TRIPADVISOR INDUSTRY INDEX MID-YEAR REPORT - ThinkTur

TRIPADVISOR
INDUSTRY INDEX
MID-YEAR REPORT
The TripAdvisor ® 2012 Industry Index – the largest hotel survey in the
world – reveals some startling findings about hotel profitability; which
markets have the best and worst economic outlook; and how techsavvy,
mobile device-wielding travelers are changing the industry.
Conducted by TripAdvisor, the world’s largest travel site*,
this biannual survey incorporates responses from more than
25,000 accommodation owners and managers worldwide.
*Source: comScore Media Metrix for TripAdvisor Sites, Worldwide, May 2012

PROfITAbIlITY
In any business,
success is invariably
measured by the
bottom line. How
are property owners
worldwide doing in
2012 — and what
areas are experiencing
more profitability
than others?
A MIXED fORECAST
PROfIT bY REgION
We polled hoteliers on their business outlook for the remainder of 2012.
The results tell an interesting story about the global economy.
1. Indonesia
2. brazil
Hoteliers in North America, Asia Pacific and latin America were much more likely
to report being profitable than respondents from Europe and the Middle East.
Proportions of respondents in regions that report being profitable in the last 6 months.
3. Russia
4. United States
Most Positive Most Negative
5. India
19. france
20. Spain
21. Italy
22. greece
MOST PROfITAblE
In the US, 30% of
accommodation owners
reported that their
businesses had been
extremely or very profitable
in the last six months.
SIZE MATTERS
Properties with 50+
rooms are nearly twice
as likely to report that
they’ve been profitable
in the past 6 months.

ECONOMIC
OUTlOOK
TripAdvisor gathered the input of
25,000 hotel owners and managers
on the state of the economy, on
their business prospects… and
on what they expect to see in the
second half of 2012.
glObAl OPTIMISM
60% of North American hoteliers believe the
economy will improve during the second half of
2012. 68% of latin American and 50% of Asia-
Pacific responders agree, versus only 34% of
hoteliers from Europe and the Middle East.
46%
Number of
respondents
who feel the
economy
will improve
in 2012.
33% feel it
will remain
unchanged.
STEADY AS IT gOES HOT JObS
COMINg IN lAST?
WHO’S HIRINg?
64%
of hoteliers plan to keep their
staff levels intact over the next
6 months — and more than
15% plan to add new jobs.
India, brazil and Thailand were the top three countries
for hotel job creation from January-June 2012.
The UK and france.
lOOKINg AHEAD
Who’s the most optimistic about the second
half of 2012? 67% of US properties with 50 or
more rooms expect the economy to improve
in the next six months.
67%
It’s a good time to be
working in the North
American hospitality
industry: 21% of Mexican,
20% of Caribbean and 15%
of US hoteliers plan to hire
in the next six months.

OOKINg
TRENDS
How is the explosive growth of
the mobile marketplace changing
booking strategies for the hotel
industry — and what other trends
have come to light in the first half
of 2012?
STICK WITH THE PlAN
53%
Percentage of respondents
worldwide who decreased
room rates to attract more
guests during the busy
June-August travel
season and predicted
they would decrease
rates again heading into
September and October.
Meanwhile, 60% of hoteliers who
increased rates for June-August
expect to increase rates again for
September and beyond.
b&bs ARE bEHIND ONlINE
In both Canada and the US, b&bs continued to lag behind
hotels and inns when it comes to online booking capabilities.
94% 94%
81%
63%
76%
52%
77%
HOTEl INN b&b HOTEl INN b&b HOTEl INN b&b
46%
UNITED STATES CANADA CARIbbEAN
gOINg MObIlE
56% of survey respondents
worldwide said it’s very
important to offer booking
via a mobile device. Here’s
how the numbers break
down by property type:
66%
Hotels
52%
Inns
43%
b&bs
RISINg ROOM RATES
53%
DID YOU
KNOW?
36%
of properties
that don’t
currently
offer free
in-room Wifi
are planning
to add that
feature in
the next
six months.
The United States easily topped the list of
North American hoteliers anticipating a rise
in room rates: 47% expect to raise rates
during the remainder of 2012. Only 31% of
respondents from Canada and 30% from
Mexico expect a similar spike in rates.
47%
31%
30%
ONlINE
bECOMES THE
STANDARD
Across the globe, properties
continue to move toward
the standardization of
online booking as an option
for travelers. The top ten
countries for offering online
hotel booking:
98% Japan
97% New Zealand
96% Russia
96% China
94% Canada
94% US
93% Australia
91% Malaysia
91% Mexico
89% Spain

