Travel brands should test out the peer-to-peer economy as it gains popularity among younger generations, the Abta Travel Convention was told.
Marie Stafford, planning foresight director for marketing agency JWT London, said a consumer survey done for the convention underlined the growing significance of this sector.
The most high profile exponent of peer-to-peer travel is Airbnb, the firm that allows people to rent out their spare room, but there are also start-ups in areas like car hire, foreign exchange and excursions.
Stafford said its research has found 36% of people have tried a peer-to-peer service, up from 22% last year, and 72% said they were interested in trying it soon
“We are shifting more towards a sharing culture, partly driven by social media. Also, who we trust is changing. Half of people would rather trust another person than a business.”
One driving factor is austerity with the economic recovery remaining patchy and people looking to spend their money wisely.
“There is a long-term trend toward cautious consumption. People still plan to be careful with their money. This plays into the hands of peer-to-peer as there’s a perception it’s cheaper,” said Stafford.
However, the top five reasons for people wanting to try peer-to-peer are a need for a deeper, more authentic experience to tell their friends about, to post on their social networks.
The JWT research found there was a desire to use services from locals or local trips or even booking to eat a meal in a local’s home.
The survey found 38% would share a space in a car and 46% would use peer-to-peer in the hospitality sector, up from 26% two years ago.
Stafford said people like the diversity of product and the choice of locations.
“The tide of consumer behaviour is shifting this away despite regulatory issues. For Millennials [people aged 18-34], 55% have tried it.
“They are early adopters. Maybe it’s time to embrace it. Why not create your own versions of these services?”
“Peace of mind is something you as a business can really offer. It’s more reassuring doing business with you rather than a stranger.
“A hint of peer-to-peer is something that can make people see your brand in a new light.”
The JWT research also found 70% said they feel closer to a brand and have a deeper rapport with it when it demonstrates it understands.
“Today’s customers are extremely empowered. They feel they are calling the shots. 45% of consumers said they were reluctant to buy a brand without personalising the offer,” said Stafford.
However Stafford warned there was a danger that the move towards personalisation could go too far.
“The technology is a facilitator to get to this deeper understanding, this relentless pursuit of knowing your customer better. Solutions can be low-tec.
“Try not to over personalise. 69% said they were worried if things were too personalised it would become too predictable. Work in some serendipity.
“It’s important for every company and brand to know where to draw the line. But if you deliver some kind of payback which resonates customers will be a lot more happier to have their data collected. Let them opt out, be transparent, be upfront.”