Travel in 2021 and beyond - An eCommerce Perspective - www.channable.com - GraphCMS
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Travel in 2021 and beyond: An eCommerce Perspective After decades of supersonic growth, in 2020 the travel industry ground to an unprecedented halt. April was flooded with images of empty airports and runways as Forbes predicted 50 million travel industry jobs may be 120 lost. The reality was much worse. It’s widely accepted 100.8 that close to 100 million people in the travel industry lost 100 their jobs as a result of the pandemic. 80 Jobs loss in millions 63.4 60 Today, countries are slowly relaxing their travel restrictions as the general population carefully considers their next 40 vacation. But things have changed. The future of travel is 20 13 definite but uncertain. For travel companies and eCommerce 8.2 7.6 4.7 2.6 1.2 0 businesses reliant on the travel sector, how they prepare for Asia Pacific Europe North America Africa Latin America Middle East Caribbean Total this unknown is crucial. Drawing from the experience of Channable and their clients, this industry insights article intends to help you prepare your business for the future of travel in eCommerce. Discover which eCommerce practices are best to employ, insights on the direction travel in eCommerce is heading, and what is required to remain competitive in this sector.
4 The recent history of Travel in eCommerce 5 The impact of Travel Technology 7 Channable and the Travel Industry 8 Channable and Pierre & Vacances - Center Parcs 10 Channable and TUI 12 Channable and Norwegian 14 An uncertain future for travel 15 PPC and Feed Management in the Travel Industry 16 Channable’s Feed Management Software 20 Channable’s PPC Tool Table of 22 Channable’s most valuable Rules for Travel 26 Feed Management, PPC, and the Holiday Season contents 31 How is Channable preparing for the future of travel? 32 The Future of Travel: An eCommerce Perspective 33 Channable and the future of travel 34 Travel predictions in 2021 and beyond 43 What do travel experts Pierre & Vacances - Center Parcs say? 51 The Next Steps for your Business 52 Contact 53 References
The recent history of Travel in eCommerce Travel is in a Travel is in a unique position. It might be the only unique position sector where consumers spend thousands of dollars before they experience the product. You can touch, test, and see a TV in action but with a vacation, the value can only be determined once you’re back home. Travel in 2021 and beyond: An eCommerce Perspective | 4
The impact of Travel Technology It wouldn’t be unreasonable to say that eCommerce has had Although growth is always welcomed, growing within your the biggest impact on the travel industry since commercial means is vital. This requires preparation. If we consider flights were introduced. Due to the dynamic nature of travel the connection between travel technology and search companies and an increase in demand, it was natural for engines, knowing how to prepare becomes more obvious. them to look for a more flexible method than the telephone or Travel companies must have an up-to-date, well-structured travel agencies. With this in mind, the travel sector became data feed in order to implement a successful eCommerce an early adopter of eCommerce. advertising strategy. In the last 20 years, booking vacations online has become Whether you’re a hotel chain, travel agency, ticket sales the norm with 80% of people now opting to do so. Exciting company, or airline, this is where the challenge lies. The innovations in eCommerce have allowed travel companies complexities of the data within the feed of a travel company to optimize both their advertising and data feeds. Whether are unparalleled. It’s often in multiple languages and, with it’s finding hotels, planning things to do, or comparing flight prices and availability constantly changing, the data is prices; grabbing the phone or laptop to use Google and Bing incredibly dynamic. is now routine for holidaymakers. How has this changed travel companies? Ultimately, creating a successful data feed is complicated. This is why some of the biggest names within travel use a With the innovations of travel technology, came the data feed management tool. Data feed management can help aforementioned supersonic growth. There’s so much travel companies improve social media, PPC, retargeting, choice when planning a vacation, consumers now have and more. Which begs the question, how has Channable the opportunity to plan almost everything. There are now helped their travel clients with their complex data feed transportation options to thousands of exotic and obscure management? locations, and even more accommodations and activities that can be pre-booked. This has encouraged consumers to spend more each year in search of their dream getaway. Travel in 2021 and beyond: An eCommerce Perspective | 5
564.87 billion 2016 In 2016, worldwide digital travel sales were projected to grow 564.87 billion US dollars in 2016 817.54 billion US dollars in 2020 source: www.statista.com 817.54 billion 2020 Travel in 2021 and beyond: An eCommerce Perspective | 6
Channable and the Travel Industry When you’re a leading name in the travel sector (or looking to become one), it’s imperative you have the most agile and simple-to-use process to secure your position. This is why Channable works with some of the most recognizable names in travel including TUI and Norwegian. Travel companies essentially have an “end-of-season” sale every day. There are multiple last-minute sales per day as well as last-minute bookings that need to be pushed and filled. Without a proper feed management tool, this is an almost impossible task. Travel in 2021 and beyond: An eCommerce Perspective | 7
