2018 will see consumers looking for a simpler way to book their travel accommodation. Whilst many major travel industry players continue to deliver complex products and loyalty programs, independent travellers will instead choose companies that deliver streamlined travel experiences.
Omri Morgenshtern, Chief Product Officer at Agoda, comments: “Consumers today expect to get clear, straight-forward and useful information quickly. They don’t have the time or patience to do things a service can do for them. They will look to offerings that add value by simplifying the way they travel — from researching destinations to ordering room service.”
Simplification wins over “buzzword” technology
The last few years has seen plenty of hype around developments in AR and VR, with some working to apply these interactive experiences to the travel space. Whilst the benefits of these new opportunities should be explored, there has been little consumer demand for such experiences, and the hardware isn’t advanced enough to provide real value.
In 2018,the business will focus on leveraging technology that can save consumers time, rather than concentrating efforts on hyped up technology. Expect to see continued efforts to develop solutions that use AI to increase personalisation of travel experiences.
The emergence of ‘anti-rewards’ programs
Given the amount of choice and competitive pricing in the travel industry, added benefits and rewards are more important than ever. However, according to a CapGemini Study, 90 per cent of social media sentiment around rewards programs is negative. 33 per cent of this sentiment cites the lack of a seamless multi-channel customer experience, whilst 44 per cent highlights the lack of reward relevance, flexibility and value. Most consumers rarely understand what benefits they will be getting with many of today’s rewards programs, or how to get them.
Travel as an integrated experience
Year-on-year tracel companies have seen a 60 per cent overall increase in the use of its mobile app, for both researching and booking travel, suggesting consumers increasingly prefer an easy, on-the-go experience. In 2016, about 40 per cent of bookings globally were done through mobile. Fast-forward one year later, and that has increased to 50 per cent.
With the rising success of multi-functional apps such as WeChat in China, in 2018 this trend is set to catch-on throughout the rest of the world to feed the increasing need for a more integrated travel experience.
Millennial as a mindset, not an age bracket
With the term ‘millennial’ beginning to take on meaning beyond just one’s age, in 2018 there will be a shift towards millennial as a mindset. The Travel & Tech Study showed that regardless of whether a traveller is a millennial or not, what interests them is the same. For example, the top two preferred travel activities are seeking out nature or scenery (67 per cent for millennials vs. 72 per cent for non-millennials), and food and dining (67 per cent for millennials vs. 70 per cent for non-millennials).
People of the millennial mindset often live a fast-paced and demanding lifestyle, and as such, expect everything at their fingertips. Mix this with the desire to have unique, shareable experiences and we will see a rise in demand for new types of travel, delivered seamlessly.
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