You may not know it from the glut of travel shows on TV or the abundance of news stories about overly-touristed cities, but it turns out people are planning fewer excursions this year. Travel budgets are getting tighter, too. Recently published data from travel research and marketing firm MMGY Global found that travelers intend to spend an average of $4,278 during the next twelve months, down from $4,281 in the year prior.
The not-so-sunny outlook means travel industry marketers need to make smarter decisions than ever to reach consumers.
MMGY’s Portrait of American Travelers survey also stated that about 30 percent of respondents intend to take fewer trips this year than they did in 2017 while 21 percent plan to take more. According to Travel Market Report, “This 9-point negative variance in vacation intentions during the next 12 months is the first time the variance has been negative in the 12 years the question has been asked.”
GenX-ers and Seniors will reduce their travel spending this year, while Boomers said they’d stick to the same spend on average as last year. There’s hope in the Millennial set, though. MMGY reported that the highly-coveted consumer group expects to boost vacation spending by 4 percent to $3,976 per household.
So, travel marketers may decide they want to attract new millennial consumers as well as building loyalty and boosting conversions among their pre-existing customers. How do they do it? Decision Intelligence and the Decision Cloud.
For example, to identify new prospects, travel brands can use Element Data’s Decision Intelligence-based Decision Cloud platform to analyze their client data, identifying signals indicating when consumers are ready to buy and helping inform customized marketing messages. These signals might determine that one prospect is more likely to value a trip to a serene, romantic destination while another would appreciate a more sociable visit to wine country, for instance.
Or, airline marketers can put their call center data to smarter use through the Decision Intelligence-based technology to determine which specific factors have affected how their customers have made travel decisions in the past. Not only can this provide more information about individual preferences, it can offer rare insight into the buyer’s emotions, psychographic attributes and other factors that led to those decisions – “The Why” behind the purchases.
As consumers get more selective with their travel choices, travel industry marketers need to get smarter with their own decisions. Check out more ways Decision Cloud can help travel marketers to uncover travel consumer insights using human-centric AI and Decision Intelligence.