Microsoft Advertising Travel Update

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Microsoft AdvertisingTravel Update

U.S. focusAgendaU.K. focusFR focusDE focus

Coronavirus is having a profound impact onconsumer behaviour8/10Consumers have changed their behaviours as a result of the virusIn this research, we try to examine the impact ofcoronavirus and other disruptions on how consumerssearch for travelGlobalWebIndex Global Coronavirus Research, March 2020

Notes & Definitions for slides aheadQuery associations – these are search terms that feature in a queryalongside the core product term (e.g., for a query like ‘cheap flights’, the coreproduct term would be ‘flights’ and the query association would be ‘cheap’).Typically, query associations tend to be descriptive terms regarding the productbeing searched.Raw queries – these are the typed queries by consumers in the search engine(e.g., ‘cheap flights’ is what a consumer typed into Bing, but our analysis hasidentified ‘cheap’ as the query association within this raw query).

U.S. focus

Coronavirus is having a significant impact onconsumer plans to travel50%U.S. consumers who have voluntarily cancelled, delayed or have beenforced to cancel travel plans as a result of the virusAll stats in this report are from a GlobalWebIndex March 2020 custom survey among 1,628 (U.S.) and 1,509 (U.K.) internet users aged 16-64.

Top query tokens by Travel sub-verticalranked by search volume in descending order(Mar 7th – Mar 20th 2020) Flight and Car Rentals shoppers exhibited price sensitivity and an appetite for a good deal“Florida” and related tokens (“Orlando,” “Disney”) maintained their prominence as top queryassociations across sub-verticalsGeographic query associations emerge among the strongest in the Vacation Rentals sub-verticalVacation landLodgingsbeachskicasinovegaslakecitymountainlas vegasfloridaInternal data US, March 7th – March 20th, brand terms have been etsdealspricepackagesround iver2020dealsCar est pricereservations

Top 10 non-brand raw queries by Travel sub-verticalranked by search volume in descending order(Mar 7th – Mar 20th 2020) Deal-seeking queries are popular across Flights, Cruises and Car Rental sub-verticals, but many top queries all still in declineSome increased flights interest in Las Vegas may be due to travellers seeking deals just prior to hotel and casino closuresCar Rental top non-brand queries show a uniform week-over-week (WoW) declineFlight QueriesWoW Changecheap flightsflightsairline ticketsflight trackercheap airline ticketsplane .20%-21.40%airfareairline tickets best priceflights to vegas-27.30%-38.10% 12.70%Cruise Queriescruisescruisecruise dealscruise linesWoW Change-27.80%-32.70%-38.50% 3.40%Car Rental QueriesWoW Changecar rentalrental carscar rentals-43.80%-46.30%-40.60%-48.00%cruise shipsbest cruise shipsalaska cruise-20.00% 1.20%-35.20%cheap car rentalscar rentals cheapestratesrent a carriver cruise reviews 9.60%cheap rental cars-45.60%alaska cruises-53.10%last minute cruise deals-58.50%rental carcar rental dealsrental cars lowest price-41.80%-49.30%-53.90%Internal data U.S., March 7th – March 20th, brand terms have been removed.-52.20%-40.30%

Top 10 non-brand raw queries by Travel sub-verticalranked by search volume in descending order(Mar 7th – Mar 20th 2020) Destination queries are strongly present in the Vacation Rentals sub-vertical, but top searches are in uniform WoW declineQueries featuring island destinations like ‘Hawaii’ and ‘Bora Bora’ show notable volume, with ‘Hawaii’ even showing growthUpper-funnel Lodging queries suffered the same sharp WoW declines as the rest of the verticalHoliday QueriesWoW Changevacationhawaii vacation packagesall inclusive vacation packages-18.30% 39.40%-45.10%vacation packagesall-inclusive vacation packageswith airfareall inclusive vacations-47.50%bora bora vacation packagesvacationslast minute travel dealsdisney Lodgings QueriesWoW ChangeVacation Rental QueriesWoW Changehotelshotelcheap hotelslas vegas hotelsvegas hotelsmyrtle beach hotelshotels in las .10%vacation rentals-49.10%outer banks vacation rentals-46.60%condos for rent-35.10%bed and breakfast-50.40%vacation rentals by owner-47.40%destin florida vacation rentals-46.50%myrtle beach vacation rentals-51.00%accommodationmotelhostel-21.10% 5.20%-14.70%tybee island vacation rentals-53.10%condos for rent near me-47.10%florida vacation rentals-47.80%Internal data U.S., March 7th – March 20th, brand terms have been removed.

