The Travel & Hospitality sector is consistently high performing and 2016 is no different. It’s the Star performer in two sections of our Industry Census and, alongside strong results across the board, marketers in this sector are also in a good position to continue moving forward with their email marketing strategies.
Growth in ROI and Strong Return on Budget
Similar to all but one of the sectors, Travel & Hospitality has seen strong growth in ROI in the past year. Their 8 percentage point increase places them as the second highest performer and also well above the industry average of 73%.
Positive news is also found in the sector’s sales, which are plotted against its investment budget, achieving the second highest percentage point difference (+8). As with the majority of sectors however, their budget is below average. It is clear the industry average of 15% is affected by the high budget of the Print, Publishing & Media sector, but it shouldn’t be treated as an anomaly. When coupled with the sector’s relative sales it shows email’s potential and the possible returns the Travel & Hospitality sector could take advantage of by investing further in the channel.
Segmentation Being Taken Seriously
The Travel & Hospitality sector is among the majority of sectors that use Measurement & Analytics and Personalisation services from their provider. These two are resolutely popular, and rightly so, as they can provide great insight and improve engagement with your campaigns.
It is also pleasing to see these marketers using Segmentation, which is consistently shown to help improve ROI and so should help further growth moving forward. The sector is also only one of two (along with Print, Publishing & Media) to use Deliverability Audits & Analysis, offering greater insight to inbox placement and providing a foundation for better strategy.
A Stitch in Time
Getting the balance between strategy and execution is hugely important. All the sectors have a similar split between the two, though Travel & Hospitality get an honourable mention. It also gets the star sector for email practices, being top in eight of our 18 practices, as well as favouring basic segmentation and mobile optimisation – two key components to future ROI.
Most tactical time seems spent on design and content, something a supplier would be able to assist in – whether it’s design or creating a communication plan – and that would give more time to marketers to focus on long term concerns.
Overall, there is still more work to be done by them and the other sectors to improve the balance.
Automation Success: Achievable, not guaranteed
Automation is the number one focus for email innovation this year, but for one to be considered a big success is rare. The Travel & Hospitality sector are working hard though, improvements to ‘very successful’ implementation is up to 24% and continued strong results for ‘quite successful’ at 52%.
Marketing automation promises many things, such as saving time, increased engagement and more relevancy. Creating and managing a programme is often deemed a daunting proposition though, and that need not be the case if it’s broken down into smaller, achievable parts.
With that in mind, it would seem the Travel & Hospitality sector may have struck upon a good strategy. By continuing more work into understanding and using automation programmes the sector should cross the 80% threshold for successful implementation in 2017.
No love lost…
The general theme in our Industry Census is that positive results with the email channel consequently mean a positive opinion of the email provider.
Surprisingly, this is not the case with the Travel & Hospitality sector, which in 2016 has seen a huge drop of 19 percentage points. Despite their brilliant use of email tactics, management of time and their success with automation implementation the sector is seemingly at odds with its providers.