Travel Marketers’ Big Customization Move

The travel industry – more than other industries – is focusing on collecting data on individual consumers in order to customize offers, according to a new study on digital marketing.

The move is a response to what the study calls “disruptive technologies.” Such technologies, notably the Internet, have resulted in more travel companies dealing directly with consumers. They have also caused travel itself to become more of a commodity.

Conducted by the Lyris Group in Emeryville, Calif., for the Economist Intelligence Unit, the study looked at the travel industry as well as at clothing retailers, banking, automotive, entertainment and the media. It surveyed both marketers and consumers.

A targeted approach
Travel companies are changing “the one size fits none” approach to marketing, said Alex Lustberg, Lyris’ chief marketing officer.

“The whole approach of batching and blasting the same messages to all potential buyers is going out of style. What’s coming into style is getting a better idea of the consumer,” he told Travel Market Report.

Travel marketers have also abandoned the “scatter shot approach of trying to reach everyone everywhere,” Lustberg added.

Top 3 strategies in travel
The study found that travel companies’ top three marketing strategies today are presenting individualized offers, providing content to guide product research and collecting data on individual customers and segments.

What does it mean for travel advisors? “Travel agents can glean some insight around what are the preferred ways customers would like to engage with these types of marketing initiatives,” said Lustberg.

“The large brands are the ones spending the marketing dollars but agents also have to market their services and understand what preferred channels will help them be more valuable,” he added.

Email leads the way, but . . .
Consumers in the study called email from travel companies their preferred channel for communicating before and after a travel purchase.

However, during the buying process, more traditional means of communication remain very significant to consumers. Printed catalogs came in second behind email as a pre-purchase influencer.

Personal referrals were cited as the top reason for final buying decisions.

The Internet continues to be a major force, with searches for price comparisons the most prevalent consumer activity online.