By Julie Hoffman, Global Director of Industry Strategy for Travel, Hospitality & Dining
The past three years have brought unforeseen challenges to the travel industry and accelerated the need for simplification.
More than ever, today's businesses face pressure to evolve rapidly, meeting not only their customers' demands but also the emerging technological landscape.
5 challenges companies face in retaining loyalty:
- Competition to retain loyalty.
- Rapid changes in the market.
- Ascension of service and support during the session.
- Scaling Personalization Through Maturity.
- Massive staff shortages.
Today, it's not just about delivering, but how quickly you can do it. Digital and physical experiences must be fast, seamless, and aligned.
Through our research, we uncover the evolution of consumer behavior and answer the questions:
– How many chances do we have before losing a customer?
– What drives loyalty in today’s world?
Major conclusions:
Digital-first brands are leaders in personalization maturity. Online travel agencies (OTAs) are currently setting the pace in the early stages of the consumer journey.
Three findings worth highlighting:
- Loyalty is hard to earn but easy to lose.
- Consumers buy experiences, not products.
- Speed, convenience, and relevance are now more important than cost savings.
We've found that a delay of even 1,000 milliseconds can turn customers away when their expectations aren't met.
It's critical for brands to optimize their digital platforms. They must offer an integrated journey, combining digital and physical experiences to provide a truly personalized touch.
AI has reached the critical point of disruption. Especially in industries like travel, brands that leverage personalization through automation are seeing substantial returns.
We have witnessed an acceleration of digital progress, operating at speeds 20 to 25 times faster than previously anticipated.
In this new era, speed and convenience form the backbone of loyalty.
Implications for marketers
Consumers want a brand that sees them. Satisfying this need for connection can strengthen loyalty. Integrating online and offline experiences is a must.
Businesses have the opportunity to use data from past interactions to improve future engagements.
Recognition, recognition, and awareness are essential for the hospitality industry and can significantly improve relationships with consumers.
Understanding and adapting to this knowledge doesn't just mean keeping pace, it means moving forward.