Amadeus has released a study that looks at what it refers to as ‘Destination X’, defined as “the largely untapped and dynamic destination services marketplace”.
Elaborates the global travel IT provider: “Interest in travelling and exploring our world has never been greater. But with time in short supply and a myriad of fragmented service options, the pressure is on once travellers arrive at their destination.” Travellers are frustrated at having to research on these option and decide which of the different offerings from multiple travel sellers across various channels to purchase.
Amadeus said this has to change as today’s tech-savvy consumers demand immediate access to information, and so it is critical for the travel industry to understand Destination X.
It added travel sellers will have to adjust the way they make offerings to different segments of travellers, whether leisure or business, to ensure customer retention and loyalty, as well as revenue growth. Technology, especially mobile, will play an important role in this.
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To help the travel industry comprehend Destination X and the role that technology plays in it Amadeus surveyed over a thousand CheckMyTrip app users to explore traveller ancillary needs within the destination services marketplace, and gathered opinions from several industry leaders to identify eight key trends pivotal in the post-booking ancillary game.
1. Destination services make or break the trip
- 70% of surveyed travellers said that ancillary destination services either made their trips more or less productive and enjoyable, or were the lynchpin of their entire trip experience. However, their ability to quickly tap into these destination services is a complexity of frustration.
- 93% of travellers consider ancillary destination services to be an important part of their overall travel experience, with 40% believing ancillary destination services make their trips more productive and enjoyable.
- 45% of the respondents said their mobile browser is the first place they go to discover what’s out there, and 41% also use it to book their destination service
2. Travellers are underserved in Destination X
- 27% of the respondents said having to use multiple apps as the number one frustration when searching for ancillary destination services.
- Nearly a quarter of travellers lack time to properly evaluate what is available or plan when and how to do things during their trip, with 17% unable to easily access destination services upon arrival.
- 10% feel that they are not receiving sufficient guidance from their employer, travel agency or air/hotel supplier to keep them fully informed.
3. Business and leisure travellers have similar values but different priorities
- Both sets of travellers typically book 1-2 services per trip.
- Top three business traveller priorities: flight compensation, taxi transfers, airport/rail lounges.
- Top three leisure traveller priorities: attractions & amenities, flight compensation, dining.
- For those booking three or more ancillary destination services, 34% said they did so primarily for leisure trips while around 10% booked the same for a business trip.
4. Complementary services: the new name of the ancillary travel game
- 72% of travellers in the study welcome proactive information or offers about other complementary destination services when booking their air/hotel or a single destination service.
- A third said complementary services “truly enhance their trip experience”.
5. In pursuit of the perfect personal touch
- More than half of travellers want travel brands to tailor destination content and shopping flows to their preferences and previous behaviours.
- During the “discovering” stage of their holiday planning only 5% of travellers want push notifications.
- After booking the trip the demand for push notifications increases, with 93% of survey respondents saying they welcome information on complementary services or offers an ancillary destination service.
6. Less hunting around, seamless access is a must
- More than a quarter of respondents do not like visiting multiple apps and/or websites to access their desired ancillary destination services. They demand in-destination support at the touch of their mobile screens. A single mobile point of access is still their biggest pain point, followed by trustworthy reviews and restrictions.
7. Travellers seek more inclusivity
- With all the focus on younger travellers, segments with additional accessibility needs are feeling left out. Among adults with disabilities who traveled by air, 72% have encountered major obstacles with airlines and 65% with airports. “I’d love to see offers of services for seniors and other people with mobility issues, plus suggested destination activities for us too without being overly pushy”: CheckMyTrip user.
- Some of the respondents reported that security/safety were big issues too.
8. Anticipating traveller nirvana
- Nearly 20% of those surveyed seek coordinated access via apps, chat, voice and web. Voice and artificial intelligence such as Alexa, Siri or Google, could be the keys to winning in Destination X.
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“Technology developments can no longer be ignored. There is evidence of changes in homes, first with the iPad generation and now starting with voice in the last year, but this has to be embraced with automation – and with a recognition of learning which is where AI fits in,” said Michael Bayle, executive vice president for mobile at Amadeus.
According to PhocusWright, the market for travel activities will likely reach US$183 billion by 2020. Deloitte also reports that travel is outpacing demand for physical goods with “experiential spending on recreation, travel, and eating out trending up”.
Here’s the full report on Destination X
• Featured image credit: bdsklo/Getty Images
