Assessing the Utility of Location-based Social Networking Services in the Travel Industry

Applications in the social networking arena that specifically let users share their location continue to gain traction.
Such applications offer businesses an option to use location-relevant advertising, which uses location information technology to target end-users with relevant advertising on their mobile devices. This gives businesses a chance to market to potential and existing customers whilst they are in the vicinity, in addition to local search.
For its part, the travel industry is making diligent use of such location-based social networking services.
One such service Gowalla has positioned itself as a passport for smartphones.
For businesses, the company says when a person checks in, the users are not just telling their friends where they are, they’re also creating a record of their experience with that particular business. By claiming location on Gowalla, the company says businesses can provide their “fans and customers a remarkable opportunity to connect” with them.
For its part, Gowalla makes it easy for businesses to welcome its fans with a check-in message or special promotion, customise their listing with a venue description and iconic passport stamp, promote any venue on Facebook and Twitter, and also keep contact information and business details up-to-date.
“Travellers have always sought to find and experience the best that a destination has to offer, the opportunity that Gowalla now presents to our partners has grown out of that desire from the traveller. From recommending the best restaurant in a neighborhood, to rewarding a loyal brand enthusiast, to creating a socially serendipitous moment around the places they are visiting, the idea of high touch, but light touch, is taken to a new level,” says Gowalla’s director of Business Development, Andy Ellwood.
In order to know more about Gowalla’s plans and the utility of such applications in the travel industry, EyeforTravel’s Ritesh Gupta spoke to Ellwood. Excerpts:
Can you elaborate how have your operations and offerings progressed as far as the travel industry is concerned?
 
Andy Ellwood:
Gowalla is a social network that was created from the inspiration of using our mobile phone as a passport. Each time we engage around a location, or check-in, we are sharing with people in our network about the places that are important to our story. The brands, media, and destination partners we've worked with recently have sought to be a part of that story and bring unique experiences to their fans and visitors.
Considering the emergence of several geo-smart customer relationship management solutions, how do you think the travel industry has embraced the idea of rewarding travellers for virtual check-ins?
 
Andy Ellwood:
Travellers have always sought to find and experience the best that a destination has to offer, the opportunity that Gowalla now presents to our partners has grown out of that desire from the traveller. From recommending the best restaurant in a neighborhood, to rewarding a loyal brand enthusiast, to creating a socially serendipitous moment around the places they are visiting, the idea of high touch, but light touch, is taken to a new level.
What is the core idea behind rewarding consumers for sharing their travels virtually and how can travel companies assess RoI from such initiatives?
 
Andy Ellwood:
With each check-in and engagement by a traveler at a location, they are in a sense personally endorsing that location to their network. I have intentionally rearranged my travel plans recently to make sure to visit locations that have been visited by people in my network I trust and respect. By brands choosing to reward or incentivize travelers to share their experiences, they are accelerating the consideration process for others around the world to consider their destination in the future.
To what extent has your company succeeded in working on a set of services for the travel industry that have enabled hotels and airlines to become location-smart and improve the way they communicate with their customers?
 
Andy Ellwood:
We have received tremendous feedback from our travel industry partners. The insights and customer engagements that we've worked together on have not only been fun, but also drive brand loyalty and personal recommendations to their company. By creating a new venue for travelers to share their experiences, these brands have inserted themselves into those experiences in real time.
Considering there are several applications in the marketplace that give consumers an option to gain real points, miles and travel awards for geo-location check-ins, what sort of feedback have you received from your users? How strong is the tendency to being rewarded for virtual check-in via a mobile application or mobile web interface?
 
Andy Ellwood:
Because the travelers are offering their personal endorsement of a location or a partner, there is definitely a positively correlated relationship between rewards and consistent action.
Generally, there are two aspects to loyalty programmes – recognition and rewards. What should hotels consider when it comes to effectively recognising and rewarding its customers according to their preferences, and ultimately keep their loyalty while reaching them out via real-time location-enabled web?
 
Andy Ellwood:
The most important thing that we've seen in the successful campaigns on Gowalla has been that brands should lead with an value added experience and then let the brand take credit. Brands that are leading with hoops that have to be jumped through before travellers find the value have a much lower engagement.
A lot is expected from Location+Social . There's lot of excitement in the air when it comes to location+social, and geolocation check-in services have gained much momentum in this space. How do you think the travel industry will leverage such trend?
 
Andy Ellwood:
The most important things that we think about with our partners revolve around how do we encourage people to tell better stories and do more when they go out with Gowalla. The more opportunities that brands create for travelers to share their stories, their journeys, and their experiences, the more we will find travelers choosing to give the brands credit for being a part of their adventure.
What’s on your agenda for the next 12 months or so?
 
Andy Ellwood:
We are focused on our community and continuing to learn the strategies, features, and partners that excited them. We will be working with some tremendous partners in the next few months that will continue to define and change the way that people share their stories and explore the world around them.
Social Media Strategies for Travel USA 2011
 
Andy Ellwood, director of Business Development, Gowalla, is scheduled to speak at the forthcoming Social Media Strategies for Travel USA 2011 conference, to be held in San Francisco next year (March 2-3, 2011)..
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Or contact:
Gina Baillie
VP Global Marketing & Events
EyeforTravel
London, UK: +44 (0)207 375 7197
[email protected]