Online review sites are gaining ground as a research tool in the destination selection process, according to a recent report published by PhoCusWright that looked at the habits of leisure travelers in the United States, France, Germany and the United Kingdom. Online travel agencies (OTAs) are still a popular source for reviews, the study found, and different patterns are developing in each market.

A higher percentage of travelers in all four markets are turning to review sites such as TripAdvisor—21 percent of French and German travelers consulted one in 2011, an increase of 8 and 7 percentage points, respectively.

Although the use of traveler review sites is increasing across the board, U.S. and German travelers still put more stock in the reviews they find on OTA sites, according to PhoCusWright. The percentage of U.S. travelers who called traveler review sites slightly or very influential decreased from 65 percent in 2011 to 59 percent in 2010. Meanwhile, the portion who said the same about reviews on OTA sites held steady at 73 percent. Travelers in the United Kingdom and France are much more likely to be influenced by traveler review websites.

Competition for travelers’ eyeballs is not a zero-sum game, the study confirmed. Travelers in all four markets visited an average of three to five sites before booking, according to the report, “Destination Unknown: How U.S. and European Travelers Decide Where to Go.”

Photo: TripAdvisor.com

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More Positive Yet Tepid Outlooks for Travel, per PhoCusWright

PhoCusWright released the third edition of its Consumer Travel Report yesterday, and the good news is that travel intentions of U.S. consumers remain high.

We’ve been down this road before. A lot, lately. Nearly every report from the past 18 months or so has pinpointed pent-up travel demand, the desire to branch out and spend money in a place that isn’t home or near one’s home (I don’t dare write that dirty “S” word).

It doesn’t matter if the destination is domestic or international, people just want to travel again. But are they?

According to the report, 63 percent of U.S. adults with Internet access took a paid leisure trip in 2010, showing a slight uptick from the 61 percent who said they did so in 2009. That number, however, is still a far cry from the 71 percent who took vacations in 2008.

Annual household travel budgets are recovering, though, and increased a respectable 6 percent, to $2,886. That follows an 11 percent drop in 2009, so we’re still well below 2008 numbers, but at least spending seems to have turned around.

Other findings are equally positive, but they survey consumer desires, not actions:

- more than twice as many travelers plan to take more trips in 2011 (32 percent) than fewer (14 percent)
- 29 percent of travelers plan to spend more, compared to 24 percent the previous year
- 16 percent of U.S. travelers, however, plan to spend less than in 2010, down slightly from 18 percent last year

Results are based on an online survey of more than 2,500 U.S. consumers who actively plan leisure trips. Frankly, unless the economy improves significantly and unemployment drops at least two points by the end of the year, expect to see similarly tepid numbers for 2012.

For readers interested in learning more, consider sitting in on PhoCusWright’s webinar On the Edge of Optimism: Key U.S. Traveler Insights, July 13, noon EDT. Carroll Rheem, director of research, and moderator Lorraine Sileo, vice president of research from PhoCusWright, will share key findings from the report. The cost is $199. Or buy the report for $1,525 between now and July 31, after which the 10 percent early-bird discount ends and the price is $1,695.

Photo: PhoCusWright

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Feature 1: Secaucus, New Jersey-based Northstar Travel Media LLC has acquired PhoCusWright Inc. Terms of the acquisition were not disclosed, but PhoCusWright now becomes a wholly owned subsidiary of Northstar Travel Media.

Philip Wolf

PhoCusWright was founded in 1994 by Philip C. Wolf, who will continue as the company’s chairman.

“After 17 years at the helm,” said Wolf, “joining Northstar represents an ideal next step. Integrated smart marketing, targeted investments and more manpower will help us achieve significant new things for our clients.”

“We are actively investing in our business through organic initiatives and acquisitions that strengthen our position in core markets,” said Thomas Kemp, chairman & CEO of Northstar Travel Media. “PhoCusWright is strategically important to Northstar, particularly in growing proprietary paid information and face-to-face events.”

Northstar owns the travel industry’s leading media brands like Travel Weekly and Business Travel News, and online subscription sites like The Beat, Travel42, Weissmann Reports and STAR Service Online. PhoCusWright is Northstar’s fifth acquisition in the last 18 months.

Northstar Travel Media acquires PhoCusWright – NorthstarTravelMedia.com (press release)
Philip Wolf on Northstar Travel Media’s acquisition of PhoCusWright Inc. and his future role as Chairman: “Business as usual” – YouTube (video)

Feature 2: On June 7, 2011, Delta Air Lines got owned by a pair of U.S. Army soldiers returning from the combat zone in Afghanistan.

To protest Delta’s checked bag policies, U.S. Army staff sergeants Fred Hilliker and Robert O’Hair recorded a video on board a Delta flight from Baltimore to Atlanta, and posted it on YouTube. Apparently their unit arrived in Baltimore with orders that said they could carry up to four bags, but Delta’s rules allow for military personnel to check only three bags for free.

