Customer Engagement 2017 - DMA€¦ · Virtual reality presents a new channel for brands to show...

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Focus on travel 2017 Campaign sponsors Research partner Customer Engagement 2017

Transcript of Customer Engagement 2017 - DMA€¦ · Virtual reality presents a new channel for brands to show...

Page 1: Customer Engagement 2017 - DMA€¦ · Virtual reality presents a new channel for brands to show what they offer | More than half (53%) would be interested in using a VR headset to

Focus on travel 2017

Campaign sponsors

Research partner

Customer Engagement2017

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CUSTOMER ENGAGEMENT: FOCUS ON TRAVEL 2017

COPYRIGHT: THE DMA (UK) LTD 20172

ContentsExecutive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

Introduction to the report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Emarsys’ perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

Epsilon’s perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Feefo’s perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7

Wiraya’s perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

Favourite travel brands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9What travel brands are deemed “favourite” and why? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Travel brands – the long tail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10What makes a brand favourite? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Trust in the travel sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16What’s important to consumers? Function and trustworthiness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Are brands delivering? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Loyalty in the travel sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21What drives loyalty in the travel sector? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Rewarded customers trust brands to do business fairly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Travel and channels of engagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27Booking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27Pre-travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Travel inspiration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31The airport experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32On holiday . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Concluding thoughts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34

About our sponsors/partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35Campaign sponsors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Research partner . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

About the DMA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37

Copyright and disclaimer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38

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CUSTOMER ENGAGEMENT: FOCUS ON TRAVEL 2017

COPYRIGHT: THE DMA (UK) LTD 20173

Consumers favour online travel booking brands today | When asked to name their favourite travel brand, Thomson was most-mentioned, followed by Booking.com.

Small travel brands engage with consumers as much as larger brands | When consumers were asked to name their favourite brands, consumers mentioned a total of 71 brands, demonstrating that a wide range of travel brands engage UK consumers.

Travel brands are trusted less to do business fairly when compared to supermarkets | Within the travel sector, hotel and travel accommodation brands are most trusted (65%) followed by airlines (55%) and online travel booking/price comparison sites (54%). This compares to 73% who trust supermarkets to do business fairly.

Consumers want travel brands to deliver on service, value and convenience | The criteria chosen most often by consumers from a list, are value for money (59%), convenience (58%) and good customer service (58%).

Consumers do not feel travel brands are fully trustworthy and transparent | 37% rate airlines “not lying to them” as important, but half that proportion (18%) say airlines deliver on this.

A focus on exceptional service helps to keep customers loyal | The top three reasons for staying loyal to travel brands are: a good service experience (53%), good deals (40%) and a good loyalty or a rewards scheme (40%).

Personal and empathetic engagement can keep customers loyal | 4 in 10 who stayed with a hotel or accommodation brand have done so because they were ‘friendly and welcoming’.

Rewards can encourage loyalty to travel brands | A good loyalty scheme persuaded 42% to stick with a particular airline brand when they knew they could get a cheaper deal elsewhere

More consumers prefer all-in-one booking to booking holiday elements separately | Almost two-fifths (37%) of consumers prefer to book holidays through booking sites compared to 27% who prefer to book using separate sites.

Consumers are interested in the convenience chatbots could bring to the pre-travel and booking journey | More than half (52%) would be willing to use a chatbot to ask an airline a question about a flight.

Virtual reality presents a new channel for brands to show what they offer | More than half (53%) would be interested in using a VR headset to see a hotel room they are considering staying in.

Consumers are willing to share data to improve their airport transit experiences | Half (51%) would be interested in sharing their data in order to receive mobile alerts about boarding directions and timings when in an airport.

Consumers are interested in using augmented reality to enhance their experience | 44% are interested in using augmented reality to get information about the sites or attractions they visit.

Executive summary

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CUSTOMER ENGAGEMENT: FOCUS ON TRAVEL 2017

COPYRIGHT: THE DMA (UK) LTD 20174

Who doesn’t love to travel? I’m writing this in August and almost everyone seems to be on holiday. That creates a massive sense of excitement for everyone, either looking forward to going away, nostalgia for the recent trip and anticipation for the next one. From a Customer Engagement point of view, this should be one of the easier sectors to build a relationship with consumers. After all, these are products and services we want rather than utilities we need.

What is really interesting is the range of options favoured by customers. When people were asked to name their favourite companies to use for travel, over seventy brands were mentioned covering household names and local travel agents, as well as the new online intermediaries. As individuals we want choice, but we also want to ensure our holidays are hassle free and go with companies we trust – even if that is the small local travel agent.

As ever, service and convenience come through strongly in the research and this isn’t a surprise. As much as this is an enjoyable experience, nothing spoils a trip like bad service.

Avios (formerly known as Air Miles) might not be as fashionable now as they used to be, but we still value rewards and loyalty can definitely be tied to them. Many of those surveyed said they would still stay loyal to brands who give travel rewards even if the price was higher.

Technology has always played a massive role in travel but even more so in recent times. First, all online travel booking sites, then airlines and through to apps such as TripAdvisor, the whole travel and holiday experience has been made easier, maybe cheaper and certainly more informed than ever before thanks to technology.

So what role will technology play in the future? When it comes to areas like AI, travel again feels like an easy place for customers to engage. Why not take a trip around the Coliseum before you actually go and see it, weigh up what the pros and cons of that versus the Pantheon and choose your trip based on your virtual reality experience. Over time, the pre-trip experience will become more real, apps to give a more enhanced experience while on location will become a reality, and the post-trip more engaged. According to the research, we are ready and willing to get involved with customers’ plans.

Travel and holidays are almost always a pleasure and exciting, as long as brands stay engaged with their consumers they can help to make sure that is always the case and reap the benefits of doing so. If you haven’t been already, have a great holiday and happy poolside reading!

