Summer Travel Report 2018 - Criteo4 • Criteo Travel in 8 takeaways 1. Europe shows the highest head & shoulders seasonality 2. Southern Europe summer bookings start as early as April

Summer Travel Report 2018

Takeaways

3 •

Every day, Criteo records 600TB of shopper data created by the 1.4B monthly active shoppers in our data pool.

On the travel side, this means we can base our analysis on more than three billion bookings per year across desktop, mobile sites and applications.

We have strict rules in terms of leveraging data: in order to protect the privacy of our clients, and for our data to better reflect the market, we only show data when we have at least 10 clients.

For more information regarding our analysis methodology, please refer to the end of this presentation.

How did we build this report?

4 •

Criteo Travel in 8 takeaways

1. Europe shows the highest head & shoulders seasonality

2. Southern Europe summer bookings start as early as April

3. OTAs continue to dominate in their ability to leverage the summer demand

4. Trips including children are mostly booked around Christmas

5. Industry will most likely keep a high mobile share growth, boosted by summer

6. Regions with lower mobile share are catching up, especially in summer

7. OTAs capture most of mobile bookings

8. Mobile is key to catching last-minute high-yield bookings

SeasonalityFocusing on Europe & following OTA’s path

6 •

2017 average <June/July/August> online bookings increase, compared to Q4 2016

Germany & UK remain the outliers of the European summer trend

Between 60% and 80%

Between 40% and 60%

Between 10% and 30%

Non disclosed data

Source : Criteo Data, Worldwide, 2016 & 2017. Online travel agencies and suppliers. Excludes comparators and applications.Copyright Criteo.

Between 30% and 40%

7 •

United States

Russian Fed & Israel

Australia

South East Asia

Japan

Germany Eastern Europe 79

Netherlands United Kingdom SwizterlandIberia

Scandinavia 77

Italy France

Belgium

South America


Germany & UK remain the outliers of the European summer trend2017 average <June/July/August> online bookings increase, compared to Q4 2016

8 •

8090

100110120130140150160170180

J F M A M J J A S

Eu ro p e - N o rt h

Eu ro p e - C e nt r a l & ME A

Eu ro p e - S ou th

8090

100110120130140150160170180

J F M A M J J A S

A me ri ca - N or t hA me ri ca - So ut h

8090

100110120130140150160170180

J F M A M J J A S

A PA C - N or t hA PA C - So ut h


Europe shows the highest head & shoulders seasonality

+31 Δ4

+33 Δ12 +42 – Δ16

+41 Δ-4+56 Δ18

+42 Δ12

+39 Δ12

+ average index on JJA com pared to Q 4 2016

Δ D iffe rence betw een sum m er and yearly index

2017 monthly online bookings, indexed on Q4 2016

9 •

8090

100110120130140150160170180

J F M A M J J A S

U K Ge rm an y

8090

100110120130140150160170180

J F M A M J J A S

U S Ja pa n

A ust r al ia

8090

100110120130140150160170180

J F M A M J J A S

Fr a nc e I ta ly

Sp ai n


Southern Europe summer bookings start as early as April

avg 128

avg 115

avg 145

avg 130

avg 137avg 124

avg 121avg 121


10 •

8090100110120130140150160170180

J F M A M J J A S

OTA Su pp li er

OTAs continue to dominate in leveraging summer demand


2017 monthly online bookings, OTA vs. Suppliers, and Travel sub-verticals, indexed on Q4 2016

11 • Source : Criteo Data, Worldwide, 2016 & 2017. Online travel agencies and suppliers. Excludes comparators and applications.Copyright Criteo.

+68 Δ22

+14 Δ2

+57 Δ17

+5 Δ-1

+70 Δ25

+8 Δ-2


+ average index on JJA com pared to Q 4 2016

Δ D iffe rence betw een sum m er and yearly index

OTAs continue to dominate in leveraging summer demand

60

80

100

120

140

160

180

J F M A M J J A S

Eu ro p e - N o rt hOTA

Su pp li er

60

80

100

120

140

160

180

J F M A M J J A S

Eu ro p e - S ou th

OTA

Su pp li er

60

80

100

120

140

160

180

J F M A M J J A S

Eu ro p e - C e nt r a l & ME AOTASu pp li er

Mobile share is expected to keep growing, capturing last-minute high-yield bookings

Mobile: The Summer Hit

13 •

Industry will most likely keep high mobile share growth, boosted by summer

29%

31% 31%32% 32%

36%

39% 38%

36% 36% 36%

40%

25%

30%

35%

40%

45%

J F M A M J J A S O N D


2017 monthly mobile share of bookings, worldwide

14 • Source : Criteo Data, Worldwide, 2016 & 2017. Online travel agencies and suppliers. Excludes comparators and applications.Copyright Criteo.

