E-commerce has fully reshaped the way you make purchases. It refers to literally everything, from food and clothes to concert tickets. You simply do it from the comfort of our homes! Entire industries have undergone this digital transformation and embraced the art of e-commerce to bring their goods and services directly to your fingertips. This online revolution has not skipped on the travel industry.
According to Statista, online sales are expected to reach 74% of total revenue in the travel and tourism market by 2028. What exactly can you buy online if the travel industry cannot offer physical products? These are flights, accommodation, car rentals, activities, and more. Let’s have a closer look at how it works.
What Is Travel E-commerce?
Travel e-commerce implies selling travel-related products and services online. This includes everything from flights and hotels to car rentals and exciting tours. You do not purchase a physical piece of the world but rather secure a spot on a flight, a room in a hotel, or an experience for a specific timeframe. So, travel e-commerce is actually a reservation.
There are two main types of E-commerce travel marketplaces:
Online Travel Agencies (OTAs).
These are the platforms that function as a one-stop shop for travelers. They offer to research, compare, and book various travel components in one place. The giants are Expedia, Booking.com, Kayak.
OTAs typically aggregate offerings from various travel suppliers. It allows them to provide extensive choices for flights, hotels, and rental cars. Visitors can compare prices and find the best deals for their specific needs and budget.These big platforms often negotiate deals with travel suppliers and offer competitive prices and exclusive promotions for travelers. You might also find attractive packages or loyalty programs and win additional savings.
Niche marketplaces.
There are many platforms designed for those who are looking for specific travel styles and services. For example, Tours & Tickets, a service that sells tickets for various activities in European cities.
Source: https://www.tours-tickets.com/
Niche marketplaces often partner with local experts and curate unique itineraries or experiences. This allows for a more personalized and authentic travel experience. Such platforms are usually chosen by individuals passionate about a particular travel style. They can provide in-depth knowledge and recommendations to your interests. Niche marketplaces offer a curated selection, but they do not have the same breadth of options as an OTA. This might not be ideal for those looking for the absolute lowest price or maximum flexibility.
Selling Experiences and not Only Products
Travel E-commerce possibilities step beyond booking traditional things. Today, you can buy not only tickets to Museums like the Stockholm museums but also a private guided tour led by a local expert.
Travel E-commerce is not just for big players. Travel bloggers and influencers can use this trend by becoming experience sellers themselves. Are you a food enthusiast with a great follower base in Italy? Offer online cooking classes showcasing delicious Italian cuisine. Do you have a knack for crafting itineraries? Sell personalized trip tips based on your expertise and insider knowledge. Travel e-commerce allows anyone with a unique travel experience to share it with the world. It is only a step between a content creator and a successful entrepreneur.
Tips for Travel E-commerce Business
Are you thinking of launching an online travel service? Here are some essential tips for success:
Focus on user experience.
Your platform must be user-friendly, with easy navigation and a clean, attractive design. Make the user journey is straightforward and quick. You may use AI tools to offer personalized recommendations based on user preferences and past behaviors.
Have a look at Klook, a Hong Kong booking platform that uses AI to personalize recommendations based on past searches and travel styles. It steps beyond basic suggestions and even recommends activities that can go well with previously chosen experiences. This approach allows the platform to create a more curated itinerary for users. Additionally, generative AI chatbot and trip planner called K.AI offers instant assistance. It resolves queries and issues in many languages.
Source: www.klook.com
Mobile optimization.
Many travelers book trips on the go. Ensure your site is mobile-friendly and convenient for such users.
A good example is Hopper, a mobile app that focuses entirely on finding the best deals on flights. The service even has an eloquent slogan: Book Travel on Mobile! Users can set price alerts and receive notifications when flight prices drop for their desired destinations. This streamlined approach is highly appreciated by budget-conscious travelers who can easily book flights directly through the app.
Offer unique experiences
The competition is unbelievable in the travel industry. You should out by offering unique, personalized experiences. Collaborate with local guides and influencers to create exclusive activities.
Check how they do it at Withlocals. This platform connects travelers directly with local experts for unique experiences. Users can book private tours led by passionate locals, attend cooking classes run by chefs in their homes, or participate in workshops with artisans – all designed to provide a deeper connection with the destination’s culture. The platform offers wonderful collections of thematic destinations – for example, for foodies or for those travelling with kids.
Source: www.withlocals.com
Use high-quality visuals.
Invest in high-quality photos and videos to showcase destinations and experiences. Visual content can significantly influence purchasing decisions.
This was successfully realized by VRBO, a popular vacation rental site. This platform offers high-quality virtual tours alongside traditional photos. These immersive virtual tours allow potential renters to explore a property in detail and feel like they are already there. This approach can significantly influence booking decisions.
www.https://www.vrbo.com/2594707
Use social proof
Customer reviews and ratings can become a serious marketing force. Positive feedback builds trust and persuades potential customers to buy your services.
The Intrepid Travel company encourages its clients to share their travel stories. There is even a dedicated section for user-generated content on its site – The Good Times. Travelers can share their photos and stories using specific hashtags. It creates a sense of community and showcases real-life experiences on Intrepid tours. It is a winning strategy to inspire others to book similar adventures.
