Étiquette : purchase behavior

Catégories
etourism and technology Trends

Why purchase online?

A 2005 tourism management study sheds light on the purchasing habits of North American Web users with respect to tourism products. The two primary factors motivating them to conclude online transactions are the quality and accuracy of on-site information and a simple reservation process.

Study context

The main reason consumers have overwhelmingly adopted the Internet is that it enables them to shop 24/7 in the comfort of their home. However, there are a number of factors that differentiate Web user purchasing habits. For instance, those who purchase travel products online are influenced by the complexity of the product. Other important considerations include the ability to compare prices, discounts and a user-friendly interface.

With that in mind, experts have studied the relationship between the purchaser’s motivation to buy and the complexity of online travel products. Since Web expertise plays a significant role in this, consumers have been divided into expert users and novice users. The study aimed to prove that ease of navigation was the primary reason for variations in purchase decisions between online products.

Airline tickets, accommodation and car rentals are considered relatively simple travel products. All-inclusive trips, cruises and tours constitute more complex products.

In an attempt to simplify navigation, many sites have become « content aggregators » that offer one-stop shopping. This strategy has been extremely successful for such agencies as Travelocity and Expedia. Dynamic packaging, whereby Web users create their own package while retaining a certain degree of flexibility, have added a new twist to the tourism landscape.

Motivating factors for Web users

The study examined the top six factors that motivate consumers to make online purchases (see Tables 1 and 2). The factors are as follows:

  1. The opportunity to earn points through a customer loyalty program. Some sites have even set up a special page for members to track their reward points (marriottrewards.com, for example).
  2. The availability of the desired product.
  3. Clear, detailed information that enables the user to make an informed decision.
  4. A simple reservation process is a key factor in the online purchase decision. Especially in the case of more complex travel products, customers must be able to find the information they need to make a decision.
  5. The reputation of the company or site’s banner, as this reassures the purchaser and may positively influence the outcome of the transaction. 
  6. Consumers are more sensitive to the price of online products than they are to conventionally purchased products. This is partly due to aggressive advertising campaigns that have gradually led consumers to expect discount products.


 
 


 

The experts used data from a Canadian Tourism Commission study conducted in November 2001 that surveyed 1,161 Canadians and 1,145 Americans. Although Web user behaviour has admittedly changed since then, the study’s findings nevertheless constitute a valid basis for comparing and understanding travellers’ online purchasing habits, based on their experience with the Web and the type of product in question.

Behaviour varies according to sector

A user-friendly interface is a key factor in the decision to buy any kind of online travel product, regardless of the amount of Web user experience, leading experts to conclude that consumers want a simple reservation process. Competitive prices play a greater role in the purchase of less complex products, such as airline tickets, packages or car rental.

The quality and accuracy of the site’s information was a deciding factor for travellers looking for activities, events, tours, attractions and accommodation. Company reputation was less important to those making « simple » transactions -such as renting a car- compared to those purchasing more complex products. Finally, customer loyalty programs constitute a greater draw for expert users and mainly affect purchases of airline tickets, car rental and attractions.

Sources:
– Beldona, Srikanth, Alastair M. Morrison and Joseph O’Leary, « Online shopping motivations and pleasure travel products: a correspondence analysis, » Tourism Management, No. 26, 2005.
– Ham, Sunny, « The Use of the Internet for Hospitality and Travel-related Activities, » e-Review of Tourism Research (eRTR) [ertr.tamu.edu], vol. 2, No. 6, 2004.

Catégories
Customer segments Marketing @en

Hotels: the feminine factor

An increasing number of women are circling the globe on business, forcing hotels to change to keep pace. To please this demanding clientele, whose requirements include higher levels of comfort and security, hotels are offering fitness facilities, organic food, perfumed candles and much more.

A 2003 study commissioned by Wyndham International Inc. and conducted by the NYU Tisch Center shows that, in that year, 40% of people travelling to the United States on business were women.

Study authors confirm that, in 2005, this figure will increase by more than 10%; moreover the percentage of women occupying management positions is rising steadily. With distinct preferences and significant purchase power (they have an average annual income of between US$25,000 and US$70,000), women business travellers are opting for places that combine security, tranquillity and comfort.

The following list presents some important facts about women business travellers. They:

  • Are usually single;
  • Are younger and more highly educated (minimum B.A.) than their male counterparts;
  • Have an annual salary of up to US$75,000;
  • Prefer dining alone in the hotel restaurant;
  • Like to feel at home in their hotel room;
  • Are usually members of a customer loyalty program such as Frequent Flyers;
  • Consider business travel an important part of their job (75% of respondents);
  • Never travel with their children (80% of respondents);
  • Schedule free time during their trip (65% of respondents) to go shopping, visit historic sites or enjoy an outdoor activity.

