:

• Desktop or laptop (51 percent from the U.K. sample / 56.1 percent from the German sample)
• Face-to-face (9.3 percent / 20.1 percent)
• Tablet browser (15.2 percent / 4.4 percent)

Desktops or laptops remain the most-used devices for making a purchase, and desktops have higher conversion rates for all OTAs, all airline brands and all hotel brands than mobile devices. But before consumers make a purchase, let's also check out ...

The devices used for browsing before making a purchase

• 80.7 percent of those who used desktops or laptops to search also used the same device to book.
• 63.8 percent of those who used tablets to search also used tablets to book; 21.3 percent of those who used tablets to search ended up using desktops or laptops to book.
• 36.2 percent of those who used smartphones to search would use desktops or laptops to book; about the same percentage, 35.1 percent, of those who used smartphones to search also used smartphones to book.

The websites visited before making a purchase

For a purchase on OTAs, about 90 percent used search engines, about 75 percent visited the OTA site prior to conversion, and about 25 percent visited the competitor OTA sites prior to conversion.

For a purchase on an airline website: about 90 percent visited search engines, between 69 and 84 percent visited the airline website prior to conversion (across three samples of the U.S., the U.K., and Germany). Depending on the regions of where the customers came from, over 20 percent also visited a social media site such as Facebook or Twitter (U.S.), a meta-search site such as Kayak or Trivago (U.K.), or an OTA site (U.K. and Germany).

For a purchase on a hotel website: about 90 percent used search engines, about 70 percent visited the hotel website prior to conversion, and about 20 percent visited an OTA site.

Where do smartphones fit in?

It seems smartphones played a more significant role in both the researching and purchasing processes for consumers in less developed countries than those in developed countries. For example, 66 percent of Indians accessed travel websites with mobile devices, but only 34 percent of them used desktops. In the U.S., such percentages changed to 54 percent for using mobile devices and 46 percent for using desktops.

Not surprisingly, a large percentage of consumers aged between 18 and 34 owned at least one smartphone. For example, 85 percent of Chinese aged between 18 and 34 owned at least one smartphone, but only 43 percent of Chinese aged 35 or above used smartphones.

Another good example came from the U.K. consumers aged between 18 and 35. When asked if they researched and/or booked air travel on a smartphone in the past, over 90 percent of participants said so. Specifically,

• 23.4 percent always booked flights on a smartphone.
• 22.9 percent regularly booked flights on a smartphone.
• 21.8 percent occasionally booked flights on a smartphone.
• 22.1 percent researched flight information using a smartphone even though they did not book with a smartphone.

What are the next big things?

The top two "game-changing" factors in the industry were mentioned:

• Data-driven personalization (78 percent of participants being surveyed)
• API-led (application programming interface) distribution partnership (14 percent)

The top three areas for future opportunities include:

• Mobile (79 percent from European respondents / 74.7 percent from North American respondents)
• Content and digital marketing (58.8 percent / 65.3 percent)
• Social media (35.3 percent / 50 percent)

Other possibilities or opportunities may include:

• Will search engines become the next big player in selling travel products? Many consumers have already been using search engines to research products, so why can't Google Travel or Bing Travel become the next big thing?
• Can Facebook get into the game, too? Facebook has tried to let its users make purchases on a business's page, rate a business or service and make recommendations of purchases for their friends. Most of all, the hospitality and tourism industry is too big to be ignored.
• Will Apple try Apple Travel, too? At least, Apple can easily reach all the Apple users.
• Will WeChat dominate the Chinese marketing in selling travel products? I tried to make hotel reservations on WeChat because I could not find good internet connections when I was traveling in mainland China, and WeChat became very handy.

Now, do you have a better idea of where travel or hospitality companies can reach their target customers in the cyber marketplace? Tell us what else you want to know. Your voice could inspire the next big research project.

This post was also published on MultiBriefs Exclusive, the leading source for targeted, industry-specific news briefs.  

Learning while Tweeting: Why Not?

Using smartphones in class?  Don’t students have enough distractions?  Doesn’t tweeting or texting make students disrespectful to the professor in class?

