Who Are You Marketing To?

Above: Are you marketing to Generation Y?

Who Are You Marketing To?

Market analysis during an economic crisis provides an astonishing opportunity to observe changes in consumer behaviors and attitudes.

A well-respected travel industry research authority projects that the total U.S. travel market will decline 11% in 2009, returning the industry to pre-2006 levels. This decline reflects a dramatic shift in consumer demand levels and provides valuable insight into the changing behavior of the modern traveler.

Whether you’re the owner of a small to medium sized hotel, motel, or guesthouse, or whether you’re the GM of a luxury establishment within a multi-national hotel chain, you would be wise to observe these changes and customize your product and marketing to target this emerging market.

Generation Y

Twenty-five to thirty-four year olds are spending the most per household on travel and tourism. Plus, eighteen to thirty-four year olds are considerably more likely than older age groups to indicate that they plan to travel more this year. The forty-five to sixty-five age group is spending the least per household on travel and is also the most likely to reduce travel spend this year.

Online Travel Agencies

Due to an ever-growing and increasingly loyal customer base, online travel agencies (OTAs) like Expedia and Orbitz will outperform other channels in year over year despite their recent bout of fee cuts and revenue-eroding promotions.

Online Travel is Not Yet Saturated

Consumers that spend the most on travel still use a mix of online and offline methods, therefore, there is still an opportunity to grow your customer base using your own online methods.

Travel Search Engines

Over a quarter (28%) of travelers now use travel search engines, such as TripAdvisor, when shopping for travel destinations and places to stay. This concept is not new; however, it looks as though websites such as Kayak have become mainstream elements in the travel planning process and are here to stay.

In order to increase customer base, hotels must focus on impressing current guests and encouraging them to write about their stay on travel search engines.

The information and statistic for this article were taken from PhoCusWright's Consumer Travel Report. This highly-informative report uncovers the detailed behaviors and attitudes of the U.S. traveler and helps companies understand how consumers are adjusting travel behaviors and reacting to market trends. The report is available for purchase at www.phocuswright.com.

Many thanks for reading,

Emma

I am still on a search for the best hotel booking system for small to medium sized hotels. If you know of hotel booking software that can beat HotelSystems.co.uk for ease of use and functionality then please contact me on eharradine@hotmail.co.uk