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Be a Smart Marketer – Hispanics Predisposed to Travel |
Springtime - out with the old, in with the new. For many, it is also an opportune time to solidify upcoming summer travel plans. The online travel industry is booming, and Hispanics are a solid growth segment. The role of travel is a necessity among Hispanics to maintain close ties with family and friends domestically and abroad. Currently, 54% of the total US Hispanic population is foreign born, and, naturally, have good reasons to visit their native countries. So it is no surprise that Hispanics, overall, are 31% more likely to travel 5 or more times outside of the U.S. during the past three years.1 (Chart #1)
Chart 1:
The growth of the online travel industry is formidable, with $68.5 billion dollars in revenue predicted in 2006, growing to $93.1 billion dollars by 2008. (Chart#2)
Chart 2: .
Brick is giving way to click within the travel vertical as well. Online travel agencies account for 46% of online travel sales in 2005. (Chart #3)
Chart 3:
A drilldown of the online travel category growth exposes the US Hispanic audience as its virtual powerhouse. The US general market audience grew only 1% in unique visitors between March 2005 and March 2006 in online travel category consumption. (Chart #4)2
Chart 4:
Among US Hispanics, the online travel category grew 3 % in unique visitors, with the hotels/resorts subcategory increasing the most, by an astounding 32%, in unique visitors between March 2005 and March 2006. (Chart #5) 3
Chart 5:
Yet the segment that steals the show is among US Hispanics, for whom Spanish is the preferred language spoken in the home, otherwise known as Spanish preferred. (Chart #6) In the twelve months between March 2005 and March 2006, unique visitors increased 39% among US Hispanics, Spanish preferred, within the travel category; and the hotels/resorts subcategory increased in unique visitors by 132% in the same period! 4
Chart 6:
Further analysis highlights total time spent consuming content within the travel category increased 105% among Spanish preferred US Hispanics online. The travel-information subcategory increased 177% between March 2005 and March 2006, proving the importance of online research in making travel plans. (Chart #7) 5
Chart 7:
Clearly, Hispanics are predisposed to travel due to their international backgrounds and strong ties to family. The travel industry responds:
- “The Argentina Tourism Office … said that more than 250,000 Americans visited Buenos Aires last year, a 30% increase from 2004.”
- “Last November, TAM Brazilian Airlines began flying between New York and Sao Paulo four times a week and plans to expand to daily flights in June.” 6
According to Paul Suskey, Co-Chief Executive Officer, Co-Founder of agency Media 8, “There are several factors influencing the massive growth rates we’ve seen with Hispanic Online Travel consumption. First, the web is growingly the first step in today’s consumertravel planning cycle. Several of our travel clients have seen drastic increases in internet channel contribution to total overall sales. Consider Southwest Airlines that derives over 70% of their total sales online.
Second, US Hispanics possess an emotional bond to their country of origin and/or family which yields higher then average frequency. (trips per person per year)
Third, Spanish language web enhancements (both transactional and customer service) made by travel suppliers has also added to growth.
Finally, the competitive marketplace has fueled low regional travel rates, particularly Mexico. This has driven increased web traffic and transactions as both legacy and discount carriers compete for market share.”
To meet the growing travel needs of the our US Hispanic audience, Terra’s Turismo (Travel) channel, http://www.terra.com/turismo/, offers a currency converter, travel forums/chats, slideshows, discounts, plus polls and listings of top destinations. Turismo is a one-stop-shop for the savvy traveler, since auto, hotel, and air bookings are available. Advertisers have taken note of this audience and this prime environment and have contextually targeted campaigns to Terra’s Turismo. Our travel advertisers include Disney Resorts, Royal Caribbean, Holiday Inn Express, Best Western, American Airlines, Air France, Mexicana Airlines, Delta, Hotels.com, Avis, Thrifty Car Rental, Alaska Airlines, Southwest Airlines, Arkansas Tourism, Texas Tourism, Vegas.com and many more.
Be a Smart Marketer. US Hispanics are fueling the online travel growth due to their strong international and family ties. Marketing to this valuable audience is essential for any travel marketer.
1. ‘Power of Hispanic Consumers’. Arbitron. 2005:37
2.‘% Change Media Trend Report, Travel Category’. comScore Media Metrix. US General Market Service. March 2006.
3.‘% Change Media Trend Report, Travel Category’. comScore Media Metrix. US Hispanic Service, Overall Audience. March 2006.
4.‘% Change Media Trend Report, Travel Category’. comScore Media Metrix. US Hispanic Service, Spanish Preferred Audience. March 2006.
5.‘% Change Media Trend Report, Travel Category’. comScore Media Metrix. US Hispanic Service, Spanish Preferred Audience. March 2006.
6. Luongo, Michael T. ‘Business Is Brisk in Latin America and at the Airlines That Fly There.’ April 11 th 2006. <http://nytimes.com/> |