MARKETINg
As the world’s largest online travel
community, TripAdvisor wanted
to know how hotel owners and
managers are marketing their
properties to travelers. With more
than 25,000 responses, we were able
to identify some important trends.
SPECIAl OffERS
83%
of all properties
worldwide invite feedback
from guests, and more
than 78% invite travelers
to share opinions and
write reviews on sites like
TripAdvisor.
Many hotels across the globe choose to create and market special offers to help them stand apart from competitors and drive bookings. Room discounts were the most
commonly offered booking incentive worldwide (55%). What are the most common special offers from hoteliers — and who in your region offers them the most frequently?
ROOM
DISCOUNTS
SPECIAl
AMENITIES
(e.g. Wifi)
fREE
NIgHT’S STAY
lOCAl
DEAlS
58% 53% 63% 44% 49% 45% 14% 12% 34% 14% 15%
MARKETINg gOES SOCIAl
The rise of social media as a marketing tool is a global
phenomenon: nearly 2/3 of all respondents worldwide use
some form of social media to help attract guests. Hotels with 50+
rooms are twice as likely to use social media as smaller properties.
WHO ARE THE SOCIAl MEDIA EXPERTS?
In North America, properties in the Caribbean were more
likely than their US or Canadian counterparts to use social
media to engage with current or potential guests.
A breakdown by hotelier user percentage:
6%
69%
64%
77%
fREE
TRANSfERS
8%
5%
fREE
PARKINg
REWARD
POINTS
10% 31% 38% 18% 30% 20%
6%
fREE
NEWSPAPERS
20% 19% 4%
MObIlE MARKETINg
Which countries engage
the most with travelers
using mobile devices?
1. China 43%
2. Turkey
41%
3. Mexico
38%
4. Spain
36%
5. United States 34%
20. UK
18%
21. Caribbean 18%
22. france
13%
NO SPECIAl
OffERS
12% 11% 11%

ECO-fRIENDlY
PRACTICES
green
programs are
a win-win
for guests
and hoteliers
alike. The vast
majority of
respondents
to the
TripAdvisor
2012 Industry
Index survey
– a full 88%
of 25,000
participants
worldwide
– feel it’s
important
to bring
eco-friendly
practices
into their
businesses.
MOST COMMON ECO-fRIENDlY PRACTICES WORlDWIDE
HOW ECO-fRIENDlY ARE PROPERTIES IN YOUR COUNTRY?
The graphic below looks at the percentage of respondents with eco-friendly practices in place.
See where your country ranks amongst our global respondents.
Which eco-friendly practices have been the most widely embraced by hotels, inns and b&bs across the globe?*
* Figures based on % of respondents with at least one eco-friendly practice in place.
79%
ENERgY
EffICIENT
lIgHT bUlbS
62%
lINEN &
TOWEl
RE-USE
1. 93% NEW ZEAlAND
2. 91% CANADA
56%
ENERgY
EffICIENCY
PlAN
3. 87% bRAZIl
4. 85% fRANCE
52%
ECO-
ClEANINg
5. 83% INDONESIA
6. 83% ITAlY
52%
WATER-
EffICIENT
TOIlETS
7. 81% UNITED STATES
8. 80% CARIbbEAN
9. 80% AUSTRAlIA
MARKETINg gREEN PRACTICES
Over one third of hoteliers worldwide
(34%) said they don’t communicate
their eco-friendly practices to travelers.
10. 80% INDIA

TRIPADVISOR® 2012 INDUSTRY INDEX: METHODOlOgY
The latest installment of the TripAdvisor 2012 Industry Index was
conducted June 7-14, 2012 and was sent by email to a random
sample of global accommodation owners and managers. The survey
generated 25,517 responses worldwide. Data analysis and other
survey consultation were performed by brainbox Research, ltd.
Please note that sample sizes for the following countries
were low compared to other countries surveyed:
China (188), Malaysia (129), Mexico (151), and Russia (64).
for more information, please contact
TripAdvisor at mediarelations@tripadvisor.com