• Accenture Semi-Annual U.S. Travel Survey: August 2006

Accenture Semi-Annual U.S. Travel
Survey: August 2006
Findings and Analysis
Lynn Connors-LaFiandra
Accenture Research
 • Executive Summary
• Survey Methodology
• Survey Results
• Appendix
Copyright © 2006 Accenture All Rights Reserved. 2
Executive Summary-US Travel Survey
Key themes
Airline travel is strong and is expected to increase in the near future.
• Almost one-third (31%) of respondents expect to increase their travel in the next 6 months. Most (93%)
expect to travel within the US over the next six months. Chicago is the primary destination for most, but
the gap is narrowing with regard to other major cities.
• Virtually all (97%) respondents have taken at least one flight in the past 6 months; this is up from 2004
(91%).
• Convenient schedule is the top influencer in choice of airline (57%), more than one in three (35%) cite
frequent flyer programs as most influential.
Online methods, including kiosks, are widely accepted and often preferred.
• Over three-quarters (78%) of respondents use online booking as their primary method for booking airline
travel; this is consistently on the rise over past years.
• Internet flight check-in is on the rise and far more popular than hotel kiosk check-in (71% v 7%).
• Most important features of online travel sites are: ability to see total price at the time of purchase,
including taxes and fees (83%); ability to redeem points or miles for travel (58%); ability to see hotel
accommodations online (56%)
• Among the 89% of respondents using airport kiosks, nearly 2 out of 3 (61%) find it more convenient than
checking in with an agent; among those who have not used the self-service kiosks, preference for a live
agent appears to be the main inhibitor
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Executive Summary-US Travel Survey
Key themes (continued)
Location, location… price.
• Price and proximity are reversed in priority for business vs personal travelers in their choice of
accommodations
• Proximity to business meetings or events was the top influencer in choice of hotel for business
travelers, while price was the top influencer for personal travelers
• Price and proximity are the top two criteria in choice of hotel for personal stays as well as for
business travel. Surprisingly, reward point accumulation is ranked #6 out of 7.
• Mid-range hotels (Marriott, Hilton, Sheraton) are used significantly more for business travel than
personal travel (81% vs. 59%); budget chain hotels are used more than twice as frequently for
personal travel than for business travel.
Hotels are underutilizing customer information
• Less than half, 44%, report their hotel recognizes them as a frequent customer and knows their
preferences
• Nearly one-third (32%) are not recognized as a frequent customer by the hotels they frequent
• Nearly three out of four respondents (73% on average) are willing to provide personal information in
return for better or more customized customer service; information respondents are most willing to
release include: smoking status (85%), favorite foods (78%), and leisure activities (77%)
• Benefits that most respondents would like to receive in return for personal information include:
preferred seating or upgrades (93%), discounts (92%) and cash back (90%)
Copyright © 2006 Accenture All Rights Reserved. 4
Executive Summary
Key themes (continued)
Reward programs are being underutilized—with less than half on average redeeming rewards
• Many have not redeemed any rewards from airline or hotel programs (37% and 56% respectively)
• Over one in five (22%) have used all airline reward benefits that interest them; most respondents
redeem like for like (free airline tickets or hotel rooms for airline/hotel reward points)
• For respondents who haven’t redeemed airline benefits for things they want, the main reason is that
too many points are required for both airline and hotel programs (47% and 50% respectively)
• Blackout dates are cited as the main problem with airline reward programs (51%) while too many
points required for a free room is cited for hotel programs (49%).
• Respondents predominantly keep their rewards in the loyalty account of the corresponding airline or
hotel.
Trends from prior year studies
• A trend toward online booking has been steadily increasing year over year, displacing the use of
phone booking with a live agent, which is steadily decreasing.
• There has been a sustained shift back to using major network carriers (an increase of 9% since
2004) and away from low cost carriers (down to 14% from 23% in 2004) for business travel.
• In 2004, budget chain hotels were a fad for business and personal travel. But there has been a shift
back to mid-range hotels, up 9% since 2004.
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Executive Summary-US Travel Survey
Key themes (continued)
Business travelers consider low-cost carriers but use them more often for personal travel.
• Almost three-quarters (73%) of respondents expect low-cost air carrier usage to increase or remain
the same in the next 6 months. More than three-quarters (76%) would increase usage if there were
more flights into main airports.
• Low-cost airlines are used by more than twice as many personal travelers (31%) than business
travelers (14%).
• Price is by far the #1 reason for using low-cost air carriers (61%). Beyond price, schedule (time and
destination) is the main reason (60%).
Copyright © 2006 Accenture All Rights Reserved. 6
 • Executive Summary
• Survey Methodology
• Survey Results
• Appendix
Copyright © 2006 Accenture All Rights Reserved. 7
Survey Methodology-US Travel Survey
Survey Methodology
• Web-based survey of business respondents
• Respondents were screened for travel greater than 300 miles within past 6 months.
