A Trip To The Travel + Tourism Industry
At Setup, we regularly interview marketing leaders from different industries ranging from Packaging and Manufacturing to Entertainment and Sports. Having periodic conversations with marketing leaders not only helps us keep a pulse on every industry, but reveals common trends and challenges that all marketers are facing.
In our latest feature exploring the Travel and Tourism industry, Kelly Chartré, the VP of Marketing at Fox World Travel, and Martin Stoll, the CEO of Sparkloft Media share their observations and insights.
1. What innovative changes are happening in the Travel and Tourism space? What changes made are going to remain permanent moving forward?
TLDR: Both Chartré and Stoll noted big changes in the space. Similar to other industries, due to economic changes and the access to technology and data, marketing is becoming more personalized and segmented. Marketers know exactly what their customers want and how to talk to them.
Chartré: While marketers previously relied on high quantity, mass market approaches, the economic shift of Travel and Tourism brands created the opportunity for us to rethink our client mix. Our ability (and tenacity) to deeply segment our clients, market more uniquely to different profiles, and subsequently share-shift clients to a new level of spend category, creates a huge change in our ability to speak to our audiences differently, and invest our time in the most impactful way.
Coupled with a tighter circle of partners and intense investment in experiential selling techniques, new key traveler trends are created daily.
We simply uncover client’s dreams more clearly at the beginning through a unique and multi-persona approach and are better positioned to speak directly to those needs of the unique individual.
Stoll: There are three drivers for changes in the tourism space:
Changes in technology
Changes in consumer behavior
External factors like the pandemic and now geopolitical forces
In regard to technology, innovation around VR and AR has impacted and will continue to impact how destinations and providers like hotels and attractions present and market themselves.
The two biggest changes in consumer behavior are bigger interests in sustainable travel and wellness tourism.
The pandemic led to an increase in remote work. While it is not growing as much anymore, remote work is here to stay. Travelers are combining work trips with leisure activities or – if their employer allows – working for some time from a different location.
2. Are there other industries or companies outside of this industry that you have looked to for inspiration + why?
TLDR: Travel and Tourism experts are similar to financial advisors in that the relationship is less of a transactional one and more guidance.
Chartré: As a career long marketer, I’ve had the advantage of orchestrating marketing programs in a number of fields, particularly the financial industry.
Finance and wealth management professionals base their business on relationships, goal setting, and investment. Since the surge of online booking tools, the travel industry’s greatest competition is the DIY’er who executes the blind booking on their own. With so many convoluted reviews, overly staged photos, and handpicked testimonials, buyers feel empowered to click and purchase.
The challenge comes when there is no one there to support them in the instance of a family emergency, a local/regional concern, natural disaster, or the explicit impact of COVID on canceled travel. Like the finance industry, travel isn’t a “click it” transaction; having an advisor who knows you, knows your needs, and knows your goals is fundamental in creating an investment that pays dividends on your expectations. Similar to a person who trusts a financial advisor to help build a roadmap that leads them through their financial journey, a travel advisor understands that travelers also have short and long term travel goals, and through the right investment and time, they have an opportunity to experience their dreams.
3. How have the last few years + virtual methods impacted the Travel and Tourism industry?
TLDR: Consumers have never been more empowered, but it takes an expert who is analyzing consumer behavior and travel trends to assist in the optimal travel experience.
Chartré: Consumers of Travel and Tourism are looking for education, inspiration and expertise.
As the industry continues to change, one thing is for certain: consumers may be smarter in their ability to research, but it does not replace their need for the comfort and peace of mind an experienced travel advisor provides.
Watching the shift in consumer buying trends, we’ve adapted to smaller, more frequent and more intimate events that allow a higher level of personal touch, conversation and creates the start of that “client and advisor” relationship. Today’s consumers know how to click and book, but quality agencies know how to educate consumers, compare and contrast top tour brands, and align the best travel experiences to their very unique travel goals. Order taking and transactional booking is no longer effective.
4. What marketing lessons can other industries learn from the Travel and Tourism space?
TLDR: Marketers in the Travel and Tourism space are dedicated to educating the consumer to make an informed, empowered decision. It is also important for other industries, like the Travel and Tourism space, to swiftly adapt to change.
Chartré: We can’t ignore trends of the masses, but we can certainly educate clients on the best use thereof. We don’t intend to “eliminate” online client booking from the travel ecosystem all together, we simply want to empower clients to know when it’s appropriate to do what.
For example, with little research and time invested, clients should feel empowered to book domestic flights and hotels. Not only is the process far more simple within the confines of the United States, the variance of experience and quality is traditionally not as concerning as it could be internationally. That said, when travel includes passports, customs, transfers and language barriers, having someone to coordinate, advise and planfully avoid potential potholes becomes the key to mitigating travel risk.
Stoll: The tourism space has often been a leading indicator of changes in marketing and consumer behavior that then found their way to other industries. Some that come to mind are ratings and reviews that became popular on sites like Tripadvisor or Yelp long before other verticals. The rise of Instagram is directly tied to travel – we all wanted to show the amazing places we went to, and the better we could make it look, the more we got into it. And the rise of influencers also happened in travel and tourism before it spread to other verticals. There is a lot for other industries to learn from travel and tourism.
Current trends that are worth paying attention to are how sustainability is woven into the marketing message, how destinations work with a wide range of stakeholders and partners to build cooperative marketing programs, and how the tourism industry is more adaptable to reacting to demand changes – be it seasonal or caused by external shocks.
If you take anything away from this post, we hope that as marketers, you focus on developing a relationship with your audience built on trust, and learn to maneuver when the unexpected happens. The Travel and Tourism industry paved the way when dealing with influential marketing on social media. What is your industry’s version of that? How can you stand out on social? How can you continue to provide value to an already empowered consumer?
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