As for their attitude toward technology, the study found that:

  • Most women use the internet to plan their trip (80% use it to book plane tickets and 75% to reserve accommodation);
  • 25% of women like to have high speed internet access in their room;
  • 42% have never used high speed internet;
  • They make calls from the hotel using their own cell phone;
  • 68% do not use a Wi-Fi network;
  • 80% never use the dial-up or high speed access service provided by airports.

From special pillows to silk pyjamas, with or without curlers

Hotels are becoming increasingly aware of this growing market and, in response, are providing products and services specifically geared to their female clientele.

At the risk of reinforcing certain stereotypes, a number of hotels now place perfumed candles in their rooms. Other perks include aromatic oils, women's magazines, padded hangers, a sewing kit, special pillows, relaxation CDs, cook books and even curlers!

High-end hotels provide complementary extras such as shower gel and skincare lotions. Others charge a fee for luxury items like make-up or silk pyjamas, or offer a full range of relaxation services, such as spas, massages and facials. The fairer sex can also count on valet parking or a door-to-car escort.

For ladies only

In some European cities (London, Berlin and Florence for instance) women-only hotels are opening their doors.
In Zurich, Switzerland, the Lady's First Hotel offers services that are important for women: fitness facilities, special menus (organic food), spas and wellness centres, and much more. Owned and operated by women, the hotel welcomes an exclusively female clientele.

Germany also has several women-only hotels:

  • Hotel Artemisia in Berlin;
  • Intermezzo Hotel, also in Berlin, that operates as a B&B;
  • Harz Mountains – Arleta Pension, near Goslar, in north central Germany.

Based on the survey results given by its female guests, in March 2003 the Hilton Park Lane Hotel in London opened a floor exclusively for women. Unaccompanied men are not allowed on that floor.

This was a first, both for Great Britain and the hotel chain. Surveillance cameras and reinforced locks provide added security. In addition to an Internet connection, all rooms on that floor are supplied with fashion magazines, make-up mirrors and health-food room-service meals served exclusively by female staff.

Some detractors see these hotels as a form of segregation, asserting they actually represent a step backward for women because of the isolation involved. The hotels counter with the claim that they provide a particular kind of environment where women can feel totally secure.

Will Canada follow suit?

Even though the trend has not caught on much in Québec or the rest of North America, it is clearly a primarily urban phenomenon. Could it be associated with the perception that our urban centres are unsafe? According to Christiane Germain (president of Groupe Germain and owner of several Québec, Montréal and Toronto hotels) safe, intimate accommodation has been a priority for women travellers for many years.

So, before you sink your profits into building a women-only hotel, you should definitely conduct exhaustive research on the needs and preferences of your current female clientele. Perhaps, like the London Hilton, you might prefer to test the waters by opening a female-only floor.

Sources:
– Vanzi, Sol Jose, « Suite Bliss for the Female Traveler, » Philippine News Online, November 17, 2003.
– Wall Street Journal Europe, « Make Way for the Female Business Traveler, » July 6, 2001.
– Andréani, Frédérique, « Hilton soigne ses clientes, » Le Point, No. 1593, March 28, 2003, p. 26.
– Hotel News Resources, « Study of Women Business Travelers Reveals Their Opinions and Attitudes toward Travel, » October 28, 2003.
– Gaboury, Louise, « Une chambre à soi, » La Presse, February 23, 2002.
– Preston Robert Tisch Centre For Hospitality, « Coming of Age: The Continuing Evolution of Female Business Travellers, » Tourism and Sports Management at New York University (NYU Tisch Center), March 2003.

Catégories
Marketing @en

Television, magazines or guidebooks: Which medium is used to plan travel?

According to a survey conducted by the Travel Industry Association of America (TIA), the Internet is the « most useful » medium for finding travel information, followed by motor club magazines and newspaper travel sections. Strangely, however, the same survey notes that media users found consumer travel magazines to be twice as credible as the Internet.

According to the survey of 1,300 U.S. adults conducted in July 2001, 61% of travellers (or 82 million Americans) said they read articles about travel and destinations in the media, or watch or listen to travel shows on TV or the radio. This number is up from the 55% of travellers surveyed last year who said they had used such information sources. The survey asked only about unpaid travel coverage, not advertising.

The survey also asked respondents to rank the usefulness of various travel media. The Internet was ranked first as the single most useful medium, as follows:


When it came to believability,however, the media users rated the travel information in same media quite differently:

Finally, the level of trust of respondents with regard to travel media varied depending on the planned activity. The following lists the percentage of media users who said YES when asked if something they read or heard caused them to:

Using television to promote a destination

Television coverage is often used to counteract the effects of a crisis or when a destination’s image has been tarnished due to a particular situation (war, epidemic, environmental accident, natural disaster, social crisis, etc.). It provides information about the destination and its products, while helping to market it to the public.

