Friday, March 10, 2006

Local Search To Reach $1 Billion

LOCAL BUSINESSES WILL MORE THAN double their paid search to $987 million this year from $418 million in 2005, according to a new Borrell Associates report, "2006 Local Search Advertising."

The report also predicts that paid search spending by local businesses will continue to grow for the next several years, climbing to 1.7 billion in 2007 and reaching $4 billion by 2010--at which time it will account for 47 percent of local online advertising.

At the same time, local advertisers are expected to actually decrease spending on banners and listings by 2010. The report predicts that local spending on online display ads and listings will peak at $5.7 billion in 2008 and then fall to $4.5 billion in 2010; last year, such spending totaled an estimated $4 billion, according to Borrell.

This pattern of accelerating local search, but waning local display and listings ads, represents a threat to the online units of traditional media companies--which currently sell banners and listings to local advertisers. "The biggest concern for Web sites run by traditional local media companies is that they face being walloped by something that they should be all too familiar with--targeted media," stated the report.

To analyze the current state of local search advertising, Borrell researchers examined more than 2,100 paid links to appear on Google and Yahoo queries for city-related keywords--such as, for example, "Des Moines real estate." About 36 percent of such pay-per-click links were from local advertisers--up from 5.6 percent 18 months ago.

Search adoption varied by industry, with local real estate agents especially big users of search marketing. Nearly 50 percent of pay-per-click links in the real estate category were from local advertisers--up from 17.5 percent 18 months ago. At the low end of the spectrum, 28 percent of pay-per-click results in the local hotel space came from local advertisers.

Thursday, March 09, 2006

AUSTRALIA ASKS ‘WHERE THE BLOODY HELL ARE YOU?’

New Tourism Effort Meant to Capture Aussie Authenticity
 
SAN FRANCISCO (AdAge.com) -- Forget about throwing another shrimp on the barbie. Australia wants to know "Where the bloody hell are you?"


Click to see other ads.
Tourism Australia is shifting back to a global advertising campaign with a bit more attitude.

In 1984, then-unknown Australian actor Paul Hogan starred in a short-lived two year Australian tourism campaign with a line that became part of the American lexicon: "We'll throw another shrimp on the barbie for you." Although successful, the tourism board dropped Mr. Hogan -- and the shrimp -- to focus over the years on international ads that showed individuals enjoying Australia's attractions or on the 2000 Sydney Olympics.

Mr. Hogan and other campaigns have led many Americans to have a favorable attitude toward Australia, said Scott Morrison, managing director, Tourism Australia. "It's great to be loved," he said. But the tourism board needs to convert that affection into active travel. Only 6% of Americans surveyed who expressed an affinity for Oz actually intend to visit Australia, a 14-hour airplane ride away, in the immediate future, he said.

Attitude
After 86 focus groups and $6.2 million in brand tracking, segmentation studies, and in-depth interviews, the board decided it was time to go back to a direct invitation to tourists, but with some Aussie attitude. Although other lines were tested, some of which included the greeting "Where are you, mate?," the Australians decided instead on the cheeky "Where the bloody hell are you?," which could only be considered a warm, authentic invitation from down under. "Authenticity is key to the campaign," said Ian Macfarlane, marketing director.

Mr. Macfarlane said most viewers would receive the invite in its intended way. But if some object? So be it. "We don't want to offend anybody," he said, adding the line might be toned down in some nations. Yet, if there's public objection, "that creates energy in a campaign," he said. "It's all upside."

Australia's tourism business exceeds $50 billion a year and employs a half a million people, said Mr. Macfarlane. He said tourism has been growing by about 5% per year, higher than the global average. The new campaign will be targeted to the 5 million Americans likely to take a long haul trip, especially the 30% considering themselves what the board calls "experience seekers."

Preparing the way
In the spots from global agency M&C Saatchi, a series of non-actors describe how they have prepared for visiting tourists by getting the 'roos off the greens, shampooing the camels, turning on the lights to the Sydney Opera House and, in the case of Aboriginal dancers, "we've been rehearsing for over 40,000 years." In a reference to ocean swimming areas where fences have been installed to keep sharks out, an Australian boy says Australia has "gotten the sharks out of the pool." The $20 million North American campaign will run in U.S. and Canada for two and a half years. Aegis Group's Carat is global media agency.

