1、1 Yes Marketing Customer Lifecycle Report 2019 Understanding the Travelers Journey Guiding Hospitality Customers Through Acquisition, Retention and Loyalty Introduction Global tourism rates are hitting record highs1 and as consumers flock to book reservations with airlines, hotels and other travel b

2、rands, the pressure for marketers in the hospitality industry is on to win that business. Therefore, its no surprise that digital ad spending in the travel industry is expected to surpass what is spent by CPG companies, according to a recent eMarketer report.2 As the competition heats up and compani

3、es like Airbnb radically change the hospitality landscape, its critical to understand what customers demand from travel brands across the board whether theyre booking with legacy hotel brands like Marriott, hopping on a discount airline flight or reserving their spot in a room share for the weekend.

4、 Based on a survey of 1,000 travelers, the following report details consumers priorities as they progress along their journey with travel and hospitality brands from the first time they hear about a brand to the regular bookings they make as loyal customers. Read on to learn how to best communicate

5、with your customers each step of the way. 2 Acquisition Todays travelers are value seekers When it comes to travel, customers are all about value. Value means different things to different travelers, and some are looking for better experiences rather than the biggest discount. For most travelers, va

6、lue means a combination of price, quality and the perks they get when using a brands services the three most popular factors customers consider. Price is the most influential factor for selecting a new travel and hospitality brand, with 58% of respondents ranking this option as number one. Quality f

7、ollows at a distant second, with 19% ranking it as the most significant factor. Available perks (e.g., free checked bag, room upgrades, etc.) is the third most popular option, with 9% of respondents ranking it number one and 18% ranking it number two. Additionally, while price is consistently the nu

8、mber one reason consumers across generations select a new travel brand, younger consumers value perks more than their older counterparts 18-21 year-olds and 22-37 year-olds are twice as likely to choose perks as 38-52 year-olds (10% compared to 5%). Thats not surprising, since younger consumers are

9、often more motivated by experiences.3 When considering making reservations with an airline, hotel or hospitality brand youve never used before, which of the following product- or service-related factors would influence you to make a purchase? 58% Price 19% Quality 9% Available perks 4% Ease of booki

10、ng process 3% Reputation for good customer service 3% Logistical convenience 2% Ease of boarding/check-in process 2% The brand aligns with my values 1% Ease of cancellation/travel adjustments 1% Mobile app features 4% 9% 6% 58% 3%3% 19% 3 Offer exclusive pricing to members. Of course, no one will co

11、mplain about lower pricing. Follow Marriotts example and incentivize customers to create stronger relationships with your brand by offering exclusive member pricing to those who join your loyalty program, as highlighted here in their Bonvoy program promotion. Turning findings into action Demonstrate

12、 your value. Highlight what makes the experience your brand delivers valuable for your customers. Value could mean lower prices compared to competitors, or additional perks such as free breakfast or waived upgrade fees that justify higher prices. Beyond basic discounts, you can demonstrate value thr

13、ough superior experiences. For example, Westin positions itself as the wellness hotel, advertising healthy eating options, high-quality and comfortable mattresses, workout facilities, yoga classes and more. People will pay more for a better experience at the Westin because they are able to see the v

14、alue in a higher price tag. 4 Relevant, comprehensive messaging drives trust that translates into acquisition Forty percent of consumers identify message relevance as the number one marketing factor when considering new travel and hospitality brands. The demand for relevance during the acquisition p

15、hase puts the pressure on travel and hospitality companies to understand what potential customers want before theyve ever interacted with a brand. Beyond relevance, consumers considering a new hospitality or travel brand also need reassurance that they would get the best value for their money. Eight

16、een percent of consumers ranked a competitive edge as the most important marketing factor when considering a new travel or hospitality brand. The third most significant factor is “unique or exciting brand messaging,” which was number one for 17% of travelers. When considering making reservations wit

17、h a travel/hospitality brand youve never used before, which of the following would influence you to make a reservation? 40% The brands messaging is relevant to my interests/needs 18% The brands messaging demonstrates value compared to the competition 17% The brands messaging is unique or exciting 12

18、% The brands content includes reviews or customer testimonials 11% The brands messaging makes me trust the company 3% The brands messages are delivered where I prefer to see them 11% 12% 40% 18% 3% 17% 58% Price 19% Quality 9% Available perks 4% Ease of booking process 3% Reputation for good custome

19、r service 3% Logistical convenience 2% Ease of boarding/check-in process 2% The brand aligns with my values 1% Ease of cancellation/travel adjustments 1% Mobile app features 5 Lastly, consumers are more likely to choose travel brands that are thorough and informative with their marketing messages. W

20、hen asked what would make them trust a new travel or hospitality brand, 42% of consumers pointed to comprehensive information about a brands services. Considering the hefty costs of travel, its important for customers to feel they can trust your brand before they book with you. Being upfront about f