Scott LogieChair of the DMA Customer Engagement CommitteeMD at REaD Group Insight

Introduction to the report

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CUSTOMER ENGAGEMENT: FOCUS ON TRAVEL 2017

COPYRIGHT: THE DMA (UK) LTD 20175

That the research shows there’s no longer a distinctive set of ‘favourite’ travel brands is no huge surprise – after all, being one of seventy-one doesn’t necessarily scream elite. But why? Well, since a lot of the industry moved online, and with the proliferation of comparison sites, travel has become one of the hardest customer service industries in which to nurture loyalty. Travellers generally start in one place – ‘which company will offer me the lowest rate for accommodation or to get to xyz’ – and after all, 59% gave ‘value for money’ as their reason for choosing a travel company. It’s only once they’ve identified a price that they opt to go with a company, based on previous experience and the minimum level of service they expect from that brand. So how to guarantee repeat custom from travellers saying ‘yes’ to travelling with you again? Well, that’s where you need to get to know your customers – understand their circumstances and their travel preferences, in order to go above and beyond just receiving one service. That’s where Emarsys comes in. We help travel companies add that something extra, and get the timing for it just right. The research shows customers are willing to share data to improve their travel experience, and that really is the case. So make use of that data, and add automation to it. If you understand your customer and know what they’re looking for from their travels, then you can automate correspondence to them, so they get the right offer at exactly the right time. Perhaps that’s a well-timed offer when they arrive at the airport, either for a hotel or a transfer into the city centre? Perhaps it’s sending them some details for companies for a taxi home. Or, if you know they’ve opted for it in the past, perhaps it’s a discount on more leg room just around the time they’ll be checking in for their flight? Travel really is a hard sector to gain loyalty in, especially with so many brands in the space – each with a unique voice as to why the consumer should choose them. So stand out, be different, show your customer you understand them and cleverly upsell while helping them benefit from a targeted end-to-end experience.

Steve LedgerwoodManaging Director UK at Emarsys

Emarsys’ perspective

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CUSTOMER ENGAGEMENT: FOCUS ON TRAVEL 2017

COPYRIGHT: THE DMA (UK) LTD 20176

What shapes loyalty today? In the last Customer Engagement report we discussed notable shifts and the situation is still evolving when you consider what defines a good customer experience.

Travel takes the challenge to an unprecedented level; where the opportunity to set customer expectations, engage consistently and ensure a satisfactory experience is next to impossible. It should be treated as a complex area, especially when you’re trying to achieve consistently high customer engagement levels. It doesn’t matter if you lose a customer on the 1st or 3rd touchpoint, they are still lost. People need confidence with brands across all touchpoints, as loyalty is transient at best.

This report shows customers’ trust of travel brands is much lower than supermarkets, who find it easier to manage a positive experience. Supermarkets have the ability to better control how and when to engage a customer, as well as delivering on their promise and abiltiy to provide a value exchange for loyalty. Unsurprisingly, the hotel and accommodation categories have garnered the most trust, as they are less exposed than travel brands.

Customers are willing to show loyalty in return for good service above all. After all, they are willing to exchange data – for the right reasons. In return, they expect to be treated and acknowledged for their real time preferences or behaviours, especially with their airport experience. Where trust is at an all-time low, brand reputation and customer experience are crucial in winning their confidence back.

Augmented reality is being adopted, and actually preferred, by customers looking for the best information and guidance for planning their holiday. Likewise, chatbots are gaining traction as a means to to answer queries quickly and efficiently.

Authentic brand communications and values will strengthen trust in the sector, with honesty always being the best policy to make customers more willing to consistently engage.

An omni-channel strategy that successfully combines real-time data with machine learning, stands a better chance of bridging the ever widening space between consumers and travel brands.

With a commitment to drive the best outcomes across all customer engagement touchpoints, organisations can develop entrenchment and meet the expectations of loyal customers.

A customer-centric approach won’t restrict your vision in achieving loyalty nirvana.

Stephanie D’Sa Head of Strategy & Insights at Epsilon

Epsilon’s perspective

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CUSTOMER ENGAGEMENT: FOCUS ON TRAVEL 2017

COPYRIGHT: THE DMA (UK) LTD 20177

Trust is essential in the travel business. Consumers arranging a holiday invest emotion and money in experiences that they hope will give them good memories for the rest of their lives.

Yet this research shows that trust remains a problem. Nearly half of the respondents said they find it difficult to know which brands or companies to trust. So it is reassuring that a substantial number (68%) said they rely on customer reviews to make informed decisions. In a development that has ramifications for the entire industry, it is increasingly the voices of customers that are more trusted than a brand’s own reputation.

Nobody need be surprised by this. The travel market is characterised by competition and a constant flow of technologically-driven new arrivals promising better access, fresher experiences or improved value. With holiday horror stories now a media staple, it is hard for consumers to know who to trust.

Right across airlines, travel booking sites, price comparison sites, hotel and accommodation brands, the research found there to be an 18% deficit between what consumers expect and what they say they experience of simply not lying to them.

It is why authenticated reviews are now so important, as consumers feel they can trust the collective voices of their fellow customers. Booking.com, for example, was one of the most frequently mentioned brands when respondents were asked to name their favourite in the travel sector. More than third of those people (35%) said they made that choice because Booking.com gives them verified reviews they can read for themselves when deciding who to book with.

Trust is so critical to the travel business that successful companies such as Booking.com realise they must offer a platform that verifies reviews and presents them in a readily accessible but unvarnished format. It is no longer acceptable to plaster your website with phoney reviews praising your business. As the industry evolves further, authenticated reviews are going to be the touchstone for trust and transparency in the minds of increasing numbers of potential customers who can smell a rat when it comes to reviews that are fake or filtered.

And it is not simply about trust and credibility, important as they are, but also about understanding customers and receiving a quality of feedback and insight through sentiment analysis that is otherwise unobtainable, leading to super-fast responsiveness and outstanding customer service. This is what will help drive success as the travel industry continues to develop.

Matt WestCMO at Feefo

Feefo’s perspective

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CUSTOMER ENGAGEMENT: FOCUS ON TRAVEL 2017

COPYRIGHT: THE DMA (UK) LTD 20178

This report provides some important insight into a notoriously competive industry, in which customer loyalty is at an all time low. Nevertheless, the findings show there has never been a greater opportunity to take the lead and build long term loyalty with customers.

In an industry dominated by price comparison sites and a focus on bottom line, this report is particularly revealing, highlighting the premium consumers actually put on engagement and service above price. The results suggest that ‘Personal and empathetic engagement can keep customer loyal’, as part of a focus on service, value and convenience.

The findings also highlight the importance of brands realigning their loyalty campaigns to work effectively for customers, and actually communicating the value of these schemes. These loyalty programs provide a key factor in consumers staying loyal to brands regardless of cheaper deals appearing elsewhere. The featured example of SAS clearly shows the value of using a strong customer engagement approach to clearly communicate the value of these key programs.

If you take anything from this report it should be the clear opportunity brands now have to take significant market share if they realise the issues at hand, understand the need to focus on service and engagement rather than price. For these businesses itstime to take advantage of the latest technology to take one step ahead of the competition.

