When Amazon enters, or even thinks about entering, new markets, entire industries sit at the edge of their seats — a sign of the e-commerce giant’s industry-moving potential. This was most recently seen in Amazon’s push into healthcare with its acquisition of online pharmacy PillPack. The morning the acquisition was announced, shares of Walgreens, Rite Aid, and CVS Health all dropped.

But what about travel? Skift, a travel industry news site and research firm, says the tourism and hospitality industry should be worried too, because customers love using Amazon and the tech giant could decide to enter the industry in a variety of ways.

In a call titled “The Amazon Factor,” Skift senior analyst Seth Borko had this message for the industry: “If Amazon enters travel, you will not get the benefit of the doubt.”

Even though Amazon sells products and not experiences