Brief overview of research

The last 3 years have brought unforeseen challenges to the travel industry and accelerated the need to simplify. More than ever, today’s businesses face pressures to evolve rapidly, catering not only to the demands of their customers but also the emergent technological landscape.

5 challenges business face in retaining loyalty:

  1. Competition in Loyalty Retention.
  2. Rapid Market Changes.
  3. Rise of In-Session Service & Support.
  4. Scaling Personalization Through Maturity.
  5. Massive Personnel Shortage.

Today, it is not just about delivering but how quickly you can do it. Both digital and physical experiences need to be rapid, seamless, and aligned. Through our research we discover the evolving consumer behaviors and answer the questions:

  • How many chances do we get before losing a customer?
  • What drives loyalty in today’s world?

Biggest Takeaways

Brands that are digital-first are leading in personalization maturity. Online Travel Agencies (OTAs) currently set the tone at the initial stages of the consumer journey. Three findings to highlight:

  1. Loyalty is hard to gain, but easy to lose.
  2. Consumers are buying experiences, not products.
  3. Speed, convenience, and relevancy are now more important than cost savings.

We found that a delay of even 1,000 milliseconds can turn away customers, when their expectations are not being met. It is pivotal for brands to optimize their digital platforms. Brands need to offer an integrated journey, binding both digital and physical experiences for a genuinely personalized touch.

Why is this Research Timely?

AI has reached the disruption tipping point. Especially in sectors like travel, brands leveraging personalization through automation are seeing substantial returns. We have witnessed an acceleration in digital progress, operating at speeds 20-25 times faster than previously predicted. In this new era, speed and convenience form the backbone of loyalty.

Implications for Marketing Professionals

Consumers want a brand that sees them. Meeting this need for connection can cement loyalty. The integration of offline and online experiences is a necessity. Companies have the opportunity to utilize data from past interactions to enhance future engagements. Recognition, acknowledgment, and awareness are integral to hospitality and can significantly improve consumer relations.

Understanding and adapting to these insights is not just about keeping pace but about moving ahead.

Learn More

*This is the third installment in a series of articles sharing insights from our partners who presented at an HSMAI Chief Marketing Officer Roundtable.

About HSMAI

The Hospitality Sales & Marketing Association International (HSMAI) is committed to growing business for hotels and their partners and is the industry's leading advocate for intelligent, sustainable hotel revenue growth. The association provides hotel professionals and their partners with tools, insights, and expertise to fuel sales, inspire marketing, and optimize revenue through programs such as the Marketing Strategy Conference, Adrian Awards, Sales Leader Forum, and HSMAI ROC. Founded in 1927, HSMAI is a membership organization comprising more than 5,000 members worldwide, with 40 chapters in the Americas Region. Connect with HSMAI at hsmai.org.

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