L2 Digital IQ Index®: Travel (2011)

Page 1

®

Travel SCOTT GALLOWAY NYU Stern

A P R I L 2 6 , 2 0 11 A Think Tank for DIGITAL INNOVATION

© L2 2011 L2ThinkTank.com


Clinic

05.20.11 NYU Stern

Emerging Digital Media Platforms The Long Tail of Social Media

While Facebook dominates the social media landscape, a multitude of other digital platforms have emerged that provide fertile ground for brands to: • Reach new consumers • Run creative experiments • Explore new forms of digital expression and consumer online behavior These platforms range from the bold experiments of incumbent behemoths (Facebook Places and Google’s Boutiques.com) to smaller players who are gaining traction (Foursquare and Tumblr) to new entrants with small, passionate user bases (Pinterest, GetGlue, and Layar). This half-day intensive Clinic will help managers and senior marketers identify the relevant platforms for their brands and prioritize incremental investment in the long-tail of social media.

http://L2EmergingMedia.eventbrite.com/


Digital IQ Index ®:

Travel

Want to know more about your brand’s ranking? CONTACT US

INTRODUCTION

Killer App: The Internet Massive choice coupled with a product that can be distilled to zeroes and ones makes the Internet a killer app for the travel industry. While e-com’s share of U.S. retail stands at 5.9 percent, travel garners 38 percent of revenue from the ether.1 The browser is the booking agent of choice for 87 million Americans, however the industry dedicates a meager seven percent of its marketing budgets to digital channels.2 Many iconic travel brands struggle to leverage the online environment.

The Social Web

The Empire Strikes Back

The rise of social media presents a fresh set of opportunities

Brands are starting to fight back. From Delta’s fully integrated

and challenges to hotels, airlines, and cruise lines. Although

Facebook booking to Four Seasons’ active customer service

two thirds of customers are influenced by online user reviews,

via Twitter, brands are beginning to recapture lost ground and

only nine percent of the brands in the Index offer reviews, or

move to the center of the customer conversation.

any form of user-generated content, on their sites. Social-sharing tools, live chat, and customer service via social media are more common, but are still employed by less than half of the 89 brands analyzed. As brands debate the merits of transparency, online travel agents (OTAs) and comparison engines, including Expedia, Orbitz, TripAdvisor, and Kayak, fill the void with authentic reviews and pricing clarity. Brands have paid a steep price for staring at their navels while intermediaries give the consumer what they want. Of the 10 most-trafficked travel sites, only one, Southwest, belongs to a supplier.

In December 2010, American Airlines announced it would bypass the central reservation system that supplies flight information to popular OTAs, opting to develop its own technology that provides additional customization for passengers and travel agents. Expedia responded by indicating that it would not be renewing its contract with the airline and refused to integrate the new system. Although the two parties came to an agreement in early April, the dispute is a signal that brands will not just roll over online.

1. U.S. Department of Commerce, February 2011 2. eMarketer, April 2011 © L2 2011 L2ThinkTank.com

3


Digital IQ Index ®:

Travel

Want to know more about your brand’s ranking? CONTACT US

INTRODUCTION Digital IQ = Shareholder Value

TRAVEL BOOKING

Our thesis is that digital competence is inextricably linked to

Online Marketing Share by Channel 1

shareholder value in the travel industry. Key to managing and developing a competence is an actionable metric. This study attempts to quantify the digital competence of 89 global airline,

100%

hotel, and cruise brands. Our aim is to provide a robust tool to

69% 67% 66%

59% 56% 54%

41% 44% 44%

= ONLINE TRAVEL AGENT (OTA)

diagnose digital strengths and weaknesses and help managers at travel brands achieve greater return on incremental investment.

= BRAND WEBSITE

80%

Like the medium we are assessing, our methodology is dynamic, and we hope you will reach out to us with comments that improve our approach, investigation, and findings. You can contact me at scott@stern.nyu.edu.

60%

59%

Sincerely,

40%

41%

Scott Galloway Founder, L2 Clinical Professor of Marketing, NYU Stern

31%

44%

56% 56%

46%

33% 34%

20%

0%

2008 2009 2010

2008 2009 2010

2008 2009 2010

AIRLINES

HOTELS

CRUISE LINES

1. “Nothing But Net,” J.P. Morgan, January 2011

© L2 2011 L2ThinkTank.com

4


Digital IQ Index ®:

Travel

Want to know more about your brand’s ranking? CONTACT US

A B O U T T H E R A NK I N G S C AT E G O R I E S

140+ Genius Digital competence is a point of competitive differentiation for these brands. Sites are more than just transactional. These brands have creatively engineered their messaging to reach travelers on a variety of devices and online environments.

110-139 Gifted Sites are highly functional. These brands typically are active in mobile and social media, are visible on top search engines, and offer email marketing.

90-109 Average Digital presence is functional yet predictable, and innovation efforts are uninspired and lack ambition. Boilerplate marketing.

70-89 Challenged These brands bare-bones sites provide only basic functionality. Digital campaigns are an afterthought. Demonstrate an inability to activate their social communities and many are missing from mobile.

<70 Feeble These brands are digitally off the map. They are marked by poorly designed sites and a failure to leverage digital to market to consumers. Mobile and social media are not meaningful elements of their strategies.

© L2 2011 L2ThinkTank.com

M E T H O D O LO G Y

Site - 30%: Effectiveness of brand site. • Functionality & Content (75%)

• Site Technology • Site Search & Navigation • Reservations • Flight/Hotel/Cruise Information • Checkout & Special Offers • Customer Service • Rewards/Loyalty Programs

• Brand Translation (25%) • Aesthetics • Messaging & Interactivity

Digital Marketing - 30%: Marketing efforts, off-site brand presence, and visibility on search engines. • Search: Traffic, SEM, SEO, Web Authority • Email: Frequency, Content, Social Media Integration, Promotion • Digital Marketing Innovation: Presence, Innovation • Blog Presence: Mentions, Sentiment

Social Media - 20%: Brand presence, following, content, & influence on major social media platforms. • Facebook: Likes, Growth, Post Frequency, Ability to Transact, Responsiveness • Twitter: Followers, Growth, Tweet Frequency, Online Voice • YouTube: Views, Number of Uploads, Subscriber Growth, Content

Mobile - 20%: Compatibility and marketing on smartphones and other mobile devices. • Mobile Sites: Compatibility, Functionality, Ability to Transact • Smartphone Applications: Availability, Popularity, Functionality • iPad Integration: Marketing, Applications

5


Digital IQ Index ®:

Travel

Want to know more about your brand’s ranking? CONTACT US

D I G I T A L I Q R A NK I N G Airline

Cruise

Rank Brand

Category

1

Delta

Airline

168 Genius

From mile high check-ins on Foursquare to Facebook booking, Delta’s digital efforts are first in class

2

Southwest

Airline

165 Genius

SWA’s superior marketing translates across digital touch points; strongest site in the Index

3

American AIRLINES

Airline

158 Genius

Content-rich site, strong Twitter and Facebook following, and efficient mobile app help AA soar

4

W Hotels

Hotel

149 Genius

“Welcome to Wonderland” delivers W experience straight from your browser

5

Hilton

Hotel

143 Genius

Managing more than 530 properties on one site is no small feat; 22 percent ROI through mobile channels

6

Westin

Hotel

141 Genius

Amazon storefront allows enthusiasts to purchase the Heavenly bed online

7

Continental

Airline

140 Genius

Facebook frequent flier enrollment and international mobile check-in give Continental lift

