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March 18, 2020

OTAs will need to improve communication in a post-Covid-19 world

By Globaldata Travel and Tourism

In these uncertain times, it is becoming likely that travellers will desire more direct communication from online travel agencies (OTAs) soon.

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According to GlobalData, 44% of global travellers typically booked with an OTA in 2019, whilst only 17% would consider using an in-store travel agency.

However, recent events, including the demise of Thomas Cook, Brexit uncertainty and now Covid-19, have raised concerns regarding the reliability of an OTA in terms of direct communication.

Uncertain travellers seek definitive answers

Upon discovering holiday plans will no longer take place amid global travel restrictions and mass flight cancellations, travellers seek advice from the platform they booked with.

The majority of travel companies that offered direct bookings are now allowing travellers to change or cancel reservations without any additional fees. However, if a consumer has used a third-party agent, it can make the cancellation process drawn out and complicated.

With Expedia, bookings with an array of airlines cannot be adjusted or cancelled through the platform itself. For some bookings, travellers will have to contact the airline to make changes. Booking.com has introduced ‘forced circumstances’, expecting companies to refund prepayments and waive any cancellation costs for travellers that have pre-booked. This may end in disputes regarding liability, leaving the customer in the dark for longer.

At times like this, travellers will seek more direct communication and definitive answers regarding holiday plans. If they had booked directly with a package provider or flight operator, the communication process between agent and consumer may have been more streamlined.

A personalised approach remains integral, as well as direct communication

Personalisation is a key theme driving the future of travel services. According to a recent GlobalData survey, 89% of global travellers are now ‘always, ‘often’ or ‘somewhat’ influenced by how well a product or service is tailored to their needs and personality.

Online travel giants, such as Expedia and Booking Holdings, are at an advantage with this theme as data and personalisation go hand in hand. With access to a large number of customer records, OTAs can offer personalised experiences tailored to each specific traveller.

In a post-Covid-19 world, however, one to one communication could become of greater importance, working in the favour of more traditional travel agencies.

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Free Report
img

Navigate your business through the ‘new normal’

COVID-19 continues to dominate headlines the world over. It has already affected our lives forever. The way we work, shop, eat, seek medical advice, and socialize will all be different in the future. Quite how different remains to be seen, but all industries must plan for multiple eventualities.  Faced with an explosion of conflicting information on how to plan and implement successful recovery strategies, decision-makers are in dire need of a single, reliable source of intelligence.   GlobalData’s COVID-19 Executive Briefing gives you access to unparalleled data and insights to successfully navigate the uncertain road to recovery across the world’s largest industries. Understand every aspect of this disruptive theme by delving into: 
  •  COVID-19 infection update, with statistics on the spread, testing by country, as well as the latest data on vaccines and therapeutic developments 
  • Economic impact overview, covering stock market indices, GDP, unemployment rates, policy responses & GlobalData’s economic recovery scorecards 
  • Sector developments, with access to sector insight summaries, cross-sector indices and the leaders and laggards in each industry vertical 
Whatever your company’s imminent strategic plans, the long-lasting impact of COVID-19 must not be overlooked. Find out how to futureproof your business operations – download our report today. 
by GlobalData
Enter your details here to receive your free Report.

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