Travel Digital Iq 2011

Travel
SCOTT GALLOWAY
NYU Stern
A P R I L 2 6 , 2 0 11
A ThInk TAnk for DIGITAL InnOVATIOn
L2 2011 L2ThinkTank.com
CLInIC
05.20.11
nYU Stern
Emerging Digital Media Platforms

The Long Tail of Social Media
Reach new consumers Run creative experiments Explore new forms of digital expression and consumer online behavior These platforms range from the bold experiments of incumbent behemoths (Facebook Places and Googles Boutiques.com) to smaller players who are gaining traction (Foursquare and Tumblr) to new entrants with small, passionate user bases (Pinterest, GetGlue, and Layar). This half-day intensive Clinic will help managers and senior marketers identify the relevant platforms for their brands and prioritize incremental investment in the long-tail of social media. While Facebook dominates the social media landscape, a multitude of other digital platforms have emerged that provide fertile ground for brands to:
http://L2EmergingMedia.eventbrite.com/
DiGiTAL iQ Index :
Travel
Want to know more about your brands ranking? COnTACT US
InTRODUCTIOn
Killer App: The internet

Massive choice coupled with a product that can be distilled to zeroes and ones makes the Internet a killer app for the travel industry. While e-coms share of U.S. retail stands at 5.9 percent, travel garners 38 percent of revenue from the ether.1 The browser is the booking agent of choice for 87 million Americans, however the industry dedicates a meager seven percent of its marketing budgets to digital channels.2 Many iconic travel brands struggle to leverage the online environment.
The Social Web

The rise of social media presents a fresh set of opportunities and challenges to hotels, airlines, and cruise lines. Although two thirds of customers are influenced by online user reviews, only nine percent of the brands in the Index offer reviews, or any form of user-generated content, on their sites. Social-sharing tools, live chat, and customer service via social media are more common, but are still employed by less than half of the 89 brands analyzed. As brands debate the merits of transparency, online travel agents (OTAs) and comparison engines, including Expedia, Orbitz, TripAdvisor, and Kayak, fill the void with authentic reviews and pricing clarity. Brands have paid a steep price for staring at their navels while intermediaries give the consumer what they want. Of the 10 most-trafficked travel sites, only one, Southwest, belongs to a supplier.
1. U.S. Department of Commerce, February 2011 2. eMarketer, April 2011 L2 2011 L2ThinkTank.com
The Empire Strikes Back

Brands are starting to fight back. From Deltas fully integrated Facebook booking to Four Seasons active customer service via Twitter, brands are beginning to recapture lost ground and move to the center of the customer conversation. In December 2010, American Airlines announced it would bypass the central reservation system that supplies flight information to popular OTAs, opting to develop its own technology that provides additional customization for passengers and travel agents. Expedia responded by indicating that it would not be renewing its contract with the airline and refused to integrate the new system. Although the two parties came to an agreement in early April, the dispute is a signal that brands will not just roll over online.
DiGiTAL iQ Index :
Travel
InTRODUCTIOn
Digital iQ = Shareholder Value
Our thesis is that digital competence is inextricably linked to shareholder value in the travel industry. Key to managing and developing a competence is an actionable metric. This study attempts to quantify the digital competence of 89 global airline, hotel, and cruise brands. Our aim is to provide a robust tool to diagnose digital strengths and weaknesses and help managers at travel brands achieve greater return on incremental investment. Like the medium we are assessing, our methodology is dynamic, and we hope you will reach out to us with comments that improve our approach, investigation, and findings. You can contact me at scott@stern.nyu.edu. Sincerely,
TRAVEL BOOkInG Online Marketing Share by Channel 1
100%
69% 67% 66%
59% 56% 54%
41% 44% 44%
= BRAND WEBSITE = ONLINE TRAVEL AGENT (OTA)
80%
60%
59% 46%
56% 56%
40%
SCOTT GALLOwAY Founder, L2 Clinical Professor of Marketing, NYU Stern
41% 31% 33% 34%
44%
20%
0%
2008 2009 2010
2008 2009 2010
2008 2009 2010
AIRLINES
HOTELS
CRUISE LINES
1. Nothing But Net, J.P Morgan, January 2011 .
DiGiTAL iQ Index :
Travel
ABOUT ThE RAnkInGS

C AT E G O R I E S M E T h O D O LO G Y
140+
Genius
Digital competence is a point of competitive differentiation for these brands. Sites are more than just transactional. These brands have creatively engineered their messaging to reach travelers on a variety of devices and online environments.
Site - 30%:
Effectiveness of brand site.
Functionality & Content (75%) Site Technology Site Search & Navigation Reservations Flight/Hotel/Cruise Information Checkout & Special Offers Customer Service Rewards/Loyalty Programs
110-139
Gifted
Sites are highly functional. These brands typically are active in mobile and social media, are visible on top search engines, and offer email marketing.
Brand Translation (25%) Aesthetics Messaging & Interactivity
90-109
Average
Digital presence is functional yet predictable, and innovation efforts are uninspired and lack ambition. Boilerplate marketing.
Digital Marketing - 30%:

Marketing efforts, off-site brand presence, and visibility on search engines.
Search: Traffic, SEM, SEO, Web Authority Email: Frequency, Content, Social Media Integration, Promotion Digital Marketing Innovation: Presence, Innovation Blog Presence: Mentions, Sentiment
70-89
Challenged
These brands bare-bones sites provide only basic functionality. Digital campaigns are an afterthought. Demonstrate an inability to activate their social communities and many are missing from mobile.
Social Media - 20%:

