Quantifying the TripAdvisor effect

Released 17.6.2016

This article has been published first by ETOA (European Tour Operator Association) blog in April 2016. ToolBox -travel marketing & consulting is member of ETOA and promoting ETOA sales events. 

Quantifying the TripAdvisor effect

The travel industry has intuitively acknowledged the positive relationship between review sites and their impact on travel activity. But there has been little hard evidence to support the value of this relationship. TripAdvisor has just published the Global Contribution of TripAdvisor report, conducted by Oxford Economics, to test the theory that its content, consumer reviews, and booking facilities influence travel decisions as well as generating incremental travel.

TripAdvisor accounts for nearly 11% of the global online travel market, while in developed regional markets such as North America (16%) and Europe (15%), its influence is much more considerable.  The growth in its footprint is also reflected in the almost seven-fold growth in property listings in the period since 2009 – these have risen from 535,000 in 2009 to 3.59 million in 2014.

The report concludes that reviews have a causal impact on the volume, and nature, of trips taken. Clearer information helps travellers with decision making and gives an understanding of the true nature of a destination before making a trip. Among some of the key statistical findings in the report, the following reveal TripAdvisor’s impact on travel behaviours. 

  • TripAdvisor content influenced 352 million trips in 2014. This translates to 13.2% of international inbound and 7.7% of domestic travel, worldwide.
  • Globally, TripAdvisor generated 22 million trips and 352 million visitor nights (including both new trips and extended stays) in 2014. Significantly, this travel would not have occurred apart from TripAdvisor content.
  • The content on TripAdvisor sites influenced $478 billion of travel spending in 2014. This includes $64 billion of incremental travel expenditures generated by TripAdvisor ($28 billion international and $36 billion domestic).
  • 1.9 million jobs were sustained by the travel spending generated by TripAdvisor in 2014.

In Europe, the report estimates that 83 million inbound visits were influenced by TripAdvisor, which equates to about $95 billion of expenditure. In terms of the site’s incremental benefit to Europe, it added about 3 million extra trips into the region that would not otherwise have been taken.

The findings of this report highlight the need for travel trade and suppliers to harvest the influence of review sites to their best advantage.

 

 

ToolBox -travel marketing & consulting is contributing together with TripAdvisor destination and company campaigns located in Baltic states, Nordic countries and Russia. If interested in our campaign plans, please contact Kari Halonen, kari.halonen(at)toolboxtravel.fi or +358 50 375 1328.

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