The 2017 Phocuswright India Theme: Funnel Revolution

Customer acquisition and conversion. Path to purchase. Search, shop, buy. Whatever the name, the Funnel has long served as the battleground for online travel’s greatest contests. It has enthroned champions and culled also-rans.

But the Funnel – and the economic realities that define it – is in upheaval. As costs rise and margins slide, the old Funnelnomics no longer add up. Travel’s digital combatants have already optimized it to no end. Now they’ve set their sights on new fields of play:

  • Cultivating captive audiences (think mobile apps and loyalty perks) upstages generic customer acquisition
  • InstaFaceChat has come into its own for identifying – and engaging – new prospects 
  • Go, stay, experience is no longer overshadowed by search, shop, buy
  • AI/AR/VR … these are just some of the new tools in the battle for better marketing, engagement and true personalization at scale

Does this spell the end of online travel as we know it? Revolution can mean violent upheaval, but it also signals the completion of one cycle and the beginning of something better. Last year’s differentiator is this year’s commodity. And so it goes. The new rules and tools of engagement are unfolding in real time, but make no mistake: The Funnel’s reign is at an end.

Viva la revolution!

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