As a professor myself, I certainly understand how distracting a smartphone can be to a student in class, but at the same time, I also believe using smartphones and tablet computers can enhance students’ learning experience if they are used appropriately.  Here is my experience.   

When I taught at Texas Tech, I had a strict policy that prohibits students from using laptops and cellphones in class.  I adopted the same policy when I first moved to Syracuse University (SU).  It made sense at that time because I wanted students to engage with me in face-to-face and verbal discussion. 

Time has changed, however.  When I developed and taught the social media class at SU and RIT (Rochester Institute of Technology).  I turned to the opposite direction.  I requested to teach in a computer lab.  Students were encouraged to used laptops, smartphones, and tablet computers, and they were required to tweet during class.  I administrated class discussion on Twitter.  Afterwards, either a student or I would summarize the class discussion on Storify.  Students could refer to class discussions (notes) on Storify at any time.  It seems to me students were engaging on Twitter.  In the end, they also became very familiar with Twitter as a communication tool, which was also one of the learning outcomes of the class.  I have found it very helpful by allowing students to use tablets or smartphones in class. 

Will students take advantage of the lenient policy?  What if they also check on something that they are not supposed to, such as writing a none-class-related post on Facebook or shopping online?  I take it this way – if students are good at multi-tasking, which means they are able to engage on Twitter and do other things at the same time, I respect them and let them continue what they are doing in class.  If they are not participating, I will “pull” them back to the class by asking them to elaborate what is said on Twitter. 

Very soon, I will be teaching in The Collins College of Hospitality Management at Cal Poly Pomona.  I feel fortunate that I can teach in the “smart” classroom, which can be controlled with an iPad and has multiple screens.  I am encouraged to replace the professor-centered idea with a student-centered pedagogy.  It doesn’t matter what subjects I am teaching, I will definitely encourage students to use smartphones and/or tablet computers to interact with me, in addition to face-to-face conversations.  I am looking forward to trying out new educational apps and new teaching tactics in the “smart” classroom.  Please stay tuned for more updates.

In the end, I would like to share with you a Wall Street Journal video, which is also about using smartphones in classroom.  In your opinions, should students be allowed to use smartphones in class?  Why or why not?  What are the best practices for professors to engage with students in class?

Relevant discussion:

The Challenges of Using Social Media in Teaching

Teaching Social Media in Business Schools: What Needs to Be Covered?

Text Messages that Teach: A Great Example of Entrepreneurship in the Mobile Device Market

Can a Tough Cell Phone Policy Teach Teenagers Cell Phone Etiquette?

Still Feeling Reluctant to Adopt a Social Media Strategy: Please Think Again

Reference:

The picture was downloaded from Kellimarshall.net 

The Basic of Digital Etiquette

If you are reading my blog now, you are probably also very active on Facebook, Twitter, and other social media websites.  Over the years, has anyone made you wonder if s/he needs training on digital etiquette?

It happened that Today’s Show also discussed this topic earlier. Let’s see if it is well-said. Here are some highlights:  

• “Unplug” completely during vacation.
• Do not over posting “food porn” unless the food is really special or in a special occasion. Also, do it when it does not bother others in the restaurant and the servers.
• Limit the number of hashtags --- there is not a set limit. Personally, I think it is good to have up to three hashtags for every post. Too many hashtags equal to no hashtag for me. For that being said, it is a idea to create a hashtag for a special event like a wedding for tracking.
• A written thank you note is always better than a thank you message on e-mail. 
• Just like daily conversations, too many update about a person’s political views, personal opinions, and his/her life might annoy other people.

I believe the basic of digital etiquette is simple --- be thoughtful to others. In this case, we need to keep in mind “WIIFM” (What’s In It For Me? Me = the audience). Sharing updates on social media is certainly important, but engaging with the audience is the key to develop a meaningful relationship.  