Brand presence, following, content, & influence on major social media platforms.
Facebook: Likes, Growth, Post Frequency, Ability to Transact, Responsiveness Twitter: Followers, Growth, Tweet Frequency, Online Voice YouTube: Views, Number of Uploads, Subscriber Growth, Content
<70
Feeble
These brands are digitally off the map. They are marked by poorly designed sites and a failure to leverage digital to market to consumers. Mobile and social media are not meaningful elements of their strategies.
Mobile - 20%:
Compatibility and marketing on smartphones and other mobile devices.
Mobile Sites: Compatibility, Functionality, Ability to Transact Smartphone Applications: Availability, Popularity, Functionality iPad Integration: Marketing, Applications
DiGiTAL iQ Index :
Travel
D I G I TA L I Q R A n k I n G
AIRLINE HOTEL CRUISE
Rank Brand 1 2 3 4 5 6 7 8 9 10 10 12 13 13
DELTA SOuThWEST AMERiCAn AiRLinES W hOTELS hiLTOn WESTin COnTinEnTAL
Category
Airline Airline Airline hotel hotel hotel Airline
Digital iQ Class 168 Genius 165 Genius 158 Genius 149 Genius 143 Genius 141 Genius 140 Genius 139 Gifted 138 Gifted 137 Gifted 137 Gifted 136 Gifted 135 Gifted 135 Gifted
Description
From mile high check-ins on Foursquare to Facebook booking, Deltas digital efforts are first in class SWAs superior marketing translates across digital touch points; strongest site in the Index Content-rich site, strong Twitter and Facebook following, and efficient mobile app help AA soar Welcome to Wonderland delivers W experience straight from your browser Managing more than 530 properties on one site is no small feat; 22 percent ROI through mobile channels Amazon storefront allows enthusiasts to purchase the Heavenly bed online Facebook frequent flier enrollment and international mobile check-in give Continental lift
LuFThAnSA FOuR SEASOnS inTERCOnTinEnTAL JETBLuE hYATT BRiTiSh AiRWAYS ROYAL CARiBBEAn
Airline hotel hotel Airline hotel Airline Cruise
MySkyStatus posts your flight coordinates to Twitter or Facebook from the air Luxury leader buttresses customer service excellence via Twitter Insider iPad app boasts local concierge recommendations for more than 120 destinations 1.6 million Twitter followers may come for deals, but stay for responsive customer service Site leads in function and findability Carbon offset add-on when booking signals innovation around sustainability Community reviews, YouTube videos, and mobile app offer consumers a buffet of digital options
DiGiTAL iQ Index :
Travel
Rank Brand
15 15 17 18 19 20 21 21 21 24 24 26 27 28 FAiRMOnT hOTELS KLM ShERATOn MARRiOTT CAThAY PACiFiC AiR FRAnCE hOLLAnD AMERiCA QAnTAS uniTED LE MRiDiEn ViRGin ATLAnTiC OMni MAnDARin ORiEnTAL AiR nEW ZEALAnD
Category
hotel Airline hotel hotel Airline Airline Cruise Airline Airline hotel Airline hotel hotel Airline
Digital iQ Class 134 Gifted 134 Gifted 132 Gifted 131 Gifted 130 Gifted 129 Gifted 127 Gifted 127 Gifted 127 Gifted 126 Gifted 126 Gifted 124 Gifted 122 Gifted 119 Gifted
Description
Everyonesanoriginal.com social community allows guests and employees to share their stories, pictures, and videos Social darling of the industry is not afraid to take risks; surprise campaign rewarded Twitterers with personalized gifts while they waited to board Sheratonbetterwhenshared.com features guest stories from across the globe A giant in search, but doesnt score as well on social media platforms Prolific presence on YouTube boosts Asias airline leader; iPad app profiles airline employees Facebook fan base increased almost 400 percent from February to mid-March on the wings of F-Commerce One of the few luxury cruise lines aggressively purchasing search terms on Bing Extends a warm Aussie welcome to site visitors with top-notch customer service and informative airport guides Brand is in transition and it shows; sites strong transaction-functionality is handicapped by dated aesthetics LM 100 serve as brand ambassadors online, but Facebook presence doesnt extend to properties The Innovation Zone showcases the best in travel mobile apps Scores points for mobile apps and Facebook responsiveness, but luxe feel fails to translate online Site customer service lags luxury peers, but makes up ground on social media Rico campaign on YouTube is one of the most playful in the industry, but poor site functionality keeps brand from taking off
DiGiTAL iQ Index :
Travel
Rank Brand
28 28 28 32 33 34 35 35 LuxuRY COLLECTiOn ST. REGiS uS AiRWAYS EMiRATES DiSnEY CRuiSE LinE AiR CAnADA RiTZ-CARLTOn SinGAPORE AiRLinES
Category
hotel hotel Airline Airline Cruise Airline hotel Airline
Digital iQ Class 119 Gifted 119 Gifted 119 Gifted 118 Gifted 117 Gifted 115 Gifted 110 Gifted 110 Gifted 109 Average 109 Average 106 Average 105 Average 104 Average 103 Average
Description
Limited social media presence hurts, but brand gets marks for destination guides and ability to search hotels by pursuit Individual properties are on Twitter, but the brand hasnt checked in Highly functional but otherwise forgettable site Brand YouTube channel includes link to booking Social media sweethearts fanatical following on YouTube buttresses entire Disney travel empire Connects Canada to the world, but is not connecting with passengers via social media Interactive Facebook page garners five stars but bland site fails to deliver Cabin Experience videos on site highlight each class of service, including menu and entertainment options Engages cruise community through user reviews and Facebook countdown clock Facebook page has grown fast on heels of strong app that allows guests to interact with individual properties Boutique chain scores innovation points offline, but is still figuring out social media Features one of industrys only video newsletters Social media presence brings Disney magic to life, but no photographs of rooms on site Strong synergy between site, print, and social media but will need more than its spokesanimal mascots to woo fans online
37 37 39 40 41 42
nORWEGiAn CRuiSE LinE SOFiTEL KiMPTOn KOREAn AiR WALT DiSnEY WORLD RESORT FROnTiER
Cruise hotel hotel Airline hotel Airline
DiGiTAL iQ Index :
Travel
Rank Brand
43 44 45 46 47 48 49 50 51 ViRGin AMERiCA CunARD LinE ETihAD AiRWAYS WALDORF ASTORiA ShAnGRi-LA SWiSSTEL LOEWS ThAi AiRWAYS JOiE DE ViVRE
Category
Airline Cruise Airline hotel hotel hotel hotel Airline hotel
Digital iQ Class 102 Average 99 Average 98 Average 96 Average 95 Average 94 Average 93 Average 92 Average 90 Average 89 Challenged 88 Challenged 87 Challenged 86 Challenged 86 Challenged
Description
Hip brand is not part of the cool crowd online Facebook presence and YouTube videos suggest brand is willing to extend its regal heritage Experience Etihad provides virtual tours of the luxury cabin, lounge, and transportation services Inconsistent site varies by property, but scores points for translating on a mobile device Strong mobile and social media efforts keep brand out of the challenged ranks Facebook ski jump app attempts to tap into gamification phenomenon Seamless booking and strong customer service, but brand lacks digital differentiation Limited site functionality and social presence make Thai just average Attributes more than 1,000 bookings to tweets and Facebook posts
52 53 54 55 55
ThE LEADinG hOTELS SOuTh AFRiCAn AiRWAYS JW MARRiOTT JuMEiRAh LinDBLAD ExPEDiTiOnS
hotel Airline hotel hotel Cruise
Broken links show lack of digital leadership Poor technology and outdated information leaves site at the gate Limited social media outreach suggests brand forgot the turndown service My Jumeirah virtual space allows guests to customize their travel and site browsing experience Clunky reservation system renders visitors queezy
DiGiTAL iQ Index :
Travel
Rank Brand
55 58 58 60 60 62 62 64 64 66 66 66 66 70 PEninSuLA hOTELS BAnYAn TREE RELAiS & ChTEAux KEMPinSKi QATAR AiRWAYS P&O CRuiSES RAFFLES CRYSTAL CRuiSES SEABOuRn MORGAnS hOTEL GROuP OCEAniA CRuiSES REGEnT SEVEn SEAS CRuiSES WARWiCK inTERnATiOnAL COnRAD
Category
hotel hotel hotel hotel Airline Cruise hotel Cruise Cruise hotel Cruise Cruise hotel hotel
Digital iQ Class 86 Challenged 84 Challenged 84 Challenged 82 Challenged 82 Challenged 81 Challenged 81 Challenged 78 Challenged 78 Challenged 77 Challenged 77 Challenged 77 Challenged 77 Challenged 75 Challenged
Description
Visually appealing site falls flat on functionality Brand gets needed boost from high engagement and growth on Facebook Site lacks functionality, but iPhone app delights Europes oldest luxury hotel chain seems stuck in the digital Dark Ages Public company with a private Twitter account? Cruise webcams score points for Britains favorite cruise line Strong aesthetics provide only partial reprieve from dated and glitchy website Brand site remains docked without e-commerce capability Luxury feel but limited social media presence Lifestyle content differentiates brand; UrbanDaddy partnership amplifies message Average website functionality and limited social media usage places Oceania in steerage Subtle reservation box on site is easy on the eyes but loses points on conversion Limited community suggests social media late arrival Fails to step out of shadow of larger Hilton brand online
10
DiGiTAL iQ Index :
Travel
Rank Brand
71 71 73 74 75 OBEROi PREFERRED WinDSTAR CRuiSES OnE&OnLY SiLVERSEA CRuiSES
Category
hotel hotel Cruise hotel Cruise
Digital iQ Class 74 74 73 72 71 68 67 65 64 62 61 54 52 51
Challenged Challenged Challenged Challenged Challenged
Description
No email opt-in limits online communication Strong loyalty program fails to unite brand online Generates more traffic than most luxury cruise lines, but without booking capability what is it worth? Elegant site is hampered by poor functionality Social sharing hints at digital aptitude, but no booking capability causes IQ to sink
76 77 78 79 80 81 82 83 84
AZAMARA CLuB CRuiSES TAJ GROuP OF hOTELS PARK hYATT ASiAnA ROCKRESORTS SEADREAM YAChT CLuB REGEnT inTERnATiOnAL AiR ChinA PAn PACiFiC
Cruise hotel hotel Airline hotel Cruise hotel Airline hotel
Feeble Feeble Feeble Feeble Feeble Feeble Feeble Feeble Feeble
Destinations dominate on gorgeous site, but social media efforts have yet to embark Lackluster social media impairs Indias luxury leader Limited stand-alone social media presence and hard-to-find site hinder differentiation online Limited unique visitors and page rank hurt brand No customer loyalty program and limited social media use constrain hospitality online Mobile presence prevents shipwreck, but limited transaction-capability damages IQ Inaccurate, text-heavy site coupled with social media absence leaves this brand trailing its peers Dated website and lack of social media presence limit brand in U.S. market, but mobile effort provides a boost One of a handful of hotel brands that has ignored Twitter
11
DiGiTAL iQ Index :
Travel
Rank Brand
85 86 87 88 89 ROSEWOOD hAinAn AiRLinES ORiEnT-ExPRESS JAPAn AiRLinES SWAn hELLEniC
Category
hotel Airline hotel Airline Cruise
Digital iQ Class 50 48 45 36 31
Feeble Feeble Feeble Feeble Feeble
Description
URL architecture assures each property can stand alone but fails to yield economies in search, traffic, or authority One of the few airlines with no mobile offering Without online upgrades hotel chain risks digital oblivion Outdated site and lack of social media leaves the brand sitting on the tarmac Facebook launch in February may put some needed wind in its sails
12
DiGiTAL iQ Index :
Travel
kEY FInDInGS
Selling is Knowing
There is a direct relationship between the average Digital IQ by category and the percentage of purchases made online. Nearly half of Airline bookings are made online. The 29 airlines studied registered an average Digital IQ of 113, and 62 percent of brands were classified as Genius or Gifted. The Cruise category lags the industry, and generates only nine percent of its bookings online. Cruise lines posted an average Digital IQ of 86 and six of the 16 brands in the Index do not provide basic e-commerce capability.
100
Digital IQ Score
A V E R A G E D I G I TA L I Q & PERCEnT OF BOOkInGS OnLInE By Category 120 60%
113
110 48% 50%
97
40%
% of Bookings Online
Whats next? Look for increased personalization of

