By James Marshall, VP, Air Account Management, Expedia Group
CONSUMER behaviour continually changes, but the volatility we have experienced over the past few years has brought this into even sharper focus. All industries are having to adapt to these changes and re-examine how they meet consumer needs and wants, and the travel industry is at the front and centre of this transformative time of change.
At Expedia Group, we have released our Expedia 2023 Air Travel Hacks Report, providing travelers with the latest tips to save time and money on flights. Created in partnership with Airlines Reporting Corporation (ARC) and leveraging insights from its global air ticketing database, the annual report has become an authority for eight years running on air travel trends. The report reveals data-backed hacks for travelers, including the best day of the week to book a flight at the lowest price, how to minimize the risk of being impacted by delays and cancellations and tools for finding the best fares. The creation of demand through tips and tricks such as these is important across the whole industry, particularly for flights, as we move through the pandemic and into recovery.
The cost of travel will, of course, always play a part in cementing a traveller’s decision. However, having a positive traveller experience has increasingly proven to be the central factor in whether customers will choose the same airline, hotel, or cruise line or use the same online travel agency for repeat business. As with the satisfaction that comes with booking the lowest fare, travelers now want that same satisfaction of having a high-quality experience throughout their travel journey. According to new research debuting in November from Expedia Group, travelers revealed strong preferences toward flexible rates and fares that can be changed without a fee. Around half of consumers say they would never book non-refundable lodging (47%) or transportation (51%) domestically, even if it was discounted. Even more would refuse non-refundable lodging (57%) and transportation (59%) when traveling internationally.1
Many players in the airline space have seized the opportunity posed by the turbulence of the past few years to look at how they can do things differently and thereby increase customer satisfaction. Implementing changes ranging from flexible itineraries; to enhanced loyalty incentives; to better systems and processes around fees, cancellation policies and refunds, all of which are proving popular amongst travelers.
Shifting our approach to enhancing the traveller experience will not only help travelers themselves, but travel providers too, including the airline industry, who can benefit from the increase in repeat business and enhanced customer loyalty that a best-in-class experience brings.
The desire for clear communication is also one thing we’re seeing time and time again from travelers. They want to understand what options are available to them and to know they’re making the right decisions. At Expedia Group, we have introduced new features this year, including flight features such as price tracking, and fintech product Price Match Promise, to help instill confidence and clarity for travelers when making their booking decisions. This can help to drive better conversion rates for airlines while delivering a better overall experience for the travelers themselves. Additionally, leveraging data and unique insights help those we work with better understand trends so they can plan ahead and meet challenges head-on. Price tracking and Price Match Promise are currently live on the US point of sale with plans to extend to additional markets soon.
Another way we are looking to provide the best possible service is through attribute-based shopping, or ‘smart shopping’ as we call it, which can help provide travelers with a better understanding of what is included in their booking. We leverage our machine learning capabilities to improve traveller self-selection and customize their options for flights and hotels. Smart shopping makes it easier to compare and choose between offers with increased clarity and structure. For flights, this might include different timings, stopovers, seat selection and baggage selection. In fact, in a recent test on our mobile app, seat selection increased by 94% when we moved seat selection options higher up in the traveller shopping path on a mobile device. This is a win-win: travelers see better options earlier in the booking journey with more transparency on their booking, while travel partners could benefit from stronger conversions. Smart shopping is currently live for lodging and will be rolled out to flights soon.
Although recovery has been volatile for the airline industry, and even as the cost-of-living crisis continues to bite, travel is beginning to normalise, and travelers are taking advantage of flying again. As both business and leisure travelers return to the skies, airlines have been adapting to meet the returning levels of demand. To ensure this demand continues and to secure repeat customers, improving and developing the traveller experience for a post-pandemic world from the beginning to the end of the holiday process must be a focus.
Read the Expedia 2023 ARC Air Travel Hacks story here.
