Here’s something to think about – when was the last time you contacted a travel agent to plan a trip? If you’re part of the generation that has never used one, or if it has been a while, ask yourself why that is.
Back in 2018, during the blissful pre-pandemic years, Signature Travel Network and The Center for Generational Kinetics asked 1000 American travellers, aged 21 – 65, what barriers stood in the way of them hiring travel agents for advice or to plan a holiday.
While perceived cost turned out to be the biggest barrier across generations, the perception of “one-size-fits’all travel” was also what encouraged travellers to plan their own trips. The study found that nearly one-third of survey participants listed “the inability to customise their trips the way they want” as a major concern when using travel consultants.
The research also showed that 28% of travellers felt that using a travel agent meant they would be sold a package that wasn’t unique or tailored to them. That sentiment also covers the 26% of specifically Millennial travellers who didn’t want to have an overly “touristy” trip by hiring a “middle person”.
Customisation and personalisation are key drivers of modern customer satisfaction. This aspect of consumer behaviour was covered on multiple panels during WiT Singapore 2022, which you can watch in its entirety here.
That’s not to say travel agents are outdated – quite the opposite, actually. In recent years, the industry has changed their term to “travel advisor”, and they’ve become extremely popular in the last year or so.
According to The New York Times, “many travel agents are seeing an unprecedented surge of business, as Covid-19 has given them a new relevancy, thanks largely to constantly changing rules and restrictions that travelers must navigate.”
According to James Ferrara, the president of InteleTravel, “Our overall business is up 35 percent, not from 2020, which was an aberration, but from 2019, which was the highest year we’d ever had.”
Travel agents learned to adapt to new consumer demands and gaps in the market. Similarly, Online Travel Agencies and major bookings platforms have also identified an increasing demand for customisation in the post-pandemic landscape.
Traveloka, a travel-tech company with a strong foothold in Indonesia, Malaysia, Singapore, Thailand, Vietnam and the Philippines, recently unveiled its new tagline to reflect the new era of travel – “life, your way”.
It’s simple, it’s memorable, and it is built almost completely on the idea of trip personalisation.
This shift in marketing and branding comes on the heels of Traveloka’s own data revealing that a jump in the number of bookings for both domestic and international travel were observed by the end of the third quarter of 2022. There has been more than five times increase in travel bookings for international destinations, and more than 30% uplift in bookings for domestic destinations. Overall flight bookings jumped four-fold, when compared to the year before.
We contacted Shirley Lesmana, Chief Marketing Officer, Traveloka to get a glimpse of their data regarding shifting consumer demands. “We are observing a change in traveler preferences, with consumers taking more ownership of their choices and wanting to tailor their travel experiences to their values – no matter if they prioritize sustainable travel, wellness, or sports tourism, for example”, she said.
Shirley added that, “Although this group of travelers would like to take control of their journeys — from planning to booking experiences — the process can be challenging, particularly given the constantly shifting regulatory environment.”
Obviously, much like the travel agents of old, consumer behaviour isn’t a one-size-fits-all concept either. As proven by the previously mentioned piece in The New York Times, travel agents are booming in some regions while in others, not so much. Same is the case for the demand for personalisation – some require it more than others.
According to Shirley, “Traveloka’s core focus is on Southeast Asia – it’s our specialism where we are Southeast Asia’s leading travel platform. We are focused on the burgeoning middle and affluent classes which make up a large segment of the digitally engaged population. Of course, beyond this – our audience is anyone with a strong desire to explore the world and enjoy experiences.”
With 2023 just around the bend, and with more markets opening up, key players will have to pay close attention to what travellers want and need from their travel experiences. On the same wavelength as personalisation is collaboration within the travel space – which could, in turn, help in offering more fine-tuned solutions on any given platform.
Shirley Lesmana agrees.
“Looking ahead to 2023, and the future of the travel industry, we believe collaboration with partners Is key to bringing new experiences to consumers and we’re looking forward to collaborating both in and outside of our ecosystem to do this.”
