Compete, Inc.'s Latest Spark! Advisory Finds Users of Southwest Airlines' DING! Program Are 45% More Likely to Book through Southwest.

BOSTON -- Desktop Marketing Applications Such as Southwest's DING! Drive Incremental Revenue Opportunities; Prove More Effective Than Travel Loyalty Programs

Compete, Inc. today announced the availability of its latest Spark! research advisory, "Is the future of travel loyalty in desktop marketing?". In this Spark! edition Compete identified that in the battle for traveler attention and loyalty, Southwest Airlines' new DING! service has hit the mark with consumers and is driving substantial bookings growth for Southwest. The advisory can be found online at http://www.compete.com/research/spark.xtp

Launched in February 2005, DING! is billed by Southwest as the first ever direct link between an airline and its customers' computer desktops. Southwest is capable of delivering time-sensitive offers immediately to the computers of its customers, who are now responding en masse to the "DING!" sound effect and blinking indicators that are triggered by a new promotion.

Compete analyzed consumers' usage of Southwest's DING! marketing application from February through October 2005. The behavior of consumers who downloaded the application was compared to other Southwest.com visitors to understand how the program impacted customer loyalty and bookings propensity. Compete's research indicates that Southwest's DING has had a positive impact on user behavior. The analysis additionally tracked consumers' usage of rewards programs at leading hotel supplier sites including Intercontinental Hotels Group, Marriott, Hilton Hotels, Starwood Hotels, Carlson Hotels and Wyndham hotels, and benchmarked their travel shopping behavior against non-rewards users.

Select key findings from this edition of Spark! include:

    --  DING! has been a hit among consumers

        Since launching the application in February 2005, over 900,000
        consumers have downloaded DING!. At the current pace of
        adoption, there will have been over one million downloads by
        the end of 2005.

    --  DING! is driving substantial bookings growth for Southwest

        DING! users are 45 percent more likely to book through
        Southwest. At current usage levels, the incremental bookings
        driven through DING! are estimated to be more than $60 million
        per year.

    --  Compared to two years ago, the average online travel prospect
        now engages in 27 percent more cross-shopping activity

        The ease of comparing prices and amenities online has led to a
        dramatic rise in the degree of online cross-shopping by
        consumers. Consumers no longer trust that a single site can
        provide them with all of the information and resources they
        need for making an informed decision.

"Travel suppliers have traditionally turned to rewards programs to create and maintain loyalty. Yet today, with nearly every brand offering its own program, and consumers seeing less differentiation, it is clear that marketers need to look beyond just rewards to maintain strong customer relationships," said Gregory Saks, senior associate at Compete.

Compete's analysis of some of the leading loyalty programs in the lodging sector found that the travel shopping behavior of hotel rewards program users are nearly identical to non-users. Rewards program members evaluate 5.9 supplier or agency sites, just slightly less than the 6.3 sites considered for a non-member. Some programs were found to have no effect at all.

"Desktop applications have been successful in other industries such as search engine marketing. Travel marketers who are on the fence about deploying this type of program must realize that a race to establish desktop relationships has already begun," added Saks. "There is a limited amount of real estate that consumers will be willing to give up on their desktops. Southwest is now in the pilot's seat in this compelling new area."

Spark! is a research series providing brands with the insight and information they need to better target consumers and enhance overall marketing effectiveness. It reports the latest research, trends and data impacting the financial services, wireless, travel and automotive industries. To sign-up to receive Spark!, go to http://www.compete.com/contactUs.xtp

About Compete

Compete, Inc. extends online market research to transform the way consumers and brands communicate. By combining permission marketing, predictive analytics and the industry's largest consumer behavior database, Compete helps marketers identify and reach their target consumers. Compete delivers conversant marketing solutions that increase profitability and customer loyalty and result in measurable and effective marketing programs. Compete delivers these solutions to leading brands such as Carlson Hotels Worldwide, DaimlerChrysler, Hyundai Motor America, Teva Neuroscience, Toyota Financial Services and Upromise(R), among others. Compete is headquartered in Boston, Massachusetts, with offices throughout the US. For more information, please visit http://www.compete.com.