With the rain pouring down outside and all hope of a sunny Glasgow summer fading rapidly it is no surprise that our daydreams are turning to thoughts of a lovely summer holiday in the sun. But of course as with everything these days our optimism for a nice wee vacation are blighted by recession chat.
We are told that 81% of the population is already feeling the pinch of the recession, and if it isn’t a pinch in purse it will be a pinch in the brain as we hear yet another tedious news report on how broke and unemployed we all are. You would maybe make the assumption that the travel industry would suffer from our apparent recession but apparently around 70% of the population still intend to holiday abroad- and who can blame them for wanting to escape the doom and gloom of the recession.
Consumer habits
55% of holidays are booked online while only seven percent are booked using the High Street (Nielsen//NetRating)
62% of Britons use the search engines to find a holiday (Nielsen//NetRating)
Consumers trust user generated content sites, such as Trip Advisor, for reviews and feedback, referring to such websites when booking their holiday, further to this 33% of frequent travellers regard review websites as the most reliable source of information. (Nielsen//NetRating)
Will holiday seekers spending habits be affected by the current economic climate?
Current economic factors which will have an effect on the holiday industry are the recession, people have less money to spend, and the current exchange rates, both Stateside and in the EU. Therefore consumers will be more hasty booking, spending time researching companies and the specifics of a holiday- referring in more detail to the customer generated reviews. Above all they will be looking for a bargain.
The poor exchange rate will lead to many choosing to holiday a bit closer to home in the British Isles.
Opportunities for the travel sector
Consumers are still out there looking for a holiday, they may be a bit thriftier than they were a few years ago; but they are still willing to part with their cash. Economic and competition pressure means that travel companies need to be smarter with their marketing.
Online marketing in the form of some search engine optimisation will help raise your profile in the search engine rankings, however, competition is fierce and to really make a different it may be necessary to focus on specific keyword phrases, focusing on geographic location for instance. Social media can also be an excellent tool to increase your company profile, engage with holiday makers, advertise your holiday services or product, and to encourage consumer feedback.
Increase customer service; with daily mobile internet access up by 107% it is no surprise 74% of travel companies see “Mobile” becoming an increasingly important element of their online/digital strategies(EyeforTravel). Mobile technology is an excellent customer service tool that can be used to allow bookings, changes and amendments to existing bookings and recieve destination information including maps and places of interest info.
Further enhance customer satisfaction with some online tools, such as online booking applications and personal payment accounts, allowing customers to log in and make payment on their holidays when desired.
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