Delta charged the 34-member unit $200 for each extra bag, for a total of $2,800. After the video hit the fan, Delta quickly went into damage-control mode. It changed the policy so that military personnel traveling in economy can check four bags for free. Delta’s social media manager promptly issued a public apology.

Note that the Department of Defense was at fault for issuing an incorrect order, and soldiers get reimbursed for any baggage fees charged by an airline.

Even so, Delta did well to change the policy and issue an apology before the story jumped from social media to the mainstream media, ensuring that coverage reflected Delta’s response instead of just the original story. The YouTube video originally posted by the soldiers has since been removed (you can see it here).

Soldiers’ $2,800 in bag fees spark outrage, policy changes – CNN
Military travel: Baggage policies and our thoughts – Delta.com
Delta gets ‘A’ in social media management – Travel Weekly
Customer satisfaction with airlines is up—except for fees - UpTake

Here’s the rest of the week’s interesting news:

Hoteliers should remove barriers between technology, marketing and operations - Amadeus
Hotel companies race to create a better room key - WSJ
Hotels in 2030 will feature virtual love making - Telegraph

IATA reveals checkpoint of the future - IATA.org
Airline industry 2011 profit outlook slashed to $4 billion - IATA.org

Global CIO: Video must do more than slash travel - InformationWeek
Get socially rewarded for business travel - Inc.com

Concur to acquire GlobalExpense for $19.7 million- Concur.com
Room 77 closes $10.5 million series B round - Yahoo! Finance

Apple investigating dynamic location, traffic-aware iPhone calendar alerts - AppleInsider
Congress may block Apple GPS service - Mobiledia
Planned LightSquared cell network incompatible with aviation GPS - Nextgov

Travelport signs long-term agreement with IHG - Travelport
Amadeus and Accor extend global distribution agreement – Amadeus
Hilton renews distribution agreement with Sabre – Sabre Hospitality Solutions

NYU Conference: Jonathan Tisch urges action on U.S. transportation infrastructure – Meetings-Conventions.com
NYU Conference: OTA debate stresses better channel management – HNN
NYU Conference: Hotel CEOs check in, like the view – GlobeSt
NYU Conference: Chat with Morgans Hotel Group CEO Michael Gross – Hotel Check-In

Photo – PhoCusWright

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PhoCusWright, one of the leading travel industry research companies, conducted an online event last week sharing its experts’ top 10 travel trends insights into what 2011 holds for the performance of the travel industry.

Truth, Myth, and Pith: PhoCusWright’s 2011 Travel Industry Trends presentation, moderated by Lorraine Sileo, vice president of research, made clear that the biggest news for the industry is that vacations are finally making a comeback. People are tired of having to cut back or postpone their travels due to economic factors the past few years, they’re getting on the road again, and they’re willing to spend more and spend directly with suppliers as opposed to online travel agencies.

Other key trend topics included air distribution, with a battle lining up for online retail storefront and, ultimately, consumers that will eventually end with all parties coming to an agreement on how to live together; shift in search whether or not Google completes its acquisition of ITA; China, India and Brazil continue to lead the way in emerging markets, followed by Singapore, Mexico, Hong Kong, Argentina, Indonesia and Chile; and more advances in how mobile devices and tablets will improve customer service and enrich the travel experience.

Here is the complete list of 10 travel trends for 2011, along with which trends participants deemed the most important (each listener could choose up to three):

1. Vacations (Finally) Make a Comeback – 31 percent
2. Emerging Markets: No Internet, No Problem – 21 percent
3. Air Distribution: As Clear as Mud – 31 percent
4. Google-ITA: If Not Plan A, Then on to Plan B – 34 percent
5. “Mobile” is Not a Trend – 47 percent
6. Suppliers Get Smart About Smart Technologies – 30 percent
7. Suppliers Claw Their Way Back – 21 percent
8. Emerging Markets: Which Ones are Real? – 17 percent
9. Private Sale: Flash of Brillance or Flash in the Pan? – 15 percent
10. Tablet Wars Spark a Travel Revolution – 28 percent

PhoCusWright presenters included Carroll Rheem, director of research; Cathy Schetzina, director of communications and senior research analyst; Douglaa Quinby, senior director of research; and Ram Badrinathan, market analyst the Asia Pacific region.

Participants compared how 2010’s predicted travel trends played out, with 78 percent saying PhoCusWright was either spot on or mostly on target. Last year’s trends:

1. A Restrained Recovery
2. Online Travel Agencies Maintain Momentum
3. Airline Optional Services – Ancillary No More
4. Mobile Travel Bookings Become Reality
5. Social Media Tops Agendas
6. Getting Local: Mobile, Social and Search Converge
7. Growing Pains Prompt Meta-morphosis
8. Trip Planning Gets Personal
9. Emerging Markets on the Radar
10. Mapping Makes its Mark

How do you think PhoCusWright experts did in predicting 2010 trends, and what are your thoughts on their picks for 2011?

(There was a technical glitch with the recording of the webinar, but the company is working on rerecording the information, and a download of the transcript will be made available soon.)

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(Photo credit: PhoCusWright)