Marketing Strategies For Travel Business 2016
Travel is big business, and there is a huge market out there for the right vacation retailers. 2.7% of the nation’s GDP is directly attributed to tourism spending, and an estimated 2.2 billion trips were taken by US citizens in 2015. Over three-quarters of those trips were for leisure purposes, with ‘visiting friends and relatives’ cited as the main reason for travel. In the previous decade, travel has grown year upon year at an average rate of 3.1% and experts predict that over the next ten years, this rate will increase to around 4% each year. Almost three-quarters of people say they will make at least one trip for leisure purposes this year.
Who is the main travel market, and where are they going to?
Only one in every five US citizens travels overseas regularly, and just 36% of the whole nation holds a valid passport. Domestic travel is extremely popular thanks to America’s vastly different climates and cultures across the 50 states, and a huge 82% of us will stay within the country for our main vacation this year. Top destination picks for 2016 include Miami, Chicago, Denver and Orlando. SkyScanner reports that these cities have seen a popularity jump of more than 20% over the course of 2016.
The average family vacation – two adults and two children for one week – cost over $4500. While the luxury travel sector has grown in recent years, budget travel is still high on many people’s agenda when it comes to planning a trip. Those aged 18-45 are most likely to travel more than once this year, with reasons ranging from business to visiting family and studying. Younger travelers are also slightly less likely than any other generation to choose overseas vacations, favoring road trips and domestic flights instead. Older travelers have typically been to more countries on average and are the biggest market by a long way for cruises and similar trips.
Comparisons, discounts and deals for budget-friendly travel
Studies show that younger travelers are more likely to seek a great deal on their next trip and will check an average of ten sources to compare travel prices. They will often book transport and accommodation separately. Meanwhile, older generations spend more when they travel but do so with less frequency, and tend towards luxury trips such as cruises, and all-inclusive resort packages.
Over three-quarters of Generation Y participates in retail loyalty schemes and other membership programs in order to obtain discounts. Of America’s 127.5 million coupon users, these young buyers are the largest group. Almost half of people in this age range have used digital coupons. When it comes to travel, picking up a bargain is important to this fast-growing market. Travel marketers and sales companies who have discount coupons available are sure to see a rise in bookings. We host these discounts and can be a crucial part of the travel sales funnel.
Marketing to travel buyers through digital sources
Traditional travel advertising is still common, with agents using television, magazine space and radio campaigns to highlight travel services and upsell destinations. However, the shift toward technology has opened a new kind of market interaction and forced travel retailers to adopt a range of different advertising strategies. Email marketing is proven to work well for travel sales, provoking an average 20% open rate and a 2.3% click through rate – higher than most retail sectors.
87% of Millennials use social media platforms such as Facebook, Twitter, Instagram and Pinterest to seek out inspiration for travel. Travel retailers can seize on this digital market and reach out to their client base in a whole new way. Visual marketing is very important in the travel sales industry. Brands such as Airbnb and TripAdvisor have seen huge gains since embracing visual content strategies, increasing domain referrals and boosting social shares to viral levels.
Social networking also creates a more personal atmosphere in which to sell travel. Across all retail industries, two-thirds of consumers say bad service is enough to turn them away from a brand permanently. Social media can give travel companies a chance to shine when it comes to customer service. If agents and travel companies can provide real-time solutions to travelers’ queries, they have a far greater chance of securing a booking. “Vacation time is valuable to people and they want assurance their trip will be perfect,” said online travel agent Mary Douglas. “We can use our skills and expertise to pitch ideal destinations and trip types in response to followers’ posts.”
It seems likely that travel retail marketing will have to adapt and change as technology advances, and we could see a very different kind of travel advertising by 2017. Virtual reality tours, personalized booking apps and drone footage are just some of the travel sales trends experts are predicting for next year!