It was a pleasure orchestrating a fascinating panel discussion on the evolving landscape of partnership strategies within the travel sector. Joined by Georgia Graham from Parkdean, Michael Long from Expedia, and Lucy Hetherington from On The Beach, they delved into the profound shifts in consumer behaviour and how these are reshaping the way we approach collaborations. The insights shared were both illuminating and practical, offering a clear roadmap for success in this dynamic environment.
The Shifting Sands of Consumer Behaviour
Poppy Whittaker, our moderator from UNiDAYS, kicked off the discussion by asking our panellists about the pivotal shifts they’ve observed in consumer behaviour, especially given the recent volatility in the travel sector. Georgia Graham immediately highlighted a key trend: shorter booking lead times due to fluctuating consumer confidence. Their clever adaptation involves varied promo code strategies, a testament to agility in the face of uncertainty. Michael noted the enduring interest in domestic travel and the sustained popularity of whole-home stays, signalling a shift towards more private, controlled environments. Lucy Hetherington echoed the change in booking patterns, observing a less pronounced Jan/Feb peak and a rise in last-minute bookings, necessitating swift adjustments to their affiliate strategies. This collectively paints a picture of a more cautious, yet still eager, traveller.
Poppy Whittaker, UNiDAYS
The Undeniable Power of Data and Analytics
Next, we turned our attention to the critical role of data in understanding these new traveller behaviours and optimising campaigns. Georgia Graham shared how their rigorous AB testing of percentage versus amount discounts, along with different messaging, has been instrumental. This data-driven approach not only informs their strategy but also provides crucial insights for presentations to leadership, a vital aspect of demonstrating ROI. Michael emphasised leveraging data to tailor incentive offers, from coupons to immediate discounts and cashback, all aimed at meeting specific customer needs. This also plays a key role in showcasing the tangible value of partnerships to senior management. Lucy Hetherington revealed how data guides their affiliate content, pinpointing popular destinations and hotels, and enabling weekly deal sharing. Furthermore, they strategically adjust commissions to boost sales in particular areas, showcasing a proactive use of data to drive targeted growth.
Surprising Insights from the Numbers
Poppy Whittaker probed for any surprising insights uncovered through their data analysis. Georgia Graham revealed a fascinating finding: percentage discounts surprisingly led to a 12% higher average order value compared to fixed money-off amounts. This challenges conventional wisdom and underscores the power of testing. Both Lucy and Michael confirmed the significant increase in last-minute bookings, making forecasting a real challenge. Michael further added that external factors like weather and global events now have a more pronounced influence on travel decisions, adding another layer of complexity to planning.
Georgia Graham, Parkdean
Building Enduring Customer Loyalty
Given these unpredictable behaviours and heightened price sensitivity, the next line of questioning asked how our panellists are building lasting customer loyalty. Georgia stressed the importance of selecting the right partners, citing a successful collaboration with a supermarket that offered perfect audience alignment and a valuable “halo effect.” Lucy highlighted their “on the beach perks,” like lounge access and fast track, along with the newly introduced price drop protection, all designed to offer tangible value and reassurance. while Michael’s strategy involves offering broadly applicable deals, such as cashback and coupons, usable regardless of destination or travel style, simplifying their loyalty approach compared to pre-pandemic times.
Michael Long, Expedia
AI’s Future in Personalization and Loyalty
The conversation naturally progressed to the future role of AI in enhancing loyalty through personalisation and predictive analysis. Michael offered a compelling vision of AI tailoring landing page experiences based on individual preferences and loyalty data, making offers incredibly relevant. They also envisioned AI revolutionising customer service, anticipating needs and streamlining interactions throughout the entire booking and travel process.
Unconventional Partnerships: Driving Resilience and Revenue
Shifting gears, the panellists discussed examples of less conventional partnerships that have driven revenue or resilience. Georgia revisited their successful supermarket collaboration, emphasising audience fit, and also mentioned a niche content creator focused on the Isle of Wight, demonstrating the power of highly engaged, targeted audiences. Lucy shared the effectiveness of working with smaller, highly engaged influencers and noted a significant surge in “buy now, pay later” options being utilised through affiliates – a clear response to evolving consumer financial preferences. Michael highlighted the impactful partnership between Tesco Club Card and Hotels.com, allowing customers to convert loyalty points into hotel discounts, which proved particularly beneficial during challenging economic times. These examples really showcase the innovative thinking required to thrive.
Key Trends and Potential Disruptors
To wrap up, the future key trends and potential disruptors. Georgia predicted a continued movement of large brands into the loyalty and reward space, akin to the success of Tesco Club Card, and underscored the importance of maintaining a diverse partner portfolio for adaptability. Michael foresaw AI benefiting both customers and partnerships by increasing efficiency in campaign setup and personalisation, while crucially reminding us of the enduring importance of the human element in interpreting data. They also noted the increasing need to offer alternative destinations in response to world events and to continue supporting destinations facing tourism declines. Lucy highlighted the rise of alternative destinations and the imperative to quickly adapt to emerging trends, citing the increased popularity of Japan as a prime example.
The discussion was incredibly rich and provided a fantastic overview of how leading players in the travel industry are not just reacting to change but actively shaping the future of partnerships. The emphasis on data, diversification, and the thoughtful integration of technology like AI will undoubtedly be key to sustained success.
I want to extend my sincere thanks to Poppy, Georgia, Michael, and Lucy for their candour and invaluable insights. And to everyone who attended, thank you for being a part of this engaging conversation. I’m energized by the possibilities ahead and look forward to seeing how these trends continue to unfold.
