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Accenture Research

Customer service surpasses loyalty programs in business travel decisions

The importance of customer service at major airline carriers and hotel groups surpasses that of frequent flyer and rewards programmes…

The importance of customer service at major airline carriers and hotel groups surpasses that of frequent flyer and rewards programmes, according to a new survey of U.K. business travellers from Accenture.



Just one-quarter (26 per cent) of respondents said that frequent flyer programmes were more influential in their ultimate choice of airline, while almost three-quarters (74 per cent) cited the quality of customer service. When respondents were asked about the influence of reward programmes and customer service on their ultimate choice of hotel for business travel, only 11 per cent cited reward programmes, while almost nine in ten (89 per cent) cited the quality of customer service.



Business travellers also reported areas for improvement. More than one-half (54 per cent) of survey respondents reported that they primarily use major airlines for business travel, yet more than one-third (37 per cent) reported that they have been delayed in the last six months due to airline maintenance-related delays and/or cancellations.



Additionally, 54 per cent said their preferred hotel does not recognise them as frequent customers, and 22 per cent reported their preferred hotel recognises them but does not offer special services.



“Major carriers and hotels are making significant strides to improve service, but there is an outstanding opportunity for them to gain competitive advantage,” said Alex Christou, a partner in Accenture’s Transportation and Travel Services industry group. “Since customer service increasingly drives travel decisions, industry players should regularly capture insight on what is most important to their frequent business travellers and adapt to gain travellers’ loyalty.”



The survey findings also suggest that:


  • Road warriors are wired: Use of online travel services shows rapid and significant growth. The majority (89 per cent) said they research flight times and availability online, while 68 per cent purchase airline tickets online and 21 per cent check-in for their flights online. This compares to January, when 58 per cent of tickets were purchased online, and this time last year, when online ticket sales accounted for only 47 per cent of purchases.



    Similarly, 79 per cent of respondents said they research hotel availability online, while 70 per cent reserve their hotel rooms, and 28 per cent update or change their room reservations via the Internet.



  • Travel is “Business as Usual”: While there has been a slight decrease in respondents who expect their business travel to remain the same or increase slightly in the next six months (66 per cent, down from 69 per cent at the beginning of the year, and 83 percent this time last year), the U.K. is back as the top destination for business travel in the next six months (cited by 72 per cent). This is followed by Continental Europe (52 per cent) and the U.S. (25 per cent).



  • Bargain fares hold steady: More than half (58 per cent) of respondents said their use of low cost air carriers for business travel will remain about the same or increase over the next six months. This is a small decrease compared to this time a year ago (63 per cent). At the same time, 58 per cent said they stay primarily at mid-range hotels for business travel, while 28 per cent stay at budget hotels.




Methodology



The survey, fielded in June 2004, entailed querying 318 business travellers at U.K.-based companies. The multiple-choice survey was conducted online and has a margin of error of +/- 3 per cent.

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Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

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