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JANUARY 2004 ISSUE 18W
 

NPD AirTrak : Examining Consumers'
Use of Online Travel Services
By Alexandre Mina

Through NPD AirTrak, NPD Worldwide has been conducting ongoing online consumer research for the airline industry. Despite the tumultuous times faced by the travel industry in 2003 – the conflict in Iraq, the threat of SARS, and travelers' overall fear of terrorism – ten international airlines covering North America and Europe continue to subscribe to our 2003 AirTrak quarterly syndicated tracking study.

This year, as for the past six years, AirTrak's main objective is to evaluate effectiveness of our clients' Web sites by interviewing visitors to determine their profiles, travel experience, Web site experience, Web site satisfaction and online purchasing. NPD's analysis of AirTrak survey results helps our clients leverage their positions in the travel market and keep a step ahead of their competition.

NPD AirTrak and Today's Travel Industry
Airlines know that today, more than ever, their key marketing, advertising and channel development decisions must be based on an accurate and comprehensive understanding of visitors to their respective Web sites and those of their competition.

In the past, the big players in the airline industry fought for market share only amongst themselves. However, in the last few years, we have seen the emergence of "low cost" and "no frills" airlines, both regionally and nationally, and even cross-nationally. These new competitors are successfully staking their claim in the marketplace. In addition, the significant growth of online travel agencies has given consumers the power to pick and choose with whom they book, as they continue to search for better prices on air travel. These factors – the rise of formidable competition that didn't exist for international airlines in the past and consumers' new-found ability to shop the Internet for the best deals and schedules – have created a new business environment for airlines.

Using AirTrak information, subscribing airlines can take advantage of NPD's unique perspective on the online travel market. Recent AirTrak insights like these have proven valuable to our airline industry clients:
  • In Europe and in the U.S. respectively, consumers visit an average of 3.8 and 3.6 travel Web sites when researching/planning air travel. These figures now apply to the sites of large air carriers, the so-called "no-frills airlines" and online travel agencies.
  • Competitive prices and the ability to book entire trips, including hotels and car rentals, lead more than 36% of U.S. travel Web site visitors to first choose online travel agencies' or low-cost airlines' Web sites when researching/planning travel. In Europe, nearly 30% of site visitors choose online travel agencies and low-cost airlines' sites first.
  • Conversion rates and consumers' likelihood of purchasing tickets from airlines' Web sites continue to increase.

Profiling visitors to travel Web sites, as NPD AirTrak does, is critical to airlines' and online travel agencies' ability to target specific consumer groups and convert online travel planners to online travel buyers. For example, we know that nearly 40% of U.S. visitors to travel Web sites are women. In Europe, less than 30% of travel Web site visitors are women. AirTrak also provides more detailed information about online travel site visitors' behavior and characteristics: how often they travel, whether they are members of airlines' Frequent Flyer programs, how frequently they visit airlines' Web sites and whether those visits are for business or pleasure travel research, etc.

Additionally, NPD AirTrak also helps airlines understand how customers rate particular airlines' sites compared to the competition, identifies areas where airlines can improve their sites, and uncovers what kinds of new services and features would improve airline Web site visitors' satisfaction. In short, AirTrak provides the information required for airlines to gain market share via online ticket sales and maintain Web site visitor loyalty.

Coming Soon !
NPD AirTrak services are available to traditional airlines in the U.S. and Europe. Soon, AirTrak will expand to include Asia/Pacific carriers and incorporate additional insight into the low-cost and no-frills airlines that are making such a mark on the travel industry.

For more information about NPD AirTrak, contact Alexandre Mina of NPD Worldwide at alexandre_mina@npd.com.