Travelport, a global technology company that facilitates bookings for hundreds of thousands of travel suppliers worldwide, has released its 2024 State of Retail Study. Combining independent international research, cross-industry comparisons and consumer insights, the 2024 report finds that searching for and booking travel directly with travel suppliers has become slower and more complicated than ever before.
“Even though travel providers favor direct connections with consumers, the sheer number of options overwhelms travelers, making them feel less confident in their booking decisions,” said Jen Catto, Chief Marketing Officer at Travelport. “Our research found that rather than feeling excited after booking a trip, most travelers feel anxious, wondering if they got the best deal. For the travel industry, this signals a growing need and opportunity for travel agencies. Their expertise in comparison shopping helps travelers confidently book the best option, based on their personal preferences.”
Key points of the study:
More options leave travelers feeling overwhelmed
Travelport estimates that air travel options have grown from approximately 500 economy/business class options available in 2010 to over 10,000 options by 2024 (economy, economy plus, family flexible, business, first, etc.). This represents an increase of 1,900%.
Most travelers (58%) feel the volume of options is overwhelming.
56% of travelers say airline offers are harder to understand now than they were 10 years ago.
61% of travelers also believe there are more penalties now when changing a flight than 10 years ago, and 66% say there are too many hidden fees.
Most travellers (71%) sometimes feel anxious about whether they got the best deal after they have booked their trip, with 42% feeling that airline deals have become 'less suitable' over time to suit their personal preferences.
DTC “Direct to Consumer” feels more like “Hard to Compare”
Most travellers (80%) agree that comparing fares from different airlines is time-consuming, with more than two-thirds (69%) feeling that information is often restricted on some airline booking sites.
When it comes to researching all the components of their trip, 60% of travelers said they spend an average of one to four hours planning, while more than a third (36%) spend more than five hours researching and comparing options before booking.
Most respondents (88%) agree that they would prefer to see all flight options and fares on one screen, which is likely why more than half (54%) said they frequently use a comparison site to research information before purchasing their ticket.
The majority of Millennial (70%) and Gen X (64%) travelers frequently use online travel agencies (OTAs) to book, citing variety and price transparency as the top reasons.
Travelers are looking for artificial intelligence (AI) to offer more than just a chatbot, and agencies will increasingly rely on their technology partners to implement AI and ML (machine learning) in creative ways, such as Travelport’s Content Curation Layer.
When booking flights, respondents said baggage allowance (63%), cancellation and change policies (50%) and seat selection (50%) are the most important factors to compare.
The majority of travelers (63%) also said they feel airlines do not put the customer first in customer service issues (flight cancellations, changes, etc.).
Hotel features cited as most important to travelers were Wi-Fi availability (48%), free breakfast options (47%), and hotel amenities (45%).
International Perspectives
Dynamic pricing and deals among U.S.-based airlines could be complicating the shopping experience for American travelers, as more U.S. respondents (49%) feel that searching for flights takes longer than comparing hotels (40%), car rentals (8%) and restaurants (3%).
Additionally, more U.S. travelers (47%) feel airline offerings are not tailored to their needs, compared to travelers in Germany (34%), South Africa (35%) and the U.K. (45%).
Unlike US respondents, hotel search is the most time-consuming experience for travelers in Germany (52%), South Africa (54%) and the UK (59%).
“Travel providers are continually refining and expanding their offerings to fit the unique needs and preferences of their customers,” Catto added. “Prioritizing agency partnerships will ensure truly personalized service for their travelers. That will make the shopping experience seamless for everyone.”
Fuente: Travelport.