11/26/2024 | News release | Distributed by Public on 11/26/2024 09:43
Value-driven experiences and exceptional service are defining how people travel, according to findings from dentsu's latest consumer sentiment report, Read the Room. While personal finances are a concern for many in today's broader economic climate, the desire for memorable travel experiences is undiminished. UK travellers are seeking seamless, high-quality experiences that balance value with personalisation.
The increasing expectation amongst customers for curated, convenient, and authentic experiences presents a significant opportunity for travel brands to adapt and thrive - and CMOs are on board with opportunity, as 79% agree that brands today are built through experience.
The demand for value-driven travel experiences
Customer satisfaction and advocacy have been ranked as critical growth drivers by CMOs (2024 dentsu Global CMO Navigator Report: CX edition), and it's clear that brands using data and technology to craft personalised, stress-free experiences will be those leading the way in today's competitive travel market. It's no longer just about the destination; it's about creating an unforgettable experience from start to finish.
According to Read the Room findings, personal finances are still a key consideration, but it's not what's holding consumers back from travelling. Instead, today's travel customers are looking for high-quality, thoughtfully curated trips that provide convenience, flexibility and authenticity.
Instead of compromising on quality or skipping travelling altogether, 'buy now, pay later' providers such as Klarna, PayPal Credit and Afterpay have grown drastically in popularity, as they have revolutionised people's ability to pay for expensive trips in manageable amounts.
Particularly appealing to younger demographics, the British Airways 2024 Travel Trends Report revealed that 69% of 25-44-year-olds would be interested in paying for a holiday in interest-free instalments if it meant they wouldn't have to give up a luxurious experience.
Customer loyalty programmes: a crucial component of the travel experience
Loyalty programmes remain a cornerstone for driving customer retention and value-driven experiences. As highlighted in Read the Room, travel rewards schemes incentivise repeat bookings by offering points, discounts, and exclusive perks that resonate with consumers. British Airways' (BA) Executive Club, for example, allows members to collect Avios points when they book with BA or spend with their partners (including American Express, HSBC, Uber, BP and more). Those with an Executive Club membership can use their points as a 'reward currency' to book flights, cabin upgrades, hotels and other travel experiences.
From personal offers to exclusive access and other tiered incentives, loyalty programmes help travel brands to build long-term relationships with their customers, whilst catering to their need for tailored and exclusive experiences. To see how Merkle, dentsu's customer experience agency, helps clients to boost their loyalty and engagement offerings, find out more here.
Travelling trends on TikTok
For younger audiences, image and video based social media platforms (TikTok, YouTube and Instagram) are redefining how they search for value-driven experiences. Offering a fresh and immersive approach to trip planning, research from Adobe found that nearly 1 in 10 Gen Zers are more likely to rely on TikTok than Google as a search engine. Google itself has also shared that now almost 40% of young people are using TikTok or Instagram for search instead of Google.
With 60% of consumers conducting extensive research before making purchases, including travel planning (Read the Room), it's now imperative for travel brands wanting to capture the attention of this demographic to be on social media platforms. Providing an endless stream of personal recommendations, travel trends, and authentic reviews, these platforms offer consumers a more transparent perspective on travelling.
As Read the Room highlights, "creative, shareable short-form videos have become a powerful tool to capture the attention of Gen Z". Whether through user-generated content (UGC), influencer collaborations, trending audios or challenges, brands can promote value-driven experiences and transform younger audiences from passive consumers into active participants in their brand narratives. For these younger consumers, although they have the least disposable income, it really is all about the experience.
Looking ahead: What should travel brands prioritise in 2025?
As the travel landscape continues to evolve, brands must remain attuned to these shifting travel trends. To stay competitive, businesses need to focus on delivering value-driven travel experiences that resonate emotionally with their customers. Offering high-quality, seamless and memorable moments will be key to attracting and retaining travellers in 2025.
Dentsu is supporting its clients to innovate to impact through outcomes that achieve three-way good for business, people, and society - our Sanpo Yoshi philosophy.
If your brand needs help with creating a long-term strategy to connect with your customers, get in touch.
Download the full Read the Room report here, to learn more about the importance of prioritising value-driven and personal experiences.