One viral element includes an effort to get Australians to drum up business themselves. A new Web site, created by Carat One Digital, offers Australians -- and anybody else for that matter -- the opportunity to send an electronic postcard to friends personally inviting them to visit Australia. In Japan, the campaign will utilize mobile phone creative.

The tourism board flies 750 journalists and producers to Australia each year in a public relations effort. One such effort, centered on the campaign's launch in San Francisco this week, included daily segments and advertising for Australia week on TV station KRON.

Midwest Living, American Profile Team Up, Launch Travel Supplement

MEREDITH CORP.'S MIDWEST LIVING MAGAZINE is teaming with Publishing Group of America's American Profile newspaper magazine to launch a new travel-oriented supplement in hundreds of small-market Midwestern newspapers.

Dubbed Go! Travel Ideas, the four-color supplement will appear three times this year with an eye toward increasing frequency in 2007, according to Midwest Living Publisher Peter Gross. The first issue will appear the week of March 26; subsequent issues are planned for May and August.

Go! Travel Ideas will be stitched inside copies of American Profile and distributed in 360 newspapers in 12 Midwestern states with a circulation of 2 million. Editorial content--to be created by Midwest Living staff--will offer family-oriented trip planning advice and include articles on weekend getaways, restaurants, special deals, and outdoor activities. Unlike major Sunday supplements like Parade, USA Weekend , and Life, American Profile is distributed only in small, local newspapers--most of them weeklies. It has a total circulation of 8 million and is distributed in 1200-plus small-town newspapers nationwide, but this project is focused only on the magazine's Midwest distribution.

It is that targeted distribution in hard-to-reach areas that made the deal attractive to Meredith, Gross said. "American Profile offers a better penetration in smaller counties throughout the Midwest than we could get anywhere," he said.

Tracey Altman, vice president-group publisher of American Profile, said her magazine benefited from the deal because their readers and their newspaper partners will benefit from being connected to "a great brand" like Midwest Living. "It's also a powerful reminder that American Profile is different from the other supplements because we offer a unique, untapped audience."

Advertisers in the first issue include state tourism offices in Missouri, North Dakota, Minnesota, and Kansas, as well as Missouri's Lake of the Ozarks and the Henry Doorly Zoo and Wildlife Safari, both in Omaha.

Gross said he plans to target national advertisers for inclusion in future issues, such as hotel chains, car rental companies, and cruise lines, among others.

Wednesday, March 08, 2006

How to be a better online travel shopper

For the last three years, I've spent a frightening percentage of my waking hours staring at travel websites. As the travel consultant for Consumer Reports WebWatch, I've closely analyzed more than 200 sites and I've overseen extensive testing projects that encompassed searching for thousands and thousands of online rates. Now when I see the words, "Where would you like to go?" I'm sometimes tempted to respond: "Offline." But all those hours have paid off, because I've certainly learned a few things.

Whenever I'm at a party and I explain what I do, it's inevitable that someone will ask me, "So which is the best travel site for good deals?" Apologies to Expedia, Orbitz and Travelocity. And Hotwire and Priceline. And Kayak, Mobissimo and SideStep. And Opodo and Zuji. And all the rest. There's no one single source for the best travel bargains on the Web.

No one site provides all the exclusive deals, all the up-to-the-minute revisions, and all the travel supplier inventories (particularly if you're looking for low-fare airlines such as Southwest and JetBlue). So a little time spent surfing could pay off for any given itinerary on any given day. Here are some lessons I've learned along the way:

Searching and booking

• Always comparison shop. Enough said.

• WebWatch has uncovered a disturbing practice we've termed "fare-jumping," in which rates suddenly change (often by increasing) in real time during the booking process. WebWatch lobbied the major travel sites to at least notify consumers when this happens, and in most cases now you'll get an on-screen notification. Unfortunately, though, fare-jumping still happens. Don't assume that the rate you selected is the same rate you're charging to your credit card. Always double-check.

• Leading travel sites assault you with advertising banners, pop-ups and pop-unders. Some rate listings are bought and paid for by travel suppliers such as airlines, hotel chains or car rental firms. Never confuse a listing with an ad.