Regions with lower mobile share are catching up, especially in summer

20%

30%

40%

50%

60%


Eu ro p e - N o rt hEu ro p e - C e nt r a l & ME A

Eu ro p e - S ou th

20%

30%

40%

50%

60%


A me ri ca - N or t hA me ri ca - So ut h

20%

30%

40%

50%

60%


A PA C - N or t hA PA C - So ut h

+35%+34%

+37%+36%

+33%

+49%

+45%

2017 monthly mobile share of bookings, per region

+ average percentage of m obile share in JJA

15 •

10%

39%6%

6%

84%

55%

Suppl ier OTA


Q4 2017 booking breakdown per device, worldwide

OTAs capture most of mobile bookings

Smartphone

Tab let

Desktop

• As suppliers lag behind, OTAs get most of the mobile bookings

16 •

The gap between OTA and Supplier grew during 2017

-19%

0%

61%

11%

-21%-15%

42%

-0.5%

- 30%

- 20%

- 10%

0%

10%

20%

30%

40%

50%

60%

70%

OTASuppl ier

Growth of bookings per device, worldwide, Q4 2017 vs Q4 2016


Sm a rtp hone

Ta b let

D esktop

Tota l M ob ile

• OTAs grow quicker on Mobile

• Smartphone is growing steadily and tablet is declining

17 •

Mobile is key to catching last-minute high-yield bookings

10%

20%

30%

40%

50%

60%

70%

80%

> 3 mo nt h s 1 - 3 m on t hs 1 - 4 w e e ks 1 - 7 d a ys < 24 h

A ir A pa r t men t s H ot e l Pa c kag e s


• Up to 80% of last minute bookings are made on mobile devices

Travel players with a booking app make 60% of transactions on mobile devices.

60%*Share of bookings by device, apps included, worldwide, Q4 2017.

19 • Source : Criteo Data, Worldwide, Q4 2017. Online travel agencies and suppliers. Excludes comparators.Copyright Criteo.

App share of bookings is significant, leading to more conversions and more booking dollars per transaction than mobile web.

Share of Bookings per environment, for travel players with a booking app.

33%

27%

40%

7%

22%

13%

4%

23%

11%

Mo bi le w eb A pp D eskt o p

-3pts

+1pt

-2pts

77 78

100

Mo bi le w eb A pp D eskt o p

Conversion rates per environment, worldwide, Q4 2016 vs. Q4 2017. CR = Buyers / Product Page Viewers. Average conversion rate on app for retailers of 17% worldwide in Q4 2017.

Average Booking Value per environment, when 100 is spent on desktop (index).

M ob ile W eb

A p p

D esktop

Apps account for 41% of last-minute traffic.*

41%Source: For travel advertisers who generate bookings on both mobile web and in-app. Criteo, worldwide, Q4 2017.

21 •

48%

41%

11%

0%

20%

40%

60%

80%

100 %

1234567891011121314151617181920

Share of traffic by browsing environment by number of nights, for hotel players with a shopping app.

Apps are critical when it comes to last-minute & quick bookings

Share of traffic by browsing environment forlast-minute bookings: made less than 24h before check-in or departure.

Source : Criteo Data, Worldwide, Q4 2017. Online travel agencies and suppliers. Excludes comparators.Copyright Criteo.

M ob ile W eb

A p p

D esktop

Thank youTo learn more about how the Criteo Commerce Marketing Ecosystem drives sales and profits for thousands of brands, retailers, and publishers worldwide, visit criteo.com/about.

23 •

Methodology

Individual browsing and booking data analyzed:

How can marketers use this data?

Over 1,800 global travel advertisers.

More than 3B bookings per year across desktop, mobile sites and applications.

59 countries in North America (2), Latin America (9), Europe (25), Middle East (6), Africa (4) and APAC (14).

Benchmark your performance on relevant KPIs for your mobile browser, mobile app and cross-device channels.

Documents

Summer Travel Report 2018 - Criteo4 • Criteo Travel in 8 takeaways 1. Europe shows the highest head & shoulders seasonality 2. Southern Europe summer bookings start as early as April