Just not long ago, the website optimizer Qubit have shared some interesting online insights regarding the travel industry to show how travel professionals can most effectively acquire customers. Let me share some parts of their sharing that I find interesting.
What is the typical conversion rate for online travel booking?
What devices are travel customers using to browse for travel product?
Significant traffic from tablets and mobile devices
Tablets and smartphones make up nearly 33% of traffic reaching out to travel sites. Although these numbers might be different from site to site, but it exploits a huge potential for travel sites to start optimising websites for mobile devices. The optimised content of travel sites are critical in engaging and capturing the attention of visitors.
Room of growth to improve online sales conversion
Generally, there are about 75% of tour package purchase happening offline. Even this is the case, the other 25% of online purchase is growing rapidly. Travel companies still need to work hard to optimise the travel websites to achieve better sales conversion. Given that visitors are less accustomed to making large purchases on mobile, it explains the large difference in conversion rates. People are more accustomed to spending big on their computers.
Recommendation : Responsive design, mobile-focused, detailed tracking and multiple experimentation to refine the customer growing experience
How long is the average online sales cycle in Travel?
The average online sales cycle for travel product purchases can take about 13.2 days, with an average of 9.4 pages seen per purchase.
What are the potential paths that visitors find travel companies?
The path visitors reaching to a travel company could begin with paid search clicks and ends in organic search. In this case, the sales conversion result in high Average Order Value (AOV) travel products would be best. And while organic almost always closes the multi-channel path, another channel will have generated the initial interest that drove the user to search for that particular brand term immediately prior to conversion. From an AOV standpoint, paid search is the key driver in getting customers to spend more. Paths that start with paid search and end with organic are by far the most common paths and nearly the highest AOV. The reverse (organic to paid search) is less common, but results in the highest AOV of all multi- channel paths.
The exposure combination in multi-channel paths that most quickly converts for travel marketers starts with a display view and ends with organic search. This path converts in an average of 10 days, which is half of the total average, despite its lower AOV.
The slowest path begins with email and ends with display, taking an average of 49 days and has a low AOV. In fact, most of the slowest paths tend to involve email, regardless of whether it is at the beginning or end of the sequence — these paths also have a 36% lower AOV when compared to other multi-channel paths.
Takeaways : Multi-channel strategy
- With the right combination of media, the average order cycle drops considerably. Multi-channel paths leading with display tend to convert users the fastest. Figuring out the right types of display targeting is crucial to leading a user to search for a particular brand and getting them to finally buy it. The average order value decreases considerably when a user views or clicks on a display ad and then clicks on a search ad.
- Re-marketing or retargeting customers is likely contributing a great deal to higher AOV purchases by showing ads to users who have already expressed interest by clicking on an organic search result or a paid search ad. However, the average order cycle for these types of conversion paths is generally much longer. Messaging and timing are crucial in not only getting a particular user to convert, but in getting them to convert more quickly, hence saving money.
- Drilling into all types of channel paths to figure out what is driving users to purchase more (or less) is essential to improving efficiencies cross-channel. Therefore having the ability to track media and optimize based on the partial credit from each and every touch point in the exposure path to conversion becomes crucial piece of the feedback loop.
Are you dividing and tracking all your sales and marketing channels well? Moving from offline to online marketing requires lots of work and insights too. Feel free to drop us a mail, we’d be more than happy to share more with you!
For more details, check out the full report here.