8

Lufthansa

Airline

139 Gifted

MySkyStatus posts your flight coordinates to Twitter or Facebook from the air

9

Four Seasons

Hotel

138 Gifted

Luxury leader buttresses customer service excellence via Twitter

10

InterContinental

Hotel

137 Gifted

Insider iPad app boasts local concierge recommendations for more than 120 destinations

10

JetBlue

Airline

137 Gifted

1.6 million Twitter followers may come for deals, but stay for responsive customer service

12

Hyatt

Hotel

136 Gifted

Site leads in function and findability

13

British Airways

Airline

135 Gifted

Carbon offset add-on when booking signals innovation around sustainability

13

Royal Caribbean

Cruise

135 Gifted

Community reviews, YouTube videos, and mobile app offer consumers a buffet of digital options

© L2 2011 L2ThinkTank.com

Digital IQ Class

Hotel

Description

6


Digital IQ Index ®:

Travel

Want to know more about your brand’s ranking? CONTACT US

D I G I T A L I Q R A NK I N G Airline

Cruise

Rank Brand

Category

15

Fairmont Hotels

Hotel

134 Gifted

Everyonesanoriginal.com social community allows guests and employees to share their stories, pictures, and videos

15

KLM

Airline

134 Gifted

Social darling of the industry is not afraid to take risks; surprise campaign rewarded Twitterers with personalized gifts while they waited to board

17

Sheraton

Hotel

132 Gifted

Sheratonbetterwhenshared.com features guest stories from across the globe

18

Marriott

Hotel

131 Gifted

A giant in search, but doesn’t score as well on social media platforms

19

Cathay Pacific

Airline

130 Gifted

Prolific presence on YouTube boosts Asia’s airline leader; iPad app profiles airline employees

20

Air France

Airline

129 Gifted

Facebook fan base increased almost 400 percent from February to mid-March on the wings of F-Commerce

21

Holland America

Cruise

127 Gifted

One of the few luxury cruise lines aggressively purchasing search terms on Bing

21

Qantas

Airline

127 Gifted

Extends a warm Aussie welcome to site visitors with top-notch customer service and informative airport guides

21

United

Airline

127 Gifted

Brand is in transition and it shows; site’s strong transaction-functionality is handicapped by dated aesthetics

24

Le MÉridien

Hotel

126 Gifted

“LM 100” serve as brand ambassadors online, but Facebook presence doesn’t extend to properties

24

Virgin Atlantic

Airline

126 Gifted

The Innovation Zone showcases the best in travel mobile apps

26

Omni

Hotel

124 Gifted

Scores points for mobile apps and Facebook responsiveness, but luxe feel fails to translate online

27

Mandarin Oriental

Hotel

122 Gifted

Site customer service lags luxury peers, but makes up ground on social media

28

Air New Zealand

Airline

119 Gifted

Rico campaign on YouTube is one of the most playful in the industry, but poor site functionality keeps brand from taking off

© L2 2011 L2ThinkTank.com

Digital IQ Class

Hotel

Description

7


Digital IQ Index ®:

Travel

Want to know more about your brand’s ranking? CONTACT US

D I G I T A L I Q R A NK I N G Airline

Cruise

Rank Brand

Category

28

Luxury Collection

Hotel

119 Gifted

Limited social media presence hurts, but brand gets marks for destination guides and ability to search hotels by “pursuit”

28

St. Regis

Hotel

119 Gifted

Individual properties are on Twitter, but the brand hasn’t checked in

28

US Airways

Airline

119 Gifted

Highly functional but otherwise forgettable site

32

Emirates

Airline

118 Gifted

Brand YouTube channel includes link to booking

33

Disney Cruise Line

Cruise

117 Gifted

Social media sweetheart’s fanatical following on YouTube buttresses entire Disney travel empire

34

Air Canada

Airline

115 Gifted

Connects Canada to the world, but is not connecting with passengers via social media

35

Ritz-Carlton

Hotel

110 Gifted

Interactive Facebook page garners five stars but bland site fails to deliver

35

Singapore Airlines

Airline

110 Gifted

Cabin Experience videos on site highlight each class of service, including menu and entertainment options

37

Norwegian Cruise Line

Cruise

109 Average

Engages cruise community through user reviews and Facebook countdown clock

37

Sofitel

Hotel

109 Average

Facebook page has grown fast on heels of strong app that allows guests to interact with individual properties

39

Kimpton

Hotel

106 Average

Boutique chain scores innovation points offline, but is still figuring out social media

40

Korean Air

Airline

105 Average

Features one of industry’s only video newsletters

41

Walt Disney World Resort

Hotel

104 Average

Social media presence brings Disney magic to life, but no photographs of rooms on site

42

Frontier

Airline

103 Average

Strong synergy between site, print, and social media but will need more than its “spokesanimal” mascots to woo fans online

© L2 2011 L2ThinkTank.com

Digital IQ Class

Hotel

Description

8


Digital IQ Index ®:

Travel

Want to know more about your brand’s ranking? CONTACT US

D I G I T A L I Q R A NK I N G Airline

Cruise

Rank Brand

Category

43

Virgin America

Airline

102 Average

44

Cunard LINE

Cruise

99 Average

Facebook presence and YouTube videos suggest brand is willing to extend its regal heritage

45

Etihad Airways

Airline

98 Average

Experience Etihad provides virtual tours of the luxury cabin, lounge, and transportation services

46

Waldorf Astoria

Hotel

96 Average

Inconsistent site varies by property, but scores points for translating on a mobile device

47

Shangri-La

Hotel

95 Average

Strong mobile and social media efforts keep brand out of the challenged ranks

48

Swissôtel

Hotel

94 Average

Facebook ski jump app attempts to tap into gamification phenomenon

49

Loews

Hotel

93 Average

Seamless booking and strong customer service, but brand lacks digital differentiation

50

Thai Airways

Airline

92 Average

Limited site functionality and social presence make Thai just average

51

Joie de Vivre

Hotel

90 Average

Attributes more than 1,000 bookings to tweets and Facebook posts

52

The Leading Hotels

Hotel

89 Challenged

Broken links show lack of digital leadership

53

South African Airways

Airline

88 Challenged

Poor technology and outdated information leaves site at the gate

54

JW Marriott

Hotel

87 Challenged

Limited social media outreach suggests brand forgot the turndown service

55

Jumeirah

Hotel

86 Challenged

My Jumeirah virtual space allows guests to customize their travel and site browsing experience

55

Lindblad Expeditions

Cruise

86 Challenged

Clunky reservation system renders visitors queezy

© L2 2011 L2ThinkTank.com

Digital IQ Class

Hotel

Description Hip brand is not part of the cool crowd online

9


Digital IQ Index ®:

Travel

Want to know more about your brand’s ranking? CONTACT US

D I G I T A L I Q R A NK I N G Airline

Cruise

Rank Brand

Category

55

Peninsula Hotels

Hotel

86 Challenged

Visually appealing site falls flat on functionality

58

Banyan Tree

Hotel

84 Challenged

Brand gets needed boost from high engagement and growth on Facebook

58

Relais & ChÂteaux

Hotel

84 Challenged

Site lacks functionality, but iPhone app delights

60

Kempinski

Hotel

82 Challenged

Europe’s oldest luxury hotel chain seems stuck in the digital Dark Ages

60

Qatar Airways

Airline

82 Challenged

Public company with a private Twitter account?

