Three different types of package holiday bookers have emerged due to continuing economic and political uncertainty, currency depreciation and rising environmental consciousness
They are categorised as quick converters (purchased in one day), browsers (purchased in a month) and cautious converters (purchased in over a month), new research from Microsoft reveals.
This new study also highlights a decisiveness among British consumers to travel amid uncertainty, as 33% of package holidays were purchased in a single day, while 63% of holidays were purchased within a month over the May to July study period.
The three types of package holiday bookers are distinguished by the length of their purchase paths but also other key characteristics.
These include:
- 55% of consumers who purchased a package holiday in a day were aged under 50, meanwhile, 61% of consumers who took over a month to purchase a package holiday were aged over 50
- Price sensitivity was greater in longer purchase paths – only 8% of purchases concluding in a day featured price sensitive queries, while 28% concluding in over a month featured price sensitive queries
- Brand loyalty decreases in longer purchase paths – brand queries accounted for 22% of queries in a purchase path concluding in a day, while brand queries accounting for 12% of queries in a purchase concluding in over a month
- Destination curiosity increases in longer purchase paths – destination or point of interest queries accounted for 16% of queries in a purchase concluding in a day, while they accounted for 25% of queries in a purchase concluded in over a month
Audience marketing was found to be particularly effective for all three types of package holiday bookers.
More than half (60%) of package holiday purchases were influenced by an audience marketing strategy such as re-marketing – re-targeted adverts to previous website visitors – or audience intent targeted ads.
Even 50% of purchases from quick converters – purchased in one day – were found to have been influenced by audience marketing.
Microsoft Advertising analytical lead for travel, Sarah Essa, said: “While it is encouraging to see evidence of decisiveness amongst British consumers when it comes to booking package holidays, the future remains unknown.
“It is imperative for package holiday businesses to try to shorten the decision-making process in order to sail through future uncertainties.
“This can be accomplished by better understanding and separating decisive purchasers from cautious ones and tapping into their respective sensitivities and preferences.
“Audience marketing strategies such as re-marketing and in market audiences will be essential in the future as package holiday businesses begin to recognise and reach the diverse audiences interested in package holidays.”