Visit NBCNews.com for breaking news, world news, and news about the economy

  

Relevant discussions: 

Etiquette for the New Age 

Social Media Etiquette for Business 

Dinner Etiquette 

New Dining Etiquette by Zagat 

Smart Phone Etiquette 

Mobile Etiquette on Vacation 

Mobile Etiquette 

Wedding Etiquette in the Age of Social Media 

Wedding Etiquette 

International Etiquette 

  

References:

The picture was downloaded from NBCNews.com

Wedding Etiquette in the Age of Social Media

In today’s age, a guest shares an average of 22 photos per wedding on social media sites (The Today Show - NBC News Network). The truth is no matter if we like it or not, social media has forever changed the way people do weddings, but does everyone know the wedding etiquette in the age of social media? Based on what is discussed in the NBC News video, I recommend the following:

For the Bride and Groom

• Make up your mind if you prefer to either keep your wedding private or make it a “public” event on the internet.
• If you want to keep yours a private and exclusive event, make it clear that you do not want anyone to post anything on the internet.
• If you do not mind making yours a “public” event, you may do yourself a favor by creating a hashtag for your wedding and encourage your guests to post updates using the hashtag. Unless you have told your guests not to share any updates about your wedding, chances are you will find updates and pictures about your wedding everywhere on the internet anyway. So, creating a hashtag will help you better organize the updates, pictures, and videos about your wedding later.
• Provide your guests clear RSVP instructions (e.g., surface mail, e-mail, online, and etc.).
• Engage with your guests before and after the wedding by participating in their conversations about your wedding --- you will be occupied with many other and more important things during the wedding.

For Wedding Guests

• Respect the bride and groom for their privacy preference of their wedding.
• If they want to keep the wedding a “private” event, do not share anything about the wedding before, during, or after the event.
• If the bride or groom did not tell you their preference, ask before posting anything about the wedding on the internet.
• Ask for permission of other guests before posting or tagging pictures of them (we should do that in every occasion really).
• Take off a picture immediately if one of the persons in the picture asks you to do so.
• Follow the RSVP instructions (e.g., surface mail, online invitation, e-mail, etc.).
• Pay full attention to the groom and bride during the wedding and enjoy the experience of being there as a guest, unless you are expected to be the photographer for the wedding.

Have I covered every key point? What else do you want to add to the list? What is the “inappropriate social-media behavior(s)” you have seen in a wedding?

Visit NBCNews.com for breaking news, world news, and news about the economy

References:

The picture was downloaded from arkarthick.com 

Smartphones: An Effective Means for Employee Recruitment

SoLoMo – Social, Local, and Mobile – is not a trend; it is happening right now on this moment. If a company does not have a clear SoLoMo strategy or a mobile-optimized website by now, the company has fallen behind in competition.

I am an optimistic person and thus believe many companies have already taken SoLoMo seriously. Otherwise, they have probably been defeated by their competitors who embrace SoLoMo. My real concern is that not every company has an integrated SoLoMo strategy. Often, companies pay close attention to SoLoMo’s effect on sales and marketing. A true integrated strategy, however, must include every facet of business operations into considerations.

Yesterday, The Wall Street Journal reported a story that highlighted the SoLoMo’s impact on employee recruitment. According to this report, mobile devices will outpass desktops/laptops and become Americans’ preferred method for accessing the internet by 2015. Among the Fortune 500 companies, 167 (33%) have already had career portals that are optimized to fit in a smartphone screen. A year ago, only 65 companies did so.

McDonald’s and Macy’s are the two examples cited in the report. McDonald’s launched its mobile career site back in 2008.  At that time, three million people visited the mobile site and 24,000 actually submitted an application on the mobile site. By 2012, McDonald’s received two million applications, with a record of 30 million visits of its mobile career site. Today, McDonald’s mobile career site brings over 10% of applications to the company.

Macy’s tested its mobile-optimized career page in 2011 with selected positions like software developers and marketers before the company rolled out a mobile page for hourly employees in 2012. Today, Macy’s receive 20-25% of applications from its mobile career page.

