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Tech Adoption and

European Leisure Travelers


Highlights from PhoCusWrights
European Traveler Technology Survey 2014

Written and researched by


Marcello Gasdia and David Juman
Tech Adoption and European Leisure Travelers September 2014

PhoCusWright Inc.
116 West 32nd Street,
14th Floor
New York, NY 10001

PO Box 760
Sherman, CT 06784
+1 860 350-4084
+1 860 354-3112 fax
www.phocuswright.com

Tech Adoption and


European Leisure Travelers
Highlights from PhoCusWrights
European Traveler Technology Survey 2014

Written and researched by Marcello Gasdia and David Juman

Edited by Donna M. Airoldi

Tech Adoption and European Leisure Travelers is published by PhoCusWright Inc. The information con-
tained herein is derived from a variety of sources. While every effort has been made to verify the informa-
tion, the publisher assumes neither responsibility for inconsistencies or inaccuracies in the data nor liabil-
ity for any damages of any type arising from errors or omissions. All PhoCusWright Inc. publications are
protected by copyright. It is illegal under U.S. federal law (USC101 et seq.) to copy, fax or electronically
distribute copyrighted material beyond the parameters of the license or outside of your organization
without explicit permission.

2014 PhoCusWright Inc. All Rights Reserved.


Tech Adoption and European Leisure Travelers September 2014

About PhoCusWright
PhoCusWright is the travel industry research authority on how travelers,
suppliers and intermediaries connect. Independent, rigorous and unbiased,
PhoCusWright fosters smart strategic planning, tactical decision-making and
organizational effectiveness.

PhoCusWright delivers qualitative and quantitative research on the evolving


dynamics that influence travel, tourism and hospitality distribution. Our mar-
ketplace intelligence is the industry standard for segmentation, sizing, fore-
casting, trends, analysis and consumer travel planning behavior. Every day
around the world, senior executives, marketers, strategists and research pro-
fessionals from all segments of the industry value chain use PhoCusWright
research for competitive advantage.

To complement its primary research in North and Latin America, Europe and
Asia, PhoCusWright produces several high-profile conferences in the United
States and Europe, and partners with conferences in China and Singapore.
Industry leaders and company analysts bring this intelligence to life by de-
bating issues, sharing ideas and defining the ever-evolving reality of travel
commerce.

The company is headquartered in the United States with Asia Pacific opera-
tions based in India and local analysts on five continents.

PhoCusWright is a wholly owned subsidiary of Northstar Travel Media, LLC.

www.phocuswright.com.

2014 PhoCusWright Inc. All Rights Reserved. Page iii


European Traveler Technology Survey 2014 September 2014

Contents
For Full Report

Figure 12 12 Figure 22 19
Table of Charts q Time Spent Online, Frustrations With Travel-
by Device and Age Related Activities on
Figure 1 5 (Markets Combined) Smartphones
Ownership of Web-
Enabled Devices Figure 13 13 Figure 23 20
Frequency of Mobile Web Mobile Shopping and
Figure 2 6 Usage (Markets Combined) Booking, by Product and
Smartphone and Tablet Device (Markets Combined)
Ownership, by Age Figure 14 14
General Mobile Web Figure 24 21
Figure 3 6 Activity Among Multi- Location-Based and
Table of Contents q Current and Future Tablet Device Owners, by Device Post-Purchase Mobile
Ownership (Markets Combined) Activities, by Device
Section 1:
Overview, Methodology Figure 4 7 Figure 15 14 Figure 25 22
and Research Highlights 1 Reasons for Using a Comfort With General Mobile Travel Planning,
Feature Phone Over a Mobile Smartphone Activities Apps vs. Mobile Websites
Overview 1 Smartphone (Markets Combined)
Methodology 1 Figure 26 22
Figure 5 8 Figure 16 16 Mobile Travel Planning,
Research Highlights 2
PC Ownership (Desktop Percent of Travelers Apps vs. Mobile Websites,
and Laptop), by Age Who Used Mobile Devices by Age
Section 2: During the Trip Planning
Technology Adoption Figure 6 8 Life Cycle, by Age Figure 27 23
and General Mobile Device Overlap (Laptop, Travel Websites/Apps
Behavior 4 Smartphone, Tablet) Figure 17 16 Used During Mobile Travel
Devices Used During Planning
Technology Adoption 4 Figure 7 9 Trip Planning Life Cycle,
General Mobile Usage 12 Multi-Device Ownership, European Travelers Figure 28 24
by Age (Markets Online Features Used
Combined) Figure 18 17 During Online Travel Shop-
Section 3:
Devices Used During ping (Markets Combined)
Travel-Related Figure 8 9 Trip Planning Life Cycle,
Mobile Activity 15 Smartphone Adoption, Travelers Aged 55+ Figure 29 27
Travel Products 20 by Operating System Channels Used for
Figure 19 18 Travel Sharing
Apps vs. the Mobile Figure 9 10 Devices Used During
Web 22 Smartphone Purchase Trip Planning Life Cycle, Figure 30 28
Intent, by Operating System Travelers Aged 35-54 Log-On Frequency for
Section 4: Social Networks
Social Networks 26 Figure 10 11 Figure 20 18
Tablet Ownership, Devices Used During Figure 31 28
by Model Trip Planning Life Cycle, General Social Media
Section 5: Travelers Aged 18-34 Engagement
Demographics 37 Figure 11 11
Current and Future Figure 21 19 Figure 32 29
Section 6: Wearable-Device Ease of Online Travel Participation in Popular
Appendix 39 Ownership Planning, by Device Online Social Networks

