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Digital IQ INDEX®

Travel

The L2 Digital IQ Index®: Travel measures the digital competence of 89 travel brands across airlines, hotels, and cruise companies. Authored by L2 in partnership with the George Washington University School of Business (GWSB) and ISM, the Index evaluates the digital efforts of prestige travel brands across four criteria: Site, Digital Marketing, Social Media, and Mobile. Each brand was scored against more than 350 qualitative and quantitative data points and assigned a Digital IQ ranking of Genius, Gifted, Average, Challenged, or Feeble.

“We believe digital competence will be one of the primary drivers of shareholder value in the travel industry moving forward. However, while the industry has been transacting online for years, brands are just now beginning to unlock the power of engaging their guests via social media.” —Scott Galloway

Key Findings

Airlines lead the travel brands in the Index. They occupy the first three spots in the rankings and represent six of the top ten. Airlines are adept at leveraging social media to enhance the overall flying experience.

There is a direct relationship between the Digital IQ of hotels and growth in Average Daily Rate. In a recession that has led even high-end hotels to drastically cut prices, those that are excelling digitally are better poised to rebound and recover their rates.

Cruise companies lag in the digital arena with 11 of the 16 included in the study characterized as either Challenged or Feeble. May have poorly designed sites with limited capabilities and often no e-commerce.

There is significant low-hanging fruit online in the industry. At present, only 28 percent of travel brand sites incorporate social media sharing, only nine percent incorporate user reviews, and 60 percent utilize video.

There is a direct positive correlation between Digital IQ and the time consumers spend on a given website. Genius sites hold user attention for an average of 6.2 minutes, while Feeble sites average only 3.4 minutes.

Facebook is the new preferred platform of the travel industry. While traffic to brand sites in the study was down eight percent in March 2011 versus March 2010, travel industry Facebook pages grew 20 percent in the first quarter of 2011 and 78 percent of the brands registered Facebook as a top-eight source of referral traffic.

Average Digital IQ by category demonstrates a direct relationship to the amount of revenue airlines and hotels book online. Collectively, airlines have the highest Digital IQ (113) and register 48 percent of their revenues online.

The iPhone is the portable electronic device of choice. Fifty-six percent of brands in the Index host a mobile site, and 48 percent have an iPhone application.
Delta Airlines topped the list, providing consumer convenience across digital platforms. Delta was the first airline to offer check-in and flight status on Facebook and lets travelers book directly from its wall. Delta’s customers can also book tickets through the airline’s mobile site and have access to mobile boarding passes and 24/7 customer service through its Twitter account (@DeltaAssist). The top 10-ranked brands are:
  1. Delta Airlines
  2. Southwest
  3. American Airlines
  4. W Hotels
  5. Hilton Hotels & Resorts
  6. Westin Hotels & Resorts
  1. Continental Airlines
  2. Lufthansa
  3. Four Seasons Hotels & Resorts
  4. Inter-Continental Hotels & Resorts (tie)
  5. Jet Blue (tie)

Top Ten Titles

Jan 2012Mobile IQ

Mar 2012Hotels

Oct 2011Fashion

Jun 2011Facebook IQ

Oct 2010Luxury

Dec 2010Gen Y Affluents – Media

Aug 2010U.S. Senate

May 2012Brazil Russia India

Dec 2011European Specialty Retail

Sep 2011Beauty 2011

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