Personalization

Personalization: work of genius or an unwanted affront to personal privacy

Sep 18, 2019 / Guest Experience
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For laser-targeted, highly personalized marketing campaigns, a fine line of demarcation exists between being considered a work of genius or an unwanted affront to personal privacy.

A recent Phocuswright travel research article, Offer Personalization: What Variables Set the Context, found that that line is independently drawn by each individual, and not controlled by the marketer. Intangible (or extremely difficult to measure) factors such as brand perceptions come into play.

For the same hypothetical personalization-related transgression, a given consumer that scored two brands similarly from a Net Promoter Score perspective could just as easily turn into a staunch brand defender for the first brand, while advocating for boycotts of the second, based on that individual's perceived relationship with the respective brand at any given instant.

Context is everything when it comes to personalization. However, without quality data, reliable system integration and relevant, creative messaging, the prospect of understanding and effectively communicating within a contextual construct is considerably more challenging.

Market Data

Segments benefit from shift in travel trends

Sep 18, 2019 / Luxury Travel
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Although a smaller share of Americans traveled for leisure in 2018 compared to the previous year, some travel segments clearly benefited from a shift in travel trends.

A component of the U.S. Consumer Travel Report 2019 series, this Phocuswright travel research report, Travel Product Consumption, examines the popularity of major travel products, with a focus on air, car, hotel, private accommodation, and in-destination activities.

From 2016-2018, luxury hotels were big winners, as the overall usage incidence for luxury hotels nearly doubled, pushed by younger travelers (18-34 years old) who stayed in five-star hotels. Overall, hotel bookers spent more than they did the past two years. Younger travelers also embraced private accommodations, indicating that Gen Z may be looking to rentals more so than millennials did at the same age.

Business Travel

Policies of travel buyers lagging changes in industry

Sep 18, 2019 / GBTA
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Travel buyers in the U.S are adapting to changes in the business traveler population, according to a recent Global Business Travel Association-Cvent study, although they may need to change faster.

Those trends include the changing demands of the growing number of millennial travelers, new technology as well as traveler safety, but in those areas, policy changes are lagging.

According to the research, one in four travel buyers say more than 40 percent of their traveling workforce is now made up of millennials. More than half of the buyers, 54 percent, say millennials tend to push the boundaries of corporate travel policy and 73 percent say millennials demand different, more consumer-like tools out of their company’s travel program.

However, only one in five travel buyers says they have changed their travel policy as per the increasing millennial workforce demand.

Distribution

Greek hoteliers at odds with Booking.com over commission policy

Sep 18, 2019 / Booking.com
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Hoteliers in Greece are expressing their discontent over a policy applied by online booking agents, including Booking.com, to collect commission based on total room price VAT included.

Representing the country’s hotel industry, the Hellenic Federation of Hoteliers (POX) has brought it to the attention of the tourism and economy ministries and has called for action claiming the policy is impacting the industry.

More specifically, POX is requesting that online booking platforms calculate their commission based on the net room rate charged by the proprietor and not with VAT included.

Speaking to the Greek media, POX President Grigoris Tasios has described Booking.com’s policy – charging a 15-25 percent commission on the total room rate, tax included, and not on the net price – as unacceptable and unfair, and at the expense of hotel operations. According to Tasios, booking platforms end up collecting in the long term 3 to 5 percent of total business profits.

Digital Marketing

Facebook continues to be hotel marketers’ most effective targeting tool

Sep 18, 2019 / Facebook
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For hotel marketers, Facebook continues to be the most effective advertising platform for targeting new audiences and driving brand awareness.

Across all six hotel segments, Facebook ads were the most popular social channel last year, per Sojern. In another poll on the digital channels that travel marketers worldwide believe work best for branding and direct-response advertising, 69% of respondents said they use Facebook and Instagram for branding, and 58% said they use these platforms for direct-response ads.

Facebook was most effective for 29% of independent properties at driving reach and brand awareness, vs. 25% of international luxury hotel chains.