Cashing in on ‘make-ations’
Contributors are not employed, compensated or governed by TD, opinions and statements are from the contributor directly
Consumer thirst in the travel and leisure sector is changing, shifting from material gain to experience.
The ‘experience economy’ is well and truly being embraced. As part of this, in travel, we’ve entered the era of the ‘make-ation’. And every travel and leisure brand needs to be on board.
Travel and leisure felt the impact of the financial crisis acutely. Mindsets changed as globetrotters settled for vacations closer to home and new innovative brands, such as Airbnb, emerged to make ‘staycations’ accessible and desirable.
Confidence has returned to the marketplace, yet consumers retained the changed mindset. People seek to make the most of their time (and money) when abroad, this experience ethos must be embraced by travel companies who want to keep pace.
There’s more to a make-ation than just new experiences
Make-ationers prefer to shout ‘I’ve done it’ over ‘I’ve got it’ and brands must capitalise on the ‘experience, don’t own’ mindset. Travel brands can successfully sell experience and cultural immersion. Indigenous Business Australia champions 50 aboriginal tour guides, offering native, personalised travel experiences is a good example. Last year over three million tourists paid for native experiences – adding an estimated AUS$6.4 billion to the economy.
Opening the door to more experiences is one thing, but brands must make them more personalised to successfully engage audiences. Take GoPro, the adventure camera company lets users film their experiences in first person, giving viewers the same rush. This dual-experience excitement means thousands of videos are published on the web every day, driving reams of free publicity, and make GoPro YouTube’s most watched brand.
The airline sector can capitalise on personalisation without needing a hard sell. Icelandair’s consumer engagement strategy consistently retains customer loyalty. Its #MyStopover project gives transatlantic passengers the chance to extend their stay in Iceland for up to seven nights, at no extra charge, by sharing meaningful stories about how they maximised their extra time. To incentivise further, one lucky story-sharer wins a return holiday.
Russian carrier Transaero’s recent brand overhaul adds a touch of ‘make-ation’ to flights; the new Imperial Class cabin, give passengers chauffeur-driven transfers, chic surroundings and gourmet food from Moscow’s top restaurant.
Virgin’s rock’n’roll attitude is reflected at every consumer touchpoint. Unusual for a large and established brand, this excitement makes it a popular choice for make-ationers. Its award winning cabins are great examples, Virgin Galactic, whilst the brand’s foray into space tourism is the pinnacle of experience tourism.
Companies must turn a purchase into an experience, without charging more. Because investing in new experiences makes us happier (Thomas Gilovich, Psychological Journal), people are happy to spend again. Direct interaction breeds loyalty.
Winners and losers in the make-ation scramble
Travel traditionalists – Thomson Holidays, Thomas Cook and First Choice – could be in danger of sinking. Established before the internet made it browsing deals and destinations was the norm, these big names have moved online successfully, but their brand image remains conventional.
Make-ationers are attracted to courageous and agile businesses. STA Travel, for example, exudes adventure. This year, it joined forces with Brand USA to offer an experiential bus tour that utilises Oculus Rift virtual technology. It’s no wonder they boast 2.5 million+ customers annually. Even STA Travel is inspired by what STA Travel does.
Traditional travel brands must increase consumer engagement and become more meaningful for consumers. Intense competition from disruptors has led to decreased sales and tired-looking images, have left people feeling like these travel giants’ are value neutral.
Travel without limits
The implications of the make-ation trend will be enormous. Travel companies must become transparent, immersive and limitless in the experiences they offer. Every touchpoint is an opportunity to experience something special.
Travel companies must connect passengers to something bigger than a destination and prioritise the emotion that they want to evoke in make-ationers, empowering them to do more. Millennials, who are travelling further, more frequently and wanting more technology-enhanced experiences than ever, brands must embrace the era of make-ation when they reach their peak travel appetite in 2020.
Comments are closed.