The personalisation of online travel services for consumers is now of particular importance for providers and increasingly so, according to a new report.
GlobalData’s Online Travel details that the leading companies in travel and tourism are those that have embraced digitalisation and personalisation as a means of maintaining a competitive edge. It explains that personalisation has become of increasing importance as consumers seek tailored content that fits their preferences. Such is the value of personalisation to consumers that the report states: “Loyalty to a particular brand is being replaced by travellers’ loyalty to their preferences.”
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The report gives the example of Airbnb, whose search algorithms take into account factors including the user’s location, search history and preferences to provide customised search results. “This personalised approach helps travellers find accommodations that meet their specific needs and preferences, leading to higher customer satisfaction,” it explains.
As this indicates, the fundamental reason for consumers prioritising personalisation is the increased ease with which it makes planning and booking more holidays more tailored to their desires. The extent to which this is possible has been rapidly increased by the advent of online travel platform, the proliferation of data and, latterly, the emergence of artificial intelligence (AI).
“Technology has also propelled the use of data in online travel,” the report explains. “One of the advantages of the digital space is the abundance of customer data that companies can gather. Big data has revolutionised online travel marketing by providing insights that allow businesses to target consumers in more personalised and effective ways. Moving forward, the shift from mass marketing to one-on-one personalised marketing will continue.
“AI will play a critical role in helping companies utilise this vast amount of data to provide customised travel experiences. In the travel industry, AI will serve as a valuable tool for offering automated, personalised recommendations. It will help businesses understand customer behaviour, preferences and interests, further enhancing the personalised experiences they deliver to consumers.”
The report states that, when done right, personalisation can reduce marketing and sales costs, drive higher customer satisfaction rates, generate customer engagement and increase loyalty among customers. It hints, however, at the need for continued innovation within personalisation.
“With an expanding list of direct and indirect competitors, online travel players need to differentiate offerings by delivering truly personalised, tailored experiences that today’s consumers expect as standard,” it says. “For instance, ecommerce websites may offer personalised content and offerings based on location, age, gender, income, etc. This type of personalisation builds rules for general personas based on what they already know about their customers.”