Source:https://www.intrepidtravel.com/adventures/
Remember about SEO and content marketing.
Optimize your platform for search engines to attract organic traffic. Create engaging content like blogs, reels, and video stories to provide value and drive traffic.
Lonely Planet, a renowned travel guide company, has a robust online presence. Its website offers a vast library of informative blog posts, destination guides, and travel tips. The platform collaborates with a team of experienced travel writers. They create high-quality, SEO-optimized content with relevant keywords like “best places to visit in Italy” or “budget travel tips for Southeast Asia.” This engaging content allows the platform to remain a trusted authority in the travel industry.
Use social media power
Be active on social media platforms. Share travel tips, destination highlights, and customer stories to interact with your audience and promote your offerings.
Matt Kepnes, better known as Nomadic Matt, is a travel blogger with a massive social media following. He focuses on budget travel and solo adventures and shares stunning photos and insightful tips in his feeds. He engages with his audience by responding to comments, hosting Q&A sessions, and running travel contests. His social media presence drives traffic to his blog, where he offers in-depth destination guides and travel planning resources. This, in turn, can lead travelers to book tours, accommodations, and activities through affiliate links or recommendations.
Source:https://www.instagram.com/nomadicmatt/
Monitor Trends
Stay updated with the latest travel trends to stay competitive.You may consider using AR and VR for more immersive experience or blockchain technology for seamless crypto payments.
Travala, an online travel agency, uses blockchain technology to facilitate secure booking transactions. Blockchain is popular for its transparency, security, and faster processing times. Thos payment method can be particularly appealing to travelers booking stays in destinations with less developed payment infrastructure.
Offer excellent customer service
Provide efficient customer support across different time zones and languages. Use chatbots for 24/7 assistance and have a dedicated team for more complex inquiries.
Skyscanner, a popular flight booking platform utilizes AI-powered chatbots to answer basic traveler inquiries and assist with simple tasks like advanced flight searches. They also have a dedicated human customer service team available to address more complex issues like booking changes or cancellations.
Source: www.skyscanner.com
Flexible cancellation policies
Travelling needs flexible cancellation and refund policies. Such an approach builds trust and encourages your customers to make a booking.
Many travel e-commerce businesses now offer “cancel for any reason” add-ons during the booking process. For a small additional fee, travelers can gain peace of mind knowing they can cancel their trip for any reason and receive a partial refund. Others allow allow free cancellation within a specific timeframe (e.g., 24 or 48 hours) after booking.
Booking.com offer various cancellation options depending on the specific booking and property. The platform clearly outlines these policies on the website and during the booking process, so that travelers can make informed decisions.
Additionally, you must be ready for unforeseen events, such as weather disruptions, political instability, or pandemics, and have a clear action plan for such situations.
The Biggest Mistakes in Travel E-commerce
The are some common pitfalls that can ruin any travel business that sells services online. Try to avoid the following things:
Prioritizing profit over quality
If you are thinking only about the bottom line, it is a way to nowhere. Travelers seek reliable experiences, not just cheap deals. Of course, everyone starts a business to receive profits. However, cutting corners on customer service, hidden fees, or unreliable partners undermine trust and reputation, leading to lost business in the long run. Make sure your customers are entirely happy with the services they receive before you raise an invoice. Quality must become your main priority.
Selling everything to everyone
This is one of the biggest mistakes in travel e-commerce. Besides, it is incredibly costly to have tours and activities to everyone’s taste. Travelers have diverse interests. Offering generic packages ignores the growing demand for niche experiences. You must try to find your target audience with specific preferences. Think about what you have to offer – adventure travel, family vacations, cultural immersions. Then you can partner with local experts and create unique itineraries that be interesting for specific audiences.
Failture to support trust and transparency
Hidden fees, unclear cancellation policies, and misleading information breed distrust. Be upfront about costs, offer flexible booking options, and proactively communicate changes or disruptions. Building trust strengthens customer loyalty and brings positive reviews. Happy customers turn into your faithful advocates and contribute to your business authority.
Lack of product knowledge
Whatever you are going to sell in the travel industry, you must become an expert in it. Inadequate or insufficient knowledge about destinations, accommodation options, or local activities hinders the ability to advise travelers and curate personalized experiences. Invest in staff training and enter partnerships with local businesses for in-depth expertise.
Ignoring the power of online marketing
Most travelers research online today. Neglecting online marketing like SEO, content creation, and social media presence means you’re invisible in the digital landscape. Develop a targeted strategy with engaging content, be active on social media platforms to connect with potential customers, and use SEO best practices to attract organic traffic. Build brand awareness and showcase your offerings to the world.
Wrapping Up
The travel industry is no longer limited to brochures and traditional agencies. E-commerce has opened endless opportunities for everyone! You can sell your unique tours, workshops, and adventures directly to a global audience. The technology allows you to connect with passionate travelers seeking new emotions and experiences just with a click. But competition is fierce. To stand out, you need to constantly innovate, personalize offerings, and use technology. The future of travel e-commerce is bright, and you can take a decent place in it. Try something new and monetize your travel-relates skills with ease!
Author bio
Vanessa Friedman is a content marketing professional who helps companies attract visitors, convert leads, and close customers. Previously, Vanessa worked as a marketing manager for a tech software startup company.
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