Trust is the critical component shaping the future of the travel industry. In the era of increased connectivity and consumer empowerment, the travel sector’s challenges revolve around enhancing transparency, delivering seamless and personalized experiences, and maintaining robust performance amidst global crises like the COVID-19 pandemic.
It becomes the key to unlocking additional revenue as research shows that trusted entities are more likely to witness customers opting for add-ons or package upgrades. However, with only 46% of respondents trusting the travel industry and over 70% having had their trust broken by a travel business in the past, it is clear that there is a significant trust deficit that needs addressing.
Research from Travelport indicates that key factors influencing trust include price transparency, performance during crises, privacy concerns, and the impact of negative experiences. The modern traveler demands complete clarity in pricing, with 55% requiring ‘no hidden costs’ but 60% claiming that this expectation is often unmet.
Privacy is another major concern for consumers, with 65% distrusting data gathered by social media monitoring. On the other hand, they trust one-to-one conversations or past booking activity (46%) and loyalty activity or voluntarily shared information (44%). These insights should guide the industry’s data collection and personalization strategies, with a clear focus on respecting consumer privacy.
Negative experiences have a substantial impact on trust, with 90% of consumers talking about a negative experience and 40% posting online about such incidents. This shows the ripple effect of negative experiences and underlines the importance of maintaining high service quality to prevent erosion of trust.
At Nextflag we are building a comprehensive travel app, serving as the perfect antidote to the trust deficit plaguing the travel industry. Privacy is a cornerstone of our app’s design. We only use data shared voluntarily by the users, ensuring a personalized experience without infringing on their privacy. To counteract the effects of negative experiences, we’ve modeled our solution to only make room for positive experiences. There is no star-rating of locations: if it’s on Nextflag, someone in your community deems it worthy of a visit. This allows travelers to share their experiences and help us continuously improve our offerings by getting rid of all the negative noise.
Especially considering Gen Z’s rising influence and their skepticism towards travel companies, Nextflag is designed with features to be a hassle-free journey, providing a curated and personalized experience that aligns with their preferences. In this way, our solution provides an optimal blend of modern retailing standards with the unique requirements of the travel industry, offering a blueprint for improving consumer trust in travel.
We truly think this is they key to the future. Help us shape it the way you’d like it to be.
Gherardo, Founder & CEO