Travel companies lose power over consumers
Travel has become a buyer’s market, with 59% of consumers now using online price comparison sites to search for the best deals, according to a report by business advisory firm Deloitte.
"These sites have grown rapidly and their usage is high, which can be put down to the deal-hunting behaviour consumers learned during the recession," said lead partner Alistair Pritchard.
"However, while consumer confidence and real wages are improving, the desire to get the best deal is still set in the mind of the holidaymaker."
He said research showed that if a consumer booked via a price comparison site, they were less likely to be influenced by the firm’s reputation and 30% more likely, on average, to base decisions on price.
Deloitte’s Travel Consumer 2015 report analysed data from a survey of 40,000 holidaymakers by the British Travel Awards. It found 42% used review sites when planning holidays, 31% used travel company sites and 21% online travel agents.
Pritchard said: "The travel industry plays a less influential role now, and holidaymakers are more likely to be influenced by each other than content created by travel businesses."
Deloitte’s research said a third of customers had posted travel reviews. "As the digital divide closes and older people become more active online, this is only going to increase," he added.
Travel companies need to adapt by developing word-of-mouth marketing, which can, he said, reduce acquisition costs as this is relatively cheap and self-perpetuating.
Companies also need to adapt to a fragmented digital channel, he said, as a third of consumers use two or more devices when researching holidays, often switching between smartphones, tablets, laptops and desktop computers. This makes it difficult to keep track of customers and offer a personalised service.
"Companies should introduce an integrated experience across channels and devices, for instance by offering incentives to encourage users to sign in on every platform," said Pritchard.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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