• Start your search on a major site such as Kayak, Mobissimo or SideStep, or a third-party site such as Expedia, Orbitz or Travelocity. Next, check out the "branded" travel site of the airline, hotel or car rental firm you've selected (such as Delta.com, Hyatt.com, Avis.com, etc.). Travel suppliers — particularly airlines — often offer price guarantees and bonus mileage to attract consumers to their own sites. Increasingly, it's worth the extra step to check their sites for lower fares.

• A word of caution, however, about all this hopping from site to site: Each site's default function may not store the information you input as you shop, and the search engine may revert to incorrect dates or airports. Make sure to double check your itinerary before booking.

• Despite the danger of sticker shock, make sure you're clear about what the final cost charged to your credit card will be, including all applicable taxes, fees and surcharges levied by governmental authorities, airlines, airports or other official entities. In some cases, these add-on costs may not be clearly labeled.

• You may also be charged a booking fee on certain third-party travel sites, and the fees can vary. Make sure you've included that in your tally as well.

• Not all bookings are created equal. It's critical to understand the travel site's rebooking and cancellation policies. An important note: The travel site may have imposed additional restrictions in addition to any restrictions imposed by the airline, hotel or car rental company.

• You may be eligible for certain discounts, so search the travel site in advance to find out. You could be eligible if you're booking for seniors, children, students, government employees, military personnel or members of certain organizations such as the American Automobile Association (AAA) or the American Association of Retired Persons (AARP).

• Before you make the sale final, make sure you correctly input your travel information. Double-check the dates and times; the cities, airports or hotel locations; and the flight classes, room sizes or vehicle classes. You could be held responsible if you book a flight to CAI (Cairo) instead of CIA (Rome, Italy).

• Always use a charge card for online travel purchases. Charge cards generally provide the best consumer protection under the Fair Credit Billing Act.

Searching for airfares

• Some travel sites offer restrictions on travel dates and can't process flights departing within a few days of booking. Make sure the site can handle your itinerary.

• Try to be flexible, especially on long-haul or international routes. In many cases, you can find much lower fares if you change your travel dates by even one day. Often you'll find better bargains at nearby alternative airports (such as Oakland instead of SFO, Long Beach instead of LAX, Long Island/MacArthur instead of JFK, Stansted instead of Heathrow).

• If you're shopping for business-class or first-class seats, make sure the class of service you're booking is the class you requested. I've been offered economy or business when first class was requested. And sometimes the class of service wasn't clearly defined.

• If it's important to you, make sure your desired class of service is available for every leg of your journey. Often travel sites offer mixed itineraries, such as first class on the outbound and economy on the return, even you ask only for first class.

Searching for airfares overseas

• If your itinerary originates outside the USA, consider using a foreign travel site. But be aware that there may be point-of-origin ticketing restrictions in certain countries, and of course there are language and currency issues to consider.

• If you'd like to use a foreign site, but aren't sure which to try, consider a site based in the country where the flight originates. For example, use a British site for a London-Paris route or a German site for a Frankfurt-Madrid route. We found you've got twice the chance to find the lowest fares on sites based in the originating country.

• Be careful of faulty translations if you're booking a flight in a country where English is not the primary language. The "English version" may not provide all the necessary details. And some critical information — such as privacy policies or legal disclaimers — may not be offered in English.

• Currency conversions on some foreign sites can be tricky. Before you book, double-check your calculations with the current exchange rates to make sure you've found a better deal.

• Don't think that itineraries and rates are identical on sister sites. We found that travel brands in other countries offered completely different content. For example, the Expedia site in Germany and the Travelocity site in the U.K. did not provide the same flights or fares offered for identical itineraries by their American sister sites.

Searching for hotels

• It's particularly important to check with a "branded" site when searching for a rate on a hotel room. If you know the specific property you want, conduct an online search and find the branded site for that hotel; you'll find that the site may be maintained by the property itself or by a chain or parent company. And you may do even better by calling.

• Be very specific when inputting hotel names. In many cities, chains operate individual properties with very similar names, so you want to make sure you're booking the "Marriott Midtown" rather than "Marriott Downtown," or "Holiday Inn Airport" rather than "Holiday Inn Airport North." If necessary, use the street address or zip code to find the right property.