This mass customization will cut across all digital media as the
90
30%
30%
consumer interactions with hospitality brands, based upon past preferences and current online behavior.
86
consumer researches, purchases, takes part in, and reflects upon the travel experience.
Stuart Levy | Assistant Professor, Dept. of Tourism & Hospitality Management, The George Washington University School of Business
80
20%
70
9%
10%
60
0%
AIRLINES
HOTELS
CRUISE LINES
13
DiGiTAL iQ Index :
Travel
Bifurcation
kEY FInDInGS
D I G I TA L I Q D I S P E R S I O n % of Organizations per Digital IQ Class
The dispersion of Digital IQ demonstrates that the prestige travel industry does not follow a traditional bell curve when it comes to digital innovation. A remarkable 41 percent of brands were classified as Genius or Gifted, however an additional 43 percent were Challenged or Feeble. The dispersion of scoring suggests the winners are pulling away from the losers when it comes to online aptitude. There is also a relationship between Digital IQ and the amount of time users spend on the brand site. Genius and Gifted brands register average user time of 6.2 minutes and 4.9 minutes, respectively, while users spend only 3.4 minutes on the sites of Feeble brands.
Lufthansa Four Seasons InterContinental JetBlue Hyatt British Airways Royal Caribbean Fairmont Hotels KLM Sheraton Marriott Cathay Pacific Air France Holland America Qantas United
Le Mridien Virgin Atlantic Omni Mandarin Oriental Air New Zealand Luxury Collection St. Regis US Airways Emirates Disney Cruise Line Air Canada Ritz-Carlton Singapore Airlines
DiGiTAL iQ
GEniuS
8%
DiGiTAL iQ
Delta Southwest American W Hotels Hilton Westin Continental
>140
GiFTED
110-139
33%
AVERAGE
17%
DiGiTAL iQ
Norwegian Cruise Line Sofitel Kimpton Korean Air Walt Disney World Resorts Frontier Virgin America
Cunard Etihad Airways Waldorf Astoria Shangri-La Swisstel Loews Thai Airways Joie de Vivre
AVERAGE TIME On TRAVEL SITES by Digital IQ Class

The Leading Hotels Cruise Line Morgans Hotel Group Oceania Cruises Regent 7 Seas Cruises Warwick International Conrad Hotels & Resorts Oberoi Preferred Hotels and Resorts WindStar Cruises One&Only Silversea Cruises
DiGiTAL iQ
90-109
8 6.2 6 4.9
Minutes
South African Airways JW Marriott Jumeirah Lindblad Expeditions
ChALLEnGED
4.0
4.2 3.4
Peninsula Hotels Banyan Tree Relais & Chateaux Kempinski Qatar Airways P&O Cruises Raffles International
70-89
27%
Azamara Cruises Taj Group of Hotels Park Hyatt
Air China Pan Pacific Rosewood Hotels Hainan Airlines Orient-Express Hotels Japan Airlines Swan Hellenic
FEEBLE
16%
DiGiTAL iQ
Asiana Airlines RockResorts SeaDream Yacht Club Regent International Hotels
0 Genius Gifted Average Challenged Feeble
Crystal Cruises Seabourn
<70
14
DiGiTAL iQ Index :
Travel
kEY FInDInGS
Digital iQ = Pricing Power
The recession forced the prestige hotel industry to slash its room rates. Our analysis demonstrates a positive correlation of 0.60 between Digital IQ and 2010 versus 2009 changes in Average Daily Rate among the nine hotels with published data, suggesting hotel brands that are more digitally competent have been able to rebound faster.
180 Correlation = .60 160 D I G I TA L I Q v s . Y E A R - O V E R -Y E A R C h A n G E I n A V E R A G E D A I LY R O O M R AT E (Hotels with Published Data: 2010 vs. 2009)
innovation Silos?
Examination of Digital IQ across portfolio companies suggests travel industry conglomerates are good at leveraging economies of scale online across multiple brands. The average Digital IQ dispersion of parent companies in the industry was
Digital IQ
140
40 points, versus a dispersion of 77 points across parent companies in the 2010 Digital IQ Index: Luxury and 47 points in the 2010 Digital IQ Index : Beauty.
120
With six brands in the study, Starwood highlights the benefits of an organization-wide approach to digital. All of the companys brands sit on the same site platform, providing enhanced SEO, cross-sell opportunities, and best-in-class customer service without compromising the distinct identity of each hotel. Starwood has taken a similar approach on Facebook, where the company boasts a page for nearly every property. Each page highlights unique features of the property, brand, and destination while leveraging community engagement tactics and content from across the Starwood organization.
100
80
60
0%
1%
2%
3%
4%
5%
6%
7%
8%
% Change in Average Daily Rate
15
DiGiTAL iQ Index :
Travel
kEY FInDInGS
A V E R A G E D I G I TA L I Q BY P O R T F O L I O C O M PA n Y Organizations with More than One Brand