Recently, Convenience Store Decisions and Humetrics conducted a national human resource (HR) survey with nearly 100 convenience store chains, representing 12,000 stores in the U.S. The results also support SoLoMo’s impact on HR operations, including:

• The two most effective recruiting tools for hourly employees are in-store ads or outdoor signage and employee referral program. For salaried positions, internet job boards and company websites become the two most effective methods.
• Social media are being used in recruitment by 28% of respondents, significantly higher than what was reported in 2012 (2%).
• The usage of CraigsList for recruiting hourly employees increased from 21% in 2011 to 25% in 2012 (Craigslist also has a mobile app).
• Only 5% stores are using social media sites for screening now, but another 5% plan to add checking social media sites as a screening method in 2013.
• About 22% suggested they will adopt new training technologies, such as e-Learning, Webinars, learning management systems, smartphones, iPad, PC, among many others.

Another market-research report by Nielsen found that 63% of Americans use mobile devices to access social networking sites such as Facebook and LinkedIn (Weber, 2013). Mobile devices indeed provide a great means for companies to reach potential candidates. To embrace SoLoMo, some employers also use QR codes and text-messaging in mobile recruiting.

One challenge of doing mobile recruiting, however, is that mobile-optimized career sites might not be as easy to navigate as the sites on laptops/desktops (Weber, 2013). Regardless, SoLoMo in HR is happening now.

Do you think SoLoMo will play an even more important role in HR? How about its impact on other areas of business operations? How can businesses respond to the SoLoMo movement? Referring to your personal experience, for what purposes do you use mobile devices? Do you believe your smartphone can help you find a job in the future? Why or why not?

Relevant Discussion: 
SoLoMo for Social Media Strategists

HR Challenges Created by Social Media 

Hiring Created Minds as the Chief Innovative Officer  

References:

Kleiman, Mel. (April, 2013). The 2013 convenience store human resources study. Convenience Store Decisions, 24(4), p. 26-30.

Weber, Lauren. (April 24, 2013). How your smartphone could get you a job: McDonald’s, Macy’s customize their career sites, but most companies aren’t moving fast enough. The Wall Street Journal, retrieve online on April 24, 2013 via http://online.wsj.com/article/SB10001424127887323551004578441130657837720.html

The picture was downloaded from teczealots.com

Smart Marketing with Smartphones

Photo taken from www.glamour.com/

You’re waiting in the car at the gas station. You’re bored at the doctor’s office. You’re waiting for your professor to arrive to class. You’re at a party that’s lame. What do you do? 

You do exactly what everyone else does. You reach for your phone. You check your Facebook notifications, then you check the weather for tomorrow, next you see who won the big game.The list goes on. Anything you used to do on your PC, you now have the capability of doing on your smartphone. 

There are currently 4 billion phones in use, of these 1.08 billion are smartphones. 

How many applications do you have on your smartphone? How many do you think the average person has? And, what does it take for you to download a free App or spend money to buy an App? 

According to an article written back in 2009 on CNN Money, Apple employs 40 individuals to approve Apps for the App Store. Every week, approximately 8,500 applications are submitted to this team for approval. As of September 2012, 650,000 Apps were available on the App Store. 

Photo taken from www.thebreakfast.com

So, now that you have downloaded the Twitter, Facebook, Yelp and GoogleMaps you only have 56 more to go to reach the number of Apps the average person has downloaded. 

Restaurants, movie theaters, television shows, airline carriers, travel agencies, banks and retail stores are all utilizing SMS advertising and mobile applications to generate leads, traffic and add new customers. 

But, why are companies investing billions of dollars into this new platform of advertising?

Companies understand the ROI on the mobile movement. Nine out of ten smartphone searches results in an action. For instance, going to Starbucks because FourSquare offered you a coupon or going to the movies because you watched a trailer on your Fandango App or trying a new restaurant because you saw great reviews on Yelp. 

What are your favorite Apps you have downloaded or purchased? Which Apps do you use on a daily basis? And, what companies do you think are leading the mobile movement? 

Check out this video for a better understanding of the mobile movement. 

