Phy-gital Roundtable: Breakfast Roundup from Germany and Netherlands

02 May '15 | Debjyoti Paul

German Shoppers: Meet Them in the Fast Lane to Phy-gital

15 January '15 | Ralf Reich

Shoppers Will Share Personal Information (But They Don’t Want to be “Friends”)

15 January '15 | Anil Venkat

Modernize or Perish: Property and Casualty Insurers and IT Solutions

14 January '15 | Manesh Rajendran

Benelux Reaches the Phy-gital Tipping Point: Omnichannel Readiness is Crucial

13 January '15 | Anil Gandharve

The New Omnichannel Dynamic: Finding Core Principles Across Industries

13 January '15 | Debjyoti Paul

Technology does not disrupt business – CIO day 2014 Roundup

02 December '14 | Anshuman Singh

Apple Pay – The Best Is Yet To Come

02 December '14 | Indy Sawhney

Digital transformation is a business transformation enabled by technology

01 December '14 | Amit Varma

3 Stages of FATCA Testing and Quality Assurance

06 October '14 | Raman Suprajarama

3 Reasons why Apple Pay could dominate the payments space

18 September '14 | Gaurav Johri

Beacon of Hope: Serving Growth and Customer Satisfaction

05 August '14 | Debjyoti Paul

The Dos and Don’ts of Emerging Technologies Like iBeacon

30 July '14 | Debjyoti Paul

What You Sold Us On – eCommerce Award Finalist Selections

17 July '14 | Anshuman Singh

3 Steps to Getting Started with Microsoft Azure Cloud Services

04 June '14 | Koushik Ramani

8 Steps to Building a Successful Self Service Portal

03 June '14 | Giridhar LV

Innovation outsourced – a myth or a mirage or a truth staring at us?

13 January '14 | Ramesh Hosahalli

What does a mobile user want?

03 January '14 | Gopikrishna Aravindan

How Messaging is Making Inroads into the Marketing Mix of Travel and Hospitality Firms

Posted on: 11 April '17
Rajath Ravikumar
Rajath Ravikumar
Consultant, Digital Industry Solutions Group

The numbers around texting are jaw-dropping. Facebook and WhatsApp combined deliver 60 billion messages a day. Plus, there are another 20 billion SMSs sent each day. And we aren’t even counting messages on other leading applications like Line, Viber, Skype, Hangouts, Allo, WeChat, Signal and Slack, a majority of which have the convenience of smartphone and desktop usage. The question is: With so much messaging, who has the time to talk? In 2015, text messages outranked calls in the US. On an average, smartphone users spent 26 minutes a day texting and just 21 minutes talking. This trend is rising worldwide, pushed along by the habits and behavior of millennials. And this trend is drawing savvy marketers to re-asses their strategies. Marketing money is no longer going where the mouth is. It is being liberally applied to texting.

The trend could mean sunset for several contact centers. Contact centers, preferred by Generation X, became hot property because of the personal connect and empathy they created with a real voice at the other end of the line. By contrast, millennials don’t want intrusive conversations. They don’t want the pain of transcribing or making notes from phone conversations. They want to multitask; and texting fits the bill perfectly. With only 30% mobile users receiving texts from companies, this behavioral trait presents an unprecedented opportunity to address potential customers.

Businesses are already leveraging this trend. Booking.com has a text service that enables users to interact with hotels before and after their stay. More importantly, it also allows hotels to initiate conversations with their guests. Expedia too has quickly followed with an identical service.

For long marketers have focused on promotional aspect of messaging to cross sell and upsell products/services by providing coupons, offers. It is important to understand that the value proposition of the channel will be undermined if it’s solely used for promotions. To make the channel more meaningful, marketers should focus on other service offerings. Some of the top focus areas for text marketing in the travel, hospitality & leisure industry could be:

  • Account alerts – account activity (example: loyalty points earned/spent) and fraud alerts
  • Transactional notifications – Booking confirmation, online check-in/check-out etc.
  • Appointment reminders – Spa appointments, dinner/lunch reservations etc.
  • Security authentication: Prompts such as ‘One Time Passwords’ for online transactions
  • Satisfaction surveys – where the text prompts users to reply with a numeral or an alphabet to record their experience
  • FAQ (Customer Support): Replying to frequently asked questions (like check-in time, Wi-Fi Password etc.)

While adopting text messaging as a marketing tool is inevitable, the race is on to ensure that the tool can continue to deliver more value. For example, organizations can use chatbots – a mix of natural language processing, machine learning, semantic ontologies, pattern recognition and data and knowledge modelling technologies – to improve the speed and efficacy of their text marketing capabilities. Basically, customers should be able to engage in basic conversations with chatbots and get quick, contextual and accurate replies. When you say, “Find me a hotel in Miami”, the app should produce a response that fits your travel dates, budgets and existing hospitality memberships. Or, “What’s the Wi-Fi password?” should be answered promptly without having to call the front desk. Other than customer acquisition and service, messaging as a marketing tool can also support customer loyalty programs of hotels by reducing the burden on their customer support centers. Through a seamless integration with the backend data systems, most common queries like “what is my reward balance?”, “when will my reward points be awarded to me?” can easily be managed via messaging.

The bigger innovation in texting will be when text applications and chatbots are integrated with digital devices such as Amazon Echo and Google Home — which in turn are networked with other devices (a TV for example) and can leverage their capabilities (show a quick video in response to a request). Of course, when fun things like emoticons are thrown into these conversations, everything gets even more engaging.

With complex capabilities that messaging can bring about, things can also begin to go wrong very quickly like in this experience shared by a consumer where artificial intelligence was not really helpful and resulted in a more artificial than intelligent conversation.

What’s important is to not abandon efforts in this direction and do the next best thing – paying attention to customer feedback and adapt. Organizations should understand that when customers find text applications useful and unobtrusive, they become fans and fans turn into loyal customers bringing in more new customers into the fold.

Adding messaging to your travel brand’s marketing mix can help you create more of such loyal fans and with our extensive experience in chatbots technology, we can help you do this well. Write to us at info@mindtree.com to unearth the power of messaging through chatbots for your travel brand.

More blogs on Travel & Hospitality by this author:
http://digitalhub.mindtree.com/grow-your-brand-with-user-generated-content/
http://digitalhub.mindtree.com/why-hotels-should-adopt-beacon-technology-before-its-too-late/
http://digitalhub.mindtree.com/help-a-new-generation-of-travelers-collect-memories-not-things/

Rajath is a Product Evangelist within the Digital Industry Solutions Group of Mindtree. As a Product Evangelist, Rajath assists large enterprises leverage digital channels to deliver better products, services and business processes through digitization. Rajath has a wide range of consulting experience spanning across multiple domains, industries especially travel & hospitality, and geographies in the areas of digital innovation, strategy, commerce, digital marketing, social media, experience design, portals, & mobility.