webinar - trends for the future of travel & hospitality
TRANSCRIPT
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Trends for the future of Travel & Hospitality
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The Online Purchase Loop steps away from the traditional Purchase Funnel created by E. St. Elmo Lewis in 1898, to show the process consumers utilize when making travel decisions. The Purchase Loop highlights three stages of a consumer experience.
1. Decision Loop2. Experience Loop3. Advocacy Loop
Starting with awareness, each Loop highlights some main touch points consumers experience throughout their journey. Each stage triggers conversation about how to engage consumers digitally at each point. A consumers “Sphere of Influence”, is represented by the size of each loop and is key to calculating a consumers lifetime value.
The Online Purchase Loop helps you identify the story your brand is telling. Ultimately, a stronger understanding of consumer behavior allows a business to micro-target their potential guests.
Online Purchase Loop
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Online Purchase Loop
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Decision Loop
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The Decision Loop begins at the point a consumer consciously decides they want to travel—Awareness. Awareness comes in different forms, the desire to take a vacation, a business trip, a family event, etc. Travelers view themselves as professional consumers or Prosumers, utilizing the internet and social networking for research and to publish their experience.
Although the final purchase may not be an “online purchase” at some point your guest will access the internet for research. According to Google, over 78% of consumers utilize the internet when discovering, researching, and/or booking travel. It is essential to develop a digital footprint that consistently portrays your story and brand.
Once a consumer has chosen a desired hotel they need to select a channel to purchase through. Finally with new online products there is the risk a consumer will be persuaded elsewhere.
Decision Loop
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CRUISE CONTROL
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Tot
al
Mal
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Fem
ale
Gen
erat
ion
Y
Gen
erat
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X
Bab
y-bo
omer
s
Sm
artp
hone
Ow
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Tab
let o
wne
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Soc
ial n
etw
orke
rs
0%
20%
40%
60%
80%
100% Agree strongly Agree
Source: nVision Research | Base: 4886 online respondents aged 16+, USA, 2015 February
The almost universal appeal of control“I try to appear under control of my life at all times”
N V I S I O
NR
ES
EA
RC
H
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Cruise Control
Source: nVision Research | Base: 4728 online respondents aged 16+, USA, 2015 February
Haptik is a messaging assistant which allows users to get real-time support on the services of more than 200 international companies, including American Express, BMW and BA
Total
25%Women16-29
36%
Hispanic
38%Men 16-29
41%
% who are interested in an online shop assistant that they could talk
to for advice as they were browsing products online
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Cruise Control
Source: nVision Research | Base: 3369 online respondents (all smartphone owners) aged 16+, USA, 2015 February
“The main thing about technology is that you can’t chalk things up to
chance anymore. Technology is
providing you with tools to be more in
control of your life. It’s your choice to ignore
those resources or capitalize on them.”
Trendspotter, US
Frequency of managing one’s PERSONAL life on a smartphone“I manage my personal life e.g. using notes, alerts, reminders, calendar...”(at least 2-3 times/week)
45%Total
Millennials
60%
Gen X
41%Booomers
29%
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Cruise Control
Source: nVision Research │ Base: Online respondents (respondents who do each of these online activities) aged 16+, USA, 2014
Frequency of managing one’s WORK life on a smartphone“I manage my work/school life e.g. using notes, alerts, reminders, calendar...”(at least 2-3 times/week)
41%Total Millennials
57%
Booomers
21%
“The main thing about technology is that you can’t chalk things up to
chance anymore. Technology is
providing you with tools to be more in
control of your life. It’s your choice to ignore
those resources or capitalize on them.”
Trendspotter, USGen X
36%
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Trend in Action
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Experience Loop
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The Travel Experience does not have to start from the moment a guest checks-in. Technology is extending the reaching arm of hospitality providers from the time a consumer purchases a hotel room until after the stay is consumed and beyond.
The Experience Loop can be sliced into three touch point opportunities.
1. Pre Stay2. In Stay3. Post Stay
Mobile applications, email and surveys provide some of the tools to engage consumers throughout the three stages. Every stage offers opportunities to engage your guest for feedback and drive incremental revenue.
A progressive loyalty program will combine outstanding service levels with smart technology to offer a complete and interactive Travel Experience.
Experience Loop
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CONCIERGE LIVING
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15Link : https://www.kimptonhotels.com/press/releases/kimpton-hotels-restaurants-announces-rollout-of-nightcap-program-that-will-offer-guests-an-evening-libation-and-pairing
Kimpton’s Nightcap ProgramGuests are offered local specialty drink and snack | USA, 2015
16Linkhttp://www.hotel-icon.com/press.aspx#/press-release
Trend in ActionIcon Hotel Hong Kong - provides guests with smartphone device and services | China
Concierge app empowers guests and personalizes service | USA
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Lifestyle Concierge
Source: nVision Research | Base: 4709 online respondents aged 16+, USA, 2015 February
Priceless SurprisesMoving to app form to achieve
scale – connecting advertisers to customers and geo-target with
relevant surprises
Interested in a service that provided surprise recommendations based on my lifestyle habits
58%Brand
Followers
50% Millennials
42% Smartphone
Owners
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“When shopping for groceries I would like it if loyalty discount offers related more directly to my own tastes”
The more sophisticated they are, the better the relevancy of their
offers are. It’s kind of ‘big brother’ but at least we get good
deals from it.Trendspotter
of loyaltycard users73%
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THE CONTINUUM
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Advocacy Loop
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Social Networking Sites have not only expanded the reach of Word of Mouth Advertising they have created a community of ‘professional’ travel influencers. It is the responsibility of the hotel to not only continuously engage their guests but to connect with them post stay.
There are three major points of the Advocacy Loop:
1. Travel Influencer—Guest2. Engage and Connect—Hotel3. Direct Data Marketing and Retargeting—Hotel
Revenue is driven by the supply and demand continuum. Increase demand and you will increase the propensity to drive a higher revenue. Guests that become advocates, independently promote your hotel stimulating your internal demand resulting in decreased acquisition costs and increased profits.
Advocacy Loop
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EM
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GIN
GT
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THE WARMING WEB
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The Sponsored Self
Recommend viasocial networks
28%Of brand followers
53%+1
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49%Brand followers want brands to
follow them back
Follow my lead 7 in 10
brand followers expect instant
response
65%core followers
expect the reciprocal
47%follow brands
25Link: https://instagram.com/conradhotels
Conrad Hotels Instagram bookingHotel chain lets users book through photo-sharing network | Global, 2015
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EXPERIENCE
ADVOCACY
DECISION1
2
3
The Online Purchase Loop
LONDON | NEW YORK | STOCKHOLM