Data Pack Q1 2021

Executive Summary

Welcome to the Travel Data Pack. Every quarter, we analyze data
from our travel clients, including billions of dollars in transactions,
and conduct a global survey of travelers to uncover the latest trends.
Here's what we learned about the state of travel in Q1 2021:

Worldwide air travel is still down, but some countries like the US and Japan are starting
to recover, with domestic flights showing the most growth.

Hotel bookings worldwide are getting back on track, and vacation rentals is the first
travel category to surpass 2020 performance.

Travelers are still worried about Covid-19, but it's not stopping them from booking short
trips to see loved ones. That said, most travelers will stick to domestic trips for the next 12
months, divided almost equally between car travel and planes for their next trip.

Fully refundable tickets, continued social distancing, and sanitation measures will be
key to earning customer trust and bookings moving forward.

See the supporting data and additional insights inside!

Data and survey findings point to a travel renaissance in the Fall, with longer duration
trips planned and more rentals booked.

Agenda

1 Q1 2021 Trends by Travel Category
2 Travel Sentiment and Outlook
3 Mobile and App Usage
4 Recommendations

Air Travel Q1 2021 Trends

Worldwide

Indexed Weekly Air Bookings YoY

160 145 141 138 137 134 132 140

Worldwide air travel

124

remains down108

105 98 100

In Q1 2020, air bookings dropped

progressively as COVID-19 spread globally.66 66 66 64 64

62 59 56 54 55 52 54 56 57 54 60 One year later, air bookings remain down 36% in April 2021, growing slowly from -48%40 30

21

earlier in January.17

2020 2021

Source: Indexed bookings, worldwide, compared to average in December 2019.
Same set of partners in the air category with stable sales tracking during the period.

US air travel is recovering steadily

US air bookings dropped abruptly in March
2020, as travel restrictions increased.
One year later, air bookings in the US are
seeing a steady increase, in step with rising
vaccination and confidence levels.

Source: Indexed US bookings, compared to average in December 2019. Same
set of partners in the air category with stable sales tracking during the period.

Indexed Weekly Air Bookings YoY

Worldwide

Indexed Weekly Air Bookings YoY

Americas EMEA APAC

Air travel recovery differs123

by global region

100 92 86 85 85

Air travel is improving quicker in the Americas 82 83 83 81 81

75 76

80 71

and APAC than in EMEA, as COVID-19 still

63

impacts the continent heavily, with a number

57 60 53 51 51 50 51

of lockdowns remaining in place across46

42

Europe.

40 34 34 30 28 25 26

20 12 10

Source: Indexed bookings, compared to average in December 2019. Same set
of Air players with stable sales tracking during the period.

Domestic flights are recovering more quickly

Domestic and international travels have both
been deeply impacted year over year.
International flights saw the biggest drop as
travelers faced more restrictions and
uncertainties.

As of March 2021, international flights are
seeing a slow recovery, while domestic flights
are recovering more rapidly.

2021 Domestic v. International Flights

Source: Index worldwide air bookings by destination compared to
the same period in 2020. Same set of travel clients with stable tracking of
bookings during the period.

Air ticket prices are ticking up

In Q1 2021, international travels decreased as
COVID-19 was still spreading, impacting average
booking values in air travel.

Travelers have also avoided high-ticket international
flights and instead opted to stay closer to home.

In order to entice potential bookers,
airlines made concessions in their pricing.

Booking values, however, have grown 22% from
January to February in 2021 and remain flat February
to March.

2020. Same set of air players with stable sales tracking during the period.

Average Booking Values YoY, Air

Flyers are booking with confidence

There are less people looking to
travel compared to last year. However, air
travelers in all regions are showing more
decisiveness in their selection, with conversion
rates hovering near pre-pandemic levels.

Hotels in the Americas and EMEA show a
higher rate of searches prior to booking,
compared to last year.

Conversion Rate % by Region & Travel Category

Source: Indexed worldwide conversion rate % compared to average from
th th
January 6 to March 15, 2020. Same set of Travel Clients with stable
sales tracking during the period. Conversion Rate = SUM(BUYERS)/SUM(Visitors)

Hotel Q1 2021 Trends

Worldwide hotel bookings are getting back on track

Hotel bookings dropped throughout Q1 last
year, globally.

