How Messaging Creates an Edge in the Travel Industry
The travel industry is poised for booming gains in the coming years as the millennial market continues to mature. Millennials already make up about 20% of all international travel. Moving forward, this new experience generation will prove to be an ever-growing cash cow for airlines and hotel chains.
But there’s a catch. Owning the revenue potential of the growing market will require more than just travel experiences—a mobile-native customer experience is now table stakes in the industry.
Traditional airlines and hotels might feel like they’re at a natural disadvantage against emerging (and established) online travel agencies, but they don’t have to be.
The 9th annual EyeforTravel San Francisco Summit will give industry leaders an opportunity to see how they can gain a competitive edge in the digital travel world—and we’ll be competing in the Start-Up Awards with an explanation about how mobile messaging can help you own the revenue potential of the experience generation.
It’s Not Too Late to Transform the Travel Industry
Online travel agencies are disrupting your business, leaving you with two choices. You can either watch as these companies leverage mobile technology to take more of the travel market, or you can close the tech gap and create a differentiated customer experience that makes you the premier option for consumers.
It may seem as if OTAs have already mastered the art of generating revenue through ancillary services, but there’s still time for traditional airlines and hotel chains to step in and regain control. Terry Jones, former CIO of American Airlines, CEO of Travelocity, and CEO of Wayblazer, once said:
“Kayak has 50 million users of our travel app, but most don’t use it during the trip. TripIt and TripCase have millions of users who get itineraries, use them during the trip, but don’t have much utility beyond the itinerary. Yelp and TripAdvisor are used during the trip, and at least TripAdvisor will get you to buy a few things along the way. Expedia is pushing hard on tours. But I would posit that no one yet really owns the travel edge.”
It may seem to transform into a travel company that can own the customer in the face of modularization by OTAs. However, a solid mobile strategy with messaging at the core can give you a direct line of frictionless communication for booking, support, and loyalty that will help you thrive against digital disruptors.
4 Ways Messaging Can Help You Own the Digital Travel Customer
It’s not enough to just dip your toes in the digital waters with something like a chatbot. You have to dive headfirst into the mobile deep end if you want to capitalize on the revenue potential of the experience generation.
When you implement a mobile-native messaging strategy, you can:
- Cater to Millennials with Personalization: Consumers are coming to an expect an Uber-like experience in all aspects of digital. With a centralized messaging experience, you can offer booking and service experiences personalized to specific customers because you can engage in 1:1 conversations with them. Chatbots will help you scale—but the real differentiation lies in human interaction.
- Overcome Challenges of the Sharing Economy: The rise of sharing-economy companies like Airbnb doesn’t have to be as daunting as it seems. Getting to market quickly with a branded messaging experience can help you bridge the tech gap so you can offer customer experiences that can compete in the sharing economy.
- Create Upsell Opportunities: Expanding RevPAR and RASM are top priorities for hotels and airlines, respectively. How can you start making money by selling things other than flights and rooms? Engaging in 1:1 conversations with customers gives you upsell opportunities in a way that isn’t disruptive. OTAs are selling ancillary services and you can, too.
- Drive Loyalty with Mobile Booking: Owning 100% of customer conversation data means you can create seamless experiences for repeat customers. If you provide a differentiated experience that caters to specific customer needs, they won’t have any reason to leave for OTAs.
These are just a few of the benefits of messaging that we’ll be talking about at this year’s EyeforTravel Start-Up Awards at the San Francisco Summit.
Mobile is already changing consumer behavior and messaging gives you a way to facilitate new business models that will help you improve your footing in the evolving travel market. If you want to learn more about how you can create a branded messaging experience that competes against OTAs, contact us today for a free demo of the Layer customer conversation platform.