“Customers prefer shopping in every other retailing sector over travel.”
We often, and obviously, think of money when the term “currency” is used, but a new study points out a glaring truth that’s normally forgotten – that time is our most valuable currency. It’s also an equaliser because in a world of differing spending power within various demographics, time is something that we all have the same amount of.
This metric, alongside money and finance, can be used to determine customer satisfaction regardless of social status, and glean what consumers want when they spend time at a certain place or destination.
According to new independent research commissioned by Travelport, a technology company that powers bookings for travel suppliers worldwide, and conducted with Toluna Research, outlined that consumers want the travel industry to get modern. The study, entitled “What Consumers Want,” revealed multiple gaps that explain the lacking trust customers have in travel retailers, namely the lack of simplified and intuitive experiences, easy support and transparency.
The research sample for this study consisted of 2,000 consumers from Australia, Colombia, Saudi Arabia, the United Kingdom, and the United States.
For the travel industry, this insight offers valuable considerations and opportunities to generate more sales and customer loyalty.
Some key takeaways from the study include:
- 93% of consumers say the best retailers make it easy to find the product(s) they want
- 59% of consumers say that getting exactly what they want is more important than how much they pay for it
- 83% of younger consumers aged 18-41 want more human-led customer support
- 60% of consumers say they would take longer transport routes to their destination
- 49% would choose to spend more to save on carbon (CO2) emissions when traveling
Jen Catto, Chief Marketing Officer at Travelport says “The travel industry is poised to build on the goodwill it earned during the pandemic by getting modern and giving consumers the simple, easy and supportive experience they expect.”
She added, “Customers prefer shopping in every other retailing sector over travel. Now that the industry is recovering, there is an enormous opportunity for travel brands to reinvest in their customer experiences, earning them customer loyalty while increasing their revenue simultaneously. It’s a win-win.”
According to Travelport, modern retailing isn’t just about getting things done faster. It’s about making things better so the experience of spending your ration of time is a good experience. For retailers, that can be facilitating a research experience, creating a frictionless buying experience, or giving the customer additional ways to feel good about their purchase. It’s providing options, offering things at the right time, and catering to preferences.
Here’s a summarised breakdown of the study, highlighting key aspects that the industry can take note of in regards to shifting consumer trends:
Time and transparency prioritized over price
Supporting the belief that ‘time is money,’ Travelport’s study confirmed consumers spend more time online searching rather than buying — consulting reviews, seeking recommendations, and looking into other factors of what an offer includes.
The study revealed that the majority (69%) of consumers research a purchase online daily or weekly, with very few (only 2%) stating that they never research a purchase online.
Travelport also found that nearly all consumers (93%) believe that the best modern retailers make it easy for them to find exactly what they want. With various options available for every aspect of a trip, this is particularly crucial for travel retailers. Full transparency is what most consumers (90%) desire most, meaning modern retailers must share full product information upfront in order to help consumers save time and gain confidence in their purchases. Doing so will pay off for retailers.
In fact, most respondents (59%) said that getting exactly what they want is more important than how much they pay for it.
Gen Z wants convenient, human-led customer support
Most study respondents (77%), regardless of age, have interacted with a chatbot. However, just a quarter of theoretical “digital natives,” ages 18-41, use them frequently.
Three quarters of all respondents prefer to speak with a human (via chat or phone) when something goes wrong, but what was unexpected is that more (83%) of younger consumers ages 18-41 actually want more human support than their elders, age 42 and above.
Furthermore, consumers in this study shared the importance of easy returns and exchanges (43%), filtered options (40%) and personalized offers (29%). These factors clearly indicate more personal support is valued at every stage of the retail journey, from research to purchase and post-purchase experiences.
It will be interesting to see how these trends shift with the rise of ChatGPT. More major brands in travel and hospitality are implementing ChatGPT’s language and data processing into apps and customer support. Conversational trip planners are becoming popular, so it begs the question if consumers want to speak to other people or just prefer more intuitive AI.
Consumers will travel longer, spend more for sustainability
Climate change and sustainability are top of mind for consumers, especially those with a passion for travel. Travelport’s study revealed that nearly half of consumers (49%) would choose to spend more, and even more (60%) would take longer, indirect transport routes to their destination to save on carbon (CO2) emissions when traveling.
This varies by age group, as the study results show (33%) of consumers ages 18–41 would travel 2–3 hours longer to save on CO2 emissions, compared to only (19%) of consumers age 42 and older.
It makes sense, considering age could play a factor in how long you’d like to spend travelling versus getting to the destination. Other factors like layovers and longer travel routes could be reasons for stress, depending on the demographic.
Recognising the value of instant gratification
Travelport’s research suggests that brands need to understand the value of the “now”. Patience may be a virtue, but consumers want what they want, at this very moment.
Think about how we consume content – we’re able to stream anything, anywhere, at a go. Brands need to employ the way of the internet and be accessible at all times.
According to Travelport, the volume of online shopping has accelerated massively in recent years, with 53% now buying online daily or weekly.
The biggest reason customers shop online is because the store is always open (41%) and shopping is always available. But almost the same number of people (44%) shop offline because they have an immediate need.
Clearly the nature of ‘now’ depends on what you’re buying and what ‘now’ means to you — the act of buying or the act of receiving.
For physical goods, it might mean buying an ingredient for a meal you’re cooking tonight versus buying an exotic spice for a meal you plan to cook next week. It may mean trying on a range of shoes versus ordering and hoping. Is the impulse to shop or is the impulse to have? But some things, like major purchases or experiences, are always in the future and often require more research so the ‘now’ is gathering what you need for a decision.
“Give me time to reflect and the freedom to change my mind”
With any purchase there’s a risk of regret. As consumers, we occasionally second-guess our decisions. With big or complex purchases, the risk expands substantially. Shoppers want to know they won’t be “penalised” if they change their minds or if they find something more attractive right after clicking ‘buy’.
Online or offline, consumers want flexibility, and 29% say their biggest issue is with retailers who don’t make returns or exchanges easy.
Think about the last time you needed to process a refund or exchange an item. Did the store make it easy for you to do so? Or, did you have to jump through hoops and incur additional costs?
In travel, it’s safe to say that brands – be it airlines, hotels, and attractions – that make reversals and refunds easy are likely to garner loyalty from their customers.
