Consumer Friction: Uncovering the Travel Industry's Hidden Treasure Island

Facebook Business

April 16, 2019

In the growing travel market, at a time when mobile bookings for airline tickets, tours and restaurants are a developing trend, Facebook IQ and the Boston Consulting Group (BCG) have teamed up to analyze consumer frictions and the associated costs for various industries in the Asia Pacific region. They have found that in the era of ecommerce, every moment presents unlimited commercial opportunities for businesses. When customers encounter extra steps or delays as they consume, however, they may withdraw from the consumption process. It may even be that the product is the right one, but there is no way of presenting it to the consumer who needs it. This is the so-called “friction. ”

Facebook has proposed a “zero friction future” to help businesses in different industries understand the overall impact of this consumption friction, how to deal with it when they encounter it, and how to capitalize on the huge potential business opportunities. In the travel industry, friction is likely to include the following:

• Potential consumers do not realize they need your product
• Potential customers are not aware of the existence of this service
• The ads or offers shown are not relevant
• Lack of dialogue or communication
• The consumption process is too complicated
• Disappointing customer service; unable to resolve consumers’ issues

How can I engage with suitable potential travelers? How can I present the right product to the consumers who need it? How can I build a loyal customer base? How can I provide a service that travelers need?

In different industries, consumers have different “consumption journeys.” Facebook recommends companies that want to connect with travelers start with the following 3 concepts: “Discovery, Convenience and Connection.” These 3 concepts run through the entire process from planning, to departure, to sharing the experience after the trip ends—and even extend to the start of consumption for the next trip, constantly triggering the next travel opportunity.

Stage 1: Discovery

“I love travel and always keep an eye out for new travel destinations.” “The 4-day holiday is coming and I still haven’t decided where to go. I’m going to have a look online.” “I want to go somewhere with sand, sunshine and bikinis—but I haven’t decided which island or coastal resort to go to. ”

Before they settle on a trip, consumers will pay attention to interesting travel destinations on different channels. We suggest this: Find the places where potential consumers often appear and attract them using a multi-faceted combination.

Social media has become an indispensable part of modern life and we share our life and travel experiences through various platforms. In the United States, 96% of travelers say they use Instagram to look for travel ideas.  (Instagram data, US, March 2018; “Instagram Passions” by Coherency (Facebook-commissioned study of 1662 people aged 18–65 in the US), Oct 2016.) In Taiwan, more than 70% of internet users use Facebook on a daily basis, while more than 30% use Instagram every day.  Question: How frequently do you visit / use these social platforms / services? Source: GlobalWebIndex Q4 2018 Base: Taiwanese internet users aged 18–64. The Facebook family of apps (Facebook, Instagram, Audience Network, etc.) is essential for finding large numbers of potential consumers.

In our experience, in the travel industry, video ads often work best for attracting the interest of consumers. At the same time, we also provide different ways for you to communicate with consumers, such as Stories ads and the use of Click-to-Messenger ad interactions.

Stage 2: Convenience

“I’ve decided to go to Bali. How can I get cheaper flight tickets? Where should I stay? What fun things are there to do? ”

When a traveler decides to buy, we suggest the creation of a zero friction, personalized service.

At a time when people are overloaded with information, consumers will ignore messages that are not relevant to them; as a result, after the traveler decides to go to a destination, in addition to dispelling commonly seen friction during the purchase process (such as an unfriendly UI or complicated purchase process), the relevant information they require should be more targeted to provide the right products and advertisements at the right time, to those who need them. We believe that for travel segments, creating a personalized message is the most crucial thing at this stage.

“Creating a personalized message” might sound hard—it seems like it involves a complicated process—but that’s not actually the case. First, use Facebook Pixel to build loyal customers, then create a “lookalike audience” to allow our system identify common traits of these audiences based on the targets you select and find similar (or apparently similar) distinct users; alternatively, choose to publish dynamic travel ads to allow the system to automatically reach your target audience through the Facebook app family based on the travel needs of consumers. In other words, you can quickly find consumers who need information on Bali and avoid giving them irrelevant information on bookings, itineraries and flight tickets for Saipan or Okinawa.

Providing a personalized message offers the greatest convenience for consumers.

Stage 3: Connection

“I want to book this hotel but I have some questions. Who should I contact?” “I’m in Bali, what interesting tours can I look at? What’s good to eat?” “I’m in Bali and I need to change my itinerary. Who should I contact?” “It’s so gorgeous here, I want to show everyone! ”

From the traveler’s initial purchase to the end of trip, we suggest being with them at every stage of their trip.

81% of adults and 91% of young people  “Messages That Matter” by Greenberg, Inc. (Messenger-commissioned study of people who use one or several messaging applications monthly or more frequently in AU, BR, CA, DE, FR, KR, UK and US) Nov 2017. Data is the average across the 8 markets. For communication through messaging software, 64% choose to use messaging software to ask instead of calling or using email  “Facebook Messaging Survey” by Nielsen (Facebook-commissioned study of people ages 18+ who use messaging apps across AE, AU, BR, FR, ID, IN, JP, KR, MX, TH, TW, the UK, the US and VN), Mar 2016. Data is the average across the 14 markets. This shows that cell phones have become an indispensable part of most people's lives, and have also changed the way that consumers communicate. "Instant communication" has become the most direct channel for consumers.

The multi-functional Facebook Messenger is undoubtedly the best tool for keeping in touch with consumers. You can create a Messenger-guided purchasing experience and then use Click-to-Messenger ads. Consumers click on the ads and are taken directly to Messenger to start a conversation with you, allowing you to be with your customers anytime, anywhere to help them find the right products, solve their problems and provide instant services on the go—building customer loyalty toward your brand.

During or after their trip, many travelers like to share moments from their vacation on Facebook and Instagram. Each share has a ripple effect, spreading interest and motivation for the next trip. As such, even though it is the end of one traveler’s trip, by continuously deepening “Discovery, Convenience and Connections” potential friction is resolved—which for businesses is a new starting point in the creation of limitless business opportunities.

For more information, please refer to Facebook's Zero Friction Future or download Zero Friction Solutions.

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