Personalization capabilities have come a long way since their inception, transforming generic interactions into targeted, meaningful experiences that resonate with individual travelers.
As these tools have advanced, personalization has become a critical differentiator in a travel brand's strategy; but brands must first establish some ground rules to be able to harness its true power and unlock its potential.
Companies need to first decide what they are optimizing for. If they’re targeting new customers, for example, they must first understand how they define “new.” Is it someone that has never engaged whatsoever with your brand before? Or is it someone who has fallen out of your brand’s ecosystem?
It typically costs a brand far less to acquire a new customer than it does to retain an existing one, but existing ones may be exponentially more valuable- and ignoring them could be costly.
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The beauty of personalization in the world of affiliates is that strategies and messaging can be A/B tested and quickly optimized based on your overall marketing goals. All of this is done in service of fostering and maintaining loyalty.
There are several reasons why a traveler might be loyal to a specific brand, such as price, customer service quality, history with a brand, etc. As an example, travel agencies and metasearch companies have done a fantastic job at appealing to price-driven travelers, convincing them that they’ll find the best price anywhere if they compare listings on these websites.
These brands have built strong trust with the price-conscious traveler, so it’s important to lean into different strategies and messages to draw travelers’ attention. A sophisticated affiliate strategy can ensure you’re getting the most bang-for-your-buck, reaching the right person, at the right time, with the right message.
Cash back and loyalty sites offer hyper-targeted rewards
The global cashback industry is valued at approximately $8 billion, with more than 5,000 sites of its kind operating globally. Travel brands can leverage these sites efficiently by implementing dynamic commission rates based on individual user preferences.
This not only optimizes marketing spend, but also provides a better user experience. Some cash back sites are even developing artificial intelligence-driven recommendation engines using first party data which suggest travel options to their users based on things like previous destination history, specific booking patterns, seasonal travel preferences, shopping category affinity and overall budget or spending habits.
For example, a five-star luxury hotel brand or airline can offer elevated cash back rates to travelers who also frequently shop with luxury retail brands like Gucci, Loro Piana and Rimowa, while keeping a baseline offer for all other shoppers. By understanding traveler activity across all e-commerce, travel brands can offer unique incentives to the right traveler at the right price point.
Buy now, pay later (BNPL) platforms offer contextual financial personalization
BNPL platforms have been disrupting traditional payment models for quite some time now. A PhocusWire piece from 2024 illustrates a few use cases for the model, which can serve as an effective budgeting tool if used properly.
BNPL capabilities also allow travel brands to expand their audience to appeal to people who can’t afford to make large lump sum payments when booking trips. These companies can customize payment plans based on individual financial profiles or offer tailored installment options that match travelers' income patterns.
For example, a Gen Z traveler might receive a BNPL plan with shorter, smaller installments for budget-friendly destinations, while a mid-career professional could access more flexible, extended payment options for luxury travel experiences. Regardless of a travel brand’s core audience, BNPL options allow these brands to extend their reach and connect with new travelers.
Influencer partnerships: micro-targeted audience matching
Influencer partnerships might be the most talked about brand-building exercise of the last several years, and with good reason. Expedia recently reported that nearly half of travelers said they’ve wanted to book an entire trip they’ve seen on social media. To meet this need, Expedia recently launched Travel Shops, offering travel influencers a way to curate their content all in one bookable place. Influencer matchmaking capabilities now exist in a way that can categorize influencers with specific traveler personas and build robust personalized content collaboration strategies between creators and their travel brand partners. For example, a solo female travel influencer targeting safety-conscious travelers, or a budget travel creator speaking to cost-conscious millennials.
Some affiliate network partners also have existing influencer infrastructures in place, making it easy for travel brands to find the right content creators within their ecosystem to tell their story. Affiliate networks also deliver the added value of attribution and tracking for influencer campaigns, ensuring that campaign effectiveness is measurable.
Modern affiliate technology and network support can help travel marketers gain a deeper understanding of individual traveler preferences. With that understanding, brands can create more meaningful, personalized, and compelling marketing experiences that drive engagement, conversions and ultimately, brand loyalty.