62

P&O Cruises

Cruise

81 Challenged

Cruise webcams score points for “Britain’s favorite cruise line”

62

Raffles

Hotel

81 Challenged

Strong aesthetics provide only partial reprieve from dated and glitchy website

64

Crystal Cruises

Cruise

78 Challenged

Brand site remains docked without e-commerce capability

64

Seabourn

Cruise

78 Challenged

Luxury feel but limited social media presence

66

Morgans Hotel Group

Hotel

77 Challenged

Lifestyle content differentiates brand; UrbanDaddy partnership amplifies message

66

Oceania Cruises

Cruise

77 Challenged

Average website functionality and limited social media usage places Oceania in steerage

66

Regent seven Seas Cruises

Cruise

77 Challenged

Subtle reservation box on site is easy on the eyes but loses points on conversion

66

Warwick International

Hotel

77 Challenged

Limited community suggests social media late arrival

70

Conrad

Hotel

75 Challenged

Fails to step out of shadow of larger Hilton brand online

© L2 2011 L2ThinkTank.com

Digital IQ Class

Hotel

Description

10


Digital IQ Index ®:

Travel

Want to know more about your brand’s ranking? CONTACT US

D I G I T A L I Q R A NK I N G Airline

Cruise

Rank Brand

Category

71

Oberoi

Hotel

74

Challenged

No email opt-in limits online communication

71

Preferred

Hotel

74

Challenged

Strong loyalty program fails to unite brand online

73

WindStar Cruises

Cruise

73

Challenged

Generates more traffic than most luxury cruise lines, but without booking capability what is it worth?

74

One&Only

Hotel

72

Challenged

Elegant site is hampered by poor functionality

75

Silversea Cruises

Cruise

71

Challenged

Social sharing hints at digital aptitude, but no booking capability causes IQ to sink

76

Azamara CLUB Cruises

Cruise

68

Feeble

Destinations dominate on gorgeous site, but social media efforts have yet to embark

77

Taj Group of Hotels

Hotel

67

Feeble

Lackluster social media impairs India’s luxury leader

78

Park Hyatt

Hotel

65

Feeble

Limited stand-alone social media presence and hard-to-find site hinder differentiation online

79

Asiana

Airline

64

Feeble

Limited unique visitors and page rank hurt brand

80

RockResorts

Hotel

62

Feeble

No customer loyalty program and limited social media use constrain hospitality online

81

Seadream Yacht Club

Cruise

61

Feeble

Mobile presence prevents shipwreck, but limited transaction-capability damages IQ

82

Regent International

Hotel

54

Feeble

Inaccurate, text-heavy site coupled with social media absence leaves this brand trailing its peers

83

Air China

Airline

52

Feeble

Dated website and lack of social media presence limit brand in U.S. market, but mobile effort provides a boost

84

Pan Pacific

Hotel

51

Feeble

One of a handful of hotel brands that has ignored Twitter

© L2 2011 L2ThinkTank.com

Digital IQ Class

Hotel

Description

11


Digital IQ Index ®:

Travel

Want to know more about your brand’s ranking? CONTACT US

D I G I T A L I Q R A NK I N G Airline

Rank Brand

Category

85

Rosewood

Hotel

50

Feeble

URL architecture assures each property can stand alone but fails to yield economies in search, traffic, or authority

86

Hainan Airlines

Airline

48

Feeble

One of the few airlines with no mobile offering

87

Orient-Express

Hotel

45

Feeble

Without online upgrades hotel chain risks digital oblivion

88

Japan Airlines

Airline

36

Feeble

Outdated site and lack of social media leaves the brand sitting on the tarmac

89

Swan Hellenic

Cruise

31

Feeble

Facebook launch in February may put some needed wind in its sails

© L2 2011 L2ThinkTank.com

Digital IQ Class

Hotel

Cruise

Description

12


Digital IQ Index ®:

Travel

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KEY FINDINGS Selling Is Knowing

average digital iq &

There is a direct relationship between the average Digital IQ

perce n t of B oo k i n gs o n li n e

by category and the percentage of purchases made online.

By Category

Nearly half of Airline bookings are made online. The 29 airlines 120

studied registered an average Digital IQ of 113, and 62 percent of brands were classified as Genius or Gifted. The Cruise

60%

113

category lags the industry, and generates only nine percent of its bookings online. Cruise lines posted an average Digital IQ

110

of 86 and six of the 16 brands in the Index do not provide basic

50%

48%

e-commerce capability.

consumer interactions with hospitality brands, based

40%

97

30%

90

30%

86

upon past preferences and current online behavior. This mass customization will cut across all digital media as the consumer researches, purchases, takes part in, and reflects upon the travel experience.

80

% of Bookings Online

“ What’s next? Look for increased personalization of

Digital IQ Score

100

20%

—Stuart Levy | Assistant Professor, Dept. of Tourism & Hospitality Management, The George Washington University School of Business

70

9%

60

0%

AIRLINES

© L2 2011 L2ThinkTank.com

10%

HOTELS

CRUISE LINES

13


Digital IQ Index ®:

Travel

Want to know more about your brand’s ranking? CONTACT US

KEY FINDINGS

D I G I TA L I Q D I S P E R S I O N % of Organizations per Digital IQ Class

Bifurcation The dispersion of Digital IQ demonstrates that the prestige travel

Lufthansa

Le Méridien

industry does not follow a traditional bell curve when it comes

Four Seasons

Virgin Atlantic

to digital innovation. A remarkable 41 percent of brands were

InterContinental

Omni

JetBlue

Mandarin Oriental

classified as Genius or Gifted, however an additional 43 percent were Challenged or Feeble. The dispersion of scoring suggests the winners are pulling away from the losers when it comes to online aptitude.

Hyatt British Airways Royal Caribbean Fairmont Hotels

There is also a relationship between Digital IQ and the amount of time users spend on the brand site. Genius and Gifted brands register average user time of 6.2 minutes and 4.9 minutes, respectively, while users spend only 3.4 minutes on the sites of Feeble brands.

KLM Sheraton Marriott Cathay Pacific

8%

Delta Digital IQ

>140

Continental

St. Regis US Airways Emirates

Digital IQ

110-139

33%

Disney Cruise Line Air Canada Ritz-Carlton Singapore Airlines

AVERAGE

average time o n T R A V E L site S

17%

by Digital IQ Class South African Airways JW Marriott

6.2

Jumeirah

6

Lindblad Expeditions

Minutes

4.9 4.0

4

Peninsula Hotels

4.2 3.4

Banyan Tree Relais & Chateaux Kempinski

2

Qatar Airways

0 Genius

Gifted

© L2 2011 L2ThinkTank.com

Average

Challenged

Feeble

Cruise Line

90-109

Conrad Hotels & Resorts

Digital IQ

70-89

27%

Oberoi Preferred Hotels and Resorts

Raffles International

One&Only Silversea Cruises

Cunard

Sofitel

Waldorf Astoria

Kimpton Korean Air Walt Disney World Resorts Virgin America

CHALLENGED

Regent 7 Seas Cruises Warwick International

Norwegian Cruise Line

Frontier

Oceania Cruises

P&O Cruises

Seabourn

Digital IQ

Morgans Hotel Group

WindStar Cruises

Crystal Cruises

W Hotels Westin

GIFTED

United

8

American

Luxury Collection

Holland America

The Leading Hotels

Southwest

Hilton

Air New Zealand

Air France

Qantas

GENIUS

16%

Loews Thai Airways Joie de Vivre

Taj Group of Hotels

Rosewood Hotels

RockResorts

<70

Swissôtel

Air China

Asiana Airlines

Digital IQ

Shangri-La

Azamara Cruises

Park Hyatt

FEEBLE

Etihad Airways

SeaDream Yacht Club Regent International Hotels

Pan Pacific

Hainan Airlines Orient-Express Hotels Japan Airlines Swan Hellenic

14


Digital IQ Index ®:

Travel

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KEY FINDINGS Digital IQ = Pricing Power

D igital I Q v s . year - over -year c h a n ge i n

The recession forced the prestige hotel industry to slash its

A verage D aily R oom R ate

room rates. Our analysis demonstrates a positive correlation

(Hotels with Published Data: 2010 vs. 2009)

of 0.60 between Digital IQ and 2010 versus 2009 changes in Average Daily Rate among the nine hotels with published data,

180

suggesting hotel brands that are more digitally competent have been able to rebound faster.