Channable and Pierre & Vacances - Center Parcs Pierre & Vacances - Center Parcs has always used feeds to optimize the distribution of its campaigns and, in particular, the creation of retargeting campaigns. Until they discovered Channable, they were depending on the solutions’ technical teams to create and modify their feeds. “The main advantage with Channable is the ability to create, modify and optimize our feeds independently. After a demo of the tool, we realized very quickly that we could easily adapt the feeds to our needs.” As a business, Pierre & Vacances - Center Parcs’ ROI isn’t only based on the investments a company makes but also on the team’s productivity. Channable therefore now also supports the Pierre & Vacances-Center Parcs Group on a daily basis by offering them the possibility of making their feeds more fluid and thus improving their productivity, CTR and ROAS. “It takes just 30 minutes to make changes to our feeds, where previously it was up to 48 hours.” Channable’s development team works closely with Pierre & Vacances - Center Parcs internal technical team. This helps Channable understand their needs which allows for quick integration and reduces the number of exchanges. Travel in 2021 and beyond: An eCommerce Perspective | 8
“ Channable teams are a true extension of our internal teams. Thanks to a precise and close collaboration, they support us in achieving our objectives.” Davy Bayonne Online Acquistion Manager | Pierre & Vacances - Center Parcs Travel in 2021 and beyond: An eCommerce Perspective | 9
Channable and TUI TUI has been using Channable to help manage their feeds since 2017. Today, TUI uses Channable for all digital marketing channels across the group, including display retargeting, affiliate marketing, and paid social. The biggest results TUI has seen since using Channable is in the amount of time saved across the group. In November 2019, Jeroen Maaijen (SEA Manager TUI Benelux) explained that Channable “saves us time, we don’t have to figure everything out each and every time, so there are synergy benefits for the source markets.” What has made Channable the ideal solution for TUI? In the tool, you can have multiple projects and users in one account. This allows you to copy rules and feeds across projects in a few clicks, streamlining company-wide approaches. This ease-of-use coupled with the flexibility of Channable’s “if-then” rule structure has been key to TUI’s continued growth with the tool. For example, TUI applies rules that ensure keywords and destinations in the feed are similar to the actual search terms used by potential customers. Read TUI success story here Travel in 2021 and beyond: An eCommerce Perspective | 10
“ Customers looking to fly to Gran Canaria, are less likely to search for flights to Las Palmas de Gran Canaria. We therefore have to make sure that we are easy to find on the searches that a potential customer uses, and that does not always correspond with how a product is listed in our systems. Channable helps us with this. We use SA360 to advertise for all of our stock – all our keywords, all our destinations, all in a dynamic way. Channable makes us way more flexible when using SA360, compared to being forced to make changes within SA360 inventory management. Channable is faster, and the UX is way better.” Jeroen Maaijen SEA Manager TUI Benelux Travel in 2021 and beyond: An eCommerce Perspective | 11
Channable and Norwegian Norwegian Airlines has a data feed that’s both incredibly big and incredibly complex. Before Channable, it was littered with outdated prices and misleading names. Today, Channable supports Norwegian’s impressive PPC automation, as well as display and social media ads. Channable is Norwegian’s bridge between their master feed and their feed-based PPC campaign creation systems. Norwegian restructures their data and apply rules to ensure that the information is of good quality and the way they want it in order to be the most efficient in their PPC strategies. For retargeting, Norwegian made a rule in Channable to generate a long-stamp in the URL for ads to identify consumers who searched but did not buy. Ole Henrik Hasle explained, “We improved our sales by showing personalized messages of the specific route people searched but did not buy. With Channable we further improved the quality of what we offered.” Read Norwegian’s success story here Travel in 2021 and beyond: An eCommerce Perspective | 12
“ We had many different kinds of problems. The prices were not always updated frequently enough, and the same route would appear multiple times but with different prices or the names were misleading or incorrect due to mistranslations. I started looking for a tool where we could create rules and fix all the problems. I found Channable. I thought that this tool was exactly what we needed. Today, we are using it for a lot more than just creating rules.” Ole Henrik Hasle Global Digital Media strategist at Norwegian Travel in 2021 and beyond: An eCommerce Perspective | 13
An uncertain future for travel With travel having two feet firmly in eCommerce, Channable is as interested as anyone to discover what the future holds considering the uncertainty created by 2020’s pandemic. The pressure is on. If Channable’s travel clients, including TUI and Norwegian, are to remain competitive online, Channable has to be prepared for every potential outcome. What does the future hold for travel in eCommerce? Here’s a life lesson; the best way to prepare for tomorrow is to prepare for today. To predict the future, we’re going to look inwards at the best practices implemented today. We’ve focused on the history of travel in eCommerce in general, but now it’s time to deep dive into how travel companies manage their feeds. In the next section, we will reveal the best PPC and feed management practices used by leading travel companies. Then we will use the knowledge of [TUI and Norwegian] and external sources to determine which of these best practices will still be relevant moving into 2021 and beyond. Travel in 2021 and beyond: An eCommerce Perspective | 14
PPC and Feed Management in the Travel Industry If eCommerce has had the biggest impact on the travel industry since commercial flights, then PPC and feed management have an impact of equal Let’s take a look proportion on travel in eCommerce. Maintaining an up-to-date, well-structured data feed of a large travel company could legitimately require an entire team. Automating the repetitive tasks of managing data feeds and PPC saves time, money, and reduces human error. How are these tasks automated with a feed manager? Travel in 2021 and beyond: An eCommerce Perspective | 15