Top travel destinations for U.S. travellersTop 10 destinations for U.S. travellers (1st - 10th May rch VolumeInternal data based on travel searches in the US, 1st – 10th March 2020.Change YoY

U.K. focus

Coronavirus is having a significant impact onconsumer plans to travel38%U.K. consumers who have voluntarily cancelled, delayed or have beenforced to cancel travel plans as a result of the virusGlobalWebIndex March 2020 custom survey among 1,628 (U.S.) and 1,509 (UK) internet users aged 16-64.

Top 10 non-brand raw queries by Travel sub-verticalranked by search volume in descending order(Mar 7th – Mar 20th 2020) Stricter restrictions on movement during the period have prompted query associations around flight ‘status,’‘tracker’ and ‘arrivals’ in the Flights sub-verticalAcross all sub-verticals, a domestic destination interest emerged with ‘UK’ being a top query association‘Insurance’ emerged as a top query association in the Holidays, Cruises and Car Rental sub-verticals‘2020’ also emerged as a popular query association between the Holidays, Flights and Cruises sub-verticalsVacation Rentalscottagesukcornwalldog ingsholidayuklondonskibeachairportdog friendlycheapcentrecityInternal data UK, March 7th-20th, brand terms have been removed.Holidays2020ukholiday parkinsurancecheapinclusivelast insuranceholidaysCar icante airportmalaga airportusa

Top 10 non-brand raw queries by Travel sub-verticalranked by search volume in descending order(Mar 7th-20th 2020) Queries featuring ‘2020’ and ‘insurance’ attained the highest volume in the study period for the Holidays and Cruises sub-verticalsPrice-sensitive queries were particularly strong in the Holidays sub-verticalCruise top 10 raw queriesHolidays top 10 raw .00%-60.00%Internal data U.K., March 7th-20th, brand terms have been removed.

Top 10 non-brand raw queries by Travel sub-verticalranked by search volume in descending order(Mar 7th-20th 2020) Cottage queries were highly searched in the study period across the Lodgings and Vacation Rental sub-verticalsDomestic destinations displayed popularity across the Vacation Rentals sub-vertical, particularly CornwallVacation Rentals top 10 raw queriesLodgings top 10 raw 0%-45%-50%-20%-40%500-50%0-60%Internal data U.K., March 7th-20th, brand terms have been removed.

Top 10 non-brand raw queries by Travel sub-verticalranked by search volume in descending order(Mar 7th-20th 2020) Flight Logistics queries focusing on ‘tracker,’ ‘status’ and ‘arrivals’ saw notable increases WoW as many countries closedborders during the study periodUpper-funnel Car Rental terms attracted the most volume during the study periodCar Rental top 10 raw queries2500Flights top 10 raw 6000400020000-10%-20%-30%-40%-50%Internal data U.K., March 7th-20th, brand terms have been removed.