Searching for rental cars

• The car rental sector is particularly notorious for add-on charges, so it's important to calculate the bottom-line price of your rental. In some cases the total price can be twice the base rate.

• Some travel sites make it quite hard to view all the available rental companies, since they provide better placement for "partner" firms. Make sure you know all of your options by scrolling through the entire screen.

• Be careful about buying rental options, such as insurance products like collision damage waivers (CDW), before you fully understand what you are buying, whether or not you need it and how much it will cost.

Searching and bidding on opaque travel sites

• When using opaque travel sites such as Hotwire and Priceline, you need to realize that you won't know the name of the airline, hotel property or car rental firm until you have already purchased the product. Therefore, review the lists of their travel vendors or "partners." These lists should be inclusive for airlines and car rental companies, but they may just offer samplings of their hotel partners.

• If you're going to bid for a travel product, be sure to review the site's bidding and booking policies. Understand that non-retractable bidding means just that.

• Before bidding for a travel product on a site such as Priceline, find some benchmarks for the lowest fares and rates available through other channels. Check other "transparent" travel sites that offer brand names as well as prices. You also may want to call a toll-free reservations center or contact your travel agent or corporate travel manager.

• When placing bids, be careful not to bid too low or too high. A too-low bid can require many additional steps in the booking process. A too-high bid can mean paying too much. I've found favorable results by splitting the benchmark price in half and starting the bidding there.

• Usually you will not be eligible to earn loyalty program mileage or points if you book through an opaque site, so clarify this in advance.

One last piece of advice: When traveling, things can and will go wrong. So before you make a booking through a third-party travel site, check to see if the site offers a 24/7 help desk. It just may save your trip.

If you'd like to read Consumer Reports WebWatch's detailed reports on travel sites, and find out more about any of these issues, visit www.consumerwebwatch.org/travel.cfm.

Read previous columns

Bill McGee, a contributing editor to Consumer Reports and the former editor of Consumer Reports Travel Letter, is an FAA-licensed aircraft dispatcher who worked in airline operations and management for several years. Tell him what you think of his latest column by sending him an e-mail at USATODAY.com at travel@usatoday.com. Include your name, hometown and daytime phone number, and he may use your feedback in a future column.

Online travel sites feeling pressure

Merrill Lynch analyst Justin Post maintained a "neutral" outlook on the online travel industry after February traffic data showed supplier-direct travel sites taking share from online travel agency sites.

"Traffic data for February [indicate] that travel suppliers continue to capture increasing user attention, which could continue to pressure online travel industry growth," wrote the analyst in a recent research note.

Online travel agent traffic was down 14% year-over-year in February. Traffic to Expedia and Orbitz was down 21% and 17% year-over-year, respectively. Traffic for Travelocity declined 7%, the least in the group.

On the same time, traffic growth to supplier sites was up 3% year-over-year in February, with leading hotel sites - like Marriott International, Hilton Hotels and Starwood Hotels and Resorts - up roughly 13%, and leading air supplier sites - such as Southwest Airlines, Delta, AMR and United - up 4%, slightly outpacing the industry.

MSN Travel and Expedia expand partnership

Expedia, Inc. has implemented its expanded partnership with MSN, Microsoft Corp.'s network of Internet services. Now, customers who visit MSN Travel will find Expedia.com content as well as information from Expedia, Inc.'s other sites including hotels.com, Hotwire.com and TripAdvisor.com, giving them more travel booking options and content on the MSN Travel channel.

Expedia.com has powered the travel channel on MSN.com and many localized MSN sites around the world since 1999. This relationship brings value and convenience to MSN customers and represents a step forward in Expedia's commitment to bringing the breadth of its supplier relationships to all travel customers. It is a testament to Expedia's dedication to giving customers unparalleled service, choice and trusted advice.

"We are excited about the newest results of our relationship with MSN," said Steven McArthur, president of North American Leisure Travel Group, Expedia, Inc. "It represents a giant step forward in our efforts to form strong, lasting relationships with valued suppliers and bring together exceptional services to benefit everyone: Expedia, our partners and most importantly, our customers."

"Recent studies have shown that U.S. travelers visit multiple web sites when planning a vacation," added McArthur. "With the addition of Expedia, TripAdvisor, hotels.com and Hotwire to the MSN Travel channel, both companies are able to provide customers with what they want, when, where and how they want it."

