Luxury Hoteliers Magazine 4th Quarter 2019 | Page 39

Travelers look to family, friends and review sites for guidance Traveling is stressful, and consumers often look to family and friends for reassurance when making decisions about where they stay and how they’ll get there. Forty-two percent of customers first heard about a travel or hospitality brand they booked through family and friends. Additionally, almost three-quarters (72%) say they chose NOT to use a brand because of negative feedback from family and friends. Travel review sites (e.g., TripAdvisor or Yelp) were the next most influential source of information, with 17% of consumers reporting that’s how they chose the last new travel or hospitality brand they used. Google took third place with 14% — meaning customers are not necessarily finding new travel brands from search engines. Consumers don’t only turn to third parties to discover new travel and hospitality brands — they’re booking through them, too. While 55% say they booked directly with the brand the last time they made travel reservations with a new company, 45% purchased through a travel agency or a third-party website like Expedia. This is significant since you lose valuable opportunities to learn more about your customers if they don’t book directly with your brand. TURNING FINDINGS INTO ACTION Encourage and incentivize customers to share their experience with your brand with friends and family. For example, offer an exclusive referral code to current customers and encourage them to share it with their networks in order to earn rewards or get additional discounts when new customers book travel using their code. Then happy customers can pass along a discount with a positive referral and be rewarded for their brand advocacy. Brands like Spartan, for example have found success incentivizing sharing with friends and family. Encourage customers to book directly with your brand. Almost half of consumers are booking travel and accommodations through external sources, which means you’re losing out on valuable opportunities to learn more about your new customers. Consider nudging consumers to book direct by offering lower rates or additional perks. For those who won’t book directly, be sure to encourage them to provide their information, travel and messaging preferences prior to their stay or flight so you can customize their experience accordingly. Marriott shines again with its Bonvoy loyalty program by guaranteeing the best rate to members that book directly with the brand instead of a third party. Marriott also offers bonus points or a discounted rate to those who find cheaper options on other websites. RETENTION Travel companies have room to improve when it comes to understanding their customer preferences We’ve already shown that spot-on relevant messaging is critical to attract customers. Brands should be able to perfect messaging for customers they have already engaged since they have a history of past behaviors with the brand. But almost a third of customers (32%) say they rarely or never receive relevant communications from travel/ hospitality brands they’ve used before. Additionally, while about six out of 10 customers say companies are messaging them just enough for most channels, that leaves four out of 10 who are unsatisfied. Customers are much more likely to say brands are emailing them too frequently rather than not enough. Specifically, 32% say travel and hospitality brands are emailing them too frequently (compared to 5% who say they don’t get enough emails) and another 41% say they see too many display ads (compared to 7% who don’t see enough). TURNING FINDINGS INTO ACTION Utilize journey mapping to target customers with relevant content. Customers are less likely to feel they are getting too much or too little content from travel brands if what they get is relevant. Understand where your customers are in their decision- making process (i.e., consideration, booking, pre-stay, during their trip, post-stay) so you can tailor your communications accordingly. Taking the stage of their journey into consideration can help you not only be relevant when talking to them but also move them along to the next stage through the right content. Use preference centers to refine relevance and message frequency. It’s likely that customers get email fatigue not because they don’t want to hear from your brand but because they receive repetitive or irrelevant messages. Ask customers directly about their interests and how often they’d like to hear from you. For example, American Airlines uses its AAdvantage program not only to refine frequency preferences and allow users to opt into certain communications, it also asks customers about their specific travel interests related to destinations, activities and more. Customers expect content to be informed by past behavior The key to understanding travelers is getting to know them. Forty- four percent of customers say they’d prefer that brands send them communications informed by their ILHA 39