Beyond cheap prices - the new era of travel planning

January 12, 2003 |

The future of online travel belongs to those who can truly offer knowledge-powered, scalable customer service, tailored to the lifestyle and preferences of each consumer.

by Rob Roberts

Online travelers today are faced with an overwhelming number of options and it is no wonder that customer loyalty simply does not exist in the online travel-planning arena. The sheer number of travel sites alone is mind-boggling and more often than not, consumers simply surf the various options until they find the best possible price.

According to a September report by Nielsen/NetRatings, over 25 percent of American Airlines’ online users (AA.com) visited Continental.com and about 20 percent also checked out Delta.com. The trend also continues within the large general travel sites as well, as more than 30 percent of Expedia’s visitors dropped by to see what Travelocity.com had to offer.

However, it’s not only the numerous travel sites that present the challenge in creating customer loyalty. The number of options available at travel sites also presents a huge challenge. A quick vacation package search on Expedia yields over 621 options, a simple hotel search on Hotels.com produces more than 120 hotel listings and a cruise search on Cruise411.com returns over 300 cruises.

While it is important to offer a variety of choices and options, it is this resource over-saturation that is a significant deterrent to customer retention and loyalty. One can’t help but ask why all of the leading travel sites ended up with so much information but very little differentiation. Rather than dropping anchor and closely examining the true need of the customer, these online sites continue to set sail in a sea of options without any personalized service.

In the new era of online travel planning, consumers demand personalized service that extends far beyond bargain prices. The real value is delivered through impeccable, personalized customer support available 24/7 – spanning over all aspects of travel – from selecting a desired destination, to finding attractions, to choosing the right product for each customer’s unique set of needs and priorities.

The future of online travel belongs to those who can truly offer knowledge-powered, scalable customer service, tailored to the lifestyle and preferences of each consumer.

In this age of information overload, consumers are looking for reliable knowledge to help them make decisions easier, faster. Although price is still the most popular differentiator, consumers are closely examining reliability, performance and delivery when making their purchasing decisions.

It is no secret that consumers use multiple information channels to make decisions – looking for the best available options at the best available prices. Online and offline, travel suppliers need to combine both great offers at great prices, to instill purchasing confidence and build loyalty and brand allegiance for the long run. But providing cheap prices is simply not enough any more. Travelers need to be reassured that the location and hotel they choose will cater to their unique needs, that they will enjoy the local attractions and that every member of the traveling party will be happy – not an easy task when traveling with a large family, or a group of friends.

Short-lived marketing and product bundling gimmicks such as today’s dynamic packaging approaches only add to the differentiation and price problem. Opaquely bundling travel product components, such as hotel, car, air and local attractions, creates a stronger urge to price-check the components – and when the sum of the parts is not greater than the package, the result is a defected, disenchanted customer.

Despite the online travel leaders’ problems, most consumers remain enchanted and willing to give the Web a second chance. Reluctantly, consumers still find ways around the mounds of static travel guides, irrelevant product offers and intrusive advertising to make intelligent travel decisions. Despite the hardship, six out of every 10 households use the Web to research and plan travel. And by 2005, it is expected that the Web will influence close to 50% of all purchases – on- and offline.

However, despite this continued use of online travel channels, the top guns of the travel industry are leaving it up to the individual consumer to wander aimlessly through various travel products. The simple searches and categorizations these travel options provide simply don’t provide consumers with enough information to make confident, intelligent choices – and consumers are demanding a more personalized approach.

Complex product categories such as travel, real estate, or financial services have traditionally been governed by the expertise supplied by professionals in the field. Seasoned travel agents, real estate agents and savvy financial planners have built a wealth of knowledge and have made their living by passing that information on to the end consumer. As more and more consumers turn to the Web for the bulk of their information gathering, they are looking to be fed the same knowledge once provided only by professionals.

Intelligent technologies, which can replicate the deep and complex expertise of industry experts, will be the driving force of success for both traditional and pure-play travel businesses. Intelligent decision-support technologies, incorporating the knowledge from proven travel experts, will provide not only the quality service that today’s travelers expect, but will also provide the support that travel agents need to keep up with new products and offers, while delivering outstanding services with every customer interaction.

Automated advice solutions, also known as recommendation engine technologies, are the true future of travel planning. They are the “super agents�? of tomorrow, who never tire and are fully dedicated to the unique needs of each customer – instantly.

Only expert-powered, scalable support powered by recommendation engines, prioritizing complex products and content to provide relevant options to the traveler, can provide the necessary quality of service required to build and sustain customer trust.

Knowledge-based recommendation engines are without a doubt the foundation of true interactive branding - the most important brand pillar fostering trust, confidence and loyalty.

Rob Roberts is the founder and CEO of VacationCoach, Inc., a provider of profiling and automated advice solutions for the travel industry. Rob can be reached via email at .