2014 PhoCusWright Inc. All Rights Reserved. Page iv


Tech Adoption and European Leisure Travelers September 2014

Figure 33 30 Figure 38 35 Figure 43 39


Participation in Popular Traveler Engagement With Air Shopping and
Online Social Networks, Paid Advertising, by Annual Booking, by Device
by Age (France) Trip Frequency (Markets
Combined) Figure 44 39
Figure 34 31 Hotel Shopping and
Participation in Popular Figure 39 35 Booking, by Device
Online Social Networks, Websites Used to Read
by Age (Germany) Travel Reviews Figure 45 40
Local Activity Shopping
Figure 35 32 Figure 40 37 and Booking, by Device
Participation in Popular Age by Country
Online Social Networks, Figure 46 40
by Age (U.K.) Figure 41 37 Online Features Used
Education During Online Travel
Figure 36 33 Shopping: France
Devices Used to Access Figure 42 38
Social Networks and Household Size and Figure 47 41
Update Social Networks Number of Children in Online Features
With Trip-Related Posts Household (Markets Used During Travel
(Markets Combined) Combined) Shopping: Germany

Figure 37 34 Figure 48 41
Travel-Related Social Online Features
Media Activities Used During Travel
Shopping: U.K.

2014 PhoCusWright Inc. All Rights Reserved. Page v


Tech Adoption and European Leisure Travelers September 2014

Tech Adoption and European Leisure Travelers

Consumer technology is unleashing massive opportunity for the European travel


industry. Mobile devices are remaking the digital rules of traveler engagement,
opening up new ways for travel businesses to stimulate demand and drive book-
ings. European travel companies continue to make progress on the mobile front,
but the transformation is just beginning. In 2012, mobile captured 6.4% of the
European online travel market. This share will jump to one fifth by 2015.1
Consumer use of technology is in constant change. In a relatively short time,
smartphones and tablets transitioned from cutting-edge to mainstream, and con-
sumers continue to embrace new ways of keeping connected. Smart TVs, media
players, video game consoles and even wearable devices all give new meaning
to the phase always on.
PhoCusWrights European Traveler Technology Survey 2013 was designed to
help travel companies understand this exciting new intersection of consumer
technology and holiday travel in three major travel markets France, Germany
and the U.K. These excerpts offer a comprehensive view of the devices travelers
currently own and use.

Quick Insights
n Multiple devices going mainstream: Roughly a third of travelers in France,
Germany and the U.K. are multi-device travelers, owning a combination
of laptops, smartphones and tablets.

n Tablet ownership peaks among an older crowd: Tablets are not just for the
young and tech-savvy. Ownership is strongest among 35-44 year olds in
France and the U.K., and 45-54 year olds in Germany.

n Too early for wearables: Across European markets, less than 5% own a
wearable device such as a smartwatch or activity tracker

European leisure travelers are getting increasingly techie. They now own an aver-
age of 3.2 different web-enabled devices. Travelers in the U.K. connect through
3.5, while France lags behind at three. Laptops and smartphones, of course, are
most popular. Across all three countries, nearly four in every five own one of each
(see Figure 1).
U.K. travelers are the clear technology adoption leaders in Europe, and their
behavior offers valuable insight into how device adoption will unfold in nearby

1) European Online Travel Overview: Ninth Edition, PhoCusWright (December 2013)

2014 PhoCusWright Inc. All Rights Reserved. Page 1


Tech Adoption and European Leisure Travelers September 2014

markets. Both smartphone and tablet adoption are highest in the U.K. (see
Figure 1), and many in the country might already be finding tablets to be a viable
alternative to laptops. Tablet ownership in the U.K. has reached 50%, consider-
ably ahead of other markets. At the same time, laptop ownership in the U.K. is
falling well behind France and Germany.
Despite the rise in mobile, desktop computer ownership remains quite strong in
Europe at roughly six in 10 (see Figure 1). Smart TVs are also hitting their stride
in the region, particularly in Germany, where a quarter of travelers now own the
device. E-readers remain common in France (28%), but very unpopular in Ger-
many (6%).

