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 worlds 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?

PROfIT bY REgION
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.

MOST PROfITAblE
In the US, 30% of accommodation owners reported that their businesses had been extremely or very profitable in the last six months.

Proportions of respondents in regions that report being profitable in the last 6 months.

A MIXED fORECAST
We polled hoteliers on their business outlook for the remainder of 2012. The results tell an interesting story about the global economy.
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SIZE MATTERS
Properties with 50+ rooms are nearly twice as likely to report that theyve been profitable in the past 6 months.
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Most Positive

Most Negative

ECONOMIC OUTlOOK

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 AsiaPacific responders agree, versus only 34% of hoteliers from Europe and the Middle East.

46

lOOKINg AHEAD
Whos 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.

Number of respondents who feel the economy will improve in 2012. 33% feel it will remain unchanged.

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.

67
HOT JObS
India, brazil and Thailand were the top three countries for hotel job creation from January-June 2012.

%
WHOS HIRINg?
Its 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.

STEADY AS IT gOES

64

COMINg IN lAST?
The UK and france.

of hoteliers plan to keep their staff levels intact over the next 6 months and more than 15% plan to add new jobs.

bOOKINg TRENDS

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% 76% 77%

DID YOU KNOW?

ONlINE bECOMES THE STANDARD

63% 52% 46% 53%

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?

HOTEl

INN

b&b

HOTEl

INN

b&b

HOTEl

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b&b

UNITED STATES

CANADA

CARIbbEAN

of properties that dont currently offer free in-room Wifi are planning to add that feature in the next six months.

36

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

STICK WITH THE PlAN gOINg MObIlE

56% of survey respondents worldwide said its very important to offer booking via a mobile device. Heres how the numbers break down by property type:

53

RISINg ROOM RATES

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.

96% Russia 96% China 94% Canada 94% US 93% Australia

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.

47%

91% Malaysia
31% 30%

91% Mexico 89% Spain

Hotels

66%

52%

Inns

b&bs

43%

MARKETINg

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.

MObIlE MARKETINg
Which countries engage the most with travelers using mobile devices?
1. China 43% 41% 38% 36% 34% 18% 18% 13%

83

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: 69% 64% 77%

2. Turkey
3. Mexico

4. Spain
5. United States 20. 21. 22.

As the worlds 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.

of all properties worldwide invite feedback from guests, and more than 78% invite travelers to share opinions and write reviews on sites like TripAdvisor.

UK Caribbean france

SPECIAl OffERS
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 NIgHTS STAY

lOCAl DEAlS

fREE TRANSfERS

fREE PARKINg

REWARD POINTS

fREE NEWSPAPERS

NO SPECIAl OffERS

6% 58% 53% 63% 44% 49% 45% 14% 12% 34% 14% 15%

8%

5%

6% 10% 31% 38% 18% 30% 20% 20% 19%

4%

12%

11%

11%

1. 93% NEW ZEAlAND

7. 81% UNITED STATES

5. 83% INDONESIA

8. 80% CARIbbEAN

9. 80% AUSTRAlIA

2. 91% CANADA

4. 85% fRANCE

3. 87% bRAZIl

MOST COMMON ECO-fRIENDlY PRACTICES WORlDWIDE

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.

6. 83% ITAlY

MARKETINg gREEN PRACTICES

Over one third of hoteliers worldwide (34%) said they dont communicate their eco-friendly practices to travelers.

79% ENERgY EffICIENT lIgHT bUlbS

62% lINEN & TOWEl RE-USE

56% ENERgY EffICIENCY PlAN

52% ECOClEANINg

52% WATEREffICIENT TOIlETS

10. 80% INDIA

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 its important to bring eco-friendly practices into their businesses.

ECO-fRIENDlY PRACTICES

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.

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