TRAVEL TRENDS AND STATS THAT WILL IMPACT HOTELIERS IN 2019 - Puzzle Partner
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Contents 1. Personalization is Here to Stay. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2. Guests Are Embracing Emerging Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3. A Continued Rise in Self-Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 4. Wellness Travel is on the Rise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 5. Living for the Weekend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 6. Cracking the Social Media Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 7. Sustainable Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 About Puzzle Partner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
1 Personalization is Here to Stay Recent studies show that 57% of travelers feel that brands should tailor their information based on personal preferences or past behaviors. In fact, in a recent interview, GetYourGuide CEO Johannes Reck said that ‘true success in the future of travel comes down to personalization.’ Modern guests, especially those of the millennial demographic, expect the hotels they frequent to continuously invest in their experience (and earn their loyalty) with a seamless end-to-end experience, personalized communications/offers, unique experiences and more. In a recent white paper, Deloitte even noted that “–truly knowing your guests –what they have told you, what they request, what you have learned, and what should be implied –should yield larger results.” With increased guest personalization comes a subsequent increase in direct booking probability, increased guest satisfaction and enhanced guest loyalty. 1
2 Guests Are Embracing Emerging Technology Google’s Vice President of Engineering for Travel and Shopping, Oliver Heckmann, says that nearly 60% of consumers believe that their travel experience should deploy the use of AI (Artificial Intelligence) and base their search results on past behaviors and/or personal preferences. Further, Google’s data shows that 36% of consumers are willing to pay more for these personalized experiences (PhocusWire, 2017). From AI to VR, digital assistants to chat bots and more, modern guests are expressing a growing interest in interaction(s) with emerging technology before, during and after their travel experience. In fact, 34% of travelers admit to wanting someone or something to make travel recommendations while 41% want travel brands to use technologies such as AI to make travel suggestions based on past travel experience. Digital assistants are becoming especially popular, with over 1 in 3 travelers are interested in using digital assistants to research or book travel, and they’re already searching for everything from hotels to flights, and things to do in-destination. Not only that, but over 52% admit they would be excited to use a digital tour guide, a relatively novel concept that will likely be explored at length in the years to come. 3
3 A Continued Rise in Self-Service The demand for mobile technology is set to increase once again this year, with an emphasis on self-service technology. In order to further streamline the pre-arrival, on-property and post-stay experience, hotels are opting for mobile-friendly check-in/out, keyless entry, native apps, text-based communications and/or mobile concierge and self-service kiosks. In fact, Booking.com found that 80% of customers prefer to self-serve in order to get the information that they need, while over 70% of U.S. travelers agree that they “always” use their smartphones when traveling (Google Consumer Insights, 2018). 5
4 Wellness Travel is on the Rise Modern travelers seem to have a vested interest in wellness tourism, with the Global Wellness Institute projecting it to grow twice as fast as general tourism and reach $919 billion in 2022 from the $639 billion in 2017. This can likely be attributed to millennial’s demonstrated preference for experience over material goods, creating an opportunity for an emerging travel market that focuses on lifestyle improvement, fitness-centric activities, holistic spas/natural immersion getaways, authentic local experiences and so much more. This travel segment has also become a popular extension of business travel, as individuals traveling for work are feeling more inclined to opt-in to wellness packages/upgrades or extend their trip. In fact, new research shows that more than 60% of business trips in the past year including a leisure portion (Expedia Media Solutions, 2018). Not only that, but 87% of business travelers say that they are likely to mix business and leisure on the same trip. 7
5 Living for the Weekend Likely due to the demanding nature of modern schedules and/or budgets, a rising number of modern travelers are alluding to plans of more weekend trips this year. In fact, over 53% of global travelers report that they plan to take more weekend trips in 2019. Think of this as ‘bite-sized’ or ‘micro’ travel, during which guests can squeeze in an experience-packed itinerary into a weekend or long weekend getaway. This is an exciting trend for local economies, as frequent short-term trips create an opportunity for unusual accommodation or activity options (and potentially a higher budget/day than an extended vacation). 9
6 Cracking the Social Media Code Whether we like it or not, we are living in the age of social media. And with social media, comes great social influence and responsibility. Destinations and hotels are feeling a mounting pressure to create “Insta-worthy” experiences or attractions, that add a certain aesthetic allure to their provided experience or property. In fact, a recent survey showed that more than 40% of respondents under 33 consider “Instagrammability” the most important factor in choosing their holiday destination. Further, in a survey of travel marketers of which data source they use to provide a 360-degree view of their customers, social media was the number one source with 60% using insights to build a deeper understanding of customers (Skift, 2018). However, it’s important to realize that the power of social media goes beyond a perfectly curated feed of travel-inspiration, and also contributes to a hotel’s over-arching social reputation. Combining with the online influence generated from review giants such as TripAdvisor and Yelp, online reviews and guest commentary can make or break a hotel’s success. In fact, 53% of prospective travelers will not commit to booking until they’ve read reviews, and 80% would read between 6-12 reviews before booking (TripAdvisor, 2017). Further, 96% of travelers consider reviews important when researching a hotel and 32% will eliminate those hotels with a rating below four. 11
7 Sustainable Travel Modern guests are showing a preference not only for hotels and destinations which offer access to authentic, local experiences and culture, but those properties which adhere to eco-friendly practices and demonstrate attention to social issues. In fact, almost half of travelers told Booking.com that they feel social issues in possible travel destinations are of real importance and a third of travelers look for a company that is sustainable when researching their next trip. Ecological tours becoming increasingly popular, offering guests rare experiences that educate, give back to the surrounding area and support the local economy and environment. From AI to VR, eco-friendly trips to mini-vacations, “Insta-Worthy” travel backdrops and an emphasis on health and wellness, 2019 is positioned to be an exciting year for travel and hospitality. 13
About Puzzle Partner Puzzle Partner is the most trusted marketing agency focused exclusively on complex B2B initiatives for the travel and hospitality technology industry. We are experts at combining strategy and tactical execution in a way that doesn’t just maximize a company’s potential; it redefines it. By delivering influential content, marketing services, and public relations rooted in the skills of our team and tested through real- world experience, we help our clients gain visibility, raise their profile and ultimately increase their sales revenues. To learn more visit puzzlepartner.co 14
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