The Impact of Global Events on Travel Commerce: Lessons from the Pandemic

In this fifteenth installment of our series, we aim to understand the profound impact global events, particularly the recent pandemic, have had on travel commerce and how the industry has responded and adapted.

Rebounding from the Pandemic

In this fifteenth installment of our series, we aim to understand the profound impact global events, particularly the recent pandemic, have had on travel commerce and how the industry has responded and adapted.

The travel industry, by its very nature, is susceptible to global events. The COVID-19 pandemic was an extraordinary event that halted the industry to a near standstill. As restrictions lift and travel resumes, we have the opportunity to assess the effects and extract valuable lessons.

The pandemic underlined the critical importance of customer engagement during a crisis. As borders closed and flights were grounded, customers turned to their trusted travel providers for information and assistance. Travel businesses that had robust customer engagement strategies in place could communicate effectively with their customers, provide timely updates, and manage changes or cancellations efficiently.

How the Industry Responded

One of the most significant shifts seen during the pandemic was towards customer retention. As acquiring new customers became challenging, travel businesses focused on nurturing existing relationships. Travel businesses had to rethink their loyalty programs and customer rewards to adapt to a world where travel was restricted. Innovative approaches were deployed, such as extending the validity of loyalty points, offering travel rewards for future use, or providing discounts on local experiences.

Financial services played a key role in this scenario. With consumer spending dropping significantly, travel businesses collaborated with financial service providers to offer flexible payment options and refunds, further enhancing customer retention efforts.

Yet, the pandemic’s effects went beyond the immediate operational challenges. It triggered a fundamental shift in the way the travel industry operates, with an increased emphasis on safety, flexibility, and digital innovation. Travel businesses invested in technologies that enabled touchless experiences, virtual travel, and advanced health and safety protocols, thereby transforming the traditional customer journey.

Lessons Learned in the Travel Industry

The pandemic also highlighted the potential vulnerabilities in loyalty programs. With the cancellation of trips, accumulated loyalty points and rewards risked becoming a financial liability. The solution? Many travel businesses diversified their reward options, allowing customers to redeem points for non-travel rewards or donate their points to causes related to pandemic relief.

The pandemic was a wake-up call for the travel industry. It emphasized the importance of agility, customer-centricity, and digital innovation in the face of global crises. As we move forward, these lessons will continue to shape the future of travel commerce.

Switchfly is the leader in helping employee rewards and loyalty programs to offer travel benefits that customers and employees are excited to use. To discover what’s possible with Switchfly, connect with us today.