Correlation = .60 160

Innovation Silos? Examination of Digital IQ across portfolio companies suggests travel industry conglomerates are good at leveraging

140

economies of scale online across multiple brands. The average 40 points, versus a dispersion of 77 points across parent companies in the 2010 Digital IQ Index®: Luxury and 47 points in the 2010 Digital IQ Index : Beauty. ®

With six brands in the study, Starwood highlights the benefits of an organization-wide approach to digital. All of the company’s

Digital IQ

Digital IQ dispersion of parent companies in the industry was 120

100

brands sit on the same site platform, providing enhanced SEO, cross-sell opportunities, and best-in-class customer service without compromising the distinct identity of each hotel. Star-

80

wood has taken a similar approach on Facebook, where the company boasts a page for nearly every property. Each page highlights unique features of the property, brand, and destination while leveraging community engagement tactics and content from across the Starwood organization.

© L2 2011 L2ThinkTank.com

60

0%

1%

2%

3%

4%

5%

6%

7%

8%

% Change in Average Daily Rate

15


Digital IQ Index ®:

Travel

Want to know more about your brand’s ranking? CONTACT US

KEY FINDINGS Airline

Hotel

Cruise

A verage D igital I Q by P ortfolio C ompa n y Organizations with More than One Brand

GENIUS

170

Disparity

30

Disparity

68

Disparity Disparity

140

53

Disparity

GIFTED

AVG IQ

44

Disparity

66

131

Disparity

Disparity

71

5

13

Disparity

67

AVG IQ

134

AVG IQ

132

Disparity

24

Disparity

13

AVG IQ

110

109

AVERAGE

90

AVG IQ

105

AVG IQ

103

AVG IQ

111

AVG IQ

AVG IQ

102

101

AVG IQ

CHALLENGED

70

114

AVG IQ

89

Disparity

23

AVG IQ

FEEBLE

66

© L2 2011 L2ThinkTank.com

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40

16


Digital IQ Index ®:

Travel

Want to know more about your brand’s ranking? CONTACT US

KEY FINDINGS The Hare Although travel brands sped to the front of the pack with

SITE CONTENT & TOOLS

commerce-enabled sites, analysis across airlines, cruise lines,

% of Brand Sites with and Without the Following Tools:

and hotels suggests progress in the digital medium has slowed. Nearly 40 percent of travel brand sites fail to incorporate video. Less than half provide an online customer loyalty or frequent flier program. Only 28 percent have some form of social sharing, and

Online Booking

93%

Video

62%

38%

Online Loyalty Program

45%

55%

Social Sharing

28%

72%

Facebook “Like”

20%

80%

Live Chat

17%

83%

9%

91%

7%

= NO

just 20 percent incorporate the Facebook Like button. While prestige travel is largely built around customer service, only 17 percent of the brands in the study offer live chat. Southwest, the leader in site scoring, provides a glimpse into

= YES

the future of brand travel sites, blending function, technology, and community.

“ Leading travel brands recognize the opportunity to

use digital and social media as more than a booking channel. Genius brands use their websites and social

media communities to extend and enhance the customer service experience; creating deeper connections with travelers and allowing guests to experience the quality of their customer service before, during and after their stay.

—Melissa Dowler | Chief Marketing Officer, ISM

© L2 2011 L2ThinkTank.com

User Reviews

0%

20%

40%

60%

80%

100%

17


Digital IQ Index ®:

Travel

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KEY FINDINGS Under Review Although two-thirds of consumers report being influenced by

I mpact of S I T E F E AT U R E S o n traffic gro w t h

traveler-generated ratings, only nine percent of the brands in

(March 2010–March 2011)

the study offer reviews on their sites.3 Even among those offering reviews, most segregate them from the booking experi-

50%

ence or sanitize the feedback. Examples include Fairmont’s Everyone’s an Original microsite or Kepinski Hotels, which link to pages on TripAdvisor. Although laggard in other dimensions, the Cruise category has been the first to embrace guest

40%

feedback, and four brands include user reviews. Traffic to sites that incorporate user reviews grew 24 percent, versus seven percent for those without reviews, suggesting user-generated

The Increasing Cost of Search Industry revenues are up significantly following the recession, but traffic to the 89 travel brand sites in the Index is down eight

Traffic Growth

content provides more authenticity and traffic.

30%

24% 20%

17%

percent year-on-year. One of the reasons is the increasing cost of paid search, one of the industry’s primary traffic drivers. Of the brands in the Index, 72 percent engage in key-word purchase on Google, and 64 percent purchase terms on Bing.

10%

7%

6%

Average cost-per-click search advertising was up 21.3 percent in the travel industry January 2010 through January 2011, suggesting it is becoming increasingly expensive for brands to compete for prime search engine real estate.4 Google’s April

0%

YES

NO

YES

NO

acquisition of ITA, a software company that powers the majority of flight fare search on brand sites and travel portals, provides additional cause for pause, and many predict search engine

User Reviews

Social Sharing

marketing pricing will continue to skyrocket.

3. “Top Traveler Technology Trends,” PhoCusWright, August 26, 2010 4. Company Blog, EfficientFrontier, February 4, 2011 © L2 2011 L2ThinkTank.com

18


Digital IQ Index ®:

Travel

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KEY FINDINGS T op 8 R E F E R R A L & D E S T I N AT I O N S I T E S : T R A V E L B R A N d S I T E S

The Online Itinerary

Upstream and Downstream Traffic to and from

The average online consumer visits more than 20 sites while

Social Media Sites, Online Travel Agents, and Competitor Sites

researching travel online.5 Examining the upstream and downstream referral sites across the 89 brands reveals that social

= Social media site

100%

media, online travel agents such as Travelocity and Expedia, and competitor sites factor considerably into this

= ONLINE TRAVEL AGENTS (OTAs)

90%

sample set. In addition, brands are driving significant traffic to and from 80%

Facebook. Of the brands in the Index, 78 percent registered

= COMPETITOR

81%

Facebook as a top-eight source of referral traffic, and on average Facebook drove seven percent of traffic to brand sites. Even more staggering, 90 percent of the brands recorded Facebook as a top destination site after leaving the brand site.

60% 52% 47%

While many travel sites have evolved into purely

40%

transactional platforms, your customer may have

35%

just come from your competitor’s site. The best sites communicate a unique brand experience in a way that doesn’t interfere with the transaction.

29%

” —Bob Minihan | Chief Creative Officer, ISM

20% 11%

7%

Hospitality companies should not view OTAs as competitors. Rather, they can be strategic collaborators and super-marketers. Recent research termed the

0% % of Brands

“Billboard Effect” demonstrates that hotel exposure on OTA listings can drive significant additional booking traffic though brand websites. —Stuart Levy | Assistant Professor, Dept. of Tourism & Hospitality Management, The George Washington University School of Business

5%

6% 2%

% of Traffic Upstream Traffic To Brand Site

% of Brands

3%

% of Traffic

Downstream Traffic From Brand Site

5. “Refining the Travel Search Process,” Compete & Google, December 15, 2009 © L2 2011 L2ThinkTank.com

19


Digital IQ Index ®:

Travel

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KEY FINDINGS The Web Is Dying & Facebook Is Thriving Another reason for diminishing traffic to brand sites is the

bra n d fa n post respo n sive n ess

maturation of the web and the rise of Facebook. In 2001, the 10

A c r o s s 8 5 B r a n d Fa c e b o o k Pa g e s

most-visited sites on the web accounted for 31 percent of U.S.

