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Holiday spend to be slashed “by as much as 50%†this year
Thursday, 08 Feb, 2010
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One in four people are looking to spend less on their holidays by as much as 50% this year.
And almost half of people (48%) are more likely to shop online to capture the best deals to save money, according to a new study.
The majority (87%) of the 2,028 consumers surveyed in the first week in January had held off from booking holidays during the Christmas period when travel companies traditionally start advertising early booking discounts.
The online travel sector has witnessed the biggest growth in bookings across the retail sector, according to a recent survey conducted by eDigitalResearch.
It found that 12% more people booking travel products online this year than last.
With more people moving online, customer expectations are growing as a result of the increased convenience and control that the online space affords them, the research company claimed.
The e-Customer Service Index (eCSI) survey was conducted by Interactive Media In Retail Group (IMRG) and eDigitalResearch
IMRG operations director David Smith said: “This marks a shift in consumer purchasing behaviour as more people are swayed by better holiday deals online and are less likely to plan so far in advance.
“With retailers announcing bumper sales figures over the festive season, it is clear that people preferred to spend their money on instant gratification, as opposed to planning their sunny getaways.
“With another tough year ahead for travel, it is important that companies capture the growing online bookings market with better deals and a better user experience.”
The poll also highlights that such growing online expectations have partly contributed to a drop of one per cent in overall customer satisfaction across the entire retail sector.
Many people who have gone online have been frustrated by poor telephone and email support, with customer service contact dropping by two per cent since last October.
Chris Russell, eDigitalResearch co-founder and director, said: “One of the biggest reasons for a drop in satisfaction is the inability to deal or resolve customer queries quickly.
“Call volumes are generally higher during the January sales and adverse weather conditions have further compounded this with more people questioning delivery times and dates.
“To reduce pressure on busy call centres, companies need to address the online self-help function so that customers can answer their questions quickly, without the need to pick up the phone.
“With more people hunting for better deals online with less disposable income, companies need to concentrate on ensuring that the customer journey is seamless from the homepage to the purchase and delivery.
“While they may be investing more of their marketing budgets online, it is important to look beyond the wow factor and balance clear engaging content with good customer service support.”
by Phil Davies
Phil Davies
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