Last time I wrote, I shared insights about popular/less popular
destinations and travel trends of today’s affluent consumer based on a survey Strategic
Vision conducted with approximately 50 travel advisors at the owner or manager
level. We learned that Italy was one of the most popular destinations for
bookings in the last six months, Southeast Asia and the U.S. are trending up
destinations, Hawaii and villa rentals in Italy and France continue to grow in
popularity for family travel (a burgeoning trend in itself), and much more. We
also heard from numerous agencies that are experiencing different trends than
those surveyed, so I’d like to thank those who shared their feedback.
Keeping the dialogue going, here I review survey results on the
subjects of ancillary fees and social media.
EXPLAINING FEES
We’ve been concerned about fees and wanted to follow the
conversation. Respondents overwhelmingly
believed in clearly outlining all fees
to their clients – whether ancillary fees from hotels and airlines or
service charges from travel agencies – so there are no surprises. One respondent said their agency has a
spreadsheet with all ancillary expenses clearly defined, and that travel
counselors “are trained to explain each fee along the way.” Respondents noted that fees are a “sign of the times” and “part of today’s landscape,” and
one commented that “it is a way of life but there are ways around it.”
While the fees are not necessarily a “major issue questioned by luxury
clients” because most are “used to them” and not “price-sensitive,” clients do demand more transparency so as
to understand exactly what they are paying. This desire for transparency
goes beyond fees – clients are
continuing to require a cost breakdown for all the elements of their trip.
In terms of agency fees, they cover “time, research and expertise” for
“customized services beyond the travel components,” and clients tend to be
“amiable” if they understand what the charges are for.
SOCIAL MEDIA – AFFLUENT USAGE
How do the affluent use social media?
According to our survey, they primarily use it for research, reviews and recommendations, to verify information agencies
provide, to share information, and “to tell their vacation story” – but they
aren’t using it for booking travel.
TripAdvisor, other online sites, and Facebook, Twitter, etc. are an
“informational resource” but one agency did report seeing “bookings from people
contacting them on Yelp.”
According to some agencies, age plays a role when it comes to social
media usage. One agency said that “younger
travelers consult social media” while “older travelers use more conventional personal
methods.” Another said they “don’t think luxury clients are putting
their trips on Facebook” (for safety reasons and so they aren’t perceived as
bragging) “but their children are.”
SOCIAL MEDIA - AGENCY ADAPTATION
How are agencies adapting in this social media landscape? While a few agencies still admit they haven’t
acclimated much in the social media realm, the majority are:
- Using Facebook, Twitter, YouTube and Pinterest
- Bolstering their websites with accurate content
- Blogging to speak to “the recency of travel advisors’ experiences” for added credibility and authenticity
Agencies are also exploring how to do more with social media, and at
least one noted they have a dedicated staff person to handle and engage social
media platforms. For one agency, text messages “to communicate are more popular”
but they only do this to select customers; it is a not a policy across their
entire customer database.
IN CLOSING
A big thank you to the travel advisors who continue to work closely
with us to identify trends. Their keen
insight continues to prove to be of immeasurable value so that luxury marketers
can make smart, on-point decisions about their strategic efforts.
This travel advisor research complements Strategic Vision’s two other
market research platforms – surveys to affluent consumers, and a panel of more
than 20 meeting planners and incentive specialists. . Contact
me for more information.
As always, I welcome your feedback.
Let’s keep the conversation going.
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