The modern travel marketplace has encountered a whole host of new players, including banks, membership organizations and fintechs. But what’s driving travelers to turn from traditional routes such as online travel agencies (OTAs)?
According to iSeatz founder and CEO Kenneth Purcell, there's a layer of trust that may be lacking with OTAs.
“They’re still benefitting from the volume, for the most part, because we all connect to them ... but I think there’s a consumer shift to align with: What brand do I trust the most?” Purcell said during an executive panel at The Phocuswright Conference.
Jason Wynn, CEO of Chase Travel, also pointed out different needs among millennial and Gen Z travelers, who are willing to spend regardless of changes in the economy and display decreased brand loyalty.
“That’s where intermediaries start to add more value, right? So, we very much think about our product as a two-sided marketplace; we have to invest equally in the customer experience but also in matching the customer with the right suppliers,” Wynn said.
Dakota Smith, president and co-founder of Hopper and its B2B division HTS (Hopper Technology Solutions), also highlighted trust as a factor in e-commerce technology.
“The hardest part of any e-commerce funnel is going from an anonymous user that comes in on a click or a tap or an app install and turning them into a verified consumer whose information you have, that they trust you with their credit card,” he said, noting the sensitivity surrounding travel and personal information.
“If you’re a consumer traveling to a new destination, maybe a new country, it creates a little uncertainty—who do you trust with your trip and your information? Do you want to be an anonymous first-time customer for some OTA that you found on a web search or metasearch, or would you like to work with that company that is actually financing your trip?”
Smith further highlighted the younger generations who’ve grown up with the internet and the layer of trust it requires, which may make them more likely to use a company that already has all of their information.
The panel also discussion personalization and the potential with artificial intelligence, loyalty and more.
Watch the full conversation with Lorraine Sileo, senior analyst and founder of Phocuswright Research, below.
Executive panel: Everyone's trying to sell travel - The New Travel Seller Arena