170
GENIUS
Disparity
30
Disparity
68
Disparity Disparity
140
AVG IQ
Disparity Disparity
GIFTED
131
66
44
53
Disparity
Disparity
71
Disparity
67
13
132
AVG IQ
134
AVG IQ
Disparity
24
Disparity
13
110
AVERAGE
109
AVG IQ
114 105
AVG IQ
AVG IQ
AVG IQ
111
103
AVG IQ
101
AVG IQ
102
AVG IQ
90
CHALLENGED
AVG IQ
89
Disparity
23
70
AVG IQ
66
40
FEEBLE
Ho F te air ls m In on te t R rn a at ffl io es n n= al 3 Ai rF ra nc e KL Ap ol n= M lo 2 Gl ob al M an ag em e n= n t Hy 2 at tH ot el s Co rp or at i n= on
S R e tar so wo r ts od W Ho or te ld ls wi & n= de Ca 6 rn iv al Co rp or at i n= on M 5 ar rio tt In te rn at io n n= al
Co n Ho tine ld nt in al n= gs
o n= up 2
i n= d e 3
ya l Cr Car ui ib se be s an L n= td.
lto
Vi
ite
Ro
Hi
Un
Th
W al Co t Di m sn pa ey n= ny
ld
Gr
W or
rg
in
16
DiGiTAL iQ Index :
Travel
The hare
kEY FInDInGS
Although travel brands sped to the front of the pack with commerce-enabled sites, analysis across airlines, cruise lines, and hotels suggests progress in the digital medium has slowed. Nearly 40 percent of travel brand sites fail to incorporate video. Less than half provide an online customer loyalty or frequent flier program. Only 28 percent have some form of social sharing, and just 20 percent incorporate the Facebook Like button. While prestige travel is largely built around customer service, only 17 percent of the brands in the study offer live chat. Southwest, the leader in site scoring, provides a glimpse into the future of brand travel sites, blending function, technology, and community.
Social Sharing Facebook Like Video Online Booking
SITE CONTENT & TOOLS % of Brand Sites with and Without the Following Tools:
93%
7%
= YES = NO
62%
38%
Online Loyalty Program
45%
55%
28%
72%
20%
80%
Leading travel brands recognize the opportunity to

media communities to extend and enhance the customer service
use digital and social media as more than a booking channel. Genius brands use their websites and social
Live Chat
17%
83%
experience; creating deeper connections with travelers and allowing guests to experience the quality of their customer service before, during and after their stay.
Melissa Dowler | Chief Marketing Officer, ISM
User Reviews
9%
0% 20% 40% 60% 80%
91%
100%
17
DiGiTAL iQ Index :
Travel
kEY FInDInGS
under Review
Although two-thirds of consumers report being influenced by traveler-generated ratings, only nine percent of the brands in the study offer reviews on their sites.3 Even among those offering reviews, most segregate them from the booking experience or sanitize the feedback. Examples include Fairmonts Everyones an Original microsite or Kepinski Hotels, which link to pages on TripAdvisor. Although laggard in other dimensions, the Cruise category has been the first to embrace guest feedback, and four brands include user reviews. Traffic to sites that incorporate user reviews grew 24 percent, versus seven percent for those without reviews, suggesting user-generated content provides more authenticity and traffic.
Traffic Growth
I M PA C T O F S I T E F E AT U R E S O n T R A F F I C G R O w T h (March 2010March 2011) 50%
40%
30%
The increasing Cost of Search

Industry revenues are up significantly following the recession, but traffic to the 89 travel brand sites in the Index is down eight percent year-on-year. One of the reasons is the increasing cost of paid search, one of the industrys primary traffic drivers. Of the brands in the Index, 72 percent engage in key-word purchase on Google, and 64 percent purchase terms on Bing. Average cost-per-click search advertising was up 21.3 percent in the travel industry January 2010 through January 2011, suggesting it is becoming increasingly expensive for brands to compete for prime search engine real estate.4 Googles April acquisition of ITA, a software company that powers the majority of flight fare search on brand sites and travel portals, provides additional cause for pause, and many predict search engine marketing pricing will continue to skyrocket.
24%
20%
17%
10%
7%
6%
0%
YES
NO
YES
NO
User Reviews
Social Sharing
3. Top Traveler Technology Trends, PhoCusWright, August 26, 2010 4. Company Blog, EfficientFrontier, February 4, 2011 L2 2011 L2ThinkTank.com
18
DiGiTAL iQ Index :
Travel
kEY FInDInGS
The Online itinerary
The average online consumer visits more than 20 sites while researching travel online.5 Examining the upstream and downstream referral sites across the 89 brands reveals that social media, online travel agents such as Travelocity and Expedia, and competitor sites factor considerably into this sample set. In addition, brands are driving significant traffic to and from Facebook. Of the brands in the Index, 78 percent registered Facebook as a top-eight source of referral traffic, and on average Facebook drove seven percent of traffic to brand sites. Even more staggering, 90 percent of the brands recorded Facebook as a top destination site after leaving the brand site.
60%
52% 47% 81% 90%
T O P 8 R E F E R R A L & D E S T I N AT I O N S I T E S : T R A V E L B R A N D S I T E S Upstream and Downstream Traffic to and from Social Media Sites, Online Travel Agents, and Competitor Sites
100%
= SOCIAL MEDIA SITE = ONLINE TRAVEL AGENTS (OTAs) = COMPETITOR
80%
While many travel sites have evolved into purely transactional platforms, your customer may have just come from your competitors site. The best sites
40%
35% 29%
communicate a unique brand experience in a way that doesnt interfere with the transaction.
Bob Minihan | Chief Creative Officer, ISM
20%
11%
Hospitality companies should not view OTAs as competitors. Rather, they can be strategic collaborators and super-marketers. Recent research termed the
7%
5%
6% 2%
% of Brands % of Traffic
3%
0%
% of Brands
Billboard Effect demonstrates that hotel exposure on OTA listings can drive significant additional booking traffic though brand websites.
% of Traffic Upstream Traffic To Brand Site
Downstream Traffic From Brand Site
5. Refining the Travel Search Process, Compete & Google, December 15, 2009 L2 2011 L2ThinkTank.com
19
DiGiTAL iQ Index :
Travel
kEY FInDInGS
The Web is Dying & Facebook is Thriving
Another reason for diminishing traffic to brand sites is the maturation of the web and the rise of Facebook. In 2001, the 10 most-visited sites on the web accounted for 31 percent of U.S. page views, in 2006 it was 40 percent, and it is now 75 percent, suggesting the medium and long tail of the web is decreasing in importance.6 Facebook alone accounts for 12.3 percent of all consumer time on the Internet.7 Facebook usage is nearly ubiquitous across the travel category, and all but four brands feature at least one dedicated page. During the first quarter 2011 measurement period, travel brand Facebook communities grew an average of 20 percent.
30% 27% 40% 50% B R A n D FA n P O S T R E S P O n S I V E n E S S A c r o s s 8 5 B r a n d Fa c e b o o k Pa g e s (March 2011)
21%
Your customers already spend their time on Faceeffective than driving them to custom-built social
20% 16% 15% 16%
book, so targeting them there is more efficient and
networking portals. Facebook continues to enhance its flexibility for custom fan page and application development, making the social networking site an increasingly attractive option for brands.
10% 4% 0%
2 Hours or Less
2-6 Hours
7-12 Hours
13-24 Hours
Over 24 Hours
Does Not Respond
6. The Web is Dead, Long Live the Internet, Chris Anderson and Michael Wolff, Wired Magazine, August 17, 2010 7. The 2010 Digital Year in Review, comScore, February 8, 2011 L2 2011 L2ThinkTank.com
20
DiGiTAL iQ Index :
Travel
kEY FInDInGS
S O C I A L M E D I A S T R AT E G I E S
Social Media Management