In Q1 2021, hotel bookings surpassed 2020
levels near mid-March, as vaccine distribution
increased in a number of countries.

Indexed Weekly Hotel Bookings YoY

Indexed Weekly Hotel Bookings YoY

Source: Indexed worldwide bookings, Compared to average in December
2019. Same set of partners in the hotel category with stable sales tracking during the period.

US hotel rooms are filling up again

In the US, bookings dropped dramatically in

After over a year in lockdowns, bookings for
hotels in the US are up in March, just in time
for Spring. The trend in Q1 suggests a strong
desire to reconnect and/or getaway.

Indexed Weekly Hotel Bookings YoY

Source: Indexed US hotel bookings, Compared to average in December 2019.
Same set of partners in the hotel category with stable sales tracking during
the period.

Worldwide

Indexed Weekly Hotel Bookings YoY

Americas EMEA APAC

Hotel recovery differs by

global region

96 100

The latest lockdowns in Europe at the end of

82 82

80 78 78 80

Q1 2021 have negatively impacted the trend,

66 65

62 62

while hotels are improving quickly in the 58 57

56 55

60 53

Americas, particularly in the United States.

40 37 36 40 30 28 29 28 25 22 20 21 21 20 14 11 10

Source: Indexed bookings, compared to average in December 2019. Same set
of Hotel players with stable sales tracking during the period.

Worldwide

Average Booking Values YoY, Hotel

Hotel rooms are seeing 100

99 100 96

increased demand94

90 86

Average booking values saw steady growth

80

in Q1 2021, with March almost at 2020 levels.80

This trend reflects greater demand for hotel

rooms, and slightly longer average stays.

50 January February March

2020 2021

Source: Indexed worldwide booking values, Compared to Average in January 2020. Same set of Hotel Partners with stable sales tracking during the period.

Vacation Rentals Q1 2021 Trends

Worldwide

Vacation rentals are the first travel category to surpass 2020 performance

Indexed Daily Bookings YoY, Vacation Rentals

252 244 250 233 217 209 203 204 193 200

144 150 123 127 118 115 110 113 111 115 111 108 105 106 96 98 100 81 104 103 62

41 42

50 34

Source: Indexed Daily Bookings, compared to Average in December 2019. Same set of Travel Clients with stable bookings tracking during the period.

US vacation rentals grew significantly throughout Q1 2021

Source: Indexed Daily Bookings, compared to Average in December 2019. Same set of Travel Clients with stable bookings tracking during the period.

Vacation rentals are recovering more quickly in EMEA

Europe is leading the recovery in vacation
rentals, as domestic and 'workation' getaways
are seen as suitable travel opportunities.

APAC remains close to March 2020 lows, with
improvements suspended in recent weeks.

Source: Indexed bookings, compared to average in December 2019. Same set
of Vacation Rentals players with stable sales tracking during the period.

Indexed Weekly Booking YoY, Vacation Rentals

Longer, safer stay perception of rentals keeps average booking values above 2020 levels

Average booking values have remained
consistently higher than last year. Travelers
continue to book rentals, which provide the
best long-term options and social distancing.

Source: Indexed worldwide booking values, Compared to Average in January 2020. Same set of Travel Clients with stable sales tracking during the period.

Average Booking Values YoY, Vacation Rentals

Car Rentals Q1 2021 Trends

Worldwide

Worldwide car rentals are holding steady

Indexed Daily Bookings YoY, Car Rentals

252 244 250 233 217 209 203 204 193 200

144 150 123 127 118 115 115 111 108 105 110 106 113 111 104 96 98 100 81 103 62

41 42

50 34

Source: Indexed daily bookings, worldwide, compared to average in December 1-28 2019.

Same set of travel clients with stable bookings tracking during the period.

Worldwide

US car rentals are recovering slowly

Indexed Daily Bookings YoY, Car Rentals

140 138

137 134 140 130 133 130 123 117 120

100 100

80 68 62 61 60 63 57 60 49 46 41 43 41 43 41 41 44 59 40 32

21 18 19 20

Source: Indexed daily bookings, worldwide, compared to average in December 1-28 2019.