Sam MaddenCommercial Director at Wiraya

Wiraya’s perspective

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CUSTOMER ENGAGEMENT: FOCUS ON TRAVEL 2017

COPYRIGHT: THE DMA (UK) LTD 20179

What travel brands are deemed “favourite” and why?

To understand how UK consumers engage with travel brands in 2017, we asked them to tell us which are their favourite travel brands: “Which is your favourite holiday travel brand / company that you use (e.g. airlines, travel agents, travel research / booking sites, hotels or other holiday accommodation brands)?” The top ten most mentioned brands are below.

That travel agency sites dominate the top 10 shows the value of online travel research and booking for today’s consumer. Thomson took the top place (although when looking at mentions by age, Thomson slips to second most mentioned for 16-34s after Booking.com but remains top for 35-54 year olds and 55+). Airlines are also in the top 10 with British Airways and EasyJet as well as mentions of Virgin and Jet2. No single accommodation brand, bar hotel comparison site Trivago, featured in the top 10.

Consumer review site TripAdvisor made it into the list at number 10, showing the importance of reviews and the opinions of peers. While this brand was mentioned by all ages, it was mentioned more by the over 55s, suggesting TripAdvisor is more favoured by older travellers.

Chart 1 | “Which is your favourite holiday travel brand / company that you use? (e.g. airlines, travel agents, travel research / booking sites, hotels or other holiday accommodation brands)”.

Thomson

Booking.com

Thomas Cook

Expedia

British Airways

Trivago

Easyjet

Virgin

Jet2

Tripadvisor

Booking.com

Thomson

Thomas Cook

Expedia

British Airways

Trivago

Easyjet

Virgin

First Choice

Emirates

Thomson Thomson

Expedia

Booking.com

Thomas Cook

British Airways

Trivago

Easyjet

Jet2

Virgin

Skyscanner

Booking.com

Thomas Cook

British Airways

Expedia

Easyjet

Virgin

Jet2

Trivago

Tripadvisor

ALL 16 - 34 35 - 54 55 +

1

2

3

4

5

6

7

8

9

10

Favourite travel brands

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COPYRIGHT: THE DMA (UK) LTD 2017

CUSTOMER ENGAGEMENT: FOCUS ON TRAVEL 2017

10

Travel brands – the long tail

The variety of travel brands chosen by participants was striking with 71 individual brands named, showing the breadth and complexity of the UK travel market today.

What is more surprising is that consumers picked many local and relatively small travel brands. When thinking about brands they really appreciate, it was not just the bigger names that sprung to consumers’ minds. Many small and domestic brands are engaging with consumers. In the word cloud below, brand names are included when they are mentioned at least twice. The larger the size of the word, the more mentions it received. Many smaller airlines, both low cost and international, won several mentions.

Domestic brands like Caravan Club and Cottages.com were not mentioned by those under 35, and also shows a focus on domestic and non-air travel for older travellers.

Chart 2 | “Which is your favourite holiday travel brand / company that you use? (e.g. airlines, travel agents, travel research / booking sites, hotels or other holiday accommodation brands)”.

ThomsonBooking.com

Thomas CookExpedia

British Airways

Trivago Easyjet

VirginJet2

TripAdvisor First Choice

Skyscanner

Emirates

Ryanair

Virgin AtlanticHilton

Hotels.com

Monarch

AirBnB

Kayak

Kuoni

Saga

Hays

POAirlines

AviosKLM

TUI

Accor Hotels

IHGLastminute.comFlight Centre

On the Beach

Travel Republic

Travel Agents

Co-operative

National Holidays

Norwegian Air

Travelodge

American Airlines

Cheap Flights

CooksCottages.com

Great Rail Journeys

Iglu

Premier Inn

Singapore Airlines

Turkish Airlines

Barrhead Travel

Alpha Rooms

Butlins Canadian A�air

Caravan Club

Cunard

Etihad

Flybe

Laterooms

Leger

Love Holidays

Neckermann

Quantas

Scandic HotelsSecret Escapes

Southall Travel

Teletext Holidays

Wizzair

Virgin Holidays

Cosmos

HoseasonsLow Cost Holidays Qatar

Warner

What makes a brand favourite?

We asked consumers what made the travel brand they chose their favourite to understand what drives that choice. Responses by age expose some differences.

Younger consumers are attracted most strongly by low prices and exclusive discounts as well as the choices of family and friends who may be making bookings on their behalf. Older consumers are more attracted by great service and convenience. Those over 55 are also more likely to cite heritage as a reason for making a brand their favourite, showing the value of long-term brand building, and explains the presence of many well-established UK brands such as British Airways, Thomas Cook, Butlins and Saga among the mentions.

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Chart 3 | Which of the following, if any, are reasons why [named brand] is your favourite holiday travel brand/company?

29%

22%

22%

18%

39%

30%

36%

43%

17%

20%

14%

19%

38%

35%

48%

53%

13%

13%

15%

28%

29%

41%

52%

61%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

My friends / family use them

I just love them

They o er me exclusive discounts on

Has a heritage / well established

Lowest prices

Friendly / helpful / welcoming

Most convenient / easy

Good service

55+

35-54

16-34

holiday options I am interested in

Looking at why the brands above won so many mentions makes for some interesting comparisons. What are these brands doing to resonate with consumers that we can learn from?

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For Thomson, service is the top reason why it is favoured, followed by convenience and good offers, perfectly mirroring the criteria consumers named as important to them when using travel brands, with more on this below. More than four in 10 who named Thomson as their favourite gave ‘friendliness’ as their reason. Three in 10 cited Thomson’s ability to deal with problems.

Chart 4 | Which of the following, if any, are reasons why Thomson is your favourite holiday travel brand/company?

1%

6%

15%

16%

17%

17%

18%

18%

20%

20%

20%

22%

22%

22%

26%

30%

44%

48%

48%

61%

% 20% 40% 60% 80% 100%

None of these

Good loyalty / rewards scheme

Re ects my personality / style

I just love them

They make it easy to save details of holidays that I'm interested in / I’m taking

They make me feel appreciated after I have bought from them

They o er me a personal service

They give me helpful reminders e.g. when I need to organise my Visa, vaccinations, check-in

They keep me updated about inspiring holiday information for where to go / what to do

Lowest prices

They have veri ed reviews I can read

My friends / family use them

Has a heritage / well established

Friendly / helpful / welcoming

Good o ers / deals

Most convenient / easy

Good service

Good at dealing with issues - e.g. help quickly if I have a problem while I am travelling

They o�er me exclusive discounts onholiday options I am interested in

They o�er me tailored deals / o�ers speci�c to what I like or have bought from them before

Source: DMA/Foresight Factory Research | Base: 146 online respondents who use this travel brand aged 16+, GB, May 2017

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Those choosing Booking.com as their favourite travel brand cited price and convenience as top reasons for that choice, followed by good service for more than four in 10. Elements such as verified reviews and personalised updates featured more highly than for Thomson, but friendliness ranking much lower. By creating a highly functional service, Booking.com satisfies customers’ need for ease and speed.