Travel brands take a variety of approaches (marketing, customer service, commerce, etc.) when it comes to managing social media across properties and regions. Almost half of the Hotel brands had more than one account on Facebook and Twitter. Four Seasons maintains accounts on both social media platforms for each of its properties. Norwegian Cruise Line maintains separate pages by region, including specific pages for Argentinean and Brazilian passengers. Nine percent of brands on Facebook and 12 percent of those on Twitter have no centralized accounts, opting to let properties manage their own social media efforts.
0% 10% 20% 50% 40%
Across All Brands
49%
48%
= BRAND PAGE & PROPERTY/ REGIONAL PAGES
33%
30%
28%
= BRAND PAGE ONLY = PROPERTY/ REGIONAL PAGES ONLY = NO PRESENCE
8%
9%
11% 12%
Facebook
Twitter
TwITTER COnTEnT % of Brands on Twitter with the Following:

= YES
News/Info Deals
83% 65% 52% 46%

0% 20% 40% 60% 80%
17% 35% 48% 54%

100%
= NO
Contests Customer Service

Regional Twitter page for Four Seasons Beverly hills location L2 2011 L2ThinkTank.com
21
DiGiTAL iQ Index :
Travel
kEY FInDInGS
T O P 1 0 B R A N D S : FA C E B O O K L I K E S (March 2011)
T O P 1 0 FA S T E S T- G R O w I n G FA C E B O O k A C C O U n T S (JanuaryMarch 2011)
Air France
377%
Walt Disney World Resort
Regent International British Airways 144%
239%
5,699,438
Southwest
P&O Cruises 1,330,073 514,793 471,787 315,803 One&Only South African Airways Cathay Pacific
54%
AIR FRAnCE TRAVEL ChALLEnGE Drove significant like growth. Fans guessed the location of the photo of the day to be entered into a sweepstakes for 30 pairs of round trip tickets. Chance of winning increased by inviting friends to enter.
Disney Cruise Line JetBlue Airways Air France Royal Caribbean United Emirates Lufthansa American
53%
45%
39%
265,751 Frontier 255,970 226,926 178,146 136,385 0

= 50,000 FACEBOOK LIKES
39%
Air New Zealand
34%
Hyatt
32% 100% 200% 300% 400%
22
DiGiTAL iQ Index :
Travel
kEY FInDInGS
B E S T I N T W E E T: T O P 1 0 F O L LO W E R S (March 2011)
T O P 1 0 FA S T E S T- G R O w I n G T w I T T E R A C C O U n T S (JanuaryMarch 2011)
@AIRNZUSA @JetBlue @WindstarCruises 1,606,910 @SAAUSA @SouthwestAir 1,088,473 @VirginAmerica @UnitedAirlines @AmericanAir @Delta @WaltDisneyWorld @continental @USAirways @BritishAirways 170,452 @MarriottHotels 163,660 163,084 142,552 127,301 118,444 @Lufthansa_USA 105,233 95,797 @EtihadDeals 0
= 25,000 TWITTER FOLLOWERS
83%
70%
58%
@RelaisChateaux
47%
42%
@AirCanada
38%
@jumeirah
32%
@AzamaraVoyages
26%
25%
23% 20% 40% 60% 80%
23
DiGiTAL iQ Index :
Travel
kEY FInDInGS
Rapid Response
Seventy percent of U.S. hoteliers monitor guest reviews on their own and third-party sites weekly at a minimum.8 Although third-party review sites, such as TripAdvisor and Yelp, used to be consumers soapboxes of choice, Facebook, and Twitter have taken their place. Across the 85 brand Facebook pages in the study, four-in-five travel brands respond to customer service inquiries. On Twitter, brands are not as proactive, and less than half are actively responding to customer service concerns. While adoption has been mixed, many brands are using social media responsiveness as a point of differentiation. The Palms Hotel, which was not included in the study, integrates guest Klout scores, a measure of influence on Twitter and Facebook, directly into its registration system and provides upgrades to guests with substantial online influence.
Peninsula Hotels Ritz-Carlton JetBlue Virgin Atlantic 12.2 12.1 11.6 11.5 11.1 10.4 Hilton 24.6 Windstar Cruises 29.5 Korean Air 35.0 T O P 1 0 B R A N D S : T W E E T S P E R D AY (JanuaryMarch 2011)
15.4
Surprisingly, many travel brands are not utilizing Twitter and Facebook to quickly address consumer complaints. Companies cannot afford to simply
Sofitel Four Seasons Hyatt
dip their toes in the social media currentthey must dive in with a listen, react, and engage strategy.
= 1 TWEET
8. Best Practices for Maximizing Your Hotel, Online Revenue, and ROI, HSMAI Foundation & Vizergy, June 2010 L2 2011 L2ThinkTank.com
24
DiGiTAL iQ Index :
Travel
kEY FInDInGS
The Travel Channel
All but eight brands in the Index maintain a YouTube channel. For many brands, YouTube merely provides another platform for television commercials, flight safety demonstrations, and promotional videos. However, a few organizations are pushing the boundaries of viral video. Disney Parks YouTube channel features 576 videos about the magic of Disney, including a user-generated musical marriage proposal that has garnered more than 3.6 million views. The majority of Air New Zealands playful videos feature sassy spokespuppet, Rico, who flirts with flight attendants and raps with Snoop Dogg.
Southwest 6,031,820 Walt Disney World Resort & Cruises 17,022,148 TOP 10 BRANDS: YOUTUBE Brand Channels with the Most Upload Views (March 2011)
Delta Air New Zealand
4,222,536 2,841,066 1,666,208 1,586,449 1,172,643 1,052,966 858,310 713,470
Hyatt Virgin America Qantas KLM Norwegian Cruise Line American

YouTube channels for Air new Zealand and Disney Parks
= 250,000 YOUTUBE VIDEO VIEWS
25
DiGiTAL iQ Index :
Travel
kEY FInDInGS
Youve Got Mail
Sixty-three percent of consumers who receive email from a travel supplier are more likely to purchase from the brand.9 Even with the rise of social media, email remains one of the highest ROI marketing tools. Ninety percent of the brands in the study maintain an email marketing program. Most averaged only one email every two weeks. American Airlines was the most prolific, averaging almost five emails a week, more than 2.5 times the number of messages from the next brand. There is still significant low-hanging fruit in email marketing. Ten brands that offered email opt-in failed to correspond within a six-week period. Across categories, 87 percent of email messaging from brands was not optimized for a mobile device.
Southwest
HOTEL
TOP 10 BRANDS: AVERAGE EMAILS PER WEEK (JanuaryMarch 2011)
American
4.6
Continental
1.9
AIRLINE
Emirates
1.2
CRUISE
Air Canada
1.0
0.9
EMAIL MARkETInG % of Brands
JetBlue
0.9
Email Opt-in
90% 66% 79% 56% 13%

