The travel industry continues to view the goods as a market necessity. The sector has lagged behind the world of entertainment and e-commerce in establishing lasting relations with digital consumers first. Travel is competing with services such as Netflix, Amazon Prime, and Facebook, both as a consumer and entertainment product.
The antidote to digital discomfort in a world where customers encounter online shopping and entertainment choices are worked out are travel, hospitality and experience. The difficulty of travel is to maintain regular, direct dedication on digital platforms, which however contributes to transactions in real life. Subscription and membership models are not how you would imagine, but will move through the next decade. A point system, not enough for loyalty, expands to include a membership model that impacts different aspects of the life of the traveler after the journey.
Travel companies specialize in putting people to sleep and showing them things to work from a city to another. Furthermore, the majority of consumers just fly a few days out of their year. Could tourist companies develop their goods more than twice annually in the construction of customers? In exchange for a purchase as a basis for creating loyalty, intelligent brands look beyond their offering. Consistent dedication and uncompromising access to a range of goods are the new loyalty. The relative balance between rivals in increasingly integrated sectors is travelers that are now more valuable than loyal to brand.
Big and small companies experiment with early subscription goods. They experiment. Of starters, Delta Air Lines also provides boarding passes each year for a flat price, and vehicle rental giants also have a number of subscriptions. Imagine what a subscription plan for travel might look like if the customer is really the first person to put the points in any given destination among the various travel products. Although a company like Inspirato, which offers a few luxurious hotels a month at an enormous monthly fee, may be a successful business.
In addition, over the years, US airlines have phased out endless passes to the sorrow of the smart people that bought early and enjoyed endless world-wide travel. Unlimited access to hotels, flights or experience is unlikely to be a subscription product for travel around a monthly fee. The sector is too split, and consumers too seldom travel to develop loyalty. Consider your business potential by leveraging the myriad services and products they offer outside of conventional travel and building partnerships with local providers for services and products that they do not offer. The benefit and comfort of members will outweigh a monthly subscription or membership fee.
Consumers are interested in having access to everything: branded hotel facilities, reservation at restaurants, local events, timely delivery, reliable ground transport and compelling digital content-wherever or whatever they are. When it is time to travel, capturing your bookings should be only one part of the total offer.
How can’t travel companies respond to these needs? The future’ Amazon Travel’ will be rather than a single company selling competitive goods in every silo of its fragmented international travel market, a marketplace and discovery network.
There was not much discussion about the ongoing debate between access and ownership for travel consumers. Since the components of a trip are perishable, traveling businesses are often advised to either fill their seats and bedrooms with a discount or remove purchasing elements and sell them to consumers at a premium. In addition to improving the travel experience or packaging elements of travel, the emphasis is placed on revenue management.
No one advises their mates to have a brand because they are the most experienced to take them away. Points and rank have lost their luster and gave the average consumer no solid value back. Travel companies other than TripAdvisor may still have to break the code to build a direct customer relationship on a daily basis via digital platforms.
The power of TripAdvisor is derived from its restaurant reviews, that lead consumers to their products for travel. Travel companies have a significant distinguishing feature from online services and direct brands: they are present physically in thousands of cities ranging from hubs around the world to rural smaller cities. The strategic challenge of the travel industry for the next ten years will be to find a way to bridge the divide between physical and digital products in the first place in the world, where consumers are spending time.
When consumers buy content from a variety of sources such as Netflix, Facebook, Amazon, and many more on mobile devices. It is ironic that the impetus for travel and the purchasing stages of the consumer experience are fundamentally isolated from what the customer absorbs. Those who buy subscription services will have access to products, but will enjoy them beyond a one time purchase. This independence creates loyalty, even if individual transactions or market behaviors are not always awarded to consumers.
Direct brands have succeeded in following this trend especially well. Branding, user experience and goods are an evolving culture and customers are drawn to their lifestyle. When viewed through this prism, travel is not even close to the ease and usefulness of these goods. Today’s customers are fascinated on new platforms and new products.