(March 2011)

page views, in 2006 it was 40 percent, and it is now 75 percent, suggesting the medium and long tail of the web is decreasing

50%

in importance.6 Facebook alone accounts for 12.3 percent of all consumer time on the Internet.7 Facebook usage is nearly ubiquitous across the travel category, and all but four brands feature at least one dedicated page. During the first quarter

40%

2011 measurement period, travel brand Facebook communities grew an average of 20 percent. 30%

27%

21%

“ Your customers already spend their time on Face-

20%

book, so targeting them there is more efficient and

16%

effective than driving them to custom-built social

16%

15%

networking portals. Facebook continues to enhance its flexibility for custom fan page and application development, making the social networking site an increasingly attractive option for brands.

10%

—Melissa Dowler | Chief Marketing Officer, ISM

4% 0%

2 Hours or Less

2-6 Hours

7-12 Hours

13-24 Hours

Over 24 Hours

Does Not Respond

6. “The Web is Dead, Long Live the Internet,” Chris Anderson and Michael Wolff, Wired Magazine, August 17, 2010 7. “The 2010 Digital Year in Review,” comScore, February 8, 2011 © L2 2011 L2ThinkTank.com

20


Digital IQ Index ®:

Travel

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KEY FINDINGS S O C I A L media strategies

Social Media Management

Across All Brands

Travel brands take a variety of approaches (marketing, customer service, commerce, etc.) when it comes to managing social media across properties and regions. Almost half of the Hotel brands had more than one account on Facebook and Twitter. Four Seasons maintains accounts on both social media

49%

50%

48%

= brand page & property/ regional pages

40%

33%

= brand page only

28%

30%

= property/ regional pages ONLY

platforms for each of its properties. Norwegian Cruise Line maintains separate pages by region, including specific pages

20%

= no presence

for Argentinean and Brazilian passengers. Nine percent of brands on Facebook and 12 percent of those on Twitter have

8%

10%

11% 12%

9%

no centralized accounts, opting to let properties manage their 0%

own social media efforts.

Twitter

Facebook

TWITTER CONTENT % of Brands on Twitter with the Following: = YES

Regional Twitter page for Four Seasons’ Beverly Hills location © L2 2011 L2ThinkTank.com

News/Info

83%

17%

Deals

65%

35%

Contests

52%

48%

Customer Service

46%

54%

0%

20%

40%

60%

80%

= NO

100%

21


Digital IQ Index ®:

Travel

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KEY FINDINGS

top 1 0 B R A N D S : FA C E B O O K L I K es

top 1 0 FA S T E S T- gro w i n g faceboo k accou n ts

(March 2011)

(January–March 2011)

Air France

377%

Regent International

Walt Disney World Resort

5,699,438

239%

British Airways

144%

P&O Cruises

Southwest

1,330,073

Disney Cruise Line

514,793

JetBlue Airways

471,787

Air France

AIR FRANCE TRAVEL CHALLENGE

54%

South African Airways

53%

Cathay Pacific

Drove significant “like” growth. Fans guessed the location of the “photo of the day” to be entered into a sweepstakes for 30 pairs of round trip tickets. Chance of winning increased by inviting friends to enter.

45%

315,803

Royal Caribbean

265,751

United

255,970

Emirates

226,926

Lufthansa

178,146

American

One&Only

39%

Frontier

39%

Air New Zealand

34%

Hyatt

32%

136,385 0

100%

200%

300%

400%

= 50,000 FACEBOOK LIKES

© L2 2011 L2ThinkTank.com

22


Digital IQ Index ®:

Travel

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KEY FINDINGS

B E S T I N T W E E T: top 1 0 followers

T op 1 0 FA S T E S T- G R O W I N G T W I T T E R A C C O U N T S

(March 2011)

(January–March 2011)

@AIRNZUSA

83%

@JetBlue @WindstarCruises

70%

1,606,910 @SAAUSA

58%

@SouthwestAir 1,088,473 @VirginAmerica

@RelaisChateaux

47%

170,452 @MarriottHotels

@UnitedAirlines

163,660

@AmericanAir

163,084

@Delta

142,552

@WaltDisneyWorld

127,301

@continental

42%

@AirCanada

38%

@jumeirah

32%

@AzamaraVoyages

26%

@Lufthansa_USA

25%

118,444

@USAirways

105,233

@BritishAirways

95,797

@EtihadDeals

23% 0

20%

40%

60%

80%

= 25,000 TWITTER FoLLOWERS

© L2 2011 L2ThinkTank.com

23


Digital IQ Index ®:

Travel

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KEY FINDINGS Rapid Response Seventy percent of U.S. hoteliers monitor guest reviews on

T O P 1 0 brands : T W eets per day

their own and third-party sites weekly at a minimum.8 Although

(January–March 2011)

third-party review sites, such as TripAdvisor and Yelp, used to be consumers’ soapboxes of choice, Facebook, and Twitter have taken their place. Across the 85 brand Facebook pages in the study, four-in-five travel brands respond to customer service

Korean Air

inquiries.

35.0

On Twitter, brands are not as proactive, and less than half

Windstar Cruises 29.5

are actively responding to customer service concerns. While adoption has been mixed, many brands are using social media responsiveness as a point of differentiation. The Palms

Hilton 24.6

Hotel, which was not included in the study, integrates guest Klout scores, a measure of influence on Twitter and Facebook, directly into its registration system and provides upgrades to guests with substantial online influence.

Peninsula Hotels

15.4

Ritz-Carlton

12.2

JetBlue

12.1

Virgin Atlantic

11.6

Sofitel

11.5

Surprisingly, many travel brands are not utilizing Twitter and Facebook to quickly address consumer complaints. Companies cannot afford to simply

“dip their toes” in the social media current—they must dive in with a “listen, react, and engage” strategy.

—Stuart Levy | Assistant Professor, Dept. of Tourism & Hospitality Management, The George Washington University School of Business

Four Seasons

11.1

Hyatt

10.4

= 1 TWEET

8. “Best Practices for Maximizing Your Hotel, Online Revenue, and ROI”, HSMAI Foundation & Vizergy, June 2010 © L2 2011 L2ThinkTank.com

24


Digital IQ Index ®:

Travel

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KEY FINDINGS The Travel Channel T op 1 0 B rands : Y O U T U B E

All but eight brands in the Index maintain a YouTube channel.

Brand Channels with the Most Upload Views

For many brands, YouTube merely provides another platform

(March 2011)

for television commercials, flight safety demonstrations, and promotional videos. However, a few organizations are pushing the boundaries of viral video. Disney Parks’ YouTube channel features 576 videos about the magic of Disney, including a user-generated musical marriage proposal that has garnered

Walt Disney World Resort & Cruises

more than 3.6 million views. The majority of Air New Zealand’s

17,022,148

playful videos feature sassy spokespuppet, Rico, who flirts with flight attendants and raps with Snoop Dogg.

Southwest

6,031,820

Delta

4,222,536

Air New Zealand

Hyatt

1,666,208

Virgin America

1,586,449

Qantas

1,172,643

KLM

1,052,966

Norwegian Cruise Line American YouTube channels for Air New Zealand and Disney Parks

© L2 2011 L2ThinkTank.com

2,841,066

858,310 713,470

= 250,000 YOUTUBE VIDEO VIEWS

25


Digital IQ Index ®:

Travel

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KEY FINDINGS You’ve Got Mail

T op 1 0 B R A N D S : A V E R A G E E M A I L S P E R W E E K (January–March 2011)

Sixty-three percent of consumers who receive email from a travel supplier are more likely to purchase from the brand.9 Even with the rise of social media, email remains one of the

American

highest ROI marketing tools. Ninety percent of the brands in

4.6

the study maintain an email marketing program. Most averaged only one email every two weeks. American Airlines was the

Continental

1.9

most prolific, averaging almost five emails a week, more than

Airline

2.5 times the number of messages from the next brand.