According to Thierry Baudier, Director General of Maison de la France and a participant at the First World Conference on Tourism Communications (TOURCOM), which was held in Madrid in January 2004, television targets the general public, and people likely to travel in particular. It is also aimed at the media, which, in his opinion, play a major role in building a destination’s image, shaping public perception and providing information.

For Gary Wardrope, Commercial Director at the Travel Channel, TV is ideal for this type of message:

  • it is easy to use and simple to understand 
  • it provides great detail, both visual and auditory 
  • it appeals to the emotions 
  • it reaches a very wide audience, especially if the show is rebroadcast on other regional, national or even international channels

Summer television in Quebec

In the wake of shows like « Partis pour l’été« , « La poudre d’escampette » and « La route des vacances« , Quebec’s TVA channel will broadcast « 100 détours » this summer. This weekly series will invite sixty or so performers to take part in car rallies that will feature and promote some of the province’s principal tourist attractions. Shooting will begin in May and cover the regions of Montreal, Quebec City, the Montérégie, Outaouais, Laval, the Laurentians, the Saguenay, Charlevoix and Lanaudière.

Nothing new for the province

In March 2003, the Zoo de Saint-Félicien was featured in a special report on Canal Évasion. The show’s host spent the night in a tent, under the stars, with all the animals roaming free around her. According to zoo officials, the show was an excellent way to « sell » the zoo to tourists.

Last year, Canal Évasion also broadcast a new series entitled « La détente est dans le spa, » which visited Quebec’s various spas and health resorts. Although the show focussed primarily on spas, hotel complexes and the desire to be waited on hand and foot, it also presented general information about nearby tourist spots and the surrounding area.

Promotional TV used around the world

The Korea National Tourism Organization is also planning a spate of travel shows to sing the praises of Korea on regional TV channels. It has developed two different shows, one for Southeast Asia and one for China. A third show, targeting the Japanese market, is in production.

Great Britain is also counting on two TV advertising campaigns to boost tourism. The officials behind the VisitBritain promotional campaign hope to increase the number of visitors by 30% by the year 2010.

Sources:
– Wardrope, Gary. « The Power of TV in Tourism Communications, » First World Conference on Tourism Communications, Madrid, January 29-30, 2004.
– Rogers, Daniel. « VisitBritain aims for 30% growth in English tourism, » Marketing, London, November 27, 2003, p. 6.
– « Korea battles visitor dip with TV plan, » Media, Hong Kong, February 27, 2004, p. 7.
– « Annie Brocoli animera une émission touristique, » Le Quotidien, April 3, 2004, p. 43. 
– « Évasion… au Zoo !, » Progrès-dimanche, March 7, 2004, p. A10.
–  Travel Industry Association of America. « How Americans Use the Travel Media, » April 2004.

Commentary from Frédéric Dimanche

The question « Which medium should I use to plan a vacation? » in fact involves two different themes for discussion: firstly, what role do the media play in the consumer decision-making process and, secondly, to what extent do the media influence such decisions?

We must begin by defining which use of media we are discussing. Are we talking about strictly commercial uses, that is, advertising or, more specifically, messages controlled and paid for by advertisers, or are we talking about informative lead articles, written by journalists who are not beholden to the destination or attraction’s marketing team? Feature articles and personal accounts, which consumers consider more impartial, are no doubt more influential than advertising.

Media advertising is only one factor among many that can influence consumer decisions: prior experience, referrals from friends, family and co-workers, information from the competition and basic constraints like budget and available vacation time all play a part. The key is to make the destination one of the options that the consumer considers before deciding. The role of media advertising can vary: the goal can be to build the destination’s reputation or communicate its image, or it can use a specific promotion to prompt a decision and subsequent purchase.Increasingly, advertising appeals to the emotions and the senses by creating situations that inspire the target market. Although TV certainly has a large part to play, advertisers are also learning to use events as experiential marketing tools. Television alone is not enough to make someone select a destination; for this reason, one wonders what VisitBritain is going to do after two TV advertising campaigns.

The TIA survey confirms, if that was needed, the growing importance of the Internet as an information source. Surfers can quickly locate all sorts of information, both unbiased (reviews, travel guidebooks, etc.) and biased (sales and promotional information directly linked to the destination, attractions or available lodging). It is no longer enough to simply recognize the importance of the Internet; one must now understand what consumers read online. The Internet is first and foremost a source of information, and consumers are looking for credible information like that found in consumer travel magazines. It is this type of information/recommendations that will direct travellers to a destination’s service providers.

Media communications are important, whether they are controlled by the destination or not. However, they are not the only tools available. In fact, long-term efforts to ensure service quality and the satisfaction of visitors and intermediaries can sometimes be a much better marketing investment.

Frédéric Dimanche

Professor and Director,
Centre de management du tourisme
CERAM Sophia Antipolis European School of Management