Channable’s Feed Management Software Managing the data feed of a travel company is no easy task. An established feed management tool like Channable improves the quality of your data feed, meets the exact requirements of your export platforms, and automatically updates your product information. This allows you to focus your energy on other areas of your advertising strategy. Channable’s key features for the travel sector are smart categorization, high-quality data feeds that increase your online visibility, and powerful “if-then” rules that give you full control over your data feed and PPC ads. Travel in 2021 and beyond: An eCommerce Perspective | 16
Shoe Smart Categorization Categorization is a necessity for most export channels. In Apparel & Accessories > Shoes order to get your products online, you’ll need to match the category of your products with the export channel’s category Apparel & Accessories > Shoes Accessories tree. Each export channel has different categories, so you Apparel & Accessories > Shoes Accessories > Covers will also need to categorize the products for each feed you’ll create. Apparel & Accessories > Shoes Accessories > Spurs With Channable’s Smart Categorization, a “smart suggestion” Apparel & Accessories > Shoes Accessories > Gaiters will pop up for each of your products and suggest the most logical category from the export channel’s category tree. This allows you to quickly get your products online and available for purchase. Smart Categorization is only available for certain channels not limited to but including Facebook, Criteo, and Awin. Learn more Travel in 2021 and beyond: An eCommerce Perspective | 17
Custom CSVs/XMLs With some of the largest data feeds, travel companies often need to split their feeds into more manageable portions. This could be per region, KPI, or even price range. Channable allows you to easily transform your data into a simple custom CSV or XML file. By applying rules to a custom data feed, you can specify which data and which products need to be modified, included, or excluded. You can modify any names/descriptions (e.g. change Chelsea & Kensington to London or Lower Manhattan and the Financial District to New York), translate written If all currencies to symbols, and much more. Then take description and modify text As well as creating custom data feeds for internal use, some travel companies build specific data feeds for other channels capitalize only first character such as TripAdvisor. Learn more Travel in 2021 and beyond: An eCommerce Perspective | 18
Powerful if-then rules Whether they’re called rules, laws, commands, or filters, the If image_link is empty purpose of a feed management tool is to place the power in your hands. With the sheer size and ever-changing nature of a travel company’s feed, simplicity in applying this power is Or title is empty key. In Channable, we call this power “rules”. You can find the best Channable rules for travel companies in this article. Then remove all fields Learn more Travel in 2021 and beyond: An eCommerce Perspective | 19
Channable’s PPC Tool A good PPC management tool is indispensable for travel companies. For example, Channable’s PPC software is ideal as it’s optimized for Google Ads and Microsoft Advertising. It enables users to generate campaigns, ad group ads, and keywords using the information from their product feed. And it lets you build each level of your PPC campaign with dynamic values or static text. For travel companies, this saves heaps of time as hundreds of ads will be generated for every item in the feed. Maximizing each offering’s visibility with minimal effort. Travel in 2021 and beyond: An eCommerce Perspective | 20
Dynamic Values country contains any of Dynamic values in PPC management software is one of the 1 Germany most profitable features for travel companies. For example, If 2 3 Spain Italy your PPC ad in Channable could say, “Flights to [destination] 4 5 Portugal Greece from [lowest price]”. As Channable fetches your import feed France 6 7 Austria daily (or immediately with integrated APIs or up-to hourly with extra runs), the price will be updated. This allows travel And availability_destination contains YES companies to adapt their pricing based on availability, demand, time of year, etc. without having to change their Then take all fields and do nothing PPC ads. Else take all fields and exclude Learn more Travel in 2021 and beyond: An eCommerce Perspective | 21
Channable’s most valuable Rules for Travel “Rules” are the foundation of Channable. And the foundation for you to create a tailored feed to fit your travel company’s needs and to optimize your data. Optimizing your data is not only useful when meeting the requirements of an export channel but also to make your products more appealing to potential customers. You can find some of the ways travel With rules, you can create PPC ads that exclude certain destinations, set-up last-minute booking deals, ensure clients use Channable’s rules in the that keywords and destinations match the search terms of customers, and more. Many of the rules that you can use for next section. feed management can also apply for your PPC campaigns. All of Channable’s rules are created through industry-specific investigation, necessity, or specific client requests. This means that many of the rules Channable’s clients can utilize have materialized due to a specific detail or issue within the travel sector. This industry-focused approach is part of the reason many of Channable’s travel clients have chosen to use this tool. Travel in 2021 and beyond: An eCommerce Perspective | 22
Split Text Rule The split text rule is perfect for large, difficult to organize feeds. It allows you to split the content within a field on a certain character or word. If all You can split your URL on the location and populate an empty Then take size and split text field within Channable. This location field is then easier to from description split on size: use till use when applying location-specific campaigns, ads, deals, second second etc. Learn more Optimize Titles You can optimize the structure of your titles using dynamic filters. This helps you to quickly meet the requirements of If all export platforms, uniforms your titles, and allows you to Then make them more descriptive and more appealing to potential take title and combine value customers. theme to title in place - country Learn more Travel in 2021 and beyond: An eCommerce Perspective | 23
