Travel Apps or Travel Agents?
Global travel deals publisher Travelzoo (NASDAQ:TZOO) has conducted a survey* of 6,000 of its Asian, European and North American members to determine how consumers in different markets research and book holidays. While travel apps have been adopted by a vast majority of Chinese respondents – with over 85% of Chinese Travelzoo® members saying the use of travel apps as the easiest way to book a holiday, and over 70% saying they plan to book flights, cruises, package holidays and hotels via apps – among European respondents there is resistance to book travel on mobile.
Richard Singer, Travelzoo's European President, said, "What the research shows is the significant difference of opinion across various nations regarding the most trustworthy and reliable ways of both researching and booking travel. It's important for travel brands to recognise that these cultural nuances are the difference between success and failure in today's competitive travel environment. Having a top-notch app in China is critical, while in markets like Germany and Canada the role of the travel agent remains significant. As a business, Travelzoo is constantly adapting the way our deals are presented to our members across the globe – we have to stay on top of cultural trends and shifts in order to appeal to the many markets we now operate in."
Travelzoo's survey also explores which sources its members trust the most at the start of their search for a holiday when they are finding inspiration on what and where to book. Respondents from all markets place more trust in travel-deal websites (69%) than any other source, including guidebooks, travel agents, review sites and feedback from friends and family.
Canadians and Germans value travel agents more than any other nation polled, with 40% of Germans and 37% of Canadians using agent websites for inspiration. 10% of Germans and Canadians also say their final decision on what to book would be most influenced by travel agent or operator websites – for the UK and Spain this number drops to 2%.
A shift occurs in most markets when it comes to the final decision on booking. Review sites and advice from family and friends surpass travel-deal websites for all markets apart from France and Spain, where deal websites retain their position as the most influential. Respondents in Canada, China, the UK and the US say review sites have the most influence on their final decision. In Germany, the final decision is most strongly based on advice from friends and family, with travel-deal websites the second-most influential. German members are the least influenced by review sites, with just 11% saying they would base their final decision to book decision on what they see on such websites.
China's enthusiastic adoption of travel apps is confirmed by Vivian Hong, Travelzoo's President of Asia Pacific, who said, "The Chinese population has a very close relationship with digital technology, and we are always keen to be the first adopters. For example, platforms such as WeChat are becoming more influential than emails. According to the China Internet Network Information Center, there are over 245 million email users in China, and the email usage rate dropped by 36.7% last year. By contrast, WeChat has a total of 697 million active users in China. The market here is much more trusting of technology."
While the other nations polled are a long way behind China in their willingness to book holidays via apps, there is growing interest in booking some forms of travel via mobile websites on smartphones. Spanish and American respondents are second to China in their openness to mobile bookings, with 62% of Spanish and 54% of US respondents saying they would book or have booked accommodation this way. However, the numbers booking via mobile are significantly lower in Canada (37%), the UK (35%), Germany (31%) and France (29%).
Difficulty viewing the holiday information via smartphone is the top concern for respondents from Canada (79%), the US and France (both 77%), the UK (69%) and Germany and Spain (both 64%). Again, the response from Chinese members is vastly different: the top concern in China is payment security (36%), and problems viewing websites or apps via smartphone are an issue for just 9% of Chinese respondents.
With so much competition in the market, travel companies are always trying to find ways to keep their existing customers loyal and encourage new customers to book with them. 85% of members from France, 60% from Spain and 69% from China book with a specific company because they have the best price or the best deals. In comparison, having a positive reputation and brand perception is the biggest driver for respondents from Canada (69%), the US (67%), the UK (60%) and Germany (57%).
*About the research
This research was conducted using an online questionnaire, which was completed by 6,091 Travelzoo members across Canada, China, France, Germany, Spain, the UK and the US in September 2016.
Travelzoo is a global media commerce company. With more than 28 million members in Asia Pacific, Europe and North America, and 25 offices worldwide, Travelzoo® publishes offers from more than 2,000 travel, entertainment and local companies. Travelzoo's deal experts review offers to find the best deals and confirm their true value.
Certain statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects and intentions, markets in which we participate and other statements contained in this press release that are not historical facts. When used in this press release, the words “expect”, “predict”, “project”, “anticipate”, “believe”, “estimate”, “intend”, “plan”, “seek” and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives, expectations, prospects and intentions and other factors discussed in our filings with the SEC. We cannot guarantee any future levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release. Travelzoo and Top 20 are registered trademarks of Travelzoo. All other names are trademarks and/or registered trademarks of their respective owners.
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