• The survey was in the field from July 31 through August 3, 2006
• Respondent companies represented a range of sizes: 33% greater than $1 billion, 21%
between $250 million and $1 billion, 46% less than $250 million.
• The survey has been conducted since 2003
• A total of 794 respondents qualified for this August (Fall) 2006 survey; 1128 respondents
qualified in Spring 2006; 530 respondents qualified in Fall 2005; 553 respondents qualified in
Spring 2005; 544 qualified in 2004; 1667 qualified in 2003.
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 • Executive Summary
• Survey Objectives and Methodology
• Survey Results
• Appendix
Copyright © 2006 Accenture All Rights Reserved. 9
Survey Results-US Travel Survey
Airline usage is high with virtually all respondents
flying for trips greater than 300 miles.
Primary mode of transportation typically used Number of flights taken in past 6 months
for business trips greater than 300 miles
Greater than
14%
Air 91% 10
6 to 10 16%
Car 8%
3 to 5 36%
Train 1%
1 to 2 31%
Other 0% 0 3%
n=794 n=794
0% 19% 38% 57% 76% 96% 0% 10% 20% 30% 40% 50% 60%
Percentage of respondents Percentage of respondents
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Survey Results-US Travel Survey
More than 30% of the respondents fly once per
month or more on average. This is consistent with
past survey results.
Primary mode of transportation typically used Number of flights taken in past 6 months
for business trips greater than 300 miles
91% Fall 2006
91% 14%
93% Greater than 15% Spring 2006
Air 93% 17%
10 14% Fall 2005
87% 8% Spring 2005
96%
16% 2004
8% 17%
8% 6 to 10 14%
7% 15% Question not
Car 6% 13% asked in 2003
12% 36%
3% 32%
1% 3 to 5 31%
0% 29%
34%
Train 1% Fall 2006
0% 31%
0% Spring 2006 33%
0% Fall 2005 1 to 2 34%
38%
0% Spring 2005 37%
2004 3%
Other 4%
0% 2003 0 5%
3%
9%
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 0% 10% 20% 30% 40% 50% 60%
Percentage of respondents Percentage of respondents
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Survey Results-US Travel Survey
For more than three-quarters of the respondents, the
internet is the primary method of booking business
travel. Almost half book travel more than 14 days in
advance.
Primary method of booking business travel Number of days prior to traveling
respondents book business travel
2%
2%
Online 78% < 2 days Fall 2006
1%
3% Spring 2006
Fall 2005
20%
Spring 2005
Phone with 21%
16% 2 - 7 days
live agent 17%
18%
29%
30%
In-person 1% 8 - 14 days
32%
33%
49%
47%
Other 4% > 14 days
50%
46%
0% 16% 31% 47% 62% 78% 93% 0% 10% 20% 30% 40% 50% 60%
Percentage of respondents Percentage of respondents
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Survey Results-US Travel Survey
This trend for online booking has been slowly but
consistently on the rise, displacing the use of phone
booking with a live agent.
Primary method of booking business travel
78% 90%
76%
74%
Online 80%
78%
71% 76%
61% 74%
70% 71%
57%
65%
16% Fall 2006 60%
57% Online
19%
Spring 2006
Phone with 21% 50%
Fall 2005 Phone with live
live agent 22%
Spring 2005 agent
31% 40%
36% 2004 36% In-person
2003 30%
1% 27%
1% 22%
20% 21%
1% 19%
In-person 16%
2%
3% 10%
3% 3% 3%
0% 2% 1% 1% 1%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 2003 2004 Spring Fall 2005 Spring Fall 2006
2005 2006
Percentage of respondents Percentage of respondents
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Survey Results-US Travel Survey
Nearly four out of five respondents use the internet
to make flight or hotel bookings. This is in line with
prior years on average.
Internet use for flight arrangements Internet use for hotel arrangements
90% 79%
Research flight times 92% 83%
90% Room reservations 76%
and availability 90% 78%
89% 74%
83% 80%
84% 83%
Purchase airline
81% Research hotel vacancies 75%
tickets 76% 76%
75% 78%
71% 46%
68% 45%
Airline check-in 65% Update/change reservations 43%
60% 41%
48% 39%
60% 40%
Specify personal 58% Specify personal hotel accommodation 44%
56% 41%
flight preferences 53% preferences 41%
45% 35%
51% 34%
Access account 51% 36%
history or receipts 48% Access account history or receipts online 35%
48% 34%
online 40% 30%
55% 7%
Update/change 49% 7%
49% Hotel kiosk check-in 8% Fall 2006
reservations 46% Fall 2006 7%
34% 6%
0% Spring 2006 0% Spring 2006
1% 1%
Other 1% Fall 2005 Other Fall 2005
1% 2%
1% 1%
1%
Spring 2005 6% Spring 2005
2% 5%
None of the above 4% Spring 2004 None of the above 8% Spring 2004
4% 8%
5% 11%
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
Percentage of respondents Percentage of respondents
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Survey Results-US Travel Survey
The Internet is used more so for flight activities than
hotel. Internet flight check-in is by far more popular
than the hotel kiosk check-in.