21、ees, boarding and check-in processes, amenities, and more is one way to ensure this trust from the beginning. Turning findings into action Be crystal clear and informative. Customers want comprehensive messaging that demonstrates value upfront. Set the expectation of what your customers will experie

22、nce in terms of amenities, check-in, boarding processes and more. Be upfront about pricing. Dont advertise a low price only to tack on hidden fees as customers are finishing up their reservations. Also, cover the basics especially when it comes to the features that make your brand unique. For exampl

23、e, Southwest answers common questions about the airlines unique boarding process and checked bag policies up front on the website to clarify potential concerns for new customers. 6 Develop lookalike models and use data enhancement to nail messaging. Customers have high expectations for relevant, eng

24、aging content specific to their precise needs before theyve ever interacted with you. And though you may not have a history of past interactions that can inform this content, you can look to other places to get it right like acquisition models. Acquisition models help marketers maximize budgets by f

25、ocusing efforts on prospects that are likely to have higher conversion rates and be less costly to acquire. These models support all direct-to-consumer marketing channels, including direct mail, email, display and social. Lookalike models are one of the three most common types of acquisition models

26、they target prospects who look like your best customers in terms of attributes like age, gender, income, hobbies, interests and more. Develop lookalike models to better predict what prospective customers want before theyve ever interacted with you. 7 Travelers look to family, friends and review site

27、s for guidance Traveling is stressful, and consumers often look to family and friends for reassurance when making decisions about where they stay and how theyll get there. Forty-two percent of customers first heard about a travel or hospitality brand they booked through family and friends. Additiona

28、lly, 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 thats how they chose the last new travel or h

29、ospitality brand they used. Google took third place with 14% meaning customers are not necessarily finding new travel brands from search engines. Think of the last time you made reservations with a travel or hospitality brand for the first time. How did you first hear about the brand? Recommendation

30、 from friends or family Recommendation from a travel review site Google search Third-party travel booking sites An infl uencer or celebrity endorsement Digital marketing content from the travel/hospitality brand Print, mail or TV ads by the travel/hospitality brand News and media Other Television pr

31、ogramming 0%5%10%15%20%25%30%35%40%45%50% 42% 17% 14% 11% 7% 3% 2% 2% 2% 1% 8 Consumers dont only turn to third parties to discover new travel and hospitality brands theyre booking through them, too. While 55% say they booked directly with the brand the last time they made travel reservations with a

32、 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 dont book directly with your brand. Turning findings into action Encourage and incentivize customers to sha

33、re 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 customer

34、s 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. Think of the last time you made reservations with a travel or hospitality brand for the first time. Where

35、did you end up booking your reservation? Directly with the brand Through a third-party website or app Through a travel agency 55%40%5% 9 Turning findings into action Encourage customers to book directly with your brand. Almost half of consumers are booking travel and accommodations through external

36、sources, which means youre 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 wont book directly, be sure to encourage them to provide their information, travel and messagin

37、g 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

38、rate to those who find cheaper options on other websites. 10 Retention Travel companies have room to improve when it comes to understanding their customer preferences Weve already shown that spot-on relevant messaging is critical to attract customers. Brands should be able to perfect messaging for c

39、ustomers 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 theyve used before. Additionally, while about six out of 10 customers say comp

40、anies 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

41、 to 5% who say they dont get enough emails) and another 41% say they see too many display ads (compared to 7% who dont see enough). What do you think about the frequency with which travel/hospitality brands youve used in the past communicate with you through the following digital channels? EmailSMS

42、Push notifi cationsSocial MediaDisplay ads 70% 60% 50% 40% 30% 20% 10% 0% Too frequentlyJust rightNot frequently enough 11 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

43、 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 he

44、lp 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. Its likely that customers get email fatigue not because they dont want to hear from your brand but because they rec

45、eive repetitive or irrelevant messages. Ask customers directly about their interests and how often theyd 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 custome

46、rs about their specific travel interests related to destinations, activities and more. 12 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 theyd prefer that brands send them communications informe

47、d by their past behavior, and 29% say theyd like to see more communications based on demographic info. Finally, 27% say theyd prefer brands to act on information the consumer has given them directly (e.g., via feedback forms, experience surveys, preference centers, etc.). What would most likely impr

48、ove the relevance of the message you get from travel/hospitality brands? The brand promotes off ers based on my previous behavior The brand sends messages based on my demographic information The brand sends messages based on information I have directly given them 44%29%27% 13 Additionally, when aske

49、d what kind of content theyd like to see more of, 52% say “information specifically about reservations/past travel,” 43% say partner offers (e.g., discounted hotel stays while booking flights), and 40% say customer reviews or testimonials. Again, customers want useful information that could help them when planning trips or traveling and also reaffirm their travel choice. Refining content for existing customers can be challenging in more ways than one given the nature of the industry.