 References:

Costello, S. (2012). How Many Apps Are in the iPhone App Store. Retrieved from http://ipod.about.com/od/iphonesoftwareterms/qt/apps-in-app-store.htm

Elmer-DeWitt, P. (2009). 40 staffers. 2 reviews. 8,500 iPhone apps per week. Retrieved from http://tech.fortune.cnn.com/2009/08/21/40-staffers-2-reviews-8500-iphone-apps-per-week

 Olenski, S. (2012). American Express Looks To Shake Up Mobile Advertising. Retrieved from http://www.forbes.com/sites/marketshare/2012/06/05/american-express-looks-to-shake-up-mobile-advertising/

 Perez, S. (2011). App-ocalypse. Retrieved from http://techcrunch.com/2011/12/18/app-ocalypse/ 

Pham, D. (2011). Smartphone user study shows mobile movement under way. Retrieved from http://googlemobileads.blogspot.com/2011/04/smartphone-user-study-shows-mobile.html

Social Media in Mainland China – “bei hexie le”

What? Bei hexie le??? For your information, that is not a typo. In Mandarin Chinese, “bei hexie le” means “(something) has been harmonized.”

According to the Wall Street Journal report by Xiao Qiang and Perry Link, people in mainland China have to be very “creative” when communicating on the internet because the government is actively and heavily monitoring people’s conversation in the cyberspace. So, instead of posting “my wallet has been stolen” on the internet, one must use “wo bei hexie le” as a “synonymic but good” expression (translated into “I have been harmonized” for the bad accident happened to me). Otherwise, this kind of messages will be screened, and their voices will never be heard.

For a long time, I have known and accepted the fact that I cannot communicate with my family and friends in mainland China via social media. They have no access to Facebook, Twitter, or my blogs --- you can be the judge here and decide whether my blog is strictly business focus or promoting anti-China thoughts/activities.

Regardless, I have to admit that I am very impressed with the power of the Chinese government. How can it manage to literally cease the social media movement in a country of over 1.3 billion people? Can China continue to do so by stopping the social media movement in the history of human development? Very likely, China has the power to do that, but I wonder if such scrutiny on censorship will actually do more harm than good to the country and the Chinese citizens.

I am not a politician by any means, but I see social media as a very powerful communication tool for business. Business must actively engage with their customers and business partners on social media to stay competitive. Yes, there are times when people say negative things about the business, but social media is not about “controlling” or preventing what people talk about on the internet. Rather, business needs to take every feedback seriously and respond to the negative reviews in a professional way. Think positively, customers are providing the business an opportunity by providing negative feedback so that the business can address the issue before it becomes too big or too late.

Under the scrutiny on censorship in mainland China, my friends can occasionally jump over the firewalls and access their Facebook and Twitter accounts. There are two popular and so-called social media tools available in China --- Weibo, which is the only microblogging tool that is certified by the Chinese government, as well as WeChat, which is a mobile app for photo sharing, text messaging, and microblogging. I tried to sign up a Weibo account about a year ago. I was denied because I was using an e-mail address at Yahoo.com. I am now using WeChat to connect with my friends and family in China, but it does not seem like a real social-media tool to me because my friends cannot see any activities between my other connections and me. For example, they do not know if we have any shared connections or what I “like” or comment on WeChat; they cannot even join the conversation between my other friends and me on my wall (except the time when I initiate a group chat). Then, in what way can WeChat and Weibo help promote an international business?

There are advocates promoting a life-style with no texting, tweeting, or Facebooking. Maybe this group is exactly what the Chinese government is after.  

What do you think? Is the censor’s scrutiny helping the country and the people living there? Why or why not?

Other relevant discussions:

“SoLoMo” and Legislation

Starbucks and Pizza Huts: Time Has Come for a Rapid Expansion in Mainland China

The Biggest Challenge and the Hidden Opportunity of Entering the Chinese Market

Investing in Lodging Stocks in China

References:

Qiang, Xiao and Link Perry (2013, January 5-6). In China’s cyberspace, Dissent speaks code – What to escape the censor’s scrutiny? Call the regime a ‘heavenly dynasty.’ Just don’t get ‘happieness-ified.’ The Wall Street Journal, C3. Also available online on http://on.wsj.com/SqXeU0

The picture was downloaded from Geek.com.

