Saturday 29 January 2011

Virtual Loyalty

Elsa MELLAC & Laure-Emmanuelle PEYRET

The travel industry recognizes that Internet is a tool which cannot be ignored any more. All companies fight to increase traffic on their websites and to create loyalty. However, a recent survey conducted by the private company Tealeaf (http://www.e-tid.com/getdoc/731a2e48-3d74-485f-9dc6-3fbf5dd9b1d5/Tealeaf-eBookersWhitePaper2010.aspx), shows that “nine out of ten consumers booking their holiday online choose a different provider each time” and “only 12% of respondents saying they book their holiday with the same provider every time”. Consequently, it is important for the companies to choose the best strategy, both for content and functionalities on the website.


People usually choose to book on the Internet for price consideration “62 % of respondents said price was a major consideration when booking a holiday”. Consequently, it is important for the firm to conduct a competitive watch to be sure that the prices provided suit the market.


According to Graham Jones, internet psychologist, “travel websites need to build trust and confidence”. Being a well-known brand is not enough anymore to inspire trustworthiness. E-bookers are looking for a physical address, a telephone number and an email address. In addition, they want real pictures and full descriptions of the product they are thinking of buying.


British travel e-bookers “visit four different travel websites on average when researching a holiday” which shows the volatility of Internet users. We also know that the “Y generation” is used to “zapping” from one page to another more quickly as they are more at ease with internet browsing.


Internet is a fantastic world where all kinds of information are available in one or two clicks: if the website does not satisfy the user, he will just select another one. It is said that less than 1 second is needed to determine if the website matches the user’s expectations. Consequently, the travel website should provide the right information instantly, from the home page. However this action is very difficult because companies do not really know in advance who is going to visit their website. It may be interesting to create different websites adapted to each target with an appropriate distribution process.


The research is done “about two to four months in advance”: the rates should be available at least 6 months in advance to satisfy this request. Plus, “once e-bookers have decided on their holiday, they are likely to visit the website an average of three to four times before finally completing the transaction”: once the travel website has convinced the user, it is important to stay efficient, to update information, to post new pictures and comments, to prove to the final customer that the firm is here, active and efficient. Once on holiday, the consumer should be satisfied that they will not be on their own if a problem occurs.


This content is crucial to increase the competitive advantage of the company and retain clients: the website should be interactive, attractive and build experiences. It should be fun and create a relationship with the online visitor to make the difference.


Moreover, the functionalities present on the website are just as important. It may seem obvious but a website that works consistently well, with no glitches, is a site that inspires confidence for the user who is then more likely to confirm a booking. According to the report, 22% of the respondents claim that the absence of errors or problems on the site contributed to a positive customer experience.



Furthermore, the Tealeaf report highlights that an important point ebookers look for when they decide a website may be interesting for them is a sign that it is trustworthy. For this they do not wait for glitches but expect a sign indicating that the website is secure and that they can safely enter their payment details.



Another aspect that cannot be neglected by companies aiming to sell online is that consumers trust products more if others claim that it is good, that they liked it. This is a sign not only of trust but also of what the report calls “social proof”; proof that the product is acceptable to consumer peers. For this social proof to come across, the website should feature consumer reviews and comments of previous customers of the website.



Tips for an effective online travel website:


  1. Complete descriptions – don’t make clients assume anything, give them all the details

  2. Complementary pictures – bring clients to imagine their trip

  3. Security – reassure the clients

  4. Consistency – ensure that there are no technical problems

  5. Enable consumer reviews and comments

Images from:

http://www.obesitydiseasecenter.com/files/3568414/uploaded/secure-payment(1).jpg


http://www.cartoonstock.com/newscartoons/cartoonists/mfl/lowres/mfln699l.jpg


http://media.photobucket.com/image/generation%20Y%20%25252B%20internet/lowett/84441416.jpg

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