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Agents must match social networks with independent web content
Monday, 26 Feb, 2010
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The internet has seen a massive increase in use by the consumer for holiday choice and bookings, according to the results of a major consumer poll.
All 15,000 people questioned in the British Travel Awards poll said they used the internet for one or more component of their holiday for a variety of reasons, including price comparison and destination research.
Three quarters of people checked consumer feedback on the internet, including social networking sites, to check out one or more of the components of their holiday.
“Holidaymakers are expected to spend more on their holidays in 2010 but there is less regard as to who is providing the product,” said BTA chief executive Lorraine Barnes Burton.
“Price is an important factor but it is the extra information and knowledge about their holiday choice that is encouraging the consumer to make their final decision and feel confident that their holiday budget is money well spent.
“In order to compete with internet retailers, agents need to expand their own websites to include independent content that will satisfy their customers with constructive reviews.
“They need to embrace the internet – writing blogs and interacting fully with FaceBook, Twitter, and other sites – keeping them up to date to hopefully attract business.”
Holidays are considered an essential element in work-life balance, according to the study.
The survey for last year’s British Travel Awards found that people will adapt their requirements or reduce spending in other areas rather than forego their holidays.
“The 2009 BTA survey was conducted when the stranglehold of the recession was being felt by even the most prolific holiday-spending groups, but having perhaps tightened their belts for the 2009 holiday season and erring on the side of caution in the face of possible financial constraints, it would appear that for 2010 the holiday will not be sacrificed, as 27% said they would reduce costs elsewhere rather than forego their main annual holiday and just 7% said they would not travel at all if budgets are too tight,” said Barns Burton.
Survey questions were asked about currency and foreign exchange.
The Post Office was shown to be the preferred provider of forex at 26% although its share was reduced by three per cent on 2008.
The biggest growth, from 18% to 24%, was currency exchange with high street travel agencies – if they can offer the best rate, a commission free deal or other incentive.
Cash remains the most popular form of foreign currency at 58% followed by credit/debit cards (31%). Both were marginal increases on 2008 at the expense of travellers’ cheques, down by two per cent.
Barnes Barton said: “Currency is historically purchased just prior to the holiday so timely contact with customers is a good way to re-connect with them, offer them a deal on currency and build the all important customer relations and at the same time earn some extra revenue.”
Another lost opportunity for agents is seen with the booking of excursions, attraction tickets and sightseeing tours with only 15% booking before departure and a massive 66% booking at the destination.
“There is a significant opportunity here for travel companies to pick up some of the holidaymakers’ spending money before they get to their resort,” said Barnes Burton
“It’s all about providing the customer with that vital information and increasing the rich content on those all important websites so they don’t need to check elsewhere.”
Cruise continues to gain in popularity, as the sector becomes less specialist and niche. Cruising is considered as a real alternative to the traditional package holiday.
Value for money relating to cruise holidays was up by more than two per cent on 2008 and fewer people considered cruising as a luxury holiday for adults only.
A quarter of respondents considered cruise holidays as a great way to discover new destinations without the inconvenience of packing/repacking.
But straightforward flight/hotel summer beach holidays took a hit with 12% of consumers saying they will consider all-inclusive holidays in 2010.
Thirty eight per cent of respondents claim they will spend more than £1,000 as a family on holiday – up from 31% last year.
One casualty of the recession appears to be the winter, possibly ski, holiday with this being forfeited in favour of keeping the annual summer break.
Only three per cent said they were prepared to shorten their main annual holiday in 2010. Taking short breaks as well as the main annual holiday was up by three per cent.
UK/Domestic holidays are up by five per cent against a slight drop for long haul destinations.
There has been a small increase in sensitivity to price but far less than expected.
Thirty six per cent of families who have determined that they will take an annual main holiday in 2010 say they will book early enough to secure their preferred dates and destinations. This would indicate that less families will book late – although a significant 22% said they will wait and see what’s available come the summer.
Ms Barnes Burton said: “Two opposing motivations appear to be at work here – the emotional desire to get the holiday that meets the needs, versus the materialistic and historical urge to get the best value for money under the perception that this is greatest under a late booking – companies may do well to heighten awareness of reduced capacities – particularly for the non-eurozone destinations in order to lessen disappointment for the late-bookers and increase booking figures before the summer.”
by Phil Davies
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