Q: Your session at ITB Berlin will be about paradoxical consumers and how to address their needs. Can you give us some background on that?
A: Paradoxical consumers are individuals who exhibit seemingly contradictory preferences, behaviors, or purchasing patterns. Addressing the paradoxical needs of consumers requires a nuanced approach that recognizes and accommodates their conflicting desires. Management consulting firm Accenture calls this the “human paradox” in a report. The authors argue that in an increasingly unstable world, consumers are becoming increasingly unpredictable. They seek to reconcile their personal beliefs and values with the practical realities of a complex world. This means that what consumers tell us and what they actually do can be different. For example, a McKinsey study found that 84% of travelers say sustainability is a very important factor in their purchasing decisions, but 50% are unsure whether they would actually pay a premium for sustainable products. He says he doesn’t know.
Q: How do these paradoxical choices affect your travels?
A: Changes in consumer behavior directly impact travel choices. As an example, paradoxical travelers may seek both luxury and affordability in their shopping. Travelers might fly on a low-cost airline and then stay at a luxury spa hotel. Or maybe you stay in a luxury hotel and explore the city and eat cheap street food for an authentic experience. ‘Leisure’ is also a growing example of travelers combining their reasons for traveling. Some people might fly business class on a work trip, have their partner accompany them on the weekends, and fly economy class home with them since it’s not their employer’s money. Even the same consumer has very different behaviors and needs when arriving and leaving.
Q: How can travel companies respond to this change in consumer behavior?
A: Consumer expectations are changing rapidly. If travel companies want to grow, they need to change quickly as well. The biggest change is probably a change in mindset. Companies need to stop thinking of consumers as one-dimensional and treat them as complex individuals who make paradoxical choices. This unpredictability challenges traditional one-size-fits-all products and pushes the industry toward more flexible and dynamic models. Operators need to be agile and quickly adapt services and products based on real-time data. The aim is to create a more personalized travel experience, which requires a deep understanding of customer behavior and preferences.
The travel industry must first identify the disparate consumer segments within its target audience and then understand their diverse preferences, behaviors, and motivations. You can then offer customizable products and services that allow consumers to tailor their experience according to their conflicting preferences.
Q: What is the role of technology, and Saber in particular, in meeting the needs of today’s travelers?
A: Technology is key to meeting the needs of today’s complex and demanding consumers. Saber uses advanced analytics to understand traveler behavior so we can offer personalized travel options based on travelers’ dynamic preferences.. From predictive analytics to personalized retail, we provide solutions that help our customers not only meet traveler needs, but anticipate them. This, combined with our commitment to innovation, ensures that our partners are well-equipped to meet the contradictory demands of consumers.
Saber also has a long-term partnership with Google, integrating its technology and travel data with Google’s platform to improve the travel booking experience for users. Saber leverages Google’s data analytics capabilities to gain insights into traveler behavior and preferences. By analyzing vast amounts of travel data, Saber is able to provide users with personalized recommendations and customized travel experiences, increasing customer satisfaction and loyalty.
Q: Given these trends, what do you think about the future of travel retail?
A: I think we are on the precipice of an exciting retail era in travel. The travel industry is complex and highly fragmented, and the retail experience traditionally offered has been highly manual and static, with little opportunity for personalization. The industry has made great strides toward rules-based automation and personalization in recent years. Thanks to advances in artificial and machine learning, we are now moving towards a future of intelligent automation and hyper-personalization. The next few years will be very interesting, with more personalized and better experiences for travelers and increased revenue opportunities for travel operators.