Daily Research News Online no. 2905

Online Travel Brands

February 5 2004

Travelocity and Expedia are the most valuable brands in online travel, and their brand equity plays a key role in driving traffic to their sites, according to a new study released today by ACNielsen International Research.

The study, using ACNielsen's proprietary 'WINNING B(r)ANDS' model and audience data from Nielsen//NetRatings, reviewed more than 80 travel sites ranging from online agents such as Orbitz.com and Priceline.com, to specialized sites like Hotels.com, to the sites of such traditional travel providers as airlines, car rental companies and cruise lines.

A strong correlation was found between brand equity and the number of unique visitors to a travel web site. Expedia and Travelocity ranked number one and number two as the most-visited travel web sites during the study period, but in reverse order to their brand equity ranking:

Table 1: Ranking of overall brand equity vs. versus relative site traffic
Web site	Brand Equity Ranking	Site Traffic Ranking (among these five sites)

Travelocity.com	1	2
Expedia.com	2	1
Orbitz.com	3	3
Priceline.com	4	5
Yahoo Travel	5	4

Source: ACNielsen International Research and Nielsen//NetRatings (July 2002 - June 2003)

Not surprisingly, the study found that consumer awareness was the foremost factor driving brand equity. ACNielsen defines 'Brand Equity' as the distinct effect brand knowledge has on consumer response to marketing activity - the relationship between what a consumer knows about a brand and what a consumer does as a result of this knowledge.

'Strong brand messages that resonate with consumers ... can make a big difference in the success of a travel web site', according to Deepak Varma, senior vice president at ACNielsen International Research. 'Travelocity and Expedia have become household names in online travel through very effective advertising. However, when booking air travel or making hotel reservations, consumers have very specific needs and expectations, which often differ from category to category. This is where online travel category specialists such as Hotels.com can compete effectively with the generalist sites and build brand equity with consumers'.

For example, quality of customer service (schedule change notifications, cancellations / refunds, security of transactions) weighs far more heavily in determining overall brand equity with cruise travellers than it does with air travellers, seemingly buying a more commoditized product.

The best brand marketing strategy differs, therefore, according to customer priorities within each travel category, says Varma. 'For instance, Southwest Airlines' web site provides the customer with simplicity and ease of navigation, a unique point of distinction from other airline travel sites and one that resonates well with online air travellers'.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.