Figure 1: Ownership of Web-Enabled Devices


79%
Laptop computer 80%
72%
76%
Smartphone 78%
82%
55%
Desktop computer 63%
65%
41%
Tablet 39%
50%

Web-enabled video 22%


game console 17%
23%
28%
E-reader (e.g., Kindle) 19%
6%
14%
Web-enabled portable
10%
music/video players
13%
15%
Web-enabled television 24%
20%
Wearable devices 4% France
(i.e. smartwatch 4% Germany
or Google Glass 2% U.K.

Question: Which of the following web-enabled devices do you own/use? Select all that apply.
Base: European travelers (France: N=1,155; Germany: N=1,143; U.K.: N=1,158)
Source: European Traveler Technology Survey 2014
2014 PhoCusWright Inc. All Rights Reserved.

Tablets are surely on the rise. But unlike smartphones, younger consumers are
not driving adoption. In fact, tablets are appealing to a much older audience
than most would expect. Travelers aged 35-44 are most likely to own a tablet in

2014 PhoCusWright Inc. All Rights Reserved. Page 2


Tech Adoption and European Leisure Travelers September 2014

France and the U.K. (see Figure 2). In Germany, ownership peaks among 45-
54 year olds. Unlike tablets, smartphones follow a more traditional curve with
age, where adoption peaks among the young, and gradually tapers off as age
increases.
Tablets are generally pricier, and relatively difficult for younger travelers to afford.
Additionally, tablets offer older, less tech-savvy consumers a more familiar online
experiencereplicating PC functionality with larger screens, multi-window web-
browsing and even keyboard attachments.

Figure 2: Smartphone and Tablet Ownership, by Age


France Germany U.K.
18-24 92% 96% 97%
Smartphone

25-34 87% 92% 98%

35-44 83% 86% 90%

45-54 74% 75% 82%

55-64 63% 64% 67%

65+ 59% 51% 54%

18-24 44% 42% 42%

25-34 42% 42% 51%


Tablet

35-44 54% 43% 55%

45-54 44% 45% 51%

55-64 31% 29% 48%

65+ 20% 25% 46%

Question: Which of the following web-enabled devices do you own/use? Select all that apply.
Base: European travelers (France: N=1,155; Germany: N=1,143; U.K.: N=1,158)
Source: European Traveler Technology Survey 2014
2014 PhoCusWright Inc. All Rights Reserved.

Tablet adoption may still trail traditional computers, but not for long. They will be
just as prevalent as laptops and desktops in Europe by the end of 2015. Adop-
tion will continue to be strongest in France and the U.K., where roughly one in
five who do not own the device yet plan to purchase by the end of 2014 (see
Figure 3). A similar amount plan to purchase the following year in 2015. German
travelers are less eager to get their hands on the device. Purchase intentions are
not only weaker, but 39% of German non-tablet owners never plan to own the
device, compared to only 30% in the U.K. and 25% in the France.
Smartphone adoption has indeed surged in recent years, but there are still hold-
outs. The overwhelming majority of remaining non-owners are older travelers,
many of which are simply not interested in functionality past what their feature
phone provides (see Figure 4). Contrary to what some might expect, price and
the risk of roaming charges do not deter many existing European feature phone
owners from purchasing a smartphone.

2014 PhoCusWright Inc. All Rights Reserved. Page 3


Tech Adoption and European Leisure Travelers September 2014

Figure 3: Current and Future Tablet Ownership


50% France Germany U.K.
41% 39%
39%
30% 30%
28%29%
25%
21% 20%
16%
12% 14% 13%
8% 7% 7%

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Question: Please select the statement that best describes your perspective regarding tablets.
Base: European travelers (France: N=1,155; Germany: N=1,143; U.K.: N=1,158)
Source: European Traveler Technology Survey 2014
2014 PhoCusWright Inc. All Rights Reserved.