Maximum Length Rule Some export channels have a maximum length for their titles and/or their descriptions. This is also the case for PPC ads. If all Channable allows you to cut the content of a field at a certain number of characters in order to avoid errors. You can have a Then take title and maximum length direct cut, which will cut through a word, or you can trim on complete words that fall within the character limit. to 30 characters and trim on words Learn more Custom Labels If price is in highest 10 Custom labels allow you to be creative with how you promote your products. For example, if you have review score data within your feed, you can create labels based on your highest Then take tier and set to value 10 Most Expensive rated products. You can also create custom labels based on pricing, availability, location, weather; almost anything you can think of. Then use these custom labels to improve your If review_average is greater than 8 product listings and ads. Learn more Then take rating and set to value Top Rated Travel in 2021 and beyond: An eCommerce Perspective | 24
If country contains Spain Calculate Rule The ‘calculate’ rule is one of the more popular rules among And price is greater than 100 Channable’s travel clients. It allows you to make basic calculations with any given number. You can add or exclude tax, calculate discounts, increase your prices, and more. Then take sales_price and calculate As we know by now, the travel industry is very dynamic, take price and multiply by 0.50 especially with pricing. This rule allows you to handle this dynamism with ease. And take title and combine value Learn more title 50% OFF If all Add Google Tracking You can track the performance of your products and Then take link and add google tracking campaigns in Google Analytics by adding UTM parameters. Analyzing the performance of your products and campaigns Source Company Name can be invaluable. It can help you refine marketing strategies, Medium cpc your portfolio, and give you insights into how to create more effective campaign calendars. Campaign Google Shopping Term e.g., title Learn more Content e.g., brand Travel in 2021 and beyond: An eCommerce Perspective | 25
Feed Management, PPC, and the Holiday Season The holiday seasons are the most important and busiest The total vacation spend for the periods for travel companies. Although they bring more traffic, customers, and revenue, they require more staff, US, crossed the $100 billion mark more products, and more availability. It’s a very stressful period for a travel company and preparation is key. for the third consecutive year in Channable can be a fundamental tool for travel companies the index’s history. when it comes to good preparation. With the dynamic data source: Allianz’s Vacation Confident Index options, powerful “if-then’’ rules, and integrated analytics features, you can prepare for your most taxing periods months in advance. Travel in 2021 and beyond: An eCommerce Perspective | 26
January February March 1 New Year’s Day ± Winter sales / January sales 17 St. Patrick’s Day (UK, US) 1 Unofficial start of 14 Valentine’s Day European Ski Season (UK, Nord) ± Spring break across US ± Winter sales / universities (US) January sales (UK, Nord) ± Half-term (School Break) ± Unofficial start of cycling holiday season (UK) Here are the most popular April May June holidays in the UK and Ireland, ± Easter School Break (UK, Nord) ± Half-term (School Break) (UK, Nord) ± Summer Sales the US, and Australia. As you can see, there are important holidays July August September each month that presents the ± Summer Sales ± Summer School Holidays ± Summer School Holidays ± Summer Holiday Peak (UK, Nord) ± Summer School Holidays ± Back-to-school ± Last-chance Sun (UK) opportunity for an influx of potential customers. October November December ± Half-term (School Break) 25 Thanksgiving (US) ± Christmas School Holidays (UK) (UK, Nord) 26 Black Friday 25 Christmas Day 31 Halloween (UK,US) 29 Cyber Monday 31 New Year's Eve Travel in 2021 and beyond: An eCommerce Perspective | 27
Date Rules If current_date is equal to exact 11 August 2020 With Channable’s date rules, you can plan your holiday campaigns well in advance. You can apply rules that only Then take sales_price and calculate affect your products on certain days, months, weekdays, or times of day. This allows you to create sales windows, take price and multiply by 0.50 exclude or include certain products on certain dates, or tailor the product info to each particular holiday. And take title and combine value title Now 50% OFF Learn more Item Group Rules Group items based on location or type and create rules for the If all group rather than the individual product. You can group the same types of holidays in a specific region then create more general product listings based on the group. For example, Then take item_group_id and calculate item group “Beach holidays in Croatia” or “Ski trips in Austria”. count items store in item_group_count Learn more Calculate Item Group Rules Calculate data of the entire group. For example, you can find If all the total number of hotels or free rooms within a city or even find the number of hotels starting at a specific price. Then take item_group_id and calculate item group calculate sum of stock store in item_group_sum Learn more Travel in 2021 and beyond: An eCommerce Perspective | 28
Is in highest X/ Is in lowest X rule Find the best and worst performers or the highest and lowest If price is in highest 10 values within your product group. Use them to exclude products or assign that value. For example, you can find the 50 most expensive hotels, flights, etc. and create a campaign Then take all fields and do nothing around them. Or, find the 20 products with the lowest rating and exclude them. Then take all fields and exclude Learn more Add weather data Channable allows you to import weather data that you can combine with your product feed. You can add rules and If text_weather_symbol contains sun labels to exclude certain destinations, push destinations, add discounts and sales, and optimize descriptions and titles all Then take description and set value to Use sunscreen! based on the data from the weather feed. Learn more Travel in 2021 and beyond: An eCommerce Perspective | 29
