In our last blog about the Qubit report we focused on the differences between travel shopping and retail and particularly how we might boost conversion and bookings by understanding the anomalies of travel.
Whats equally interesting and important to understand are the tree main differences that define the travel shopper.
1. Conversion rates are lower. Qubit’s travel clients see an average conversion rate of 0.75%, whereas retail sees an average of 5.29%.
2. Average order values are typically higher. Qubit’s travel clients see an average order value over 10 times greater than that of retail.
3. Paths to purchase are a great deal longer. Travel purchases can take double the time compared to retail (13.2 days compared
to 6.5) with an average of 9.4 pages seen per purchase. This makes the purchase cycle far more complex.
These are vital findings – Providers of booking services and booking engines to hotels and tourism companies are constantly under fire fpr not having higher conversion rates, and the truth is that travel is just different, way different and the rate of conversion is 7 times less that that of retail. Less that 1% of travellers book on average – See more about this at http://www.slideshare.net/irclay/next-generation-direct-travel-shopping
In this report the travel buyers cycle is graphically represented – There are many options and travellers just take longer to search, research, review, compare and book. many travellers are armchair participants who may never go overseas but who love to explore and dream about exotic places. No wonder the conversion rate is only .75%. Travellers for the most part are just not buying when the search the new and look at hotel websites.