Figure 4: Reasons for Using a Feature Phone Over a Smartphone

My feature phone provides 44%


all of the functionality 36%
I need in a mobile device 43%
39%
My feature phone
is easier to use 34%
32%

I have no interest in using 34%


mobile apps, or accessing 34%
the internet on my phone 50%
22%
Smartphones and data
plans are too expensive 19%
21%
6%
Smartphones are
difficult to use 2%
4%
2%
The mobile data network 3%
coverage in my area is poor
3%

Risk of incurring data 2%


roaming charges 4%
when I travel 7%
I plan to purchase a 32%
smartphone in the future, 35%
but have not done so yet 28%

France Germany U.K.

Question: Please indicate why you currently own/use a feature phone rather than a smartphone.
Select all that apply.
Base: European owners/users of feature phones (Total: N=706; France: N=266; Germany: N=246;
U.K.: N=194)
Source: European Traveler Technology Survey 2014
2014 PhoCusWright Inc. All Rights Reserved.

2014 PhoCusWright Inc. All Rights Reserved. Page 4


Tech Adoption and European Leisure Travelers September 2014

The rise of mobile raises a key question about the future role of the PC, and
whether online travel companies and marketers are losing some of their tra-
ditional desktop audience to the mobile web? The best group to examine is
undoubtedly younger travelers, who are most engaged in the world of mobile.
But even among this tech-savvy bunch, PC ownership is still relatively high.
Emerging trends suggest that the PC is losing some of its younger users, but not
many. While nearly all travelers 55 and older own a pc, the likelihood of owning a
desktop or laptop drops among younger travelershitting roughly 90% among
18-24 year olds (see Figure 5).

Figure 5: PC Ownership (Desktop and Laptop), by Age


France Germany U.K.
18-24 93% 93% 91%

25-34 91% 93% 92%

35-44 95% 96% 96%

45-54 97% 98% 97%

55-64 98% 99% 99%

65+ 100% 100% 100%

Question: Which of the following web-enabled devices do you own/use? Select all that apply.
Base: European travelers (France: N=1,155; Germany: N=1,143; U.K.: N=1,158)
Source: European Traveler Technology Survey 2014
2014 PhoCusWright Inc. All Rights Reserved.

Younger travelers might be relying less on PCs, but overall, consumers are adopt-
ing devices much quicker than they are getting rid of them. Over the past few
years, mobile surged while the PC maintained. The implication: travel companies

Figure 6: Device Overlap (Laptop, Smartphone and Tablet)


France Germany U.K.
Smartphone Laptop Smartphone Laptop Smartphone Laptop

12% 31% 12% 10% 36% 13% 8% 30% 10%

31% 34% 37%


8% 4% 4% 3% 8% 4%

2% 1% 2%

Tablet Tablet Tablet

Question: Which of the following web-enabled devices do you own/use? Select all that apply.
Base: European travelers (France: N=1,155; Germany: N=1,143; U.K.: N=1,158)
Note: Totals may not add to 100% due to rounding.
Source: European Traveler Technology Survey 2014
2014 PhoCusWright Inc. All Rights Reserved.

2014 PhoCusWright Inc. All Rights Reserved. Page 5


Tech Adoption and European Leisure Travelers September 2014

must approach the latest generation of consumers as the multi-device genera-


tion, and not just the mobile generation. Over 30% in France and Germany are
multi-device travelers, already owning the combination of laptop, smartphone and
tablet (see Figure 6). In the U.K., that figure is much closer to 40%.

Methodology
PhoCusWright fielded an online consumer survey March 27-31 2013 through
Global Market Insite, Inc. The survey targeted French, German and U.K. consum-
ers who travel for leisure and plan travel online. To qualify for participation in the
study, respondents were required to:
n Have taken at least one leisure trip at least 100 kilometers from home in
the past 12 months that included paid lodging, air and/or rail travel

n Have used the Internet to select a destination, compare and choose lei-
sure travel products, book travel, or share travel experiences in the past 12
months

n Have played an active role in planning their leisure trips in the past 12
months

PhoCusWright received a total of 3,467 (France N=1,155, Germany N=1,143,


U.K. N=1,158) qualified responses, and the respondent pool can be projected
with confidence onto the French, German and U.K. online traveler population.
The error interval for analysis is +/- 2.9% for France and the U.K., and +/-3.0% for
Germany. Respondents who qualified for the survey are referred to in this report
as online travelers.

These are just a few of the findings from PhoCusWrights European Traveler
Technology Survey 2014. Purchase the full report here: http://www.phocuswright.
com/products/4417

2014 PhoCusWright Inc. All Rights Reserved. Page 6


PhoCusWright Inc.
116 West 32nd Street, 14th Floor
New York, NY 10001 USA

PO Box 760
Sherman, CT 06784 USA

+1 860 350-4084
+1 860 354-3112 fax
www.phocuswright.com

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