Emirates

1.2

There is still significant low-hanging fruit in email marketing.

Cruise

Ten brands that offered email opt-in failed to correspond within

Air Canada

1.0

a six-week period. Across categories, 87 percent of email messaging from brands was not optimized for a mobile device.

EMAIL MARKETING % of Brands

Email Opt-in

90%

10%

Welcome Email

66%

34%

Additional Marketing Emails

79%

Link to Social Media on Email Email Viewable on Mobile

Hotel

Southwest

0.9

JetBlue

0.9

Lindblad Expeditions

0.8

Qantas

0.7

21%

Hilton

0.7

56%

44%

Frontier

0.7

13%

87%

Etihad Airways

0.7

= NO = YES

0%

25%

50%

75%

100%

0

1

2

3

4

5

9. “Flying High: Measuring the Value of Email Marketing for the Travel Industry”, Epsilon Data Management, February 2009 © L2 2011 L2ThinkTank.com

26


Digital IQ Index ®:

Travel

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KEY FINDINGS An Approved Portable Electronic Device

M O B I L E P R E S E N C E by category % of Brands with the Following:

Increasingly, travelers are turning to their mobile devices to help research, plan, manage, document, and share their travel ex-

100%

periences. Next year, 15.1 million people are expected to book travel using a mobile device.10 Of the brands in the Index, 56 percent have a mobile site and 48 percent have a smart-phone

75%

AirlineS

76%

application. Twelve brands have apps designed for the latest must-have accessory, the iPad. Hotels and Airlines are the

66%

61%

Cruise LINES

50%

50%

most active in the mobile space, with many allowing customers to book, check in, and track their loyalty points online.

HotelS

24%

25%

13%

11%

6%

0%

0% Mobile Site

Smartphone App

iPad App

“ Genius brands are optimizing their existing sites for

mobile and going further by creating mobile-specific tools to target travelers.

—Melissa Dowler | Chief Marketing Officer, ISM

i P h o n e A pp C apabilities by category % of Brand Apps with the Following:

“ Mobile applications will be of relatively less

100%

importance, given the increased technological sophistication of mobile sites along with the limited

number of apps that smart-phone users tend to download.

—Stuart Levy | Assistant Professor, Dept. of Tourism & Hospitality Management, The George Washington University School of Business

73%

75%

79%

AirlineS

63% 55% 50%

25%

14% NA

0% 10. “Mobile Travel Takes Off: Emerging Trends and Best Practices for Marketers,” eMarketer, March 2011 © L2 2011 L2ThinkTank.com

HotelS

47%

42%

Book

Check-In

Loyalty

Boarding Pass

27


Digital IQ Index ®:

Travel

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FLASH OF GENIUS Airlines Soar on Twitter Nine of the 10 most followed travel brands on Twitter are airlines. From the brand perspective, airlines are trying to combat

Air New Zealand’s “12 Days of Valentine’s” campaign prompts tweets from its followers

increasing consumer frustration in the face of rising fees by proactively engaging their communities. During Air New Zealand’s “12 Days of Valentines” Twitter campaign, followers were encouraged to respond to the question, “What is your favorite cuddle position?” Each day the most creative answer was selected by judges to win a round-trip flight for two on a Skycouch to Auckland or London. @AirNZUSA grew its followers 76 percent two weeks into the promotion. To celebrate the inaugural Airbus A380 flight from Germany to New York City, @Lufthansa_USA Twitter followers were allowed to select one seat on the virtual A380 seat map. Each day for four days, one virtual passenger was randomly selected to win a vacation package to Frankfurt. In two weeks, @Lufthansa_USA gained 2,000 new followers. The airline also paired the online campaign with an offline component, a one-day scavenger hunt in New York’s trendy SoHo neighborhood to win a pair of roundtrip tickets to Europe, with clues posted on its Twitter account.

Lufthansa utilizes Twitter for flight give-aways © L2 2011 L2ThinkTank.com

28


Digital IQ Index ®:

Travel

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FLASH OF GENIUS

Delta uses Twitter to address both customer service issues and real-time travel information

Delta uses Twitter to monitor customer service issues and complaints 24/7, employing its @Delta and @DeltaAssist accounts to preempt passenger issues. The latter account is particularly active, rebooking customers’ flights when they Tweet in-flight, offering reimbursements, posting travel advisories, and using realtime info to adjust on-the-ground operations at boarding gates. True to its value DNA, JetBlue was one of the first airlines to embrace Twitter as a platform to broadcast last-minute deals. Its @JetBlueCheeps account was launched in July 2009 with tantalizingly low fares ($49 each way to Las Vegas!).

“ The importance of mobile to the travel category is right there in its name: mobile. From the moment your customer leaves Point A on their way to any Point B, their mobile devices are going to be their primary means of consuming—and generating content.

—Bob Minihan | Chief Creative Officer, ISM

JetBlue broadcasts last-minute deals through Twitter

© L2 2011 L2ThinkTank.com

29


Digital IQ Index ®:

Travel

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FLASH OF GENIUS

Norwegian Cruise Line allows users to start a countdown and connect with cruisers preembarkment

Playing Offense Taking a page from the playbooks of travel portals Expedia and TripAdvisor, travel brands are attempting to foster the same sense of community and brand loyalty that the OTAs have achieved. Norwegian Cruise Line’s online forum, “Freestyle Voices,” allows past cruisers to post reviews on the ship and shore excursions. Future passengers can ask questions about their upcoming trip and start a countdown clock that doubles as a vehicle for connecting cruisers preembarkment. Sheraton’s “Better When Shared” virtual community allows travelers to recount their experiences at and memories of various Sheraton properties and give advice on local attractions, dining, shopping, and more to future travelers. With Facebook sharing and an interactive interface, the microsite is a good first step to building a digital community. Many of the posted stories, however, read as little more than advertisements for a specific property’s amenities. Fairmont’s highly interactive “Everyone’s an Original” is a more robust community effort, with a large library of usergenerated content across a wide breadth of categories, including mixology and the 2010 Olympics. Fairmont salts original content, including recipes from property chefs.

Sheraton has built a digital community through customer’s shared experiences and memories

“ Savvy travel brands provide a forum for customers to share feedback on their own web and social media

sites. This lets them monitor and participate in conversations and scores authenticity points with potential customers.

—Melissa Dowler | Chief Marketing Officer, ISM

© L2 2011 L2ThinkTank.com

Fairmont boosts community spirit through its interactive “Everyone’s an Original” site

30


Digital IQ Index ®:

Travel

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flas h of ge n ius KLM Surprise in the Skies KLM introduced a campaign this past holiday season to surprise, delight, and reward its customers. The KLM Surprise team monitored Foursquare activity at its locations. For each passenger who checked in, the team searched for corresponding Facebook, Twitter, and LinkedIn accounts to determine a personalized surprise gift for the customer waiting in the terminal. Gifts included champagne, notebooks, and a custom itinerary of New York’s best soccer bars. Not satisfied to stop there, KLM uploaded pictures of surprised passengers to Facebook and monitored conversations about the campaign across social media platforms.

KLM uses Foursquare to surprise passengers with hand-selected gifts

© L2 2011 L2ThinkTank.com

31


Digital IQ Index ®:

Travel

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FLASH OF GENIUS KLM DJs on a Plane! In March, a Dutch DJ and filmmaker tweeted disappointment that KLM’s recently reinstated Amsterdam-Miami flight would depart one week too late for the annual preeminent Ultra Music Festival. KLM responded, challenging the duo to find enough passengers to fill an earlier flight. Five hours later, 150 travelers were signed up and shortly thereafter were airborne in what became the Guinness World Record for the world’s highest dance party.