0% 25% 50% 75%
10% 34% 21% 44% 87%

100%
Lindblad Expeditions
0.8
Welcome Email Additional Marketing Emails Link to Social Media on Email Email Viewable on Mobile
Qantas
= NO = YES
0.7
Hilton
0.7
Frontier
0.7
Etihad Airways 0
0.7 1 2 3 4 5
9. Flying High: Measuring the Value of Email Marketing for the Travel Industry, Epsilon Data Management, February 2009 L2 2011 L2ThinkTank.com
26
DiGiTAL iQ Index :
Travel
kEY FInDInGS
An Approved Portable Electronic Device
Increasingly, travelers are turning to their mobile devices to help research, plan, manage, document, and share their travel experiences. Next year, 15.1 million people are expected to book travel using a mobile device.10 Of the brands in the Index, 56 percent have a mobile site and 48 percent have a smart-phone application. Twelve brands have apps designed for the latest must-have accessory, the iPad. Hotels and Airlines are the most active in the mobile space, with many allowing customers to book, check in, and track their loyalty points online.
25% 50% 75% 100% M O B I L E P R E S E n C E BY C AT E G O R Y % of Brands with the Following:
76% 61% 66% 50%
AIRLINES
CRUISE LINES
24% 13% 6% 0%
Smartphone App iPad App
HOTELS
11%
0% Mobile Site
Genius brands are optimizing their existing sites for

tools to target travelers.
mobile and going further by creating mobile-specific

I P h O n E A P P C A PA B I L I T I E S BY C AT E G O R Y % of Brand Apps with the Following:
Mobile applications will be of relatively less

number of apps that smart-phone users tend to download.
100%
importance, given the increased technological sophistication of mobile sites along with the limited
75%
73%
79% 63% 55%
AIRLINES
50%
42%
47%
HOTELS
25%
14% NA
Book Check-In Loyalty Boarding Pass
0%
10. Mobile Travel Takes Off: Emerging Trends and Best Practices for Marketers, eMarketer, March 2011 L2 2011 L2ThinkTank.com
27
DiGiTAL iQ Index :
Travel
FLASh OF GEnIUS
AIRLInES SOAR On TwITTER
Nine of the 10 most followed travel brands on Twitter are airlines. From the brand perspective, airlines are trying to combat increasing consumer frustration in the face of rising fees by proactively engaging their communities. During Air New Zealands 12 Days of Valentines Twitter campaign, followers were encouraged to respond to the question, What is your favorite cuddle position? Each day the most creative answer was selected by judges to win a round-trip flight for two on a Skycouch to Auckland or London. @AirNZUSA grew its followers 76 percent two weeks into the promotion. To celebrate the inaugural Airbus A380 flight from Germany to New York City, @Lufthansa_USA Twitter followers were allowed to select one seat on the virtual A380 seat map. Each day for four days, one virtual passenger was randomly selected to win a vacation package to Frankfurt. In two weeks, @Lufthansa_USA gained 2,000 new followers. The airline also paired the online campaign with an offline component, a one-day scavenger hunt in New Yorks trendy SoHo neighborhood to win a pair of roundtrip tickets to Europe, with clues posted on its Twitter account.
Air new Zealands 12 Days of Valentines campaign prompts tweets from its followers
Lufthansa utilizes Twitter for flight give-aways L2 2011 L2ThinkTank.com
28
DiGiTAL iQ Index :
Travel
FLASh OF GEnIUS
Delta uses Twitter to monitor customer service issues and complaints 24/7, employing its @Delta and @DeltaAssist accounts to preempt passenger issues. The latter account is particularly active, rebooking customers flights when they Tweet in-flight, offering reimbursements, posting travel advisories, and using realtime info to adjust on-the-ground operations at boarding gates. True to its value DNA, JetBlue was one of the first airlines to embrace Twitter as a platform to broadcast last-minute deals. Its @JetBlueCheeps account was launched in July 2009 with tantalizingly low fares ($49 each way to Las Vegas!).
Delta uses Twitter to address both customer service issues and real-time travel information
The importance of mobile to the travel category is

right there in its name: mobile. From the moment your customer leaves Point A on their way to any Point B, their mobile devices are going to be their primary means of consumingand generating content.
Bob Minihan | Chief Creative Officer, ISM
JetBlue broadcasts last-minute deals through Twitter
29
DiGiTAL iQ Index :
Travel
FLASh OF GEnIUS
PLAYInG OFFEnSE
Taking a page from the playbooks of travel portals Expedia and TripAdvisor, travel brands are attempting to foster the same sense of community and brand loyalty that the OTAs have achieved. Norwegian Cruise Lines online forum, Freestyle Voices, allows past cruisers to post reviews on the ship and shore excursions. Future passengers can ask questions about their upcoming trip and start a countdown clock that doubles as a vehicle for connecting cruisers preembarkment. Sheratons Better When Shared virtual community allows travelers to recount their experiences at and memories of various Sheraton properties and give advice on local attractions, dining, shopping, and more to future travelers. With Facebook sharing and an interactive interface, the microsite is a good first step to building a digital community. Many of the posted stories, however, read as little more than advertisements for a specific propertys amenities. Fairmonts highly interactive Everyones an Original is a more robust community effort, with a large library of usergenerated content across a wide breadth of categories, including mixology and the 2010 Olympics. Fairmont salts original content, including recipes from property chefs.
norwegian Cruise Line allows users to start a countdown and connect with cruisers preembarkment
Savvy travel brands provide a forum for customers to

share feedback on their own web and social media sites. This lets them monitor and participate in conversations and scores authenticity points with potential customers.
Fairmont boosts community spirit through its interactive Everyones an Original site
Sheraton has built a digital community through customers shared experiences and memories
30
DiGiTAL iQ Index :
Travel
KLM
FLASh OF GEnIUS
SURPRISE In ThE SkIES

KLM introduced a campaign this past holiday season to surprise, delight, and reward its customers. The KLM Surprise team monitored Foursquare activity at its locations. For each passenger who checked in, the team searched for corresponding Facebook, Twitter, and LinkedIn accounts to determine a personalized surprise gift for the customer waiting in the terminal. Gifts included champagne, notebooks, and a custom itinerary of New Yorks best soccer bars. Not satisfied to stop there, KLM uploaded pictures of surprised passengers to Facebook and monitored conversations about the campaign across social media platforms.
kLM uses Foursquare to surprise passengers with hand-selected gifts
31
DiGiTAL iQ Index :
Travel
KLM
FLASh OF GEnIUS
DJS On A PLAnE!
In March, a Dutch DJ and filmmaker tweeted disappointment that KLMs recently reinstated Amsterdam-Miami flight would depart one week too late for the annual preeminent Ultra Music Festival. KLM responded, challenging the duo to find enough passengers to fill an earlier flight. Five hours later, 150 travelers were signed up and shortly thereafter were airborne in what became the Guinness World Record for the worlds highest dance party.
kLMs in-flight DJ dance party all began with a tweet
32
DiGiTAL iQ Index :
Travel
AA
FLASh OF GEnIUS
(ThE) UPWARDLY MOBILE AMERICAN