Same set of travel clients with stable bookings tracking during the period.

Worldwide

Indexed Weekly Booking YoY, Car Rentals

Americas EMEA APAC

APAC sees the quickest

recovery of car rentals105

100 97 100 88

While EMEA and the Americas have seen a 81 81

79 80 73

very similar impact of COVID-19 on car rentals, APAC demonstrates an early recovery for this58

56 55

60 53 51 50

travel sub-category. 56 48 49

46 47

42

40 33 32 26 23 20 20 19 16 17 20 13

Source: Indexed bookings, compared to average in December 2019. Same set
of Car Rentals players with stable sales tracking during the period.

Travel Sentiment and Outlook

Travelers are still worried about COVID-19...

6 out of 10

US and global travelers* say that they feel
personally concerned about contracting
COVID-19 while traveling.

Share of respondents who strongly or somewhat
agree with “I feel personally concerned about
contracting COVID-19 while traveling”

Source: Travel survey, Q1 2021 base: All respondents Global n=11,161

*Base: US travelers are defined as respondents who plan to travel at least once
in the next 12 months.

...but it's not stopping them from planning personal trips

Two-thirds of US and global
espondents plan to travel for personal
purposes in the next 12 months.

Share of respondents who plan to travel in the next 6 months.

Source: Travel survey, Q1 2021 base: All respondents Global n=11,161

*Base: Combined personal and business trips in the next 6 months

Travelers are most eager to visit family and friends ASAP

In the next month respondents are more likely

60% plan to visit family/friends within 6 months.

When are you planning your next trip? (Global data)

(Applies for all travel, both short- and long-distance).

Source: Travel survey, Q1 2021, Worldwide, base: Respondents who plan to travel

For how long do you plan to travel?

Family/friend visits will be shorter stays

59% plan to stay 0-4 nights with family/friends

More than half are booking longer stays for leisure/holiday trips.

Source: Travel survey, Q1 2021, Worldwide, base: Excludes respondents who
don’t know yet Personal (visiting family/friends): n=8549 Personal (leisure/holiday): n=8888 Business: n= 4256

For how long do you plan to travel?

(short stays)

Family/friend visits will be

More than half are booking longer stays for

Source: Travel survey, Q1 2021, Worldwide, base: Excludes respondents who don’t know yet

US

Which transportation services do you plan to use for your next trip?

49% Personal vehicle

Two-thirds of US respondents

44%

say that they are likely to

43% Plane

favor car travel over planes

47%

22%

60% of Boomers and Silent generation in the Car rental

17%

US plan to use their personal vehicle to limit their exposure to others. 11%

Car share 9% Conversely, 66% of Gen Z and Millennials and nearly half of US travelers are more likely to fly 11%

Train

for their next trip.

24%

US Worldwide

Source: Travel survey, Q1 2021, US, base: All respondents, n=1362/ Worldwide n= 11161

EMEA

Nearly half of travelers are likely to fly for their next trip

Which transportation services do you plan to use for your next trip?

52% 52% 50% 46% 46% 47% 45% 44% 44% 44% 39% 39%

29% 29% 24% 24% 23% 24%

17% 16% 15% 17% 12% 11% 11% 9% 9% 8% 5% 5%

Plane Personal vehicle Train Car rental Car share

France Germany Italy Spain UK Worldwide

Source: Travel survey, Q1 2021, base: All respondents, France n=1232/Germany n=1222/ Italy n=1214/ Spain n=1205/ UK n=1258 / Worldwide n= 11161

APAC

Nearly half of travelers are likely to fly for their next trip

Which transportation services do you plan to use for your next trip?

54% 48% 48%

47% 44% 44% 43% 42%

38%

24% 24% 22% 20% 20%

17% 16% 16%

8% 9% 6%

Plane Personal vehicle Train Car rental Car share Australia Japan South Korea Worldwide

Source: Travel survey, Q1 2021, base: All respondents, Australia n=1230/ Japan n=1200/ South Korea n=1238/ Worldwide n= 11161

More stays will be in hotels

Deep discounts, flexible cancellation policies,
and more rigorous sanitation practices are
attracting more US and global travelers, with
56% and 61% declaring that they would stay
at a hotel during their next trip.

