Not long ago, ground transportation was an aspect of business and leisure travel that, while important, rarely inspired excitement among travelers or investors. Enter smartphones and the rise of the sharing economy, and in just a few years, the segment has experienced profound upheaval. Investors have poured billions of dollars into transportation startups, and adoption of ride-hailing apps has soared as consumers delight in the ability to summon rides at the tap of a button.
Phocuswright's Hail This! The Transformation of the Ground Transportation Experience for Travel provides an understanding of the impact of mobile services and new business models on the ground transportation segment. This report analyzes traveler behavior, attitudes and intentions in relation to ground transportation, providing segmentation across leisure travelers and managed and unmanaged business travelers.
Research highlights include:
Purchase Phocuswright's Hail This! The Transformation of the Ground Transportation Experience for Travel for research and analysis essential to understanding this changing segment – as well as how to evolve along with it.
- Market sizing and dynamics for car rental, taxis, prearranged car services and shuttles
- An analysis of the impact of mobile ride-hailing on each type of ground transportation service
- Traveler motivations for using mobile ride-hailing services, as well as reasons travelers choose traditional ground transport
- How travelers shop and book prearranged ground transportation
- Introduction: Breaking New Ground
- Key Findings
- The Ground Transportation Landscape
- Traveler Attitudes & Behavior
- The Ground Transportation Decision
- Mobile Ride-Hailing: Use and Views
- Driverless Cars: The Future?
- Going for a Ride: Ground Transportation Trip Dynamics
- Prearranged Transportation: Shopping & Booking
- Appendix: Demographics
Hail This! The Transformation of the Ground Transportation Experience for Travel incorporates a two-phased research methodology:
1. Consumer survey: Phocuswright conducted an online survey in 2015 of over 2,000 qualifying U.S. adult travelers. The survey was fielded to adults (age 18+) who had taken at least one leisure or business trip in the past year and who used a paid, private ground transportation service as part of the trip (excluding public transportation and intercity rail). A trip is defined as travel at least 75 miles from home that includes an overnight stay. Phocuswright received responses from 1,195 qualifying leisure travelers, 409 unmanaged business travelers and 590 managed business travelers. Respondents were sourced from independent panel firm Lightspeed GMI. Survey results are projectable with a +/- 2.83% margin of error for the leisure traveler sample and 3.45% for the business traveler sample at a 95% confidence level. The sample was weighted to reflect the adult traveler population in the U.S.
Based on data from the U.S. Census Bureau and Pew Research Center, Phocuswright projects the number of U.S. adults with Internet access who took at least one leisure trip (as previously defined) over the previous 12-month period through June 2015 to be 140 million people (see Figure 1). Phocuswright projects the number of U.S. adults with Internet access who took at least one business trip to be 52 million people. To qualify as a U.S. ground transportation traveler, leisure and business travelers also had to have used some ground transportation when traveling, yielding a projected population of U.S. ground transportation travelers of 88 million people, representing 63% of all travelers.
2. Industry interviews and segment analysis: Phocuswright conducted 20 interviews with leading players within the ground transportation landscape, including car rental providers, ride sharing and car rental sharing providers, mobile taxi and ride-hailing services and scheduled ground transportation providers. In addition, Phocuswright interviewed online travel distribution companies engaged in ground transportation distribution and corporate travel managers.