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Can
I Book My Next Trip on Amazon?
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An
Open Letter to Jeff Bezos
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By Alan E. Young, Co-Founder,
Puzzle Partner
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Toronto,
ON – June 2018 | Newsmaker Alert |
Dear
Mr. Bezos,
Amazon
has long-since established itself as the fabric that holds together a world
of consumers looking for an easy, effective and value-oriented environment
to purchase almost anything – except for travel. As a veteran of the hospitality
and travel technology industry, I believe Amazon should extend its footprint
and offer travel and hotel products to deepen its relationship with customers
and position itself as the ultimate end-to-end travel ecosystem. Though
Amazon has offered flash deals and travel-related services in the past
and Amazon Destinations tested the waters briefly, you have never really
taken a true leap of faith.
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Admittedly,
the evolution of travel purchasing (from planning to fruition) has been
a bit of a roller coaster. What began with travel agents has grown to include
OTA’s, metasearch providers, direct booking tools, and now the explosion
of mobile complicating the market even further. With many travelers expressing
an on-going propensity for the inclusion of activities, local experiences,
and tours in their trip planning process – stitching a trip together can
prove to be challenging. Further to that, the uncontested dominance of
large players such as Expedia, Priceline, TripAdvisor, and Airbnb can create
a great deal of angst for any prospective traveler trying to decide how
to book a trip or even a single hotel room. These tools and industry giants
are meant to make the travel process more accessible, but in reality, that
process is still rife with compromise, overwhelming choice, competing channels,
and the pressure to make timely decisions and reservations.
We
have been told for years that a time when this will all become effortless,
is just around the corner. Not just for the consumer, but for the travel
provider as well, with the creation of a truly open marketplace where all
elements can combine to ensure that everyone with a stake in the game gets
exactly what they want. But, unfortunately, we still seem to be a long
way away from this desired outcome.
In
a recent Skift article, Brian Chesky, the CEO of Airbnb stated that they
are ready to develop Airbnb into a true “ecosystem” or “one-stop shop for
travel.” This one-stop shop would include experiences, activities, tours,
community, and more. In fact, he believes that there will be a massive
economy based on experiences - and I agree with him entirely.
However,
this only takes the travel booking evolution so far.
Amazon
represents a pillar of frictionless e-commerce and convenience. Shoppers
from all demographics find themselves looking to Amazon for daily necessities,
specialized items, brand favorites that are no longer available at their
local stores, gifts, equipment, competitive pricing — you name it. With
next-day or two-day shipping, ensuring a sought-after item is at your doorstep
within 48 hours can be as easy as asking Alexa to place that purchase.
Now, imagine if the entire travel process, from start to finish, were also
that easy? How can Amazon apply its model of immediate efficiency and ease
to the demands of the modern-day traveler? What can Amazon achieve that
Airbnb can’t?
Aside
from securing travel specific reservations (flights, hotel rooms and more),
imagine the convenience of pre-ordering any travel necessities for your
trip, all through one channel? For example, if a young couple is planning
for an upcoming vacation to Belize and wants to purchase some new swimsuits,
sunscreen, and beach towels, Amazon could represent a one-stop shop for
reservations and travel supplies. Even further, travelers could ship those
items directly to their destination (timed according to their trip) rather
than packing them in their luggage. Perhaps that same couple wants to purchase
a book about Belize to commemorate their trip but doesn’t have room in
their bags — they could buy it directly from Amazon on their phone and
ship it to their home. The travel planning process could shift from one
which demands weeks of effort across various channels and contacts to one
which can be completed from start to finish in one, trusted online space.
And
this isn’t just an appealing offer for the modern consumer and traveler,
but a potentially lucrative shift for Amazon as well. Morgan
Stanley notes that his firm’s rough ad efficiency analysis (ad spend/transaction)
speaks to Amazon’s ability to drive repeat/direct traffic, as its estimated
$0.75 ad spend/transaction is a fraction of what Booking/Expedia spend.
He goes on to predict that Amazon could make $600 million of profits a
year if it builds an online hotel business roughly half of Expedia’s size.
We
also have to consider the widespread embrace of voice-powered AI technology.
With the continued rise in popularity of Amazon Alexa (and more), consumers
all over the planet are demonstrating a desire for complete convenience
through means of voice-powered assistants. While AI chatbots and voice-powered
search technology is in development within the hospitality realm, it has
yet to come to seamless, consumer-approved fruition the way in which Alexa
has. An Amazon travel experience could capitalize on this momentum, by
including the capability for consumers to book every aspect of travel using
a handheld device or via Alexa. Much like having a travel agent at your
disposal, 24/7, in the comfort of your home and ready to address questions
and requests. I like the sounds of that, and I have a feeling other travelers
would too.
Let’s
not forget about Amazon’s powerful recommendation engine – the one that
lets me know what I may like or need, even before I do! Claiming conversion
rates of about 60%,
up to 35%
of what consumers purchase on Amazon come from product suggestions based
on such algorithms.
Of
course, we’re still missing one critical element of the trip planning process
— the vetting of destinations, hotels, activities and more. How do most
of us start on our process of elimination leading to purchase? Online reviews.
And what online platform has the most in-depth reviews of almost every
product available to the average consumer? Amazon. Word of mouth feedback
from trusted consumers is one of the most valuable pieces of information
to a traveler, especially those looking to achieve a unique travel experience.
Evolving the engaged community of Amazon users into a travel ecosystem
would help to ensure every user feels entirely confident and informed about
each decision they make as it relates to their upcoming trip.
Without
even setting its sights on the travel sector (yet), Amazon already has
a potential lead on this movement towards the creation of a true travel
and hospitality ecosystem. Tapping into the established success and underpinnings
of the Amazon experience to include travel would enable the Amazon Purchase
Ecosystem to deliver on what travelers want, from start to finish.
So
Mr. Bezos – what do you think? Can I book my next trip on Amazon?
About
Alan E. Young
Alan
E. Young is the Co-Founder and President of Puzzle
Partner, the leading agency specializing in hospitality and travel
technology marketing. Previously, Alan has held executive level positions
with start-up companies such as Newtrade Technologies, (acquired by Expedia),
Hotel Booking Solutions (acquired by IBS Software) and TrustYou. Alan is
past Chair of The Board of Directors of The OpenTravel Alliance and been
very involved with other industry associations most notably AHLA, HEDNA,
and HTNG. With over two decades of experience in the travel and hospitality
technology world, Alan specializes in helping innovative companies achieve
winning performance and dramatic growth. You can connect with Alan on LinkedIn.
About
Puzzle Partner
Puzzle
Partner is the most trusted marketing agency focused exclusively on complex
B2B initiatives for the travel and hospitality technology industry. We
are experts at combining strategy and tactical execution in a way that
doesn’t just maximize a company’s potential; it redefines it. By delivering
influential content, marketing services, and public relations rooted in
the skills of our team and tested through real-world experience, we help
our clients gain visibility, raise their profile and ultimately increase
their sales revenues. To learn more visit PuzzlePartner.co.
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