Chart 5 | Which of the following, if any, are reasons why Booking.com is your favourite holiday travel brand/company?

7%

7%

8%

8%

8%

9%

9%

12%

12%

12%

13%

14%

15%

22%

35%

43%

50%

57%

62%

% 20% 40% 60% 80% 100%

Most convenient / easy

Good o ers / deals

Lowest prices

Good service

They have veri ed reviews I can read

They make it easy to save details of holidays that I'm interested in / I’m taking

They keep me updated about inspiring holiday information for where to go / what to do

Friendly / helpful / welcoming

My friends / family use them

They o�er me exclusive discounts onholiday options I am interested in

They o�er me tailored deals / o�ers speci�c towhat I like or have bought from them before

I just love them

Good loyalty / rewards scheme

Good at dealing with issues - e.g. help quickly if I have a problem while I am travelling

They o er me a personal service

Has a heritage / well established

Re ects my personality / style

They give me helpful reminders e.g. when I need to organise my Visa, vaccinations, check-in

They make me feel appreciated after I have bought from them

Source: DMA/Foresight Factory Research | Base: 116 online respondents who use this travel brand aged 16+, GB, May 2017

Comparing the two most-mentioned airline brands shows that engagement can be driven by quite different needs. While EasyJet is mainly preferred for low prices, convenience and deals, half cite good service as a reason, but just 6% claim to “just love them”. Price is the focus for customers here. For those who chose British Airways as their favourite, the loyalty rewards scheme, service and heritage were the top reasons. One in five say they “just love them” while just one in 10 are driven by price. British Airways focus much more on service for their customers.

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Chart 6 | Which of the following, if any, are reasons why British Airways is your favourite holiday travel brand/company?

1%

7%

9%

9%

10%

15%

16%

17%

18%

21%

22%

23%

26%

27%

32%

35%

39%

41%

59%

65%

% 20% 40% 60% 80% 100%

Good service

Good loyalty / rewards scheme

Has a heritage / well established

Most convenient / easy

Good o ers / deals

They make me feel appreciated after I have bought from them

Friendly / helpful / welcoming

My friends / family use them

I just love them

Good at dealing with issues - e.g. help quickly if I have a problem while I am travelling

They o er me a personal service

They make it easy to save details of holidaysthat I'm interested in / I’m taking

They o�er me exclusive discounts onholiday options I am interested in

Re ects my personality / style

Lowest prices

They keep me updated about inspiring holiday information for where to go / what to do

They o�er me tailored deals / o�ers speci�c towhat I like or have bought from them before

They give me helpful reminders e.g. when I need to organise my Visa, vaccinations, check-in

They have veri ed reviews I can read

None of these

Source: DMA/Foresight Factory Research | Base: 81 online respondents who use this travel brand aged 16+, GB, May 2017

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Chart 7 | Which of the following, if any, are reasons why EasyJet is your favourite holiday travel brand/company?

6%

8%

8%

8%

8%

8%

9%

9%

11%

13%

13%

17%

19%

19%

25%

51%

57%

60%

77%

90% 80% 70% 60% 50% 40% 30% 20% 10% %

Lowest prices

Most convenient / easy

Good o ers / deals

Good service

Friendly / helpful / welcoming

My friends / family use them

They keep me updated about inspiring holiday information for where to go / what to do

They have veri ed reviews I can read

They make it easy to save details of holidaysthat I'm interested in / I’m taking

They give me helpful reminders e.g. when I need to organise my Visa, vaccinations, check-in

They o�er me tailored deals / o�ers speci�c towhat I like or have bought from them before

Good loyalty / rewards scheme

Re ects my personality / style

Has a heritage / well established

They make me feel appreciated after I have bought from them

They o er me a personal service

Good at dealing with issues - e.g. help quickly if I have a problem while I am travelling

They o�er me exclusive discounts onholiday options I am interested in

I just love them

Source: DMA/Foresight Factory Research | Base: 53 online respondents who use this travel brand aged 16+, GB, May 2017

KEY TAKEAWAY: People engage with brands reflecting their specific, in the moment, short-term and functional needs such as convenience and ease. Some brands win stronger engagement by meeting people’s needs for service and personalisation through friendly communication, an ability to deal with problems or giving consumers access to trusted reviews.

These elements can help brands stand out from the wide pool of competitors and options available, and offer something beyond competitive pricing.

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We now turn to look at consumers’ trust in the travel sector.

Close to half of consumers say they find it difficult to know which brands or companies to trust these days, with only one in five disagreeing with this sentiment. More than two-thirds (68%) agree that they rely on customer reviews to make informed decisions. In certain circumstances, the customers’ voice is better trusted than a brand’s reputation.Consumers’ shaky trust means that no brand can persuade all the time. Instead, brands have to constantly reaffirm and re-communicate their ability to deliver what consumers want and need.

When looking at trust in travel, trust in travel brands is polarised. Within the sector hotel and travel accommodation brands are most trusted (65%) followed by airlines (55%) and online travel booking/price comparison sites (54%). But compared to other sectors, travel brands are less trusted. Stronger majorities trust retail brands and supermarkets. Overall, trusting “very much” is rare.

Chart 8 | “Thinking about the following types of brand/company how much do you trust them to do business fairly?”

9% 12% 12% 12% 19% 16%

34%

43% 43%

53% 54% 58%

44%

38% 36%

30% 24% 23%

14% 8% 9%

4% 4% 3%

0%

20%

40%

60%

80%

100%

Not at all

Only a little

Quite a lot

Very much

Online tr

avel booking sit

es / tr

avel

price co

mparison sit

es Airli

nes

Hotels / tr

avel acc

om brands

Supermarkets

Retail brands /

shops /

sites

Car manufactu

rers /

dealerships

Source: DMA/Foresight Factory Research | Base: 2009 online respondents aged 16+, GB, May 2017

Why is consumer trust in the travel sector comparatively low? Holiday travel is less frequent and arguably more emotionally charged compared to day-to-day or high street shopping, and there is greater chance for travel brands to lose a customer’s trust. Holidays place consumers in the hands of the service providers they have chosen to trust. Disruption or underperformance is more likely to be felt strongly, and could affect future trust in those providers, regardless of where the fault lies. Consumer choice is more constrained as booking options and travel routes are finite and consumers may be forced to choose brands they may not necessarily favour.