The new MSN Travel channel showcases the power of the brands in the Expedia, Inc. portfolio, each brand offering MSN visitors unique attributes such as specialized content, traveler opinions or discounted opaque inventory. Expedia's partnerships such as this drive significant volume of bookings for Expedia's supply partners and bring together exceptional services Expedia has to offer in one convenient location.

Tuesday, March 07, 2006

Top 10 Expensive Cities You Think You Can't Afford

Guide Picks

From Mark Kahler,
Your Guide to Budget Travel.
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Are you one of those budget-conscious travelers who skips the world's most expensive cities? If so, remember many of those places also offer the greatest travel treasures. Finfacts Ireland and its latest Cost of Living Survey from Mercer Human Resource Consulting ranks the following 10 cities among the 100 most expensive in the world. Read on, and discover how you can afford to visit any one of them.

1) London: World Ranking #3

London's notorious hotel costs are offset somewhat by the huge selection of airfares. There are no less than six major airports serving London, and many travelers are able to piece together a strategy that allows them to take advantage of special offers and budget airlines that abound here. Read more about saving money on five pages packed with tips, hints and recommendations.

2) Paris: World Ranking #12

Paris has a somewhat deserved reputation for expensive food. But that food is often of such high quality that the relative costs are not really that outrageous. Enjoy the experience as you save money on transportation, because Paris has one of the world's greatest mass transit systems. You can cover a lot of ground in a short time and at a reasonable cost. Among our other money-saving tips is this: The best view of Paris is available to you free of charge.

3) New York: World Ranking #13

As with London, it's possible to save a lot of money getting here due to the volume of air traffic. After arrival, consider that some of the best New York experiences are free: window shopping on Fifth Avenue, a ride on the Staten Island ferry, or a visit to the set of your favorite television show. Read five pages of money-saving tips that will take a bite out of Big Apple expenses.

4) Rome: World Ranking #17

Rome tends to be expensive because it offers so much to see and do. Longer stays are necessary to accomplish your travel goals. Offset those costs by staying in a clean, convenient convent and eating in neighborhood trattorias that offer hospitality and huge portions at reasonable prices. Another tip for you: Take time to relax and enjoy the atmosphere.

5) Beijing: World Ranking #19

Okay, Beijing might not be on the itineraries of most people reading About Budget Travel. But in this age of air travel, you might find yourself with a layover in China's capital and a wonderful opportunity. It is possible (but not ideal) to visit the Great Wall, the Forbidden City and Tiananmen Square in one day.

6) Berlin: World Ranking #38

Berlin offers so much: Enough museums to visit a different one each day for six months, enough recent history to stagger the mind and enough culture to please the most demanding patron. It's the gateway to Eastern Europe, and yet it is not a major air hub. That will change in time, but it makes getting here more expensive. Cut your costs by taking advantage of an outstanding transportation system, a host of low-cost lodgings and quite a few free attractions.

7) Los Angeles: World Ranking #44

Airport shoppers can choose a number of money-saving options here, and some of America's best free attractions are found in Southern California. Want examples? Drive the Coastal Highway, peruse the Hollywood Walk of Fame and visit the spectacular Getty Museum without spending a dime.

8) Chicago: World Ranking #52

Business travelers visit Chicago quite a bit, but so do people in search of a nice weekend escape . It's possible to sample the city's famous deep-dish pizza, take in a game at Wrigley Field and see one of the world's greatest museum districts without breaking the bank. Consider some ways to save on transportation, accommodation and food during your stay in the Windy City.

9) Washington, DC: World Ranking #78

Fly a budget airline into Reagan National, hop aboard a Metro train, and walk from the stop to your hotel in the middle of the city. Now you're ready to enjoy a budget adventure in a city where the top attractions do not charge admission.

10) Toronto: World Ranking #82

From High Tea at the Fairmont Royal York to discount theatre tickets, Toronto offers many of the same attractions as London and other world class cities. But for many North Americans, a short trip to Toronto is more affordable and easier to schedule. In fact, a trip to cosmopolitan Toronto is like visiting many of the world's great cities at one time. Its collection of ethnic restaurants and neighborhoods is impressive.

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