Traditional service values still key to travel consumers, poll reveals

Almost half of customers of travel companies want an agent to talk to while completing online transactions, new research shows.

The poll of 2,500 people revealed increasing demand for 24/7 service but that consumers still want the personal touch.

The ‘always-on’ British culture has not eroded demand for traditional service values in the travel sector, according to the research by the Henley Centre, commissioned by BT.

It highlights growing demand for 24/7 services with businesses under growing pressure to deliver the right information, product or service whenever, wherever and however it is required.

But the research showed that a ‘demand delta’ is emerging between customer demands and the ability of organisations to satisfy these.

Although the internet has heralded a new age in service availability, online access is not always enough, with 45% of consumers wanting a phone agent available to talk to them while they complete a transaction on a company website.

But slow responses to phone calls are not tolerated by consumers. When faced with an engaged tone, nearly a third (31%) will try another company and nearly a quarter (24%) give up altogether, according to the survey.

When customers call a travel agent to enquire about availability for a holiday the following year, if the phone just rings indefinitely, 23% will call a different organisation rather than try again.

For one travel company, more than 8,000 potential customers a week failed to get through. If the average revenue per call was £162.50, this could equate to a loss of nearly £7.5 million in annual revenue, the research found.

Where the lifetime value of customers is higher, even more may be at stake.

The demand for traditional service values follows suggestions at TravelMole’s Travel Industry Question Time by new AITO Specialist Travel Agents chairman Barry Moxley that personal service is more important than having a website.

BT Global Services UK managing director Gary Bullard said: “The rate at which consumer expectations continue to grow is staggering. Customers want instant access to the best products, advice and information.

“A big challenge for travel businesses is to replicate this quality of service and innovation across all channels, including the web and the phone.

“Unfortunately, not all companies have developed this level of sophistication and as a result we are seeing the emergence of this ‘demand delta’ between consumer expectation and the actual level of service. Unless companies address this, their customers will become isolated, resulting in reduced revenues and internal staff frustrations.”

For businesses looking to win new customers and retain existing ones, customer relationship management (CRM) technology is widely regarded as a valuable tool.

But despite high levels of investment, 80% of businesses are not making the most of CRM to support four key areas of customer service: multi-channel management, outgoing contact, development of a single customer view, and targeted marketing.

Report by Phil Davies