What consumers want from their travel experiences has changed … and varies wildly from person to person. While some travelers are eager to take advantage of every new possibility, others require an increased level of support to feel comfortable traveling at all.
Pre-departure testing protocols, vaccine and mask requirements, destination hygiene practices … there are plenty of reasons travelers may want reassurance before booking a trip these days.
An Expedia Group research study on traveler sentiment revealed a “25% increase in travelers using online travel agencies and a 20% rise in using destination websites for information about their trip when compared with pre-COVID-19 levels.” Website TravelPulse predicts “advice from trusted providers will be a major competitive advantage, with travelers rewarding those that equip them with on-demand access to reliable information on health and security measures, especially through digital channels.”
Travelers stuck at home who used credit cards for online shopping amassed travel points they couldn't spend. Now that the departure gates are open, they are eager to put those points to work. A NerdWallet survey found that more than one-third of Americans (35%) have a credit card that earns travel rewards, like points or miles, to put toward flight purchases.
Expedia Group’s research found that seven in 10 travelers will look for flexibility in the next 12 months in the form of travel insurance and trip protection, full cancellations and refunds on transportation and accommodations.
Major United States airlines typically charge penalty fees to change or cancel an economy fare flight. However, many are temporarily waiving change fees due to the pandemic, or lowering or offering free changes for travelers with elite status.
A U.K.-based staggered travel payment service, Fly Now, Pay Later, is making efforts to expand into the United States, where it competes with the likes of Affirm and Uplift by allowing customers to spread the cost of a trip over 12 monthly payments.
Airline apps have allowed passengers to manage flight bookings and receive tailored push notifications for years. Recently, many apps have capabilities to include digital retail sales of merchandise, alcohol and duty-free items. Apps like Grab and AtYourGate and proprietary airport concessions apps have changed how food is ordered and delivered at airports.
Malaysian low-cost carrier AirAsia is hoping to create a “super app,” rivaling other more established apps from Grab, SEA Holdings or Alibaba. AirAsia’s super app brings together these capabilities:
Phocuswire predicts that “increasingly multi-functional airline apps will incorporate both the traditional passenger journey as well as e-retailing capabilities” and they expect “further monetization across retail, with airlines muscling in on the territory of traditional ecommerce players.” Because airline apps are with customers even when they aren’t flying, they can mimic other ecommerce apps in building mindshare outside of their primary realm (travel).
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