Travel is taking off. Is your business ready?
As we emerge from the global pandemic, the demand for travel is skyrocketing.
So too are opportunities for you to meet travelers with the products and services they need. It isn’t just travel companies that can take advantage of these opportunities. Other businesses could (and should!) get in on the action, too.
To help your business win more customers and increase revenue, we took a detailed look into current travel industry trends and outlined strategies to harness them. We’ve compiled our findings and in a downloadable ebook, The road ahead: What today’s travel boom could mean for your business. Here’s a brief overview of what we found.
State of the travel industry
Right now, the industry is far healthier than it was in 2020, and it’s just going to get better.
About 50% of U.S. consumers plan to splurge on experiences like travel once things get back to normal.
The number of people taking flights will continue to rise throughout the summer.
At the end of March, road trips surpassed 2019 levels for the first time since the start of the pandemic.
Hotel occupancy rates went up by 49% in the first week of March.
If you want to capitalize on these trends, you can’t afford to wait until things return to normal. The ideas below can help you take action now.
Offer promotions that complement travel growth areas
There are a number of specific and key growth spots across the travel industry. Many resorts are offering deals to entice travelers back, and resort booking capacity is expected to be at 80% by the end of this year.
Think about how your business could help these travelers—do you offer products that resort-goers might need, like apparel, electronics, or accessories? Or, are you an e-commerce travel site that can arrange flights, excursions, or car rides?
You can read about more growth trends in our ebook. If you’re able to tap into these areas now, you’ll have a competitive edge as travel activity increases.
Focus on flexibility, not price
Offering a buy now, pay later (BNPL) option with Affirm makes it easier for customers to say yes to a travel purchase. They can book a trip and pay for it at their own pace. In fact, according to a recent survey, 54% of shoppers are interested in using a BNPL service this year.
It’s not just the customers who benefit from flexible payment options. At Affirm, we help reduce price as a barrier for travelers, so they are more likely to book early, spend more per transaction, and book more often. This can drive higher conversion, loyalty, and revenue for your business.
Make communication a top priority
Communications play an increasingly important role for customers as they return to traveling. Not only do people want to hear about new destinations, products, and promotions, they also want to know you’ve got their safety and well-being top of mind.
Given that 95% of purchase decisions are based on emotions, you want to get customers excited about traveling again—and about your brand. Find ways to connect with customers via email, social media, blogs, or your favorite channels.
Also, take the opportunity to inform travelers about how you’re mitigating risk to ensure a safe and comfortable trip or stay for them—like Priceline has done. This will help customers say yes to your business.
Act today to stay ahead of the curve
Not every aspect of travel will spring back to normal in the next few months, or even this year. But if you take steps to capture audience demand today, you’ll be in good shape once travel returns to full capacity.
Learn more about today’s travel trends and how to capitalize on them in our ebook, The road ahead: What today’s travel boom could mean for your business.
If you’re an existing Affirm partner looking to drive more growth, then explore our ebook on how to increase AOV. And if you want to learn more about Affirm, see how we can help you increase sales for your business.