The Modern Traveler A Look at Customer Engagement in the Travel Industry

Rusty Warner, SVP Marketing

September 25, 2013

• About SDL & Customer Experience Management

• Survey Background and Methodology

• The Modern Traveler – Pre, During and Post Holiday

• Key Findings & Recommendations

Agenda

Optimizing CXM for the World’s Top Brands

Optimizing CXM for the World’s Top Brands

Defining Global Customer Experience Management

CXM is a strategy and practice for managing customer experiences

online and offline to acquire, retain, and turn customers into

satisfied, loyal brand advocates and ambassadors.

Three Business Requirements for Global CXM

Align your

organization across

channels, markets,

languages and teams

Understand your

audiences’

interests and

motivations

Create relevant

experiences for

your customers,

regardless of

channel

SDL Global CXM capabilities

Your Partner in Global CXM

Publicly traded company, long-term

stability and $430M annual revenues

2,700+ employees, 70 offices, 38 countries

1,500+ enterprise customers and partners

Innovative technology and services for

enriching global customer experiences

Award-winning technology and services

Serving 76 of the top 100 global brands (Source: Interbrand 2012)

• Priority: 50% of CEOs now rate Customer Expereince Management as their

number one strategic investment. (Gartner)

• Profitability: 76% of consumers would pay 5% more for a better experience,

53% would pay 10% more and 10% would pay 25% more. (Accenture)

• Loyalty: Customer experience (CX) is a more powerful customer loyalty driver

than price-value perception. (Forrester)

• Equity: Over a 6 year period, CX leaders outperformed the S&P 500 index by

28%. Those who had poor CX performance lagged behind the index by almost

20%. (Watermark Investment Consulting)

• Consistency: In the UK, a £100 investment in the National Consumer

Satisfaction Index fund in 2007 would have by June 2011 returned £159 while

the same investment in the FTSE 100 would have returned just £94. (SynGro)

• Efficiency: A one point increase in customer satisfaction (CSAT) has been

proven to improve cash flow by 4% in major organizations. (Journal of

Marketing)

Why Focus on CXM?

The Modern Traveler:

About the Survey

• Survey

– Focused on the experiences of the modern traveler

– Deployed in the US, UK and Australia

– Conducted by third parties on behalf of SDL

– Respondents not aware the survey was conducted for SDL

• Key Themes

– Vacation is truly the last vestige of relaxation

– Online reigns supreme…when it comes to booking

– But, online experiences are not matching up with people’s real-world experiences

– Vacationers aren’t as active on mobile as they are during their non-vacation lives

– Friends and family recommendations win out over social media for travelers

– When sharing experiences, feedback surveys say it all

– Price and experience beat loyalty for many consumers

Methodology

Survey Respondents – Geographies

Number of Respondents by Geography

AUS

UK

US

1,137 1,100

2,000

Survey Respondents – Demographics

AUS

US

UK

The Modern Traveler:

Behaviors and Experiences – Pre-Holiday

Good Holidays Start with Trusted Recommendations

Family and Friends are Most Trusted Sources

51% 36% 39% 41%

Online Travel Reviews are Important

Always or Sometimes Read Online

Reviews before Travel

Online Reigns Supreme…

Book Travel Online

…and Online Experiences are Critical

A Positive Online Experience is Important

or Very Important “Travel is the largest e-commerce

category, led by airline ticket

sales, with an estimated $85.7

billion spent online for airline

tickets sales in 2012 in the US by

business and leisure travellers.”

IATA

“The typical travel shopper visits

22 websites in „multiple shopping

sessions‟ before booking a trip.”

Atmosphere Research

Yet many experiences online aren’t cutting it

Only 20% said their online experience

always matches their real-world experience

“Consumers are increasingly fed

up with irrelevant content. So

when it comes to improving the

customer experience online,

travel firms still have a long way

to go and would do well to look to

other industries for insights.”

EyeforTravel

68% said their online experience sometimes

matches their real-world experience

A Grim Reality for Loyalty Programs

Always consider loyalty programs

when traveling

Loyalty Programs: A Missed Opportunity?

Travelers who are NOT Members

Of Loyalty Programs “In the competitive travel industry,

customer satisfaction no longer

guarantees customer loyalty.

Ongoing relationships with loyal

customers are the key to success

You must engage your customers

regularly, collect and interpret

information, and consistently refine

your pitch and the customer

experience to drive more bookings

and positive recommendations.”

Sage CRM

The Modern Traveler:

Behaviors and Experiences – During Holiday

Travelers Prefer to Step Away from Technology

Travelers Who Always Unplug or

Unplug as Much as Possible

Travelers Share on Social Media after the Trip

Social Media Sharing after the Holiday

Only 16% of Americans and

18% of Australians share

updates on social media during

their holidays. In the UK only

8% of holiday-makers share

immediately on social media.

Travel Reminders: Helpful or Annoying?

Reminder Preferences for EMAIL

“What a surprise, the clever,

creative and informative things

people like in real life they also

like online.”

The Independent September 24, 2013

Unhappy Travelers – Are You Equipped to Help Them?

Resources to Fix Travel-Related Issues

Results of global respondents

who say that they prefer to use a

website to resolve travel issues

over email, phone and travel

agency

Using Apps on Vacation

Travelers who use Apps on Vacation

But not necessarily travel apps….

The Modern Traveler:

Behaviors and Experiences – Post-Holiday

Looking for feedback? Send a Survey!

Travelers who complete surveys

Writing on-line reviews is a close

second in the US and Australia,

and more people in the UK (36%)

will write online reviews than

complete surveys.

Social Media Feedback

Travelers who praise good service

However, 53% of Americans,

54% of Australians and 63% of

British travelers do not post

comments to brands on social

media.

Social Media Sharing

Social Media Sharing after the Holiday

13% to 17% do not share

travel experiences on social

media and 13% to 22% do not

use social media at all. Brits

are the most unlikely to share

or use social media.

The Modern Traveler:

Key Findings & Recommendations

• Most holiday-makers want to relax, unwind and unplug

–Steer clear of interacting with customers while they are on holiday

–Leverage mobile in the planning and post-vacation phases

–Ensure reminders are timely and relevant – and use email

Key Findings & Recommendations

• Invest in a sound online strategy

–Think critically about how to match online experiences with real-world

experiences

–Make sure your website provides help and advice for travelers –

especially for problem situations

–Personalize the online experience and ensure it’s consistent with other

communication channels

Key Findings & Recommendations

• Travel is definitely a multi-channel industry

–Address digital channels consistently – and don’t forget about email

–Prepare to evolve mobile and social strategies rapidly as channels and

consumers mature

–Respect how your customers want to interact with your brand

Key Findings & Recommendations

• Mobile apps are still an opportunity

–Even travelers who use apps are not using apps from travel brands

–UK travelers are not using apps as much as other nationalities

–Ensure mobile apps are consistent with other channels and target

customers who are ready to embrace them

Key Findings & Recommendations

• Loyalty is not the same as it used to be

–Focus on customer experiences for maximum impact

–Take a closer look at loyalty program metrics

–Experiment with different tactics

Key Findings & Recommendations

• Vacation is truly the last vestige of relaxation

• Online reigns supreme…when it comes to booking

• But, online experiences are not matching up with people’s real-world experiences

• Vacationers aren’t as active on mobile as they are during their non-vacation lives

• Friends and family recommendations win out over social media for travelers

• When sharing experiences, feedback surveys say it all

• Price and experience beat loyalty for many consumers

Summary

And just for fun…What are your top 3 travel items?

1 3 2

1 3 2

1 3 2

Thank You!

40

@RustyWarner

@SDL_CMA