KLM’s in-flight DJ dance party all began with a tweet

© L2 2011 L2ThinkTank.com

32


Digital IQ Index ®:

Travel

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FLASH OF GENIUS AA (The) Upwardly Mobile American Leaving its competitors in its airstream, American Airlines has blazed a path to mobile dominance. American’s mobile footprint includes commerce functionality across its mobile iPhone, iPad, and Android apps. All three apps enable fliers to quickly book reservations, monitor flight status, check in, and generate an electronic boarding pass. American’s mobile apps provide upgrades to the travel experience with offers such as AA sudoku, terminal maps, and one-day passes to Admirals Club lounges.

American Airlines allows passengers to search, book, track, and even board flights all from their mobile device

© L2 2011 L2ThinkTank.com

33


Digital IQ Index ®:

Travel

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FLASH OF GENIUS Mandarin Oriental A Luxury Hotel in the Palm of Your Hand Mandarin Oriental’s free iPhone app matches the brand’s reputation for timely service and a chic aesthetic. Using stunning imagery from properties around the world, the app features seamless This app provides guests with detailed amenities, city information, and special offers worldwide

search and reservation functionality. Users can find a hotel and immerse themselves in the brand with photos, detailed amenities, city information, and special offers.

Mandarin Oriental’s homepage

© L2 2011 L2ThinkTank.com

34


Digital IQ Index ®:

Travel

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FLASH OF GENIUS Lufthansa The Digital Carry-On Combating boredom in the skies, Lufthansa recently unveiled CloudStream, a social content site. Users can “pack” articles, music, videos, and other online content for quick access while traveling. With a browser bookmark, adding content to their “My carry-on” is as simple as a click and is accessible over any Internet connection, including Lufthansa’s in-flight Wi-Fi, Wi-Fi on other airlines, or at home. Additionally, Lufthansa takes the extra step of curating content feeds across categories such as art, travel, and business. This is not the airline’s first foray into enhancing the flight experience. In 2009, Lufthansa launched the MySkyStatus website app that sent passengers’ altitude, location, departure, and arrival updates to their Facebook and Twitter accounts, regardless of what airline they were flying.

Lufthansa’s digital carry-on helps passengers curate content to access while traveling

© L2 2011 L2ThinkTank.com

35


Digital IQ Index ®:

Travel

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FLASH OF GENIUS WALT DISNEY WORLD RESORT / CRUISES Mickey Meets Zuck One of the most iconic travel destinations in the world, Walt Disney World has no trouble attracting a massive fan base on Facebook. Feature-rich tabs include Share Memories, I’m Going to Walt Disney World, and Epcot® Flower & Garden. Mickey’s Facebook page offers behind-the-scenes videos, travel advice, and planning resources, and solicits user-generated content. Antithetical to social media, however, is users’ inability to post on Disney’s wall.

Share memories and plan your trip through Disney’s Facebook page

© L2 2011 L2ThinkTank.com

36


Digital IQ Index ®:

Travel

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FLASH OF GENIUS Four Seasons A Season for Families / Family for All Seasons Four Seasons has always been synonymous with the highest quality service, creating a “home away from home.” No surprise then that the brand’s latest campaign focuses on families and memories. The recently launched “Have Family Will Travel” blog offers varied tales from writers who have traveled the world with family in tow. Featuring rich media, tips, stories, and more, it’s quickly becoming a go-to blog for the family on the move. Four Seasons has incorporated the blog as the landing tab on its Facebook page, unifying its web presence. In conjunction with the blog, the Facebook tab also solicits guests to upload photos of their vacation memories to an easy-to-use music video generator.

The Four Seasons blog has developed a community of like-users who share experiences of traveling with a family in tow

© L2 2011 L2ThinkTank.com

37


Digital IQ Index ®:

Travel

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FLASH OF GENIUS INTERCONTINENTAL The Virtual Concierge Recognizing that a trip starts well before their guest receives a room key, many hotels offer itinerary-enhancing content on their sites. Intercontinental Hotels & Resorts leads the way, encouraging guests to “Explore the Area” around each property with a variety of virtual services. Each hotel’s chief concierge has recorded videos featuring spotlights on hotel amenities, dining, local attractions, shopping advice, and more. Each video is shareable via email and downloadable for use on the go. Property pages also recommend the “perfect day” itinerary for that locale.

InterContinental’s Chief Concierge highlights the area hotspots and can be viewed on the go

The “Perfect Day” itinerary assists guests in making the most of their stay

© L2 2011 L2ThinkTank.com

38


Digital IQ Index ®:

Travel

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FLASH OF GENIUS DELTA Facebook Friends Want to Fly Too Delta is turning its social communities into customers. Its sleek “Ticket Counter” feature on Facebook works efficiently, enabling users to search flights, book reservations, manage their rewards miles, obtain flight status and check in for a flight. The app, which requires no installation or application, drives incremental traffic to Delta.com with call-outs to learn more about travel advisories, in-flight amenities, and the SkyMiles program. Code-share partner, Air France, followed Delta’s lead, launching F-Commerce, resulting in a tripling of its Facebook fan base.

Delta’s Facebook ticket counter drives incremental traffic to their site

© L2 2011 L2ThinkTank.com

39


Digital IQ Index ®:

Travel

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TEAM: L2 SCOTT GALLOWAY

marking projects for hospitals, including UCLA Medi-

recently, she led creative services at ELLE during

Professor of Marketing, NYU Stern Founder, L2

cal Center, UCSF, and HCA. She has gone on to lead

the most successful years of the magazine’s history,

research and consulting efforts focused on digital

developing innovative integrated marketing programs

Scott is a Clinical Associate Professor at the NYU

media, private banking, M&A, insurance industry risk

for advertisers. Christine received a B.A. in Econom-

Stern School of Business where he teaches brand

management, and renewable energy economics for

ics and Journalism from the University of Connecticut

strategy and luxury marketing and is the founder of

professional firms and academics. Maureen has a

and an M.B.A from NYU Stern.

L2, a think tank for digital innovation. Scott is also

B.A. in Human Biology from Stanford University and

the founder of Firebrand Partners, an operational

an M.B.A. from NYU Stern.

TANUJ PARIKH L2

activist firm that has invested more than $1 billion in U.S. consumer and media companies. In 1997, he

R. DANIELLE BAILEY

founded Red Envelope, an Internet-based branded

L2

consumer gift retailer (2007 revenues: $100 million).

Danielle began her career at The Home Depot, Inc.,

City Economic Development Corporation, where he

In 1992, Scott started Prophet, a brand strategy

where she led a variety of internal consulting engage-

worked on a variety of initiatives designed to grow

consultancy that employs more than 250 profession-

ments focused on supply chain, merchandising,

the city’s innovation economy. Tanuj is also the co-

als in the United States, Europe, and Asia. Scott was

and in-store process improvement. She went on to

founder and director of UniThrive.org, a peer-to-peer

elected to the World Economic Forum’s “Global Lead-

manage the implementation of award-winning mobile

student lending social enterprise. In 2007, he was

ers of Tomorrow,” which recognizes 100 individuals

initiatives for several large media clients, including

a Kenya-based Fellow for Kiva.org, the world’s first

under the age of 40 “whose accomplishments have

The New York Times Co., NBC Universal, Disney/

peer-to-peer lending marketplace for the poor. Tanuj

had impact on a global level.”

ABC, Maxim magazine, and Zagat. Danielle has a

received his A.B. in government with a secondary in

B.S. in systems engineering from the University of

economics from Harvard University.