Media interest in travel brands remains consistently high, with recent scandals involving car rental companies, the perception of unfair pricing for budget airlines, or chaos at airports typical concerns which may taint the whole sector.

Trust in the travel sector

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What’s important to consumers? Function and trustworthiness

What do consumers consider to be important when considering holiday travel brands? What do they prioritise?

Chart 9 | “When choosing the following types of brands/companies to use, which of the following, if any are important to you?” | % who criteria deemed important when choosing travel brands

20%

29%

30%

31%

38%

39%

39%

46%

48%

50%

50%

53%

58%

58%

59%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

They support good causes

They use my personal data to provide me with more value for money

They re ect my personality / style / tastes

They act in an environmentally-friendly way

They treat its workers well

They respond to my feedback

They reward me for my loyalty

They use my personal data responsibly

They do business fairly

They do not lie to me

They are genuine

They provide safe and secure products / service

They provide me with good customer service

They are easy to use

They provide me with value for money

Source: DMA/Foresight Factory Research | Base: 2009 online respondents aged 16+, GB, May 2017

Consumers prioritise pragmatic needs - they are focused on value for money, convenience and good customer service. Consumers want brands to guarantee them a great holiday with the minimum of fuss. Consumers are least concerned that travel companies support good causes.

Significant numbers want travel companies to show them they can be trusted and that they are fair. Half of consumers want travel businesses to be genuine, by not lying and by doing business fairly. Beyond trusting brands through their experience with them, consumers want travel brands to communicate this authenticity. That overall trust in the travel sector is not strongly in the majority compared to other sectors suggests travel brands are not meeting this desire for honesty.

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Are brands delivering?

We asked consumers to show which criteria travel brands deliver well on, and compared the results to how important these criteria were to consumers overall. This shows how well brands meet expectations.

Across travel companies, consumers are less likely to confirm that brands deliver on the things that are important to them compared to other sectors such as retail. Importantly, there are a few criteria where the gap is more significant. The biggest gaps relate again to areas of value, service, trust and transparency.

Biggest gaps between importance and delivery for airlines are:

37%

40%

40%

18%

25%

25%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

"They do not lie to me"

"Customer service"

"Value for money"

Importance

Delivery

The biggest gaps between importance and delivery for travel booking sites and travel price comparison sites are:

38%

34%

42%

34%

33%

20%

19%

29%

21%

20%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

"They do not lie to me"

"Use data responsibly"

"Value for money"

"Be genuine"

"Do business fairly"

Importance

Delivery

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The biggest gaps between importance and delivery for hotel and travel accommodation brands are:

39%

45%

37%

46%

21%

29%

22%

32%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

"They do not lie to me"

"Value for money"

"Be genuine"

"Customer service"

Importance

Delivery

When comparing the travel sector to the retail and supermarket sectors, the biggest gaps between importance and delivery are less focused on service and more on trust and fairness.

The biggest gaps between importance and delivery for supermarkets are:

41%

42%

35%

27%

29%

23%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

"They do not lie to me"

"Do business fairly"

"Treat workers well"

Importance

Delivery

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The biggest gaps between importance and delivery for retail brands are:

43%

41%

55%

24%

26%

40%

0% 10% 20% 30% 40% 50% 60%

"They do not lie to me"

"Do business fairly"

"Value for money"

Importance

Delivery

These gaps show the areas brands can build in order to win more trust from their customers. Delivering on functional basics is a must, especially for customer service. But, it is clear that brands in the travel sector can do more to meet consumer demand for more ‘trustworthy’ and ‘genuine’ services.

KEY TAKEAWAY: Functional delivery is the bedrock of winning consumers’ business. But to gain trust brands need to communicate their values authentically to consumers, to show they are genuine, fair and honest. With both functional excellence and honest communication of brand values, brands may create more meaningful connections with consumers.

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What drives loyalty in the travel sector?

Many brand choices are out of consumers’ hands when it comes to buying holidays, from certain airlines only flying to particular destinations, to limited options for accommodation for the dates you want. These constraints, coupled to the choice and diversity of travel brands, the possibilities for long term loyalty would seem limited.

But despite this, the research shows that travel brands that focus on service and rewarding loyalty can benefit.

We asked consumers to select the reasons why they stayed loyal to particular travel brands, even if they could get cheaper deals elsewhere. We see which elements of a customers’ experience are the most likely to generate more sales:

Chart 10 | Reasons for staying loyal to travel brands | When buying from the following types of company which of these are reasons why you have continued to use the same brands even though you could get a cheaper deal elsewhere?”

Good service

Good o�ers / deals

Good loyalty / rewards scheme

Most convenient / easy

Friendly / helpful / welcoming

Quality of items / products available

They make me feel valued / special

They keep me updated about new deals I might be interested in based on what I like or have bought from them before

They remember me / my details

They o�er me a personal service

Good at dealing with issues

Has a heritage / well established

They o�er me tailored o�ers / deals speci�c to what I like or have bought from them before

I just love them

Re�ects my personality / style

My friends / family use them

They are ethically / environmentally responsible

53%

40%

39%

38%

37%

33%

31%

29%

28%

28%

27%

27%

26%

23%

23%

20%

18%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Source: DMA/Foresight Factory Research | Base: all who have stayed loyal to travel brands aged 16+, GB, May 2017

The top three reasons for staying loyal to travel brands (all types aggregated) are a good service experience (53%), good deals (40%) and a good loyalty or a rewards scheme (39%).

Among hotel and travel accommodation brands service was the top reason to remain loyal followed by friendliness/helpfulness for two in five (39%), good offers, and loyalty schemes. Another 30% choose being “made to feel valued/special”.

Loyalty in the travel sector

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Chart 11 | Reasons for staying loyal to hotel and travel accommodation brands | When buying from the following types of company which of these are reasons why you have continued to use the same brands even though you could get a cheaper deal elsewhere?”

Good service

Good o�ers / deals

Good loyalty / rewards scheme

Most convenient / easy

Friendly / helpful / welcoming

Quality of items / products available

They make me feel valued / special

They keep me updated about new deals I might be interested in based on what I like or have bought from them before

They remember me / my details

They o�er me a personal service

Good at dealing with issues

Has a heritage / well established

They o�er me tailored o�ers / deals speci�c to what I like or have bought from them before

I just love them

Re�ects my personality / style

My friends / family use them

They are ethically / environmentally responsible

50%

39%

35%

33%

32%

32%

30%

29%

27%

25%

24%

24%

22%

22%

17%

17%

3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

20%

None of these

Source: DMA/Foresight Factory Research | Base: 523 online respondents aged 16+, GB, May 2017

Among airline brands a good loyalty/rewards scheme (42%) is the second most popular reason to stay loyal after good service, followed by offers (33%) and convenience (31%).

