Overview and Background

In late 2008 Tourism New Zealand conducted research into the way consumers from our target market research and book travel in order to ensure the most effective channel strategy.

The way people research and book travel has changed in the last five years. Better access to broadband Internet and the growth of e-commerce have been major factors behind this shift in behaviour.

The research surveyed travellers from Australia, the UK, US and Germany. Over 200 surveys were conducted with those who visited New Zealand during November and December 2008.

It should be noted that since the research was undertaken, industry feedback suggests that visitors are now booking later because of the economic downturn that hit in late 2008 and an increase in special deals on last-minute travel.

Key findings

  • To create a positive experience for someone researching and booking a holiday, the process needs to be quick, comprehensive, inspiring and, most of all, easy
  • Making the booking experience simple and painless was found to be the primary driver of satisfaction
  • A booking experience was described as "easy" when all the necessary information was clear, understandable, fast to retrieve and aided simple decision making
  • "Easy" payment channels are secure, reliable and use a consistent payment platform
  • Energy and excitement are high during the planning and information gathering process. Travellers prefer channels that help them maintain that level of excitement during the booking process by making it simple to book and minimising procedural barriers

Researching travel to New Zealand

Across all countries, research into New Zealand prior to arrival is done primarily through online channels, with half to one-third of all research conducted online. It is also common for travellers to visit a travel agent in person when researching a New Zealand holiday.

Once in New Zealand, visitors are more likely to use i-SITE visitor centres, guide books and brochures to research aspects of their holiday. They will also visit or call operators direct.

Making bookings

Travellers from all markets use online booking channels prior to arrival in New Zealand. Operator websites are the most popular online channel, once they have been found via a Google search. The trend towards booking online is strongest for accommodation and transport, driven by the perceived breadth of options available online.

Visiting travel agents in person is the second most-used channel to book aspects of a New Zealand holiday prior to arrival, although use of travel agents is significantly below online channels.

In the United States, traditional tour operator packages are still more popular than online travel agent (OTA) packages, and this is not expected to change in the near future.

Once in New Zealand, travellers book mostly by visiting operators in person or through i-SITE visitor centres.

Flights

  • The choice between booking online versus through a travel agent depends on an individual's level of trust in the Internet. If an individual is comfortable with the level of accuracy, thoroughness and security provided by the Internet, he or she is likely to use this channel to make travel bookings
  • The choice to book online may also be influenced by the fact that there is no travel agent near where an individual lives, or they may be booking with frequent flyer points that are only able to be used with online bookings
  • Travellers believe the Internet offers them greater choice and therefore better value for money. There is a widely-held perception that the cheapest flights are now all online
  • Reported exceptions (where agents are still preferred) tended to be among older or more risk-averse travellers, or in a few cases those travellers looking for an easier experience - "All that searching is too much work"

Accommodation

  • Travellers prefer to book accommodation online because they believe it offers a wide range of choices (seen to be far wider than any travel agency). Travellers perceive this greater choice as equating to better value. Aggregated booking sites (such as www.expedia.com) are extreme examples of this principle in action
  • The exceptions to this trend tend to be among people who are older or more risk-averse and therefore prefer booking through travel agencies
  • A number of travellers surveyed emailed accommodation providers directly to make bookings, after browsing the operators' websites

Transport

  • As with accommodation, travellers prefer to book local transport online because it offers a wider selection of providers and greater choice - "By searching more online my rental car was 20 per cent cheaper than my last trip."

Activities

  • Because research participants were surveyed in November, New Zealand's shoulder season, a lower than normal proportion of travellers booked activities in advance. Travellers are typically aware that there is less need to book in advance outside of New Zealand's peak tourist seasons
  • Only those activities seen as iconic New Zealand tourism activities - such as white-water rafting, Milford Sound tours, glacier walks, bungy-jumps and skydiving - tended to be pre-booked
  • Travellers who have visited New Zealand previously are confident booking through i-SITE visitor centres once in New Zealand