Leaving its competitors in its airstream, American Airlines has blazed a path to mobile dominance. Americans mobile footprint includes commerce functionality across its mobile iPhone, iPad, and Android apps. All three apps enable fliers to quickly book reservations, monitor flight status, check in, and generate an electronic boarding pass. Americans mobile apps provide upgrades to the travel experience with offers such as AA sudoku, terminal maps, and one-day passes to Admirals Club lounges.
American Airlines allows passengers to search, book, track, and even board flights all from their mobile device
33
DiGiTAL iQ Index :
Travel
FLASh OF GEnIUS
MAnDARin ORiEnTAL
A LUxURY hOTEL In ThE PALM OF YOUR hAnD
Mandarin Orientals free iPhone app matches the brands reputation for timely service and a chic aesthetic. Using stunning imagery from properties around the world, the app features seamless search and reservation functionality. Users can find a hotel and immerse themselves in the brand with photos, detailed amenities, city information, and special offers.
This app provides guests with detailed amenities, city information, and special offers worldwide
Mandarin Orientals homepage
34
DiGiTAL iQ Index :
Travel
FLASh OF GEnIUS
LuFThAnSA
ThE DIGITAL CARRY-On
Combating boredom in the skies, Lufthansa recently unveiled CloudStream, a social content site. Users can pack articles, music, videos, and other online content for quick access while traveling. With a browser bookmark, adding content to their My carry-on is as simple as a click and is accessible over any Internet connection, including Lufthansas in-flight Wi-Fi, Wi-Fi on other airlines, or at home. Additionally, Lufthansa takes the extra step of curating content feeds across categories such as art, travel, and business. This is not the airlines first foray into enhancing the flight experience. In 2009, Lufthansa launched the MySkyStatus website app that sent passengers altitude, location, departure, and arrival updates to their Facebook and Twitter accounts, regardless of what airline they were flying.
Lufthansas digital carry-on helps passengers curate content to access while traveling
35
DiGiTAL iQ Index :
Travel
FLASh OF GEnIUS
WALT DiSnEY WORLD RESORT / CRuiSES
MICkEY MEETS ZUCk
One of the most iconic travel destinations in the world, Walt Disney World has no trouble attracting a massive fan base on Facebook. Feature-rich tabs include Share Memories, Im Going to Walt Disney World, and Epcot Flower & Garden. Mickeys Facebook page offers behind-the-scenes videos, travel advice, and planning resources, and solicits user-generated content. Antithetical to social media, however, is users inability to post on Disneys wall.
Share memories and plan your trip through Disneys Facebook page
36
DiGiTAL iQ Index :
Travel
FLASh OF GEnIUS
FOuR SEASOnS
A SEASOn FOR FAMILIES / FAMILY FOR ALL SEASOnS
Four Seasons has always been synonymous with the highest quality service, creating a home away from home. No surprise then that the brands latest campaign focuses on families and memories. The recently launched Have Family Will Travel blog offers varied tales from writers who have traveled the world with family in tow. Featuring rich media, tips, stories, and more, its quickly becoming a go-to blog for the family on the move. Four Seasons has incorporated the blog as the landing tab on its Facebook page, unifying its web presence. In conjunction with the blog, the Facebook tab also solicits guests to upload photos of their vacation memories to an easy-to-use music video generator.
The Four Seasons blog has developed a community of like-users who share experiences of traveling with a family in tow
37
DiGiTAL iQ Index :
Travel
FLASh OF GEnIUS
inTERCOnTinEnTAL
ThE VIRTUAL COnCIERGE
Recognizing that a trip starts well before their guest receives a room key, many hotels offer itinerary-enhancing content on their sites. Intercontinental Hotels & Resorts leads the way, encouraging guests to Explore the Area around each property with a variety of virtual services. Each hotels chief concierge has recorded videos featuring spotlights on hotel amenities, dining, local attractions, shopping advice, and more. Each video is shareable via email and downloadable for use on the go. Property pages also recommend the perfect day itinerary for that locale.
InterContinentals Chief Concierge highlights the area hotspots and can be viewed on the go
The Perfect Day itinerary assists guests in making the most of their stay
38
DiGiTAL iQ Index :
Travel
DELTA
FLASh OF GEnIUS
FACEBOOk FRIEnDS wAnT TO FLY TOO

Delta is turning its social communities into customers. Its sleek Ticket Counter feature on Facebook works efficiently, enabling users to search flights, book reservations, manage their rewards miles, obtain flight status and check in for a flight. The app, which requires no installation or application, drives incremental traffic to Delta.com with call-outs to learn more about travel advisories, in-flight amenities, and the SkyMiles program. Code-share partner, Air France, followed Deltas lead, launching F-Commerce, resulting in a tripling of its Facebook fan base.
Deltas Facebook ticket counter drives incremental traffic to their site
39
DiGiTAL iQ Index :
Travel
TEAM: L2
SCOTT GALLOwAY Professor of Marketing, NYU Stern Founder, L2 Scott is a Clinical Associate Professor at the NYU Stern School of Business where he teaches brand strategy and luxury marketing and is the founder of L2, a think tank for digital innovation. Scott is also the founder of Firebrand Partners, an operational activist firm that has invested more than $1 billion in U.S. consumer and media companies. In 1997, he founded Red Envelope, an Internet-based branded consumer gift retailer (2007 revenues: $100 million). In 1992, Scott started Prophet, a brand strategy consultancy that employs more than 250 professionals in the United States, Europe, and Asia. Scott was elected to the World Economic Forums Global Leaders of Tomorrow, which recognizes 100 individuals under the age of 40 whose accomplishments have had impact on a global level. Scott has served on the boards of directors of Eddie Bauer (Nasdaq: EBHI), The New York Times Company (NYSE: NYT), Gateway Computer, eco-America, and UC Berkeleys Haas School of Business. He received a B.A. from UCLA and an M.B.A. from UC Berkeley. MAUREEn MULLEn L2 Maureen leads L2s research and advisory group and has benchmarked and/or developed digital and social media initiatives for more than 300 prestige brands. She began her career at Triage Consulting Group in San Francisco. At Triage, she led several managed care payment review and payment bench L2 2011 L2ThinkTank.com
marking projects for hospitals, including UCLA Medical Center, UCSF, and HCA. She has gone on to lead research and consulting efforts focused on digital media, private banking, M&A, insurance industry risk management, and renewable energy economics for professional firms and academics. Maureen has a B.A. in Human Biology from Stanford University and an M.B.A. from NYU Stern. R. DAnIELLE BAILEY L2 Danielle began her career at The Home Depot, Inc., where she led a variety of internal consulting engagements focused on supply chain, merchandising, and in-store process improvement. She went on to manage the implementation of award-winning mobile initiatives for several large media clients, including The New York Times Co., NBC Universal, Disney/ ABC, Maxim magazine, and Zagat. Danielle has a B.S. in systems engineering from the University of Virginia and an M.B.A. from NYU Stern.
recently, she led creative services at ELLE during the most successful years of the magazines history, developing innovative integrated marketing programs for advertisers. Christine received a B.A. in Economics and Journalism from the University of Connecticut and an M.B.A from NYU Stern. TAnUJ PARIkh L2 Tanuj began his career as a project manager at the Center for Economic Transformation at the New York City Economic Development Corporation, where he worked on a variety of initiatives designed to grow the citys innovation economy. Tanuj is also the cofounder and director of UniThrive.org, a peer-to-peer student lending social enterprise. In 2007, he was a Kenya-based Fellow for Kiva.org, the worlds first peer-to-peer lending marketplace for the poor. Tanuj received his A.B. in government with a secondary in economics from Harvard University. CAnDICE MORTIMER
ChRISTInE PATTOn Creative Director, L2 Christine is a brand and marketing consultant with more than 15 years of experience creating brand identities and marketing communications for aspirational and luxury brands. She began her career at Cos, where she developed the brand and oversaw its evolution from concept through growth to 100 restaurants. Since then she has provided creative direction for a wide array of clients, including the launch of Kidville and CosmoGIRL! magazine. Most
L2 Candice started her career in hotel group sales for Marriott in White Plains, New York. She then moved into logistical planning of special events in Miami and later Lower Manhattan. Candice is a member of the Professional Convention Management Association and serves on the International Meetings task force. She earned a B.S. in hospitality management from Syracuse University and a will receive a masters in tourism administration from The George Washington University in May.
40
DiGiTAL iQ Index :
Travel
TEAM: ISM & GWSB