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Chart 12 | Reasons for staying loyal to airline brands | When buying from the following types of company which of these are reasons why you have continued to use the same brands even though you could get a cheaper deal elsewhere?”

Good service

Good o�ers / deals

Good loyalty / rewards scheme

Most convenient / easy

Friendly / helpful / welcoming

Quality of items / products available

They make me feel valued / special

They keep me updated about new deals I might be interested in based on what I like or have bought from them before

They remember me / my details

They o�er me a personal service

Good at dealing with issues

Has a heritage / well established

They o�er me tailored o�ers / deals speci�c to what I like or have bought from them before

I just love them

Re�ects my personality / style

My friends / family use them

They are ethically / environmentally responsible

47%

42%

33%

31%

29%

28%

25%

25%

24%

22%

20%

20%

20%

18%

17%

13%

3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

18%

None of these

Source: DMA/Foresight Factory Research | Base: 463 online respondents aged 16+, GB, May 2017

Among travel booking/travel price comparison sites consumers wanted good deals, followed by good service and convenience. A quarter (26%) cite deals tailored to what they like as a driving of loyalty.

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Chart 13 | Reasons for staying loyal to online travel booking sites / travel price comparison sites brands | When buying from the following types of company which of these are reasons why you have continued to use the same brands even though you could get a cheaper deal elsewhere?”

Good service

Good o�ers / deals

Good loyalty / rewards scheme

Most convenient / easy

Friendly / helpful / welcoming

Quality of items / products available

They make me feel valued / special

They keep me updated about new deals I might be interested in based on what I like or have bought from them before

They remember me / my details

They o�er me a personal service

Good at dealing with issues

Has a heritage / well established

They o�er me tailored o�ers / deals speci�c to what I like or have bought from them before

I just love them

Re�ects my personality / style

My friends / family use them

They are ethically / environmentally responsible

41%

40%

38%

26%

26%

25%

24%

24%

24%

24%

21%

21%

19%

19%

17%

15%

6%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

18%

None of these

Source: DMA/Foresight Factory Research | Base: 309 online respondents aged 16+, GB, May 2017

KEY TAKEAWAY: Longer term loyalty requires brands to deliver on service and personalise their interactions with customers. Whether through attentive staff, personalised rewards or data-driven communications that take into account people’s individual needs, relevant engagement is a crucial element to take a brand beyond just serviceable.

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Rewarded customers trust brands to do business fairly

More than two in five (42%) of those who stayed loyal to an airline brand when they could get a cheaper deal elsewhere say one of the reasons why was having a good loyalty/rewards scheme.

Further analysis shows that those people who most appreciate rewards from travel brands tend to trust them more strongly to do business fairly.

When looking at trust in airlines to do business fairly, those who value airline rewards the most are more likely to strongly trust those airlines. One tenth of those who do not have an airline loyalty scheme say they trust those airlines very much, but for those who are loyalty members, this proportion more than doubles to almost a quarter (23%).

Chart 14 | Trust in airlines | “Thinking about the following types of brand/company how much do you trust them to do business fairly?” | by level of loyalty scheme appreciation

10%

13%

23%

42% 46%

50%

0%

20%

40%

60%

80%

100%

"doesn't have airline loyalty scheme" "does not value airline loyalty scheme bene ts at all"

"really values airline loyalty scheme bene ts"

Quite a lot Very much

Source: DMA/Foresight Factory Research | Base: 2009 online respondents aged 16+, GB, May 2017

For hotel accommodation brands this pattern persists. A much higher proportion of those who highly value their hotel/travel accommodation loyalty benefits very much trust in the brand to do business fairly – 27% against just 11% who are not loyalty scheme members. Of those who are loyalty scheme members, but do not value the scheme, trust is not reinforced. It’s not enough to simply have a loyalty scheme, but the customer has to see benefits from using the scheme in order for it to give additional brand value.

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Chart 15 | Trust in hotel / travel accommodation brands | “Thinking about the following types of brand/company how much do you trust them to do business fairly?” | by level of loyalty scheme appreciation

11%

12% 27%

52% 60%

52%

0%

20%

40%

60%

80%

100%

"doesn't have hotel loyalty scheme" "does not value hotel loyalty scheme bene�ts"

"I really value the hotel loyalty scheme bene�ts"

Quite a lot Very much

Source: DMA/Foresight Factory Research | Base: 2009 online respondents aged 16+, GB, May 2017

SAS Airlines worked with Wiraya to re-engage non-active members of their SAS EuroBonus loyalty rewards scheme to reintroduce its value to members, and not just those who were �ying frequently. By building an automated �ow of communications to help passive users overcome barriers of non-usage, which include log in issues and lack of understanding of available bene�ts. Ultimately, SAS activated 17% of members who had been passive for 18 months or more, which compares to just 2% for previous communications campaigns.

EXAMPLES

The Hilton Honors loyalty programme o�ers rewards that are accessible to a wide customer base. For example, Hilton Honors gives friends and family the chance to pool their points together or send points to one other. In the US, users can buy on Amazon with accrued points, vastly expanding potential bene�ts of rewards. Elsewhere they open new experiences for members such as a private sea plane excursions or VIP concert tickets, by bidding points for them. This allows Hilton to build on their core value of being an elite provider within their loyalty programme.

KEY TAKEAWAY: Rewards are a clear route to engagement. The challenge for brands is to make sure that benefits are valued by customers, so they have the desired effect of creating stronger long term brand loyalty. Making rewards more relevant to a wider customer base, not just linking them to frequency of transaction for example, could allow travel brands to widen the reach of their loyalty benefits.

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We now look at the different stages of the travel experience, and how new communications channels give travel brands new routes to engagement and the core needs of service, convenience and relevance. For more general insights into the potential for these channels’ in the future, and the potential barriers to adoption see “Customer Engagement 2017: How to win Trust and Loyalty” report.

Booking

Today the majority of consumers book holidays online, with all in one travel sites slightly more popular than booking airlines or travel accomodation direct. Only older age groups that still show a significant preference for offline travel booking, with 17% of over 65s using the phone and another 17% preferring to use a travel agent. Older and younger consumers are less likely to personally book holidays.

