28 October 2008

Travel brands lagging behind

There is a drastic need to simplify travel and leisure businesses and brands, according to new research.

Of the 50 UK brands featured in a ââ¬ËœSimplicity Indexââ¬â¢, which measures the degree to which consumers find companies and organisations easy or difficult to do business with, the highest ranking travel and leisure brand was Thomas Cook in 24^th place. 

This was followed by easyJet, British Airways and Bmi, with Ryanair the worst performing travel and leisure brand at 42^nd in the table created by branding consultancy Siegel+Gale.

More than two thirds of the 1,114 consumers asked (69%) said they had stopped doing business with a company or abandoned a purchase because a transaction was too difficult to complete.

The airline industry performed well overall, ranked third in the sector index behind traditional high street and online retailers.  But it still only scored 52 out of a possible 100, suggesting that airlines have some way to go to be considered easy to deal and transact with.

The survey revealed that with some brands significantly outscoring competitors, sector dynamics alone cannot be used as an excuse for brand owners addressing the relative complexity of their brands.

It suggests customers have continued to do business with complex organisations, either because they feel they have no other choice or because they see the competitors as equally complicated.

Siegel+Gale UK managing director Fred Burt said: ââ¬ÅâœIt is clear that even the most well known travel and leisure brands still need to wake up to the simplicity concept or risk losing more valuable customers.

ââ¬ÅâœThis report highlights how brand owners must look beyond products and services to the customerââ¬â¢s brand experience, seizing every opportunity to simplify and clarify the way they do business.

ââ¬ÅâœIn a world dominated by increasingly diverse and complicated channels of communication, the resounding message is: keep it simple.ââ¬~

He added: Ã¢â¬ÅâœThis research confirms what we have long believed: that Simple is Smart.

ââ¬ÅâœIn economically uncertain times, spending power weakens and consumers become more wary over how they spend their money. Overly complex businesses are vulnerable and those that will win have a simple customer promise, hassle free customer journey and clear communications.

ââ¬ÅâœBrands active in sectors that are seen as complex, such as travel and leisure, can take the initiative as problem-solvers which can give them an advantage when it comes to building differentiation, satisfaction, loyalty and reducing churn.ââ¬~

Respondents were asked to rate sectors on a scale of 1-10 based on how easy or difficult they are to do business with. The rating was then translated into a 0-100 index. The Sector Ratings correspond well with the Simplicity Index results.

Siegel+Gale Simplicity Index

Simplicity Sector Ratings Index

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• Doesn't matter
  
  

  It doesn't matter if the respondants were confusing the two. If they weren't, then Ryanair come off badly, if they were then Ryanair still comes off bad, because that's what the end users perception of them is. Ryanair's website is full of flashing, clashing colours and is inexplicably slow - no wonder they fared badly.

  By W Shearer, Thursday, October 30, 2008
• Ryanair couldn't be simpler
  
  

  Ryanair is dead simple to do business with. They're in your face and let you know everything they're going to do to get money out of you. The point is, it's not a brilliant experience. Were the respondents in the research confusing simplicity with pleasantness?

  By Tom Burnham, Tuesday, October 28, 2008