The British holidaymaker’s enduring love of a deal has been underlined by new research from predictive analytics firm Blue Yonder.
Blue Yonder study finds flexible pricing is shaping how people shop for travel
The British holidaymaker’s enduring love of a deal has been underlined by new research from predictive analytics firm Blue Yonder.
The survey of 2,000 people found half use price comparison sites and only one in three people visit a travel agent.
One on four people say they spend more than two hours seeking out the best deal while 85% of Londoners say they do their holiday shopping online.
The Blue Yonder study looked at people’s price sensitivity and found that Londoners and millennials are more accepting of higher prices at peak times.
This was true not only for trips in the school holidays but taxis during rush hour, suggesting an Uber-impact on Londoners.
Blue Yonder said flexible pricing, which the travel sector has been at the forefront of, was shaping the way people shop and consumers increasingly accept it.
Rakesh Harji, UK managing director of Blue Yonder said: “What this survey reveals is that people are aware that shopping around pays off – you can get the same product or service, or get to the same destination, for a reduced price if you are smart in the way you shop.
“In addition, it shows that the younger generations – growing up in the age of Uber, Ebay and Amazon, are more accepting of changes in prices, benefitting customers in the long run and actually giving them control.
“What they are willing to pay is the new standard in pricing. It also shows the importance of optimising your online pricing and continuously analysing your customer behaviour and the competition to remain a player in the market. If you outprice your flights, your customer will simply go to another competitor.”
Rakesh added: “What does this mean for the future of travel? Pricing models are evolving as technology advances and in line with consumer habits. Holiday and travel companies need to fully understand the shifting dynamics and utilize the technology available in the digital age, or risk being left behind.”