Chart 16 | How do you prefer to book your holidays?

0%

16%

10%

15%

25%

34%

60%

9%

0%

7%

13%

26%

45%

71%

7%

1%

7%

14%

27%

44%

71%

8%

1%

5%

14%

31%

41%

72%

7%

1%

11%

13%

32%

36%

69%

14%

2%

17%

17%

24%

26%

50%

0% 20% 40% 60% 80% 100%

None of these- I never personally book holidays

Other (Please specify)

Over the phone

Through airline and / or travel accommodation websites directly

Through an online travel booking site or sites

NET: online means

65+

55-64

45-54

35-44

25-34

16-24

In an o�ine travel agency

Source: DMA/Foresight Factory Research | Base: 2009 online respondents aged 16+, GB, May 2017

Travel and channels of engagement

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Why are consumers keener to use online travel booking sites? The biggest draw is convenience (61%), followed by the perception that they are getting the best deals for 57% of customers. More than two in five (42%) prefer this method as they are able to book their holiday all in one place, which adds level of security as well as convenience. For example, many booking sites include ABTA cover, but booking seperately may not.

More than one in 10 though choose this method for being more trustworthy (12%) or for the rewards they get (13%) suggesting travel booking sites could do more to engage consumers’ trust and better reward them.

Chart 17 | Why do you prefer booking your holidays through an online travel booking site?

1%

12%

13%

14%

23%

26%

42%

57%

61%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Other (Please specify)

It's more trustworthy

I get loyalty points / rewards

It's more secure

It's more user-friendly

The information is more up-to-date

I'm able to book everything in the same place

I can get the best deals

It's more convenient

Source: DMA/Foresight Factory Research | Base: 747 respondents who book through travel booking sites aged 16+, GB, May 2017

KEY TAKEAWAY: Online booking sites meet consumers’ preferences for convenience and price comparison. Therefore, specific travel service providers, such as airlines, should streamline the booking process to allow consumers to book with separate providers as easily as they do with other booking sites. Explaining price savings or offering incentives could also help to brands level the playing field with aggregators and price comparison services.

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Pre-travel

Booking a holiday required a large amount of administration. But with convenience a high priority for travellers, consumers are interested in receiving targeted communiations to help them streamline the booking and pre-travel process.

Chart 18 | Which of the following, if any, are you interested in receiving from travel brands/companies?

40%

32%

26%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

To be able to access my booking information more easily

Reminders for when holiday options I am interested in change in price

Noti�cations when I need to complete important steps before my holiday

e.g. organise my Visa, vaccinations

Source: DMA/Foresight Factory Research | Base: 2009 online respondents aged 16+, GB, May 2017

Communications via chat messenger could give consumers immediate responses and satisfy their need for convenience. We see significant interest among consumers in using a chatbot instead of other means to book or to ask questions, and this is not restricted to younger age groups. Consumers appreciate the combined speed, convenience and convenience chatbots promise to add to the booking process.

Chart 19 | If you could use a chatbot to do the following how likely would you be to use one (instead of using another means to)? To ask questions about a flight you have booked (e.g. boarding time, delays)

52%

62% 65%

58% 54%

45%

33%

0%

20%

40%

60%

80%

100%

Total 16-24 25-34 35-44 45-54 55-64 65+

Source: DMA/Foresight Factory Research | Base: 2009 online respondents aged 16+, GB, May 2017

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Travel brands were some of the first to experiment with chat interfaces, giving booking over to mobile first customers. Below are some examples showing the potential of AI in the travel sector:

At the end of 2016 Expedia.com launched an Alexa feature to allow people to make and manage trips via AI voice recognition. Booking a hotel or �ight is not yet possible, but users can check �ight status, check details of an upcoming trip, remind you what to pack or book a rental car.

EXAMPLES

A spino� from the Hipmunk booking website and smartphone app Hello Hipmunk o�ers a cute chipmunk chatbot to help you book travel from Facebook Messenger, Slack or Skype. Acting as a personal travel assistant, consumers can ask questions and give commands to �nd out the best �ight options for your trip. The chatbot uses algorithms to �lter through relevant data with the promise of reducing multiple searches to a single conversation.

KEY TAKEAWAY: Our research reminds us of the importance of good customer service from travel brands. Chat and AI messenger services could move the travel sector to the leading edge of service delivery by eliminating painpoints associated with other channels.

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Travel inspiration

Virtual reality has a natural affinity for travel and holidays through its ability to “transport” people to new places and offer virtual experiences. VR users already have access to destinations, allowing viewers to see extreme landscapes and far-flung places.

The immersive nature of VR offers commercial potential. It is possible that travel brands could use VR to show hotel room views, the size of beaches, local attractions and more. Brands could use VR to help customers choose their destination by giving them a vivid facsimile of destinations.

Chart 20 | How interested would you be in using virtual / augmented reality technology in the following situations?| % very or quite interested

50%

63%

66%

61%

54%

38%

27%

53%

71%

68%

65%

54%

41%

30%

43%

60%

65%

57%

43%

27%

17%

0%

20%

40%

60%

80%

100%

Total 16-24 25-34 35-44 45-54 55-64 65+

Using a virtual reality headsetto view what a holiday destination might look like

Using a virtual reality headset to view what a hotel room I am considering staying in looks like

Using a virtual reality headset to view what di�erent holiday activities might be like

Source: DMA/Foresight Factory Research | Base: 2009 online respondents aged 16+, GB, May 2017

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The Conrad Chicago VR Concierge service allows potential travellers to preview Conrad’s 1/3/5 tours which curates Chigago experiences into 1,3 or 5 hour slots for travellers with little time. The VR Concierge uses 360 video and Oculus headsets to allow guests to preview the experiences, such as viewing Chicago city from 1,000 feet above ground from The John Hancock Center.

EXAMPLES

KEY TAKEAWAY: By giving consumers access to VR content, brands can engage consumers in a new and immersive manner. The key will be to link VR and digital content with purchasing and discovery channels to avoid being used only as a novelty.

The airport experience

Holiday travel is when consumers demand convenience. In this context, targeted messaging must be apt and highly relevant to consumers.

Data-driven communications in the airport could give consumers more control over their journey, and many are receptive to sharing personal and location data with airports or airlines if it would improve the relevancy and efficiency of communications they receive in transit.

• 51% would be interested sharing their data in order to receive alerts about boarding directions and timings in an airport

• 44% would be willing to share data in order to receive discounts and offers in an airport

Delivering personalised notifications via chatbots within consumers’ existing messenging applications such as Facebook Messenger or WhatsApp could reduce points of friction in the airport. Rather than having to download a specific app, messages can be exchanged in a familiar and convenient medium.

