Record start to 2010 for online travel bookings

As more consumers are becoming increasingly internet savvy, the number of consumers booking holiday’s online looks set to increase.  According to a recent survey conducted by eDigitalResearch the travel sector has seen the biggest growth in bookings across the retail sector, clearly illustrating the consumer shift from the High Street to the internet. Statistics from onlyexclusivetravel.com reveal that 55% of our holidays are now booked online, 17% of us research online prior to booking over the phone and only 7% of us are now booking our holidays in a high street travel agency.

The Aftermath of the Credit Crunch

Although the UK is now slowly emerging from the recession, the credit crunch has had a major impact on the travel industry which is also predicted to contract by around ‘8.9%’ this year.  Fewer people are expected to travel this year, but rather than give up hope on a break from reality, we are on the lookout for good value deals.  The Exchange-Currency.com indicates that the recession has highlighted that Brits prioritise holidays above all luxuries, including eating out and entertainment.

A major change in domestic holiday taking triggered by last year’s recession and a rocketing euro, is rise of the ‘staycation’, or rather consumers opting for a UK based holiday. Package holidays have also proven popular in the current economic climate, with people looking for security and assurance in knowing exactly how much a break will cost.  Travel Mole reveals that consumers still consider the destination to be the most influential factor when booking a holiday, and from a study of more than 60 operators, securing the correct holiday tends to be valued more highly than a cut-price deal.

2010 Predictions – Increased Consumer Confidence lifting Bookings

Travel Mole predicts that 2010 will be a record year for travel websites and has reported that specialist operators are benefitting from improved consumer confidence with more than half of them seeing a rise in bookings for the year. A survey run by the Association of Independent Tour Operators shows that 67% are experiencing an increase in bookings with a further 15% reporting similar levels to last year.   Looking forward into the next quarter, 90% of the specialist operators surveyed are confident that bookings will be up or at the same level as last year.

Crashpadder.com forecasts that 8.8% of people are more likely to go on a ‘staycation’ in the UK in 2010. However Travel Weekly suggests that the recent bad weather combined with consumers not taking a foreign holiday last year has resulted in the decision to book this year. Bookings for Turkey and Egypt in particular are proving strong and Skyscanner has revealed that although Spain remains the most popular country overall for holidaying Brits, it’s not as popular as it was just one year ago.

Convenience & Advantages of Booking Travel arrangements Online

The internet has played a significant role in helping us compare and contrast the vast amount of deals available to find the best deal for our own personal requirements. With people feeling the pinch it is no surprise that people are spending longer looking for the best deals online and making sure that their holidays will deliver exactly what they are looking for, or gaining as much reassurance as possible. As well as the lower prices available and impartial reviews on locations, hotels and airlines, the internet provides a level of transparency which travel agents cannot provide.

Travel retailers are now beginning to take a strategic step and are now starting to design mobile sites. Ebooker unveiled its first mobile site in February, intended to help consumers research, plan and prepare to book while on the move, stealing a march on its rivals.  Further developments considered include offering flight and hotel path functionality to allow bookings to be made.

Increasing Online Consumer Expectations

According to research conducted by accommodation network Crashpadder.com, price, transparency and innovation are expected to drive growth in the use of travel websites in 2010. As more people are moving online, customer expectations are growing as a result of the increased convenience and control that the online space affords them.  eDigitalResearch reveals that a significant proportion of consumers online have been frustrated by poor telephone and email support and one of the biggest reasons for a drop in satisfaction is the inability to resolve queries quickly.

To reduce the pressure on call centres, companies need to address the online self help function so that customers can answer their own questions quickly, without the need to pick up the phone.  With more people searching for better deals online with less disposable income, companies need to concentrate on ensuring that the customer journey is hassle free from the homepage to the purchase.  While more companies may be investing more of their marketing budgets online, going forwards it is important to balance clear engaging content with good customer service support.

We have a wealth of experience with travel clients in particular so if you need any help improving your site to meet consumers increasingly demanding requirements, don’t hesitate to contact us!