At the Travolution Summit in London last month, Lastminute.com chief executive Ian McCaig issued a warning that as the online travel industry matures, product and price differentiation will “tend towards zero.” If Ian McCaig is correct in his assessment, it is important to understand what factors, in addition to price and product, should be the focus for travel and hospitality companies in the near future.

Service Driven Marketing and Communications. Marketing communications should shift from the existing mass audience monologue approach to a service lead approach that acknowledges the active involvement of consumers in shaping a brand. While consumers have always been engaged in shaping brands through networking behaviors such as word-of-mouth, its online equivalent, consumer generated content has proliferated due to its high visibility and interconnection. Jupiter’s Consumer Created Content report found the growth of consumer-generated content has already had a disproportionately wide influence and may seriously impact on brand communications. This is despite the fact that most Europeans are “passive” surfers who don’t publish their thoughts online. In fact, 92% of European online publishers interviewed by Jupiter prompt their visitors to participate online, but the majority (53 percent) are passive, “silent” surfers and do not create content. Only 23% respond to prompted participation, such as polls and competitions, and 24% percent are unprompted contributors that maintain web logs, websites or post in online forums.

Although the number of contributors is currently small, their impact and influence can be dramatic. While reputation management programs have been widely prescribed as the solution to manage this form of interaction, it is a short term solution. 

A recent survey conducted with a representative sample of 1,500 UK adults, aged 16+, between 20 February 2007 and 27 February 2007 supports the need to move beyond reputation management programs. The survey reveals 58% of British online consumers will turn immediately to a competitor if they see negative reviews of a travel business in search engine results. A further 42% would abandon their search altogether. This dynamic will only increase in influence as consumers are increasingly exposed to more peer-produced content alongside professionally-produced copy across search engines and content sites.

The reality is that there will always be negative and positive commentary. While the temptation is to control disgruntlement and encourage loyalty (to avoid or fuel exposure to a mass audience) the key is to understand the sentiment of the commentary. On-going and proactive monitoring of consumer sentiment to trigger adjustments to product and service offerings is the solution. A perfect example of this approach is being demonstrated by our client Avis, through an extensive Consumer Generated Insight program that has taken shape in the form of their new blog platform wetryharder.co.uk.  It recognizes the content and sentiment of the message, is as important as the volume of people it reaches.

While Service Driven Marketing and Communications are essential, is it only one variable of the overall equation.

The second variable travel and hospitality companies should focus on is what we define as Engagement Usability. Engagement Usability aims to ensure an optimal user experience at point of engagement – through all channels including online, call centre and in-store. The reality is that successful communications are about fulfilling on a brands stated promise. A positive experience within an online booking environment or call centre can lead to differentiation beyond price. As with marketing and communications, engagement should aim to provide service and support to the consumer as opposed to solicit up-sell.

The third variable dependant on the two mentioned variables is Customer Service. While customer service is often regarded as a post purchase retention exercise, dispatched from brand or media investments, it is a key element to increase conversion, repeat business, loyalty and ultimately return on investment. Once experience and service, like information, becomes practical and useful, it becomes memorable and of value. As defined by Forrester Research customer service should focus on three principles: obsess about customer needs; reinforce the brand with every interaction; and treat customer experience as a competence, not a function.

No single factor can ensure success within the travel and hospitality industry. A combination of Service Driven Marketing and Communications, Engagement Usability and Customer Service, together with price and product will ensure consumer needs are fulfilled and return on investment realized.

customer service, marketing, web liquid