“SoLoMo” and Legislation

The “SoLoMo” (Social, Local, and Mobile) movement has great impact on consumer behavior and business operations. Now than ever before, more consumers are using mobile payments. According to a recent report @USAToday, the number of mobile payment users is expected to surge from 160.5 million in 2011 to 212.2 million in 2012, a 32% increase; likewise, the amount of mobile payment transactions will grow from $105.9 billion in 2011 to $171.5 billion in 2012, up 62%.

Earlier this month, Starbucks announced that consumers would be able to purchase coffee with Square’s Wallet App starting in November 2012. Eventually, consumers will be able to place an order and settle the payment even before they enter a Starbucks’ store.

When promoting mobile payment options or doing mobile marketing, however, businesses have to jump through one hoop --- they must convince their customers that such mobile app is safe and reliable and that their business is trustworthy. Recently, I received a few spam text messages, telling me that I have won a BestBuy gift card or have an issue with my credit card that needs my immediate response. Like many other consumers, I become more cautious for mobile marketing messages because of spams. Thus, spams create negative impact to those authentic mobile marketing messages as well as “SoLoMo.”

The good news is FCC (Federal Communications Commission) in the U.S.  has published guidelines and oversees the policies for communications, which regulate businesses’ using email and text messaging as a marketing or a business-to-consumer communication tool. For example, consumers must choose to opt-in/double-opt-in to receive e-mail or mobile marketing messages, and companies must allow consumers to opt-out such service at any time. More recently, FCC is proposed to ban internet to phone text messages, according to this FoxNews video.

Are such legislations sufficient in protecting consumers and thus help promote the “SoLoMo” movement? What else could be done to further protect consumers?

Or, do you think legislation should be kept in a minimal level so that companies can compete with one another with more freedom? Besides legislation, what other alternatives could be helpful in promoting “SoLoMo” while protecting consumers?

Relevant discussions:

Free Group Texting Service 

Using Cell Phones to Make Payments


References:

Platt, Spencer (October 5, 2012). Starbucks gets a Square deal. USA Today. pp. 1B and 2B.
PayAnywhere Card Reader PAR-1 (Google Affiliate Ad)

Is It a Good Business Strategy to Offer Phone-Free Discount?

A restaurant is offering 5% discount to customers who leave their cellphones at the door during the meal. The restaurant owner wants his customers to enjoy the dining experience and food without getting distracted by their cellphones, according to this Fox News video. Is this phone-free strategy well received and working?

It works very well for this restaurant. Over 50% patrons have chosen discount over cellphones. Moreover, it gave the restaurant about three minute free media exposure on Fox News, with additional conversations on social media.

Honestly, this is not the first time I heard of such incident. There are resort hotels encouraging guests to lock up their cellphones during their stay because they want their guests to truly enjoy the beauty of nature.

Will this “phone-free” advocate become a trend? More importantly, is it a good idea for business to promote a “phone-free” policy?

In my opinions, unless you are the first one who initiates a “phone-free” policy and gets some free media exposure, it is probably not a good idea to discourage cellphone usage. Furthermore, I argue that business should do the opposite by encouraging customers to use mobile devices, including cellphones. My reason is simple. We are now living in the “SoLoMo” world, where everything goes “Social, Local, and Mobile.” Business must embrace the “SoLoMo” movement. If mobile devices are prohibited, how can customers capture their wonderful experience and then immediately share it on the internet? It seems to me that many customers only use mobile devices for pictures and videos these days. Many customers also want to share updates as soon as they capture a memorable moment. We cannot expect this group of customers to write long reviews and edit/upload their pictures/videos after the experience is over, can we?

What are your thoughts? Should companies promote “SoLoMo” or “phone-free” policy?

Relevant discussions:

No Texting, Tweeting, or Facebooking?! 

A Picture Is Worth a Thousand Words

References:
The picture was downloaded from NewMediaTravel.com