Master Rules Channable’s master rules are a real time-saver. You can Set - 1 Settings Rules create general and frequently used rules and place them into a master rule format. Meaning, you only need to create a set of rules once as a template. For example, you can create a Set - 2 Settings Rules master rule that excludes products with no rooms, less than 10 seats, a specific destination, etc. or use master rules to Set - 3 Settings Rules optimize your feed. New master rule group Learn more Extra Runs Updating your feed multiple times per day could prove to be extremely valuable to your travel company. All imports Every Every Every Every and active exports run by default once per day, but you day 12 hours 8 hours 6 hours can increase the number of runs up to 24 times per day (every hour) or more if you wish to create a tailored extra run schedule. This allows you to have higher quality listings Every Every Every Every 4 hours 3 hours 2 hours hour by having more accurate stock levels and prices. With the dynamic nature of a travel company, multiple updates of your feed is a necessity. Learn more Travel in 2021 and beyond: An eCommerce Perspective | 30
How is Channable preparing for the future of travel? Predicting exactly what is going to happen with the travel industry, especially from an eCommerce perspective, is almost impossible. One thing that we know will not change and will become even more prevalent is its dynamic nature. For travel companies to succeed in 2021 and beyond, flexibility and being able to make big last-minute changes is Although the future of travel key. What does this mean for Channable? is unknown, Channable will Channable is fortunate in the sense that flexibility is within its continue sharing knowledge and nature. The feed management and PPC tool were designed to be used by many companies, with many requirements, working closely with its travel and from many industries. And many of the rules and features within Channable’s tools allow for these big last-minute clients in order to ensure that the changes. tool is as future-proof as possible. By giving its clients total freedom with its feed management and PPC strategies, by design, the Channable tool has always been a “box of lego”. With a box of lego, there are infinite possibilities meaning there are also infinite solutions. You can build a car, a house, a plane; whatever you want. Or, if we link it to Channable, whatever is needed. Channable supplies the pieces but you can create your ideal solution. In the next section, we will dive further into the future of travel and how Channable can help you prepare. Travel in 2021 and beyond: An eCommerce Perspective | 31
The Future of Travel: An eCommerce Perspective The future The future is hard to predict. In 1985, writers Bob Gale and Robert Zemeckis wrongly predicted that is hard to predict by 2015 flying cars would be the norm. Granted, this prediction was for a little-known comedic sci-fi film called Back to the Future Part II. Nevertheless, they were wrong. Travel in 2021 and beyond: An eCommerce Perspective | 32
Channable and the future of travel Though, there was no pressure being right here. It was art. People weren’t investing, financially or otherwise, into companies who were promising personal planes. At Channable, the predictions for the future of travel in eCommerce do come with pressure. Clients are relying on Channable to make accurate predictions and, thus, preparations for their feed management and PPC tools. Channable needs to ensure that whatever impact the pandemic continues to have on the travel sector, their clients are still leading names within the industry. Channable have used their own knowledge and experience, research, and the knowledge and experience of their clients to make predictions about the future of travel in eCommerce. In the next section, you will find these predictions. Travel in 2021 and beyond: An eCommerce Perspective | 33
Travel predictions in 2021 and beyond It is now certain that the impact of the pandemic on the travel industry will continue into 2021. If we look at the specifics Within advanced economies, of how things have changed since social distancing and 79% of tourism destinations have lockdowns swept over the globe, we can make educated predictions for next year. already eased restrictions. In With the current situation, last-minute changes have emerging economies, just 47% of become the norm. Destinations are deemed not-safe-for- travel in the blink of an eye causing many travelers to cancel destinations have done so. their vacations in the final hour. Managing these last-minute source: unto.org (10th Sept. 2020) changes will require a watertight feed with possible variables and outcomes already considered. Travel in 2021 and beyond: An eCommerce Perspective | 34
It’s important to note that these are only predictions and should not be taken as fact. Unsafe Destinations & Policy Change Using the rules of a feed management tool like Channable will allow you to prepare for a number of probable situations that may otherwise be difficult to manage. For example, if a destination is deemed unsafe for travel (even if it’s just from a particular number of countries), setting up rules to exclude this destination from your catalog can be completed in moments. Another example of what could happen in the future are policies changing with regard to things like reimbursements and booking regulations. With last-minute cancellations becoming more common, travelers may be less inclined to complete bookings without revised reimbursement and booking regulations. This could affect pricing and profit margins and even cause travel companies to streamline their offerings. With Channable, you can set up a rule that calculates the profit margin of your products and another that removes products when the profit margin falls below a certain percentage. Travel in 2021 and beyond: An eCommerce Perspective | 35
