There is an opinion that eCommerce in the travel market has reached its limit, and industry participants should focus on traditional sales. Companies are even advised not to invest in eCommerce development at all and not to spend time, money, and other resources on it. We are convinced that such an apocalyptic approach has no right to life. In this article, let’s look at the situation objectively and assess the real prospects of eCommerce for travel businesses.
The current situation in the travel domain
People use mobiles to browse more than make purchases, since 60% of all online traffic comes from mobile. However, desktops accounted for 62.5% of online sales. This situation has not changed over the last 4 years. It’s even forecasted that 76% of total revenue in the tourism and travel sector will be generated through online sales by 2028.
The situation is such that currently, in Vietnam, only one travel brand is well known to all those in touch with the travel and tourism industry in one way or another. But is there room for new major brands in our small market? In our opinion, there is. The question is for whom it is expedient to occupy this niche. In front of our agencies on the way to conquer this market position lies a chasm filled with colossal investments in technology and all kinds of marketing and promotion. Of course, we are talking about multi-million dollar sums, and most market participants will simply not be able to afford even the construction of the strategy itself.
Such a leap seems to be economically viable only for promoted B2C brands currently known to consumers outside the travel industry. These are large online stores whose names are familiar to us, large service portals that we use in our daily lives, retail operators, including those who manage chains of well-known stores, operators of other mass services, such as mobile communications, and so on. They have an advantage because their brand is known on the market, and their marketing strategy and techniques to increase traffic have long been practiced.
All they have to do is either independently nurture the necessary industrial competencies in the travel industry or enter into a partnership with one of the players in this market.
At the same time, traditional travel agencies can also find their niche in eCommerce, but the word “niche” is key in this case. Global brands will eventually enter the Vietnamese market, but any company has the opportunity to build a niche online business, and even a medium-sized agency can successfully compete on equal terms with the existing major online players.
Bookatrekking – example of a travel business yielding eCommerce benefits
Bookatrekking stands out as an exemplary model of a travel business leveraging eCommerce to its fullest potential. Specializing in trekking adventures, it has redefined the way travelers experience the great outdoors. With a keen focus on customer satisfaction and innovation, Bookatrekking has successfully harnessed the power of eCommerce to offer unforgettable journeys, including its captivating tours in Switzerland.
What sets Bookatrekking apart is its ability to effectively market and sell these tours online. Utilizing advanced search engine optimization (SEO) techniques, Bookatrekking ensures high visibility across digital channels, making it easy for potential customers to discover and engage with their offerings. By optimizing keywords related to trekking in Switzerland, the company attracts organic traffic and reaches a wider audience of adventure enthusiasts.
In addition to SEO, Bookatrekking strategically employs blog articles like this one about Tour des Combins to drive online sales. Through informative and engaging content, the company educates prospective travelers about the unique features of trekking in Switzerland, highlighting the scenic beauty, cultural richness, and adrenaline-pumping experiences awaiting them. These blog articles not only serve as valuable resources for travelers but also contribute to Bookatrekking’s authority and credibility in the trekking niche.
The seamless booking process, coupled with transparent pricing and detailed itineraries, instills confidence in customers and encourages them to secure their spots without hesitation.
3 main benefits of eCommerce for travel businesses
Here are the three main advantages of eCommerce in travel business work.
Global Reach
One of the most significant advantages of eCommerce for travel businesses is the ability to reach a global audience. With an online presence, travel agencies, tour operators, and accommodation providers can attract customers from all corners of the world. This broader reach not only expands the customer base but also opens up new markets and revenue streams.
24/7 Availability
Unlike traditional brick-and-mortar establishments, eCommerce platforms are accessible round the clock. This 24/7 availability allows customers to research, plan, and book their travel arrangements at their convenience, regardless of time zones or geographical locations. Such accessibility enhances customer satisfaction and boosts sales by catering to the needs of a diverse and busy clientele.
Personalized Experiences
eCommerce platforms enable travel businesses to gather and analyze customer data effectively. By leveraging this data, businesses can offer personalized recommendations, tailored promotions, and customized travel packages. These personalized experiences not only enhance customer engagement but also foster loyalty and repeat business.
What directions in eCommerce are free of competition for travel businesses?
There are several niches, the supply of which in the Vietnamese travel market is still unsatisfactory.
Firstly, it is the segment of travel for students: educational, work, cultural, social programs, and just recreation. While we are talking about young people, the most advanced part of the population, their needs, oddly enough, are satisfied by traditional offline sales. Name at least one well-known travel brand that would specifically address this audience, considering the $1.73 trillion student loan debt, and organize a sales channel for online services for students. There are none, yet this is a clear market niche with a very fertile and ready-to-consume target audience! We think that even small agencies can successfully occupy this niche by properly focusing their investments and efforts.
In general, we recommend paying attention to the specifics of different audiences. Here, we would give the example of Israel, where a significant share of the traveling population is over 50. Local online agencies work with this segment of travelers, combining offline and online sales components. Realizing that these people think differently (having booked something online, they still expect a call and personal contact), agencies build their work following their needs and demands.
The second niche that we consider relevant and that is successfully served in multicultural Europe is ethnic traveling. For example, a great idea is servicing the flow of international students, primarily Chinese students, of whom we have the majority. Let’s also not forget that the Chinese are even bigger fans of eCommerce than Americans and Europeans, and they are more willing than anyone to be your online shoppers. Considering that an online purchase is on average $2 cheaper, it will not be difficult to optimize the consumer experience of “hot” customers. However, these consumers are still being served traditionally, not through online service.
The third way is to offer a unique niche service. For example, a visit to cities with famous thermal springs or a weekend trip to the ten most common Vietnamese destinations, concerts, gastro, or shopping tours. It is much easier and more profitable for small players to build up their competence around the formation of unique but narrow content because large agencies do not work in such niches: it is not of interest to them. And for a small company, the possibility of such specialization would be a great way out of the shadows, plus the margin of these sales can be very high.
Conclusion
Online is coming – whether we like it or not. The sooner people get used to the Internet, the more actively they will start using all its advantages. Think about what advantages your company has or can have over your competitors and what special things you can offer your customers.
