True success in the future of travel will be all about personalization and the impact will be greatest in the travel industry marketing videos. This according to Johannes Reck, CEO of GetYourGuide, a fast-growing platform for online research and booking of tourism experiences around the world.
This is confirmed by trends on the horizon and by some of the most recent data:
- 57% of tourists believe that brands should personalize their experience of shopping based on their personal preferences, behaviors and previous choices (source: Think with Google).
- 83% of customers expect relevant information and recommended products based on their personal preferences (source: Sabre Personalization Report).
- 36% of users are more likely to pay a higher price for travel experiences based on their own behavior profiles (source: Think with Google).
- As many as 96% of marketers in the sector believe that personalization improves customer relations; 88% of marketers have also noticed an improvement in their companies’ business thanks to these customer-oriented actions (source: Evergage).
The data speaks for itself.
The travel industry has faced an unprecedented phase of change, a radical revolution that has developed over a short period of time, in the wake of digital transformation (learn more about the impact of digital transformation on the travel and tourism sector).
The volume of tourists in the world has been steadily increasing over the last decade. In 1990, this number was 400 million, compared to 1.4 billion in 2017, according to the latest data from the United Nations World Tourism Organization (UNWTO), representing an annual increase of 7%. Ninja Marketing determined that the annual expenditure for tourism flows in Europe alone will be around €532 billion by 2027, compared to about €450 billion in 2017. This number is even larger if we count Asia. If we then turn to the Asian continent the same dynamic is multiplied.
For this industry, there is no hint of a slow down.
At the same time, the struggle for attention has become much more difficult and complex than in the past: the playing field has expanded dramatically, there are an endless number of players, and the level and speed of innovation make it difficult to keep up.
So, how can companies in the industry stand out? How can you attract the attention of the right user at the right time? How can you address him in the most effective way and establishing a relationship that leads to loyalty?
The answers to these questions are all in personalization, one of the oldest and most effective mechanisms of trade and communication, which is now back in the limelight thanks to new technologies, and customer-oriented services that companies like Doxee provide to operators in the tourism industry.
In the meantime, let’s consider data from research by Evergage: only 31% of marketers believe that the Travel & Tourism industry has reached a satisfactory level of implementation of personalization mechanisms. This shows that there is still a long way to go, and many opportunities are still to be seized.
When it comes to communicating with people, there is no tool more powerful than video
It is essential to embrace a customer-oriented approach. Companies need to learn how to address individuals, taking into account their unique and individual characteristics. Today’s customers expect this, as shown by the data.
And they expect the dialogue to be as one-to-one as possible. Let’s look at the figures:
- 55% of people pay more attention to videos than any other type of content (source: OmniKick).
- When viewing a video, the average user retains 95% of the message contained in it; if we talk about text messages, this drops to 10% (source: Wirebuzz).
- Over a billion hours of video are watched every day on Youtube.
- 78% of online users watch at least one video every week. And 55% watch one every day (source: HubSpot).
- Around 100 million hours of video are watched every day on Facebook (source: TechCrunch).
- 82% of Twitter subscribers consistently consume video content (source: Twitter).
- When Instagram launched its video sharing feature in 2013, there were 5 million uploads in 24 hours (source). At that time there were about 100 million active users in the world: today there are about 1 billion (source). Incidentally, Instagram is the social network that records the largest increase in subscribers; its success, not by chance, is based on the strength of images and, indeed, videos.
- By 2020, video will account for more than 80% of total online traffic (source: Cisco).
There’s no doubt that travel industry marketing videos will be an important tool for the sector (source):
- 66% of people watch videos when they think they’re going on a trip
- 52% watch videos to get inspired about the type of trip to take.
- 65% watch videos to choose a destination.
- 54% watch videos to decide which accommodation to book.
- 63% of travellers watch videos while they are already at their destination, looking for ideas for activities and experiences
Of course, the problem of attention remains open. That is: how to make your voice heard in the midst of this daily crowd of views? How to get to the right people, in the right way, at the right time?
The answer, in fact, is that of personalized videos, defined by Forbes as “the definitive turning point in marketing that brands need,” all the more so in a sector that is shifting its center of gravity more and more moving toward the world of custom-made experiences.
Flight companies such as Delta Airlines, Iberia, and also the Mexican low-cost airline Volaris have created effective campaigns using personalized videos. So have important players in the Hospitality sector, such as the luxury hotel chain Fairmont Raffles Hotel International.
Club Family Hotel – an Italian success case
Another is the Italian chain Club Family Hotel, who have developed personalized travel industry marketing videos for families, with impressive results
Club Family Hotel is an important Italian hotel chain whose target audience is families with children.
With the support of Doxee Pvideo® service, the brand has created a personalized email campaign based on engaging, interactive videos tailored to each individual recipient according to their needs, characteristics and past behaviors.
If, for example, the potential customer’s family has a one-year-old child, the video shows services suitable for that age group (for example, the nursery area or the babysitting service). A family with teenage children, on the other hand, will receive a different video, for example focusing on sports activities.
Within these personalized videos, there is the possibility of inserting a customized call to action, by referring directly to the booking page, or to offer up-selling and cross-selling opportunities.
The results?
A 5% increase in the conversion rate; and a click-through rate that saw an 81% surge.
According to the most reliable data, the average conversion rate in travel industry marketing video campaigns is around 1.6%. Top performers reach 2.6%.
To see how impressive these results are, just compare this media with the data from the Club Family Hotel campaign in collaboration with Doxee.
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