Scott has served on the boards of directors of Eddie Bauer (Nasdaq: EBHI), The New York Times Company (NYSE: NYT), Gateway Computer, eco-America, and UC Berkeley’s Haas School of Business. He received a B.A. from UCLA and an M.B.A. from UC Berkeley. MAUREEN MULLEN L2 Maureen leads L2’s research and advisory group and has benchmarked and/or developed digital and social media initiatives for more than 300 prestige brands. She began her career at Triage Consulting Group in San Francisco. At Triage, she led several managed care payment review and payment bench© L2 2011 L2ThinkTank.com

Tanuj began his career as a project manager at the Center for Economic Transformation at the New York

Virginia and an M.B.A. from NYU Stern. CANDICE MORTIMER CHRISTINE PATTON

L2

Creative Director, L2

Candice started her career in hotel group sales for

Christine is a brand and marketing consultant with

Marriott in White Plains, New York. She then moved

more than 15 years of experience creating brand

into logistical planning of special events in Miami and

identities and marketing communications for aspi-

later Lower Manhattan. Candice is a member of the

rational and luxury brands. She began her career at

Professional Convention Management Association

Cosí, where she developed the brand and oversaw

and serves on the International Meetings task force.

its evolution from concept through growth to 100

She earned a B.S. in hospitality management from

restaurants. Since then she has provided creative

Syracuse University and a will receive a master’s in

direction for a wide array of clients, including the

tourism administration from The George Washington

launch of Kidville and CosmoGIRL! magazine. Most

University in May.

40


Digital IQ Index ®:

Travel

Want to know more about your brand’s ranking? CONTACT US

TEAM: ISM & GWSB GARY LEOPOLD

and Partner at Holland Mark in Boston, ADWEEK

STUART LEVY

President & CEO, ISM

magazine named the agency one of the top 10

Gary is the President and CEO at ISM, where he sets

creative agencies in the United States. His resume

the vision and serves as lead strategic advisor for all

also includes the title of Creative Director at Arnold

Assistant Professor, Department of Tourism & Hospitality Mangagement, The George Washington University School of Business

clients. His thinking has influenced such brands and

Worldwide and additional brand experience including

Stuart is an Assistant Professor in the Department of

destinations as Four Seasons Hotels and Resorts,

McDonald’s, T.J. Maxx, Titleist, Foot-Joy, Pinnacle,

Tourism and Hospitality Management at The George

Sheraton, Abercrombie & Kent, American Express,

Dreyfus Funds, Citizens Bank, and the Massachu-

Washington University School of Business, where

Hong Kong, The Islands of the Bahamas, Barbados,

setts Office of Travel and Tourism. His awards include

he teaches hospitality industry management and

Emirates, Harley-Davidson, and more. Gary often lec-

the One Show, Cannes, CA, Mercury, Athena, Kelley,

internet marketing courses to undergraduate and

tures at universities, while being regularly published

Obie, and Clio.

graduate students. Stuart’s current research focuses on relationship marketing, mobile technology, and

in leading travel industry publications. MELISSA DOWLER

corporate social responsibility in the hospitality

Prior to co-founding ISM, Gary held the position of

Chief Marketing Officer, ISM

industry, and his work can be found in academic

Worldwide Corporate Director of Public Relations for

Melissa brings a wealth of digital and social media

publications including the Journal of Travel Research

Sonesta International Hotels Corporation. Gary is also

experience to her position as Chief Marketing Officer

the proud recipient of the Albert E. Koehl Lifetime

at ISM. She is a builder of teams, relationships, and

Achievement Award in travel advertising from the

successful marketing campaigns with a career his-

Hospitality Sales & Marketing Association International

tory that spans industries, media, and continents.

(HSMAI), an honor he shares with Michael Eisner and

Melissa offers a dozen years of international strategic

Sir Richard Branson, among others. Gary is a past

marketing experience to ISM clients, having worked

President of HSMAI and serves on the board of the

in London at IMC.UK and Arc Integrated Market-

HSMAI Foundation. He is also the current president of

ing on global brands including Kellogg’s, Tesco,

the MAGNET global agency network.

Shell, and The Government of Jamaica Food & Drink Exports. In addition to her extensive traditional

BOB MINIHAN

marketing background, Melissa has brought innova-

Chief Creative Officer, ISM

tive digital and social media strategy to brands such

As Executive Creative Director and Partner at ISM,

as Reebok and The Drew Company (World Trade

Bob is responsible for all ISM creative content. His travel brand experience includes Four Seasons Ho-

and the Journal of Hospitality and Leisure Marketing. Before academia, Stuart worked as a consultant for PricewaterhouseCoopers’ Global Hospitality and Leisure Practice, and he has also served in management positions for tour operations and internet marketing firms. He received a B.S. in Hotel Administration from Cornell University, an M.B.A from Georgetown University, and a Ph.D. from the University of Calgary.

Center, Ronald Reagan International Trade Center, Seaport Hotels).

tels and Resorts, Emirates airline, American Express Travel Services, Best Western Hotels, Barbados, Abercrombie & Kent Residence Club, Fodor’s, and FareCompare. In his previous position as ECD © L2 2011 L2ThinkTank.com

41


U PCOM ING EVE NTS

05.20 .11 L2 Clinic Emerging Digital Media Platforms While Facebook dominates the social media landscape, a multitude of other digital platforms and new consumer behaviors that surround them have emerged. In isolation, these platforms may not have reached critical mass; but in

L2 is a think tank for digital innovation.

aggregate, they provide a fertile ground for brands to run

We are a membership organization that brings together thought leadership from academia and industry to drive digital marketing innovation.

insights into wholly new forms of digital self-expression and

creative experiments, reach new consumers, and glean consumer activity.

06 . 24 .11 L2 Clinic Mobile & Geolocal R esearc h

Digital IQ Index®: The definitive benchmark for online competence, Digital IQ Index® reports score brands against peers on more than 350 quantitative and qualitative data points, diagnosing their digital strengths and weaknesses. EVE NTS

Forums: Big-picture thinking and game-changing innovations meet education and entertainment.

Every year has been touted the “year of mobile.” However, looking back at 2010, predictions and estimates on the explosive growth of mobile devices, smart phones, and the ubiquity of mobile web have all reigned true; we are now at an inflection point.

07. 22.11 L2 Clinic Video & Celebrity

The largest gatherings of prestige executives in North America.

This half-day immersion explores successful strategies to drive

300+ attendees

engagement and brand awareness through the use of online video and traditional—and untraditional—celebrities.

Clinics: Executive education in a classroom setting with a balance of theory, tactics, and case studies.

60 –120 attendees Working Lunches: Members-only lunches led by digital thought leaders and academics.

U PCOM ING R esearc h Digital IQ Index® Reports

Topic immersion in a relaxed environment that encourages open discussion.

Financial Services

Beauty

Prestige Facebook Index

Fashion & Leather Goods

Magazines

Watches & Jewelry

China: Prestige 100

Gen Y Affluents: Prestige Brand Ranking

12 – 24 attendees MBA Mashups: Access and introduction to digital marketing talent from top MBA schools. co nsu lt ing

Advisory Services: L2 works with brands to garner greater return on investment in digital initiatives. Advisory work includes Brand Digital Roadmaps, Social Media Strategy, and Site Optimization engagements. MEMBERS HIP

For membership info and inquiries: membership@L2ThinkTank.com

Specialty Retail


A Think Tank for DIGITAL INNOVATION

821 Broadway, 2nd Floor New York, NY 10003 W: L2ThinkTank.com E: info@L2ThinkTank.com

Š L2 2011 L2ThinkTank.com


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