Less Availability It is highly unlikely that your travel business will be able to advertise your entire catalog. With strict safety measures being taken in almost every country, limited capacity looks set to stay for the foreseeable future. Airline companies will have to take social distancing into account and hotels 0 will have to ensure the cleanliness of each room meets the -20 standards enforced by the pandemic. Passenger revenue in billions $ -40 In the diagram on the left, you can see the estimated loss in passenger revenue in 2020 compared to 2019. -60 -80 With less availability and thus less revenue, each of your available products will become even more important. Having -100 the correct PPC strategy in place with retargeting campaigns and an optimized feed to ensure your products are more visible -120 Asia Pacific Europe North Middle east Latin America Africa across all channels is vital. If your business is to perform well America during a period of less availability across the industry, almost constant surveillance is necessary. Channable automates a lot of this upkeep without need of your supervision. This will give you time to refine your strategy using Google Analytics (which can also be integrated with Channable) and market research. Travel in 2021 and beyond: An eCommerce Perspective | 36
Pricing and Last Minute Sales With less availability and destinations being sporadically deemed unsafe, last-minute online bookings will increase in the travel industry. Though it would not be best practice for a travel company to simply decrease all their prices, setting up last-minute deals using rules is crucial. Travelers will be afraid to commit to their vacations early due to the unrelenting unpredictability of the pandemic. When booking a last-minute vacation, travelers will consider their safety, availability, and, of course, price. The mindset of a traveler booking last-minute is unique. They do not see their vacation as a necessity and will more carefully consider what’s in it for them. This is why a last-minute reduction in price works well, but not alone. Simply reducing the price to being the most attractive within the market may not be enough. Accompanying PPC sales campaigns will highlight this pricing change making the decrease in price more impactful. Travel in 2021 and beyond: An eCommerce Perspective | 37
Safety is key What’s less crowded than a commercial flight? Your car. What’s safer than booking a room in a busy hotel? Camping. And what’s the best way to avoid all of these predicaments? Staying at home. Safety is key. As we alluded to in the previous section, the first thing travelers will take into consideration is their safety. It won’t matter if their respective country’s government has indicated travel to their desired destination is safe, they will be doing their own research. Naturally, they will ensure the airline company they choose adheres to social distancing and that they are aware of the dangers. Adding safety information to your travel company’s product information and even the PPC ads could influence decision-making. With the fears surrounding the pandemic, travelers will be more inclined to avoid others and will spend more time in their hotels. Not only will they want to see safety information, but they will also read reviews of recent travelers to gain more insight. You can set-up rules that are impacted by your product’s review score or even find a brand-friendly way of adding it to titles and/or descriptions. Travel in 2021 and beyond: An eCommerce Perspective | 38
Staycations are the new trend As we mentioned in the previous section, staying at home is the safest option. People will still have to book their holidays from work which is why we will likely see an increase in people vacationing within their own country (or within their own state in the US). “There has been a steep fall in demand for international trips this summer due to fears of cancellation, disease transmission, and quarantine measures upon return. According to GlobalData figures, international departures from Europe’s G7 countries* are expected to drop by 40% in 2020, which is a much steeper decline than domestic trips at 25%. This difference indicates that many would-be international travelers are now opting to travel domestically instead.” Ralph Hollister Travel & Tourism Analyst at GlobalData The growth of staycations will impact your marketing strategy. With Channable, you can set up rules for your PPC campaigns and your feeds that are targeted towards people within the country of your hotel or resort. This way you can adapt which products you list and on which platforms as well as the product data to ensure it is attractive to the local audience. Travel in 2021 and beyond: An eCommerce Perspective | 39
All-inclusive and private accommodation boom As travelers will be inclined to spend more time in their hotels, all-inclusive deals could become the trend. Another viable possibility of becoming a trend is private/remote accommodation. Highlighting all of the perks of your accommodation including room service, private pools, sports facilities, and more would be a smart tactic to implement. Using Channable, you could optimize the content of your feeds and your PPC ads with this kind of information in no time. The same can be said of private and remote accommodation. Less densely populated accommodation will be incredibly desirable for travelers. Never has there been more interest in that private studio in the middle of nowhere you’ve been struggling to book. Travel in 2021 and beyond: An eCommerce Perspective | 40
The closer to booking, the smaller the device We do not expect the booking habits of travelers to change dramatically. One thing that is often neglected is that with the actual booking of flights, hotels, and things to do, there is a sizable increase in desktop users. For example, vacation research is split between mobile and desktop but the actual payment segment sees an increase in desktop users. Even before the pandemic, there was a growth of actual bookings (vs research) on mobile devices. Nevertheless, 94% of leisure travelers switch between devices on the customer journey of planning and booking a trip. 46% of travelers with smartphones say they make their decision on mobile, but then book on another device. Channable carefully integrates the requirements of export channels with their tool. This means that for those export channels that are optimized for mobile, you only need to create one feed or one PPC ad to be able to target travelers in the research stage as well as the booking stage. Travel in 2021 and beyond: An eCommerce Perspective | 41