Internet use for flight and hotel arrangements
90%
Research flight times/hotel vacancies
80%
83%
Room reservations/purchase tickets
79%
71%
Hotel kiosk/ airline online check-in
7%
60%
Specify personal preferences
40%
51%
Access account history or receipts online
34%
55%
Update/change reservations
46%
1% Flight
None of the above
6% Hotel
0%
Other
0%
0% 20% 40% 60% 80% 100%
Percentage of respondents
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 Survey Results-US Travel Survey
When shopping online for travel, respondents want
to see a total price, including taxes and any fees, at
the time of purchase.
Importance of online features when shopping online
2% 3%
Ability to see total price (tax & fees) 1% 11% 27% 56%
Ability to redeem points or miles 1% 8% 10% 23% 27% 31%
Ability to see hotel accommodations 1% 4% 7% 32% 31% 25%
Ability to compare packages 2% 12% 12% 24% 25% 25%
Ability to research destination 7% 15% 30% 29% 19%
Ability to purchase package in one place 1% 14% 19% 27% 22% 17%
Ability to purchase tickets to local events 3% 22% 28% 25% 14% 8%
Ability to book a golf tee time in advance 4% 57% 16% 10% 6% 7%
Ability to book spa appointments in advance 4% 46% 21% 16% 7% 6%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
N/A Unimportant Neither important nor unimportant Somewhat important Very important Extremely important
Excluding Don’t know16
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Survey Results-US Travel Survey
The vast majority of respondents have used the
airport kiosk to check in, fewer find it more
convenient than an agent than in prior years.
Used self-service kiosk at airport to check-in Comparison of self-service kiosk to agent
and get boarding pass check-in
100%
89%89% 87%89% 61% Fall 2006
90% Spring 2006
Fall 2005 More 68% Spring 2006
80% convenient 67% Fall 2005
Spring 2005
70% Fall 2006 69% Spring 2005
60% 29%
About the 24%
50% same 23%
40% 24%
30%
10%
20% Less 8%
13%
11%11% 11% convenient 10%
10%
7%
0%
0% 20% 40% 60% 80% 100%
Yes No
Copyright © 2006 Accenture All Rights Reserved. Percentage of respondents 17
Survey Results-US Travel Survey
Among those who have not used the self-service
kiosks, preference for a live agent is still the main
inhibitor while those who do not use a kiosk because
they do not know how, have declined.
Used self-service kiosk at airport to check-in Reasons respondents haven’t used self-
and get boarding pass service kiosk at airport
100% I prefer to check in with a live
39%
40%
89%89% 87%89% agent 40%
90% Spring 2006 36%
Fall 2005 I typically check in via the 27%
33%
80% internet before arriving at the 22%
Spring 2005 airport 22%
70% Fall 2006 I don't know how to use a
10%
22%
kiosk 16%
21%
60%
15%
I've never seen a self-service 14%
50% kiosk at the airport 16%
Fall 2006
16%
The airline I most frequently 15% Spring 2006
40% 9% Fall 2005
travel with does not provide 14%
kiosks 16% Spring 2005
30%
8%
Kiosks are typically out of 3%
20% order
0%
7%
13%
11%11% 11%
7%
10% Other 6%
12%
5%
0%
0% 20% 40%
Yes No
Percentage of respondents Percentage of respondents
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Survey Results-US Travel Survey
More than one-third (31%) expect to travel more in
the next 6 months than in the past. More than 9 out of
10 expect to travel within the US with some also
traveling to Canada and internationally.
Amount of business travel anticipated over Business travel destinations
next six months compared to past 6 months (over next 6 months)
92%
60% 96%
56%
54% United States
52%53% 95%
94%
50% Fall 2006
Spring 2006 11%
10%
Fall 2005 Canada
40% 15%
Spring 2005
14%
30% 20%
24%25% International 20%
23% (outside US
20% 19%
and Canada)
20% 23% Fall 2006
Spring 2006
11% 10%10% 4% Fall 2005
8% 9%9%
10% 8% 9% 4% Spring 2005
5% 4%
5% Don't know
4%
4%
1% 1%1% 5%
0%
Much Slightly About Slightly Much Don't 0% 20% 40% 60% 80% 100%
more more the less less know
same
Percentage of respondent