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Travelers’ Changing Booking and Purchasing Behaviors
Travelers’ booking and purchasing behaviors are undergoing significant changes, and companies at the forefront of these changes online believe that reaching consumers with relevant data has become more critical than ever.
Insights from HSMAI’s Revenue Optimization Conference
Recently, during HSMAI’s Revenue Optimization Conference, executives from Google, Meta, and Amazon shared valuable insights on how hoteliers should approach these changes and how they can effectively reach a new generation of travelers.
Understanding Traveler Behavior
Andy Nguyen, the head of insights for travel and telecom at Google, emphasized that the most dominant travel-related activity online is research. According to Google research, travelers spend three times more time planning, booking, and dreaming about a trip than on the actual trip itself. Furthermore, the research shows that the decision-making process continues during and even after the trip.
Importance of Compelling Content
To capture the attention of travelers, Nguyen emphasized the need for hotels to provide the best content, specifically video content, to help travelers confidently choose their brand. This is especially vital since 75% of Gen Z actively seeks inspiring travel content every day, with video content being particularly influential.
The Power of Discovery
Kirstin Frazell, industry manager of travel at Meta, highlighted the significance of discovery at every stage of the booking journey. She explained that businesses, including hoteliers, must bridge the gap between discovery and purchase. Frazell provided an example within the Meta ecosystem, where users often open Instagram without intending to buy anything but end up making spur-of-the-moment purchases due to advertising. This phenomenon is also prevalent in the travel space, with people looking for destinations, hotels, and experiences to explore.
The Role of Social Media and Loyalty
Frazell emphasized that a strong social media presence not only drives bookings but also fosters relationships and loyalty. Creating connections and offering rewards can fuel relationships and ultimately lead to increased loyalty among customers.
Catering to Generation Z
Meghan Joseph, manager of travel at Amazon Ads, advised hoteliers and travel brands to consider the preferences of Generation Z. This generation is expected to be more adventurous and inclined towards experiences like travel rather than material possessions. Joseph noted that Gen Z customers who frequently shop on Amazon are also frequent travelers, and they are more likely to explore new destinations rather than sticking to familiar brands. To attract Gen Z travelers, hoteliers should focus on creating content that promises something new and unique.
Utilizing Non-Traditional Advertising Channels
Jospeh mentioned that Gen Z travelers are more tolerant of advertisements and even expect them. They are more likely to be drawn to ads outside of traditional channels, such as virtual product placements within streaming television and other video content.
Conclusion
The changing behaviors of travelers necessitate hoteliers to adapt their strategies accordingly. By understanding the dominant research-centric behavior of travelers, providing compelling content, bridging the gap between discovery and purchase, leveraging social media presence, and catering to the preferences of Generation Z, hoteliers can remain competitive and successfully reach the new generation of travelers.