Source: Travel survey, Q1 2021, US, base: All respondents, n=1362/ Worldwide n= 11161

Which accommodation services do you plan to use for your next trip?

EMEA

More stays will be in hotels

Which accommodation services do you plan to use for your next trip?

63% 61% 61% 61%

55%

45% 40% 38% 37% 36% 36% 35% 35% 34% 31%

25% 24% 25% 20%

14% 13% 11% 10% 8% 9% 8% 8% 6% 6% 5%

Hotel Personal accommodation Housing rental Camping Cruises

France Germany Italy Spain UK Worldwide

Source: Travel survey, Q1 2021, base: All respondents, France n=1232/Germany n=1222/ Italy n=1214/ Spain n=1205/ UK n=1258 / Worldwide n= 11161

APAC

More stays will be in hotels

Which accommodation services do you plan to use for your next trip?

86%

63% 61% 58%

44% 34%

28% 27% 25% 20%

14% 14% 13% 13% 11% 11% 10% 8% 8% 5%

Hotel Personal accommodation Housing rental Camping Cruises Australia Japan South Korea Worldwide

Source: Travel survey, Q1 2021, base: All respondents, Australia n=1230/ Japan n=1200/ South Korea n=1238/ Worldwide n= 11161

US

What activities are you seeking during your next trip?

Reconnecting tops relaxation as the next 68%

Visiting family/friends 58%

trip's main activity

40% Relaxation (spa, reading,

Increased vaccination rates and eased COVID-yoga/meditation, etc.)

49%

19 restrictions have travelers excited about finally reuniting with family and friends during

their next trip. This is especially true for older generations in the US, with 74% selecting it as their next trip's primary activity.

22% Outdoor sports (skiing, biking, etc.) After being mostly stuck at home for about a 24% year, US Gen Z and Millennials will be relaxing

12%

Planned remote working enjoying outdoor sports (30%), as well as visiting 9% their family/friends (62%) during their next trip.

US Worldwide

Source: Travel survey, Q1 2021, US, base: All respondents, n=1362/ Worldwide n= 11161

EMEA

Reconnecting tops relaxation as the next trip's main activity

What activities are you seeking during your next trip?

64% 65% 62% 58% 58% 57% 55% 55%

48% 49% 48% 45% 43% 44% 42% 42% 40% 38%

33%

28% 27% 24%

17% 17%

11% 9% 6% 6% 6% 7%

Visiting family/friends Relaxation Cultural activities Outdoor sports Remote working

France Germany Italy Spain UK Worldwide

Source: Travel survey, Q1 2021, base: All respondents, France n=1232/Germany n=1222/ Italy n=1214/ Spain n=1205/ UK n=1258 / Worldwide n= 11161

Full recovery begins this Fall

Indexed Bookings by Season of Travel, by Category, YoY

Looking at bookings made between
February 1st and March 15th, 2021, vacation
rentals appear to be the first travel
category to fully recover, with 5% more rental
reservations made for the fall season than
what was recorded during the same period
in 2020.

Source: Index worldwide bookings by season of check-in, for bookings made
between February 1st and March 15th, 2021, compared to the same period in
2020. Same set of Travel Clients with stable sales tracking during the entire period.

Travel duration will increase

Compared to the average duration of travel
booked between February 1st and March 15th,
2020 (i.e. before first lockdowns in western
countries), bookings made during the same period
one year later show that average travel duration
will increase progressively and outperform pre-
COVID travel durations by Q4 2021.

Indexed Travel Duration by Quarter of Travel, YoY

Source: Index Average Travel Duration by season of check-in, for bookings made
between February 1st and March 15th, 2021, compared to the same period in
2020. Same set of Travel Clients with stable sales tracking during the entire period.

Travel will be mostly domestic trips for the next 12 months

Travel restrictions and sanitation concerns are
keeping travelers within their borders.

This is especially true for older generations (92%
Boomers & Silent/87% Gen X vs. 84% overall).

