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Travel industry fails to earn customer loyalty
The travel industry has less consumer loyalty than any other sector, according to new research by strategic marketing and advertising agency FKC.
The research, which spanned 18 major sectors including food and drink, fashion, retail, beauty and motoring, found airlines ranked the worst for loyalty.
Some 42% of consumers said they weren’t loyal to any airline while 40% of consumers said they weren’t loyal to a particular hotel. When asked about tour operators, 39% said they didn’t have a favourite while 37% didn’t have a preferred destination.
Customers said the amount of competition and infrequent or irrelevant communication from brands was the reason for their lack of loyalty.
Consumers said they often felt confused by adverts.
TUI was the favourite travel company, but it was placed only 67th in the league table of preferred brands, which was topped by Amazon. The online retailer gained 5.5% of the votes.
In terms of enhancing customer communication, terrestrial and broadband TV comes out trumps as the most trusted and credible channel for fostering consumer interest and loyalty, with 22% voting it the most powerful source of brand engagement.
The findings revealed that consumers are more likely to shop with brands that provide them with relevant offers and recommendations but 74% of consumers said they often felt confused by adverts.
FKC chairman Stephen Fox said: "Our research has shown that the heady, halcyon days of unquestioning consumer loyalty are long gone. The sea of consumer choice has diluted customer commitment to brands – even to companies like Amazon.
"The research validates that we find it easier to be loyal to brands that we either use or connect with every day, so the big challenge is how can those in the longer-term purchase category like tour operators and car brands increase loyalty when they are not always on our minds.
"Key to their success is providing a service and experience that becomes part of our everyday lives."
Market sectors consumer say they aren’t loyal to:
1 Airlines (42%)
2 Hotels (40%)
3 Tour operators (39%)
4 Travel destinations (37%)
5 Dept stores(33%)
6 High street restaurants (32%)
7 Car brands (32%)
8 Health supplements (31%)
9 Shopping centres (30%)
10 Online retailers (30%)
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Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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