2021 searches are beginning to emerge in modest volumes; they arelargely branded and almost exclusively in the Cruises sub-vertical(Mar 7th-Mar 20th 2020)2021 queries, brand vs. non-brand2021 queries by Cruise intent4%3%97%BrandedNon BrandedInternal data UK, March 7th-20th, brand terms have been removed.96%Cruise RelatedNon Cruise Related

Top Travel destinations (summarised by country) forU.K. travellersTop travel destinations for U.K. travellers, 1st – 10th March 2020. This data is calculated by counting all travel intent searches featuring a destination and then mapping all destinations back tocountries. The named countries in the list are representative of travel searches containing those named countries but also any travel searches that contain destinations within those named countries.For example, ‘united states’ includes travel searches like ‘flights usa’ but also includes travel searches like ‘flights to dallas’

FR focus

Top query associations by Travel sub-verticalranked by search volume in descending order(March 7th – Mar 20th 2020) Domestic cities are now very frequent in top 10 lists, whatever the categoryConsumers still appear interested in tokens like sea (mer) and swimming pool (piscine), but without goingabroad. This more local aspect can be seen too in cruises (river ones).Vacation Rentals(ex : location efranceMicrosoft Internal Data, FranceLodgingsHolidaysFlights(ex : hotels (ex :(ex : vol ) )vacances/voyages scolairesnantesmerorleansmarseillecentre ville agencetoulousefrancemondecomparateurbordeaux parisniceCruisesTrain(ex : croisiere ) (ex :train/billet lleCar Rental(ex : locationauto utilitairecorse

Top Travel destinations (summarised by country) for FR travellersTop travel destinations for FR travellers, 1st – 10th March 2020. This data is calculated by counting all travel intent searches featuring a destination and then mapping all destinations back tocountries. The named countries in the list are representative of travel searches containing those named countries but also any travel searches that contain destinations within those named countries.For example, ‘united states’ includes travel searches like ‘flights usa’ but also includes travel searches like ‘flights to dallas’

DE focus

Notable trends I: searches for “2020”Top queries containing 005%00%VolumeSource: Microsoft Advertising Internal Data;; March 16 to 20 2020WoW Grwoth (in %)While travel currently is on halt, asignificant amount of people arestill searching for travelopportunities later in the year.These searches are mainly focusedon vacation packages and cruises.

Notable trends II: searches for “all inclusive”Top queries containing ‘all 000040%2000020%1000000%all inclusive lidl reisen all check24urlaubinclusivereisen allinclusivebillig reisen all inclusive all inclusiveall inclusiveurlaubreisendeutschlandVolumeSource: Microsoft Advertising Internal Data;; March 16 to 20 2020WoW Growth (in %)bigxtrareisen allinclusivelast minute last minutereisen allreisen allinclusiveinclusiveAll-inclusive vacations are still verypopular, as search volumes for all termscontaining ‘all-inclusive’ went up.Searchers, however, don’t have adestination preference. Deutschland isthe only destination that made it on thelist, indicating many plan to staydomestic this year.

Notable trends III: searches for “vergleich”Top queries containing 0010%500000%VolumeSource: Microsoft Advertising Internal Data;; March 16 to 20 2020WoW Growth (in %)For the most popular queriescontaining ‘vergleich,’ there was noweekly growth.However, for terms related to ‘billigflug,’we recorded an increase for all terms.With more people at home, interest incomparing prices for transporter andleihwagen grew as well.

Top Travel destinations (summarised by country) for DE travellersTop travel destinations for DE travellers, 1st – 10th March 2020. This data is calculated by counting all travel intent searches featuring a destination and then mapping all destinations back tocountries. The named countries in the list are representative of travel searches containing those named countries but also any travel searches that contain destinations within those named countries.For example, ‘united states’ includes travel searches like ‘flights usa’ but also includes travel searches like ‘flights to dallas’

advertising.microsoft.com

last minute cruise deals -58.50% Car Rental Queries WoW Change car rental -43.80% rental cars -46.30% car rentals -40.60% cheap car rentals -48.00% car rentals cheapest rates -52.20% rent a car- 40.30% cheap rental cars -45.60% rental car -41.80% car rental deals -49.30% rental cars lowest price -53.90% Flight Queries WoW Change cheap flights .

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