GARY LEOPOLD President & CEO, ISM Gary is the President and CEO at ISM, where he sets the vision and serves as lead strategic advisor for all clients. His thinking has influenced such brands and destinations as Four Seasons Hotels and Resorts, Sheraton, Abercrombie & Kent, American Express, Hong Kong, The Islands of the Bahamas, Barbados, Emirates, Harley-Davidson, and more. Gary often lectures at universities, while being regularly published in leading travel industry publications. MELISSA DOwLER Prior to co-founding ISM, Gary held the position of Worldwide Corporate Director of Public Relations for Sonesta International Hotels Corporation. Gary is also the proud recipient of the Albert E. Koehl Lifetime Achievement Award in travel advertising from the Hospitality Sales & Marketing Association International (HSMAI), an honor he shares with Michael Eisner and Sir Richard Branson, among others. Gary is a past President of HSMAI and serves on the board of the HSMAI Foundation. He is also the current president of the MAGNET global agency network. BOB MInIhAn Chief Creative Officer, ISM As Executive Creative Director and Partner at ISM, Bob is responsible for all ISM creative content. His travel brand experience includes Four Seasons Hotels and Resorts, Emirates airline, American Express Travel Services, Best Western Hotels, Barbados, Abercrombie & Kent Residence Club, Fodors, and FareCompare. In his previous position as ECD
and Partner at Holland Mark in Boston, ADWEEK magazine named the agency one of the top 10 creative agencies in the United States. His resume also includes the title of Creative Director at Arnold Worldwide and additional brand experience including McDonalds, T.J. Maxx, Titleist, Foot-Joy, Pinnacle, Dreyfus Funds, Citizens Bank, and the Massachusetts Office of Travel and Tourism. His awards include the One Show, Cannes, CA, Mercury, Athena, Kelley, Obie, and Clio.
STUART LEVY Assistant Professor, Department of Tourism & Hospitality Mangagement, The George Washington University School of Business Stuart is an Assistant Professor in the Department of Tourism and Hospitality Management at The George Washington University School of Business, where he teaches hospitality industry management and internet marketing courses to undergraduate and graduate students. Stuarts current research focuses on relationship marketing, mobile technology, and corporate social responsibility in the hospitality industry, and his work can be found in academic publications including the Journal of Travel Research and the Journal of Hospitality and Leisure Marketing. Before academia, Stuart worked as a consultant for PricewaterhouseCoopers Global Hospitality and Leisure Practice, and he has also served in management positions for tour operations and internet marketing firms. He received a B.S. in Hotel Administration from Cornell University, an M.B.A from Georgetown University, and a Ph.D. from the University of Calgary.
Chief Marketing Officer, ISM Melissa brings a wealth of digital and social media experience to her position as Chief Marketing Officer at ISM. She is a builder of teams, relationships, and successful marketing campaigns with a career history that spans industries, media, and continents. Melissa offers a dozen years of international strategic marketing experience to ISM clients, having worked in London at IMC.UK and Arc Integrated Marketing on global brands including Kelloggs, Tesco, Shell, and The Government of Jamaica Food & Drink Exports. In addition to her extensive traditional marketing background, Melissa has brought innovative digital and social media strategy to brands such as Reebok and The Drew Company (World Trade Center, Ronald Reagan International Trade Center, Seaport Hotels).
41
u PCOM inG EVE nTS
05.20 .11 L2 Clinic Emerging Digital Media Platforms

While Facebook dominates the social media landscape, a multitude of other digital platforms and new consumer behaviors that surround them have emerged. In isolation, these platforms may not have reached critical mass; but in
L2 is a think tank for digital innovation.

We are a membership organization that brings together thought leadership from academia and industry to drive digital marketing innovation.
aggregate, they provide a fertile ground for brands to run creative experiments, reach new consumers, and glean insights into wholly new forms of digital self-expression and consumer activity.
06 . 24 .11 L2 Clinic Mobile & Geolocal

R ESEARCh
Every year has been touted the year of mobile. However, looking back at 2010, predictions and estimates on the explosive growth of mobile devices, smart phones, and the ubiquity of mobile web have all reigned true; we are now at an inflection point.
Digital IQ Index: The definitive benchmark for online competence, Digital IQ Index reports score brands against peers on more than 350 quantitative and qualitative data points, diagnosing their digital strengths and weaknesses.
EVE nTS
Forums: Big-picture thinking and game-changing innovations meet education and entertainment. The largest gatherings of prestige executives in North America.
07. 22.11 L2 Clinic Video & Celebrity

This half-day immersion explores successful strategies to drive engagement and brand awareness through the use of online video and traditionaland untraditionalcelebrities.
300+ attendees
Clinics: Executive education in a classroom setting with a balance of theory, tactics, and case studies.
60 120 attendees
Working Lunches: Members-only lunches led by digital thought leaders and academics. Topic immersion in a relaxed environment that encourages open discussion.
u PCOM inG R ESEARC h Digital IQ Index Reports
12 24 attendees
MBA Mashups: Access and introduction to digital marketing talent from top MBA schools.
CO nSu LT inG
Financial Services Prestige Facebook Index Magazines China: Prestige 100 Specialty Retail
Beauty Fashion & Leather Goods Watches & Jewelry Gen Y Affluents: Prestige Brand Ranking
Advisory Services: L2 works with brands to garner greater return on investment in digital initiatives. Advisory work includes Brand Digital Roadmaps, Social Media Strategy, and Site Optimization engagements.
MEMBERS hiP
For membership info and inquiries: membership@L2ThinkTank.com
A ThInk TAnk for DIGITAL InnOVATIOn
821 Broadway, 2nd Floor New York, NY 10003 W: L2ThinkTank.com E: info@L2ThinkTank.com

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Emerging Digital Media Platforms

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Killer App: The internet

The Social Web

The Empire Strikes Back

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69% 67% 66%

59% 56% 54%

41% 44% 44%

= BRAND WEBSITE = ONLINE TRAVEL AGENT (OTA)

41% 31% 33% 34%

2008 2009 2010

2008 2009 2010

2008 2009 2010

1. Nothing But Net, J.P Morgan, January 2011 .

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ABOUT ThE RAnkInGS

Brand Translation (25%) Aesthetics Messaging & Interactivity

Digital Marketing - 30%:

Social Media - 20%:

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Airline hotel hotel Airline hotel Airline Cruise

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Cruise hotel hotel Airline hotel Airline

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hotel Airline hotel hotel Cruise

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Want to know more about your brands ranking? COnTACT US

Cruise hotel hotel Airline hotel Cruise hotel Airline hotel

Feeble Feeble Feeble Feeble Feeble Feeble Feeble Feeble Feeble

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A V E R A G E D I G I TA L I Q & PERCEnT OF BOOkInGS OnLInE By Category 120 60%

Whats next? Look for increased personalization of

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D I G I TA L I Q D I S P E R S I O n % of Organizations per Digital IQ Class

Delta Southwest American W Hotels Hilton Westin Continental

AVERAGE TIME On TRAVEL SITES by Digital IQ Class

South African Airways JW Marriott Jumeirah Lindblad Expeditions

Azamara Cruises Taj Group of Hotels Park Hyatt

Asiana Airlines RockResorts SeaDream Yacht Club Regent International Hotels

0 Genius Gifted Average Challenged Feeble

Crystal Cruises Seabourn

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% Change in Average Daily Rate

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A V E R A G E D I G I TA L I Q BY P O R T F O L I O C O M PA n Y Organizations with More than One Brand

S R e tar so wo r ts od W Ho or te ld ls wi & n= de Ca 6 rn iv al Co rp or at i n= on M 5 ar rio tt In te rn at io n n= al

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Online Loyalty Program

Leading travel brands recognize the opportunity to

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I M PA C T O F S I T E F E AT U R E S O n T R A F F I C G R O w T h (March 2010March 2011) 50%

The increasing Cost of Search

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= SOCIAL MEDIA SITE = ONLINE TRAVEL AGENTS (OTAs) = COMPETITOR

Bob Minihan | Chief Creative Officer, ISM

% of Traffic Upstream Traffic To Brand Site

Downstream Traffic From Brand Site

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20% 16% 15% 16%