Gen Z & Millennials are a bit more adventurous, with
1 in 4 planning to travel internationally in countries
allowing US citizens to visit, like Mexico.

Only 35% plan to travel internationally in the next 12
months, even if given a vaccine and COVID-
19 Passport, while 69% say they will favor domestic
travels due to Covid-19.

What are the destinations that you are likely to make an online booking for (e.g., flight, hotel / lodging, etc.)?

Source: Travel survey, Q1 2021, US, base domestic travels: All
respondents

Reasons not to travel are mostly pandemic-related

What are the reasons why you won’t be traveling in the next 12 months?

Source: Travel survey, Q1 2021, base: Respondents who don’t plan to travel at all in the next 12 months

2021 travelers care about refundable tickets

Share of travelers who are more likely to book travels if bookings are fully refundable

Source: Travel survey, Q1 2021

Social distance and sanitation remain a must

How has COVID-19 changed the importance in the following areas when traveling? (more important)

3 out of 4 US travelers declared giving more importance to social distance, healthcare, and sanitation when traveling.

Traveling with a pet remains a challenge

14% of travelers have troubles
flying with their pets (US: 13%),
suggesting a significant
opportunity for airlines - especially
when airplanes are not flying at full
capacity.

Do you travel with a pet(s)?

Source: Travel survey, Q1 2021, US, base: All respondents, n=1362/ Worldwide n= 11161

Mobile and App Usage

Worldwide

Bookings by Device

2020

36% 47% 46% 48% 46% 53% 57%

The post-COVID world is mobile-first

64% 53% 54% 52% 54% 47% 43%

Even with more people working from home

due to COVID-19 restrictions, eager travelers Worldwide United Japan South East France Germany United

States Asia Kingdom

increased the share of mobile web bookings, and mobile has overtaken desktop with now

51% of transactions. 40%

51% 49% 49% 56% 64% 74%

60% 49% 51% 51% 44% 36%

26%

Desktop Mobile

Source: Share of bookings by device in travel, App Excluded, Q1 2021 vs Q1 2020. SEA includes Indonesia, Singapore, Philippines, Vietnam, Thailand, Malaysia

App usage keeps increasing globally

Travel players with a booking app have seen app usage grow in all regions, particulary in
APAC, where app has also stolen share from mobile web.

Despite less mobility globally in 2020, desktop has decreased 10pts YoY.

Bookings by Site Type, Q1 2021 vs 2020

Half of travel app users will share information to get personalized content

When it comes to giving consent to travel apps to collect their information in order to
get personalized content, younger
generations in the US are more likely to do so.
(65% of US Gen Z and Millennials, 52% of Gen
X vs 28% of Boomers & Silent).

“I will give consent to travel apps to collect my
information to get personalized content”

Source: Travel survey, Q1 2021, US, base: All respondents, n=1362
Source: Travel survey, Q1 2021, Worldwide, base: All respondents, n=11161

When booking a flight, airline websites and online travel agency (OTA) websites are used almost equally

Worldwide, slightly more will book on an OTA
website vs. directly on an airline website.

A larger majority of US travelers (54%) plan to
book flights on an airline website directly.

How are you most likely to book flights for personal travel during the next 12 months?

Source: Travel survey, Q1 2021, US, n=584 / Worldwide n=5274
Base: Respondents who plan to book a flight for their next trip

Hotel websites and online travel agencies (OTAs) are also used nearly equally for booking lodging

Again, US travelers favored booking directly on
the hotel/lodging website more than using an
online travel agency website: 3 in 5 US travelers
plan to book their next hotel directly on the
hotel/lodging website.

How are you most likely to book your hotel / lodging for personal travel during the next 12 months?

Source: Travel survey, Q1 2021, US, n=769/ Worldwide: 6730
Base: Respondents who plan to book a hotel for their next trip

6 out of 10 travelers worldwide will rent a car directly on the car rental's website

Older generations mostly plan to book a car
rental directly on the website of a car rental
company. Younger generations would
equally book through a website of a
car rental company or an online car rental
agency.

How are you likely to book a car rental for personal travel during the next 12 months?