Huge demand for PPC, social ads, and retargeting One thing that will definitely happen is a huge demand from travel companies for PPC, social ads, and retargeting. Even on a country-by-country basis, as soon as travel restrictions are loosened, travelers will grab their laptop to plan their vacation to the destination in question. If you were to prepare your business for this inevitability in advance, the profits you will generate in terms of traffic and ranking could be astronomic. Using a feed management and PPC tool such as Channable would allow you to create your ads and product listings well in advance. Meaning as soon as travel restrictions are removed from a popular destination where you have products, you can immediately launch your already-prepped campaign. Travel in 2021 and beyond: An eCommerce Perspective | 42
What do travel experts Pierre & Vacances - Center Parcs say? Channable had the pleasure of sitting down with Pierre & Vacances - Center Parcs Online Acquisition Manager, Davy Bayonne, who shared invaluable insights into the travel industry, the effects of the pandemic, and what the future may look like. Pierre & Vacances - Center Parcs develops innovative leisure and holiday concepts within respect toof the environment in order to offer its clients the most attractive seaside, mountain, countryside, and city- center destinations. Travel in 2021 and beyond: An eCommerce Perspective | 43
What were things like before the pandemic? Groupe Pierre & Vacances Center Parcs offers over 250 destinations across Europe. Being in so many places means that they advertise on a whole range of products. Having such a large range allows Pierre & Vacances - Center Parcs to be successful in every season. Pierre & Vacances - Center Parcs is very active when it comes to advertising local destinations. Local travelers are a large part of their revenue. And, given the current situation, advertising local destinations will become more popular among travel companies. As Pierre & Vacances - Center Parcs is already very experienced in catering for local travelers, it puts them in a very strong position. “Summer and winter are key for us. Our most popular winter vacations are our premium resorts; especially in the French Alps. As well as our 25 Center Parc locations which are popular with groups of friends and families. In the summer, on top of our Center Parc locations, our guests love visiting Normandy and the French Riviera, Avoriaz, and Villages Nature which is close to Disneyland Paris.” Travel in 2021 and beyond: An eCommerce Perspective | 44
What challenges did Pierre & Vacances - Center Parcs face before the pandemic? There are a number of challenges for travel companies. The biggest challenge being competition. “Competition is the main challenge as the industry is stacked with big and small travel companies, huge brands, resellers, and the list goes on.” This is why having a watertight eCommerce strategy is a must for Pierre & Vacances - Center Parcs and one of the main reasons they chose to start using Channable. As the travel industry grows year on year, Pierre & Vacances - Center Parcs has more guests and more touchpoints with each guest. The increase in exposure and consumers has made the strength of their brand integral for growth. “It is essential for brands to be consistent and to optimize their communication funnels in order to optimize ROI and not overexpose.” Travel in 2021 and beyond: An eCommerce Perspective | 45
Why did Pierre & Vacances - Center Parcs start using Channable? Pierre & Vacances - Center Parcs has always used feeds to optimize the distribution of its campaigns and, in particular, the creation of retargeting campaigns. Before using Channable, the French tourism giant outsourced the creation and modification of its feeds to the technical teams of another tool. “The main advantage with Channable is the ability to create, modify and optimize our feeds independently. After a demo of the tool, we realized very quickly that we could easily adapt the feeds to our needs.” As a business, Pierre & Vacances - Center Parcs’ ROI isn’t only based on the investments a company makes but also on the team’s productivity. Channable therefore now also supports the Pierre & Vacances-Center Parcs Group on a daily basis by offering them the possibility of making their feeds more fluid and thus improving their productivity, CTR and ROAS. “It takes just 30 minutes to make changes to our feeds, where previously it was up to 48 hours.” Channable’s development team works closely with Pierre & Vacances - Center Parcs internal technical team. This helps Channable understand their needs which allows for quick integration and reduces the number of exchanges. “Channable teams are a true extension of our internal teams. Thanks to a precise brief and close collaboration, they support us in achieving our objectives.” Travel in 2021 and beyond: An eCommerce Perspective | 46
What impact did the pandemic have on Pierre & Vacances - Center Parcs’s online marketing strategy? Like every business (and every person), Pierre & Vacances - “We relaunched our campaigns in May. We started very Center Parcs had to adapt during the pandemic. They opted carefully with campaigns to communicate about our to pause general communication in order to strategize on the measures of security, hygiene, and booking flexibility. We best way to relaunch. With their main concern being the safety really wanted to assure our guests that we had taken every of their guests. However, they had guests who had already step to ensure their safety and fairness.” made bookings. Pierre & Vacances - Center Parcs was quick to provide information on the closure and reopening of their And how did Channable help Pierre & Vacances - Center accommodations and parks. And, most importantly for their Parcs with their relaunch? “Thanks to Channable, we easily guests, key information on reimbursements and vouchers. reactivated our campaigns by restricting the distribution to only efficient products for each market or product.” As mentioned, Pierre & Vacances - Center Parcs has always been an industry leader when it comes to local travel. This has unsurprisingly been key for their relaunch. “Due to the pandemic and travel restrictions, our guests mainly went on vacation locally; within their own country. Therefore, we had to set up relevant listings and ads in all our key markets.” there is a demand for “last-minute” options Alongside a huge increase in local travelers, Pierre & Vacances - Center Parcs has noticed that there is a demand for “last-minute” options. Whether it’s last-minute deals, last-minute bookings, or last-minute cancellations; there is a lot less planning and commitment from the average guest. Channable was able to help Pierre & Vacances - Center Parcs through such a testing period. Travel in 2021 and beyond: An eCommerce Perspective | 47
