CRM Tactics to Regain Online Travel Agency Customers

Daniel Eisenhut, Group VP, CRM. The travel sector has undergone significant changes with the rise of Online Travel Agencies (OTAs), such as Expedia, Booking.com, and Airbnb, dominating the market. While OTAs offer customers unmatched convenience and competitive prices, traditional travel businesses face hurdles in maintaining direct customer connections.

To combat the increasing influence of OTAs and win back OTA customers, companies must employ robust Customer Relationship Management (CRM) tactics.

CRM systems serve as crucial instruments for recognising and comprehending customer behaviours, preferences, and patterns. Through a strategic blend of primary and secondary identifiers, travel companies can cultivate direct customer relationships, tailor their services accordingly, and ultimately entice back OTA customers upon check-in.

This article will explore several essential CRM strategies that can aid in regaining OTA customers.

Understand the OTA Customer Base

Prior to delving into CRM tactics, it is imperative to grasp the typical characteristics of OTA customers. These individuals are frequently driven by factors like convenience, affordability, and variety. They value the convenience of comparing multiple options on a single platform and often prioritise cost-efficiency. However, their brand loyalty tends to be limited as they primarily favour the OTA platform itself rather than any specific businesses featured on it.

To effectively win back OTA customers, enterprises should pinpoint these unique motivators and create a compelling value proposition that encourages direct bookings.

Collect and Interpret Data

The cornerstone of any successful data strategy lies in comprehensive data gathering and analysis at each touchpoint with the customer. Companies should collect data from various online interactions such as website visits, social media engagements, and previous reservations alongside on-site activities like check-ins or restaurant bookings.

Vital data elements encompass demographic details, booking records, preferences, and customer feedback. When clients make reservations through online travel agencies (OTAs), the brand does not directly receive personally identifiable information (PII) of the traveler; however, the OTA booking ID can serve as a secondary identifier for establishing a profile and recording the reservation.

During check-in at the property, when requesting customers’ PII like their email address to send post-checkout invoices, the email becomes a primary identifier linked with the anonymous OTA booking ID. This allows for direct marketing to consumers and monitoring subsequent interactions with a first-party customer.

Utilising sophisticated analytics, companies can categorise their clientele into various segments based on their behaviours and preferences. By identifying recurring travellers, budget-minded individuals, or luxury enthusiasts, businesses can tailor marketing strategies more effectively. These insights empower businesses to craft personalised marketing initiatives that cater to each segment’s distinct requirements and tastes.

Personalise Customer Experiences with CRM

Customisation plays a pivotal role by significantly elevating the customer journey. Leveraging collected data, organisations can develop bespoke promotions, suggestions, and communications. Tailored emails, for instance, can feature offers relevant to recipients based on their previous bookings or stated interests.

For instance, if a client frequently books family vacations, sending customised promotions for family-oriented destinations, discounts on children’s activities, or special family packages can yield positive results. Similarly, providing exclusive offers for loyal patrons or personalised loyalty programs can incentivise direct bookings.

In cases where businesses lack these insights—especially with first-time bookings—employing a data enrichment solution such as Zeta Data Cloud aids in swiftly understanding customers’ needs and preferences from their initial reservation. Details like travel purpose (leisure or business), number of children and their ages/genders, preferred locations, room bed counts, or culinary preferences are among the data points enhancing customer experiences to create an unforgettable first-travel experience.

Enhance Customer Loyalty Programs

Customer loyalty programs remain an effective method for fostering retention and driving direct bookings within businesses. Businesses can incentivise OTA bookers to switch to direct bookings by offering exclusive rewards not available elsewhere.

These rewards may include points systems, special discounts, upgrades, or complimentary services. For example, a hotel could offer a free night’s stay for a set number of direct bookings or unique perks for loyalty program members. The goal is to make the loyalty program enticing enough to outweigh the convenience of using OTAs.

To attract back OTA bookers, companies need to ensure their websites and booking processes are as user-friendly and seamless as those offered by OTAs. It is essential to invest in a mobile-responsive website with an easy booking process that includes features like real-time availability, secure payments, and immediate confirmations. Personalising website content based on customer data and providing live chat support or responsive customer service can enhance the user experience and address any concerns promptly. Monitoring user behaviour can help identify dissatisfaction early on and proactively offer benefits to retain customers.

Content marketing and social media are crucial for engaging customers and fostering brand loyalty. Creating high-quality content such as blogs, travel guides, and customer testimonials can attract new travellers while maintaining interest from existing customers.

Employing automated cross-channel experiences helps share consistent content and promotions seamlessly across various platforms. Encouraging user-generated content like reviews and photos can boost credibility and entice new customers to engage with the brand. Interactive initiatives, such as contests and sharing travel narratives, have the potential to nurture a feeling of community and loyalty among clients.

Read next!: How to Measure Loyalty Program Success (Beyond Sign-Ups)

Engage Customers After Booking

It is essential to sustain customer engagement beyond the booking phase. Following up after bookings through personalised emails, SMS messages expressing gratitude, and seeking feedback can demonstrate appreciation for customers’ patronage.

Moreover, conducting post-stay surveys can offer valuable insights into customer satisfaction levels and areas that necessitate enhancement. Encouraging participation in loyalty schemes or extending discounts on future reservations can serve as incentives for repeat business.

This is also a great time to encourage new customers to join the loyalty program, making it easier to continue the conversation with them through offers and incentives.

Harness Technological Resources

The integration of advanced CRM technologies can significantly improve the ability to regain OTA customers. Deploying Artificial Intelligence (AI) and Machine Learning (ML) tools enables the anticipation of customer preferences and behaviours, facilitating enhanced personalisation.

For instance, AI-driven agents like Zeta’s ZOE can deliver immediate assistance and tailored recommendations, elevating the overall customer service experience. Similarly, ML algorithms can scrutinise extensive datasets to detect patterns and forecast future booking trends, empowering businesses to proactively engage with their clientele.

Conclusion

Reclaiming OTA customers presents a multifaceted endeavour that demands a strategic outlook. By employing CRM methodologies effectively, businesses can deepen their comprehension of customers, customise their offerings, and cultivate direct connections. Through data-informed insights, personalised marketing strategies, loyalty programs, user-friendly interfaces, compelling content creation, post-booking interactions, and cutting-edge technology adoption; travel and hospitality enterprises stand poised to successfully recapture OTA customers while fostering enduring customer allegiance.

In navigating the dynamic landscape of the travel industry’s evolution, embracing innovative CRM tactics will be pivotal for enterprises striving to excel amidst competitive surroundings.