Brand Loyalty Dropping in Travel Industry as Consumers Focus on Experience Over Price

Introduction

Without a doubt, the travel industry has evolved since COVID-19 and will continue to do so beyond 2023. Basically, the industry is becoming more focused on creating value through experiences. As a result, consumers value the quality of their travel experiences more than brand loyalty. At the same time, companies are being pushed to constantly innovate and improve their offerings. (Instead of relying solely on discounts, loyalty rewards, and travel agent reviews). This article, therefore, explores why a greater emphasis is being placed on the customer experience (CX).

Market Overview of the Travel Industry

The travel industry is one of the world’s fastest-growing sectors. In fact, according to Statista report of March 2023, the market size of the global online travel industry alone has been estimated at over US$470 billion in 2022. 

Despite this overwhelming growth, unpleasant and avoidable issues. Like poor customer service, hidden costs, and in-flight inconveniences have put a blight on today’s airlines. As such, these problems have got so bad that for many travellers. The thought of flying is now more of a drag than a pleasure. However, some of the largest carriers in the world today are making efforts to redefine the future of airline travel, with a new focus on improving the overall customer experience, from check-in to gate to plane.

Valuing Customer Experience Over Cost

Generally, as customers, we often look for the cheapest flight, sacrificing comfort and convenience to avoid paying an exorbitant amount of money to travel. But, if you’ve ever had a bad flight, you know that experience sometimes trumps price. Long lines at the ticket counter and cramped seats on the plane are two of the most common complaints customers have in terms of travelling, and these issues have seemingly become the norm across the board. 

Contrary to popular belief, today, valuing customer experience over cost is becoming increasingly important in the travel industry. Customers are more discerning and willing to pay a premium for a great customer experience. Research shows that airlines willing to surpass customers’ arguably low expectations – more comfortable seats, helpful customer service, and a decent rewards program – are more likely to keep customers loyal to their brand, even if their ticket costs are higher.

For airlines, customer loyalty and engagement is imperative to their reputation and the success of their brand. If they can’t deliver in the areas that customers feel are important – comfort, price, on-time arrival and convenience, to name a few – their customers aren’t going to remain loyal to their brand. 

Additionally, it is important because a satisfied customer is more likely to recommend the business to friends and family. Advertisements only go so far in terms of generating sales. But a recommendation from someone they know is often the driving factor behind a customer deciding on one brand over another.

The Importance of the Travel Experience

While there is an argument that loyal customers are often higher-margin customers, which means they are less reliant on sales and specials when booking a flight and will stick to their brand as much as possible. However, there has been a shift in customers’ focus from the actual price of travel to the value of the travel experience, and that has led to a significant drop in brand loyalty.

Travel experience is crucial. It is what motivates and drives many travellers to visit new places and return to places they have previously visited. Travel companies can gain a competitive advantage and differentiate themselves in a crowded marketplace. By investing in the customer experience and creating unique and personalised travel experiences.

Final Verdict

In the end, with each positive airline experience, customers are willing to continue and recommending them to their friends and family. Many customers now value a positive airline experience over a low ticket price. In addition, feedback websites like eKomi have become increasingly important for travellers who are looking for an airline that meets their expectations in terms of experience and customer service. 

These types of feedback websites provide a platform for real customers to share their experiences and opinions. Allowing other travellers to make more informed decisions when choosing an airline. Likewise, for airlines, eKomi can be a valuable tool for improving customer experience and driving loyalty. By paying attention to customer feedback and addressing any issues or concerns. Airlines can create a more positive and enjoyable travel experience for their customers, leading to increased loyalty and revenue.