“ Channable was very reactive. Upon our request, the team was able to easily and quickly pause our campaigns at the beginning of lockdown. We worked closely with Channable to adapt our feeds to our business needs so we could focus on the specific priorities of each market. We really appreciated their support throughout this complicated time for the tourism industry.” Davy Bayonne Online Acquistion Manager | Pierre & Vacances - Center Parcs Travel in 2021 and beyond: An eCommerce Perspective | 48
What’s in store for the future of travel in eCommerce? Pierre & Vacances - Center Parcs is rightfully optimistic Responsibility in 2017 by the Worldwide Hospitality Awards. about the future of travel in eCommerce. They accept there will be a continued period of uncertainty and adaptability will With the pandemic, sustainability has taken on a new be the key to success. However, they also expect that some meaning. Now it’s not only about climate change and trends will simply remain stable or grow as has always been the health and welfare of the planet but also about the predicted. “Pre-pandemic, our users were searching more health and welfare of people. This includes things such as on mobile and booking on desktop. Mobile share is currently overtourism, accomodation congestion, and overcrowded up to 60% of our traffic and is still growing very strongly.” flights. “One thing that could be related is the fact that mountain destinations were popular during the summer. This As mentioned earlier, last-minute (which is actually more could be due to the want for space and as an alternative to like last-second) is becoming more popular among travelers. the crowded beaches.” Pierre & Vacances - Center Parcs is Over 40% of Pierre & Vacances - Center Parcs’ recent very conscious of the effects of the travel industry on climate bookings are made for the weeks and days to come. There change which is why they have always had a large focus on seems to be far less planning due to the pandemic. “Since local tourism. the pandemic started, visitors have been waiting until the last moment to confirm or cancel their holidays.” A new habit born following border closures and the evolution of the health crisis that we experienced a few months ago, as well Over 40% of Pierre & as the quarantines imposed in a good number of countries. Vacances - Center Parcs One focus in the travel industry that has been growing in recent bookings are recent years is sustainability. And sustainability is also a huge focus for Pierre & Vacances - Center Parcs. One example made for the weeks and of their focus on sustainability is that Villages Nature® Paris, a holiday park close to Disneyland Paris, was awarded days to come The Best Initiative in Sustainable Development and Social Travel in 2021 and beyond: An eCommerce Perspective | 49
Lastly, what’s in store for Pierre & Vacances - Center Parcs? “From a business perspective, the key focus in our immediate future is flexibility. Our guests now want to have more cancellation options as well as more last-minute booking options. This is something we are working hard on. We will continue listening to the requests and needs of our guests to ensure that the future of travel is a great one.” Travel in 2021 and beyond: An eCommerce Perspective | 50
The Next Steps for your Business We at Channable hope that the future of travel in eCommerce seems a little more promising after The best thing you can do for reading this industry insights article. your travel business is to be These are uncertain times and there has been a huge prepared. And this is exactly impact on the travel industry. However, one thing that will not be affected by the current pandemic is where Channable can help. our innate sense of adventure. It’s cliched, but travel does broaden the mind. Meeting new cultures and new people, and experiencing new foods and new cities, is an innate desire that we cannot shake. Once travel across the globe is safer, things will pick up once again. Travel in 2021 and beyond: An eCommerce Perspective | 51
Contact If you’re feeling inspired by the learnings in this article and want to know how you can prepare for the future of travel using Channable, please get in touch. +31 (0)30 260 08 21 support@channable.com www.channable.com
References Online sources https://www.forbes.com/sites/lealane/2020/04/26/50-million-travel-industry-jobs-may-be-lost-50-percent-of-travel-cut---due-to-coronavirus/ https://www.statista.com/statistics/1104835/coronavirus-travel-tourism-employment-loss/ https://www.travelweekly.co.uk/articles/41280/80-booking-holidays-online-finds-study https://www.allianzworldwidepartners.com/usa/media-room/vacation-confidence-index-19 https://www.statista.com/statistics/499694/forecast-of-online-travel-sales-worldwide/ https://www.forbes.com/sites/stephenmcbride1/2019/12/06/how-google-has-become-the-biggest-travel-company/#556169cd4e09 https://skift-com.cdn.ampproject.org/c/s/skift.com/2020/07/29/evolving-online-travel-advertising-criteo-online-travel-summit-video/amp/ https://www.cntraveller.com/article/future-travel https://www.phocuswire.com/A-brief-history-of-travel-technology-from-its-evolution-to-looking-at-the-future https://www.weforum.org/agenda/2020/08/travel-and-tourism-recovery-south-asia-covid19-pandemic-economy-india-nepal-bhutan-sri-lanka https://www.travelpulse.com/news/travel-agents/new-travel-trends-shaping-the-future-of-travel.html https://your.rentals/blog/how-will-guest-booking-habits-change-after-coronavirus/ https://www.everymundo.com/how-did-covid-19-affect-airline-bookings-from-mobile-devices-vs-desktop-devices/ Back to the Future Part 2. 1989. [film] Directed by R. Zemeckis. United States: Universal Pictures. Mamaghani, Farrokh. (2009). Impact of e-commerce on travel and tourism: An historical analysis. International Journal of Management. 26. 365-375. Travel in 2021 and beyond: An eCommerce Perspective | 53
You can also read