What drives travelers to click and book a flight?
The balance between product, service and convenience is different for each traveler and impacts the price each traveler is willing to pay for a flight. A new study published by Amadeus analyzes these components and the latest trends. Among other things, a striking finding: only 24% of travelers prioritize the lowest price.
The report notes that traveler preferences are best understood using a product/service/convenience» model that provides airlines with an action plan to better communicate their offering and ensure traveler loyalty.“Embracing airline digital transformation: a spotlight on what travelers value” (The digital transformation in the airline industry: what travelers value), sheds light on the motivation behind booking a flight.
Today, retailers in a variety of industries have reinvented the customer experience. However, the challenge often lies in finding out what customers really value when making such an important purchase.
This report, which focuses specifically on the retail industry, explores new ways to collect customer data and combine it with economic-behavioral analytics, artificial intelligence (AI) and contextual commerce to better answer this question.
The report discusses a product/service/convenience model for airlines to market their products in a more intuitive way and take advantage of all opportunities. But this is not a universal approach for all travelers.
As part of the survey conducted for the report, 56% of travelers said the total package was most important to them, while only 24% prioritized the lowest price.
The study, commissioned by Amadeusand Connections, an international networking and events organizer, is based on interviews with airlines, travel agencies and technology experts, as well as an independent survey of travelers focused on the aspects they value most when booking a flight.
The report identifies a number of changes taking place as the digital environment becomes a catalyst for the airline industry:
• Economy class is evolving: competition has changed economy travel. Airlines are responding to this trend by using data to drive sales of products associated with the Basic fare. American Airlines recently introduced its Basic Economy fare and British Airways incorporated Marks & Spencer's menus on its short-haul flights.
• The promise of artificial intelligence (AI): AI-driven chatbots will transform the industry dramatically. Advice based on this technology will offer a more personalized experience to those travelers who want it.
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Reinventing loyalty: The increase in supply in digital channels poses a challenge for loyalty. Today, the industry is trying to capture traveler loyalty through spend-based programs, retailer partnerships and loyalty point bundling, so travelers can now redeem their points much more easily.
“There are now new approaches to understanding and defining what customers really value when they travel. The ability of new technologies to collect customer data will help airlines to translate their offering in a way that ensures revenue and loyalty," says Elena Aacute'vila, head of Airline Strategy at Amadeus.