Tripchi helps to stop travellers seeing airports as a necessary evil and to enjoy their experience. The app posts o�ers for food, drink and shopping and helps users to explore and navigate the airport with indoor maps.

EXAMPLES

Heathrow Airport personalises communications based on their customers’ data. Working with Axciom, Heathrow was able to stitch together insights from di�erent sources across the airport, such as wi-� usage, parking, beacons and their loyalty programme. This information informed how they targeted and communicated with customers as they plan their trip to the airport and travel through it. By adopting this personalised approach, Heathrow saw a 22% year-on-year increase in retail spending through their rewards scheme.

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On holiday

The need for help and recommendations while on a holiday presents brands with another opportunity to extend their service with easy ways to find reliable experiences in new locations.

Demand for ‘aided discovery’ is increasing as consumers are comfortable with checking and previewing choices online. This same behaviour applies when travelling, blended with the desire to try the unknown and have an adventure. But safely.

To this we add the potential of Augmented Reality (AR) to give consumers access to a digital layer of contextual information such as menu translations, or facts about attractions. AR can stoke consumer desire for control by giving access to relevant information in an instant.

• Half are willing to share information on location and interests to get recommendations for what to do while on holiday

• More than two in five (44%) are interested in using AR to get information about sites or attractions they visit

• Half would be likely to use a chatbot to ask for a translation of what they want to say when on holiday

Google Translate is introducing improved o�ine services by expanding the languages o�ered by Word Lens to include both simpli�ed and traditional Chinese instantly visually translated.

EXAMPLES

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For holiday travel, consumers want brands to deliver on functional needs and service. While brands can compete relentlessly on making new offers and beating price, focussing on customer service authentic to one’s brand values can create a more engaging point of difference.

Holiday travel is both an exciting and stressful experience, with the chance for distrust and caution to arise in the consumer’s mind. Brands that can empathise with customers’ needs at whatever stage of their holiday journey and create communications that reflect their needs will have the potential to build stronger relationships in the long run.

This report shows some of the ways new channels and technologies can help brands better meet consumers’ needs while booking and taking holidays. With online travel booking and purchasing firmly favoured by consumers, streamlining digital touchpoints from booking to check-in to airport navigation will be imperative to creating ever more consistent, reliable and valued travel experiences for customers.

Rachel Aldighieri MD at the DMA

Concluding thoughts

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About our sponsors/partnersCampaign sponsors

Emarsys is a leading global provider of cloud marketing software for B2C companies, and the first B2C Marketing Cloud.

The company provides actionable intelligence to enterprises targeting their customers, combining machine learning and data science with true personalisation and multichannel delivery to reach customers most effectively, maximising engagement and results.

With more than 600 employees in 16 global office locations, Emarsys serves more than 1,500 clients in 140 countries. Every month, Emarsys sends over seven billion messages — helping customers increase revenue and ROI.

Epsilon® is an all-encompassing global marketing innovator. We provide unrivaled data intelligence and customer insights, world-class technology including loyalty, email and CRM platforms and data-driven creative, activation and execution.

Epsilon’s digital media arm, Conversant®, is a leader in personalised digital advertising and insights through its proprietary technology and trove of consumer marketing data, delivering digital marketing with unprecedented scale, accuracy and reach through personalised media programs and through CJ Affiliate by Conversant®, one of the world’s largest affiliate marketing networks. Together, we bring personalised marketing to consumers across offline and online channels, at moments of interest, that help drive business growth for brands.

Recognised by Ad Age as the #1 World’s Largest CRM/Direct Marketing Agency Network, #1 Largest U.S. Agency from All Disciplines, #1 Largest U.S. CRM/Direct Marketing Agency Network and #1 Largest U.S. Mobile Marketing Agency, Epsilon employs over 8,000 associates in 70 offices worldwide. Epsilon is an Alliance Data® company. For more information, visit www.epsilon.com and follow us on Twitter @EpsilonUK.

Feefo is a global reviews and customer analytics company that collects reliable customer feedback to deliver up to date insights so businesses and consumers can make better decisions.Feefo works with its clients to invite consumers who have engaged with a brand to leave feedback on a product or service, ensuring all data is genuine and trustworthy. It is this invitation only model that makes Feefo unique in the market and has enabled the company to achieve a 16% average response rate.Founded in 2010, Feefo works with over 3,000 companies, providing customer analytics for more than 5,000 websites, including

Expedia, AXA, The White Company, Moss Bros, Notonthehighstreet.com & Tepilo. Visit www.feefo.com.

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Marketing tech company Wiraya provides Mobile Customer Activation solutions that blend voice, text and mobile messaging to inspire actions and trust from your best customers.

Having delivered over 60 million transactions to date, we use a wealth of data at the core of our solution to identify the best channel and method to deliver communications at the right time and in the right way.

That’s why a number of Europe’s leading companies use Wiraya to grow customer lifetime value, keep customers longer and grow

revenues faster. Visit www.wiraya.com.

Research partner

Foresight Factory is a global trends agency based in London, New York and Stockholm.

We transform strategy, marketing, research, service, innovation, customer analysis and training to strengthen businesses, not only to withstand the changing world around them but thrive in it.

We pride ourselves on highlighting the real truth behind the changes happening and not simply trends for trends’ sake. Whether it is using our team, proprietary tools or global research – we create a genuine partnership with your business, empowering both individuals and companies to move forward with confidence.

We pride ourselves on not only having the best product and people but also a unique ability to understand a client’s needs before they do and whilst every client is different; ultimately our job is to deliver actionable consumer insight.https://www.foresightfactory.co

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Focus on travel is published by The Direct Marketing Association (UK) Ltd Copyright © Direct Marketing Association. All rights reserved. No part of this publication may be reproduced, copied or transmitted in any form or by any means, or stored in a retrieval system of any nature, without the prior permission of the DMA (UK) Ltd except as permitted by the provisions of the Copyright, Designs and Patents Act 1988 and related legislation. Application for permission to reproduce all or part of the Copyright material shall be made to the DMA (UK) Ltd, DMA House, 70 Margaret Street, London, W1W 8SS.

Although the greatest care has been taken in the preparation and compilation of Focus on travel, no liability or responsibility of any kind (to extent permitted by law), including responsibility for negligence is accepted by the DMA, its servants or agents. All information gathered is believed correct at June 2017. All corrections should be sent to the DMA for future editions.

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