On the website of a car rental company

Source: Travel survey, Q1 2021, US, n=299 / Worldwide n=1939
Base: Respondents who plan to book a car rental for their next trip

Recommendations

2021: Preparing for Take-Off

Navigating the runway to recovery

Our data and survey findings show that recovery is on the
horizon and with it comes a reshaping of the travel industry.

Traveler behaviors have changed in terms of how and why they
book a trip, and what they require to feel safe and confident.

Learn how travel providers can deliver an experience that will
meet these new expectations and increase bookings, including:

• 4 things that can make or break a reservation

• Tips for ad campaigns that will drive conversions now and fill
your pipeline for the fall/winter recovery

4 Ways to Increase Bookings

Takeaways from our traveler survey

Provide fully refundable bookings, to address travelers'
fear of uncertainty regarding domestic
and international travels.

Continue to maintain social distancing standards and
communicate sanitation procedures to put travelers at
ease.

Optimize your mobile web site and app user
experience, now that mobile has a larger share of
transactions.

Amplify your pet-friendly messaging, to encourage
those who have trouble traveling with their pets to
consider booking with you.

Drive Bookings During the Summer “Travel Boom”

Lean into lifestyle interests, domestic travel, key markets

Use a geo-focused strategy for your ad campaigns
to connect travelers with local destinations for the
next 6-12 months.

Prioritize domestic flights, car rental, hotel, and
vacation rental offerings.

Test ad copy that speaks to the primary goal of
visiting family and friends/reunion travel.

Get the opt-in! Deliver a great ad experience, and
then clearly explain what users will get by sharing
their information with you, so that you can get
more opt-ins and build your first-party data pool.

Inspire Potential Travelers Hungry for a New Adventure

Increase awareness and reach new customers
with relevant cross-channel strategies

Start building anticipation and relationships now, in advance of
what is shaping up to be a summer into fall travel renaissance.

Use engaging display ad formats, like interactive ads, or video story
ads to showcase your offerings and include important messaging:

• Refundable tickets, free cancellations

• Social distancing and sanitation measures

• Socially distant/travel bubble trips

• Pet-friendly accommodations audiences while they're streaming their favorite content.

• Family vacationers

Target relevant audiences like these and more using your own data
and our massive commerce data set:

• Workationers

• Millennial travelers

• Eco-conscious trip seekers

Appendix

APAC

Travel Bookings by Country, YoY

Indexed bookings compared to December 2019*

90 82 80 72 70 70 61 61 57 60 54 49 51 46 50 38 38 38 38 40 32 30 25 21 23 17 20 14 12 12 10 13 11 7 10

0 SOUTH EAST ASIA FRANCE SPAIN BRAZIL NETHERLANDS TURKEY SOUTH AMERICA INDIA JAPAN RUSSIAN FEDERATION NORDICS AUSTRALIA UNITED STATES

50 36 40 33 34 35 28 29 29 27 27 25 30 23 24 24 21 17 20 13 13 13 15 16

HONG KONG POLAND GERMANY TAIWAN UNITED KINGDOM ITALY NEW ZEALAND BELGIUM EASTERN EUROPE CANADA PORTUGAL MEA SOUTH KOREA

*Source: Indexed bookings by source country, domestic and international travels combined, all travel categories combined, worldwide, during 4 weeks in th th th th 2021 and 2020 (March 15- April 11 2021 and March 16- April 12 2020). Compared to average in December 2019 (pre-pandemic baseline). Same set of 815 travel players with stable sales tracking during the period.

Methodology

This report combines organic data from travel players, and survey data.
Organic data: 815 Travel Players who partner with Criteo in over 20 countries, accounting for 1.6B annual bookings (220 million bookings in the US).
Survey data from 9 countries and 11,161 respondents:

For more marketing insights, contact Criteo.

About Criteo

Criteo (NASDAQ: CRTO) is the global technology company powering
the world’s marketers with trusted and impactful advertising. 2,700 Criteo
team members partner with over 20,000 customers and thousands of
publishers around the globe to deliver effective advertising across all
channels, by applying advanced machine learning to unparalleled
data sets. Criteo empowers companies of all sizes with the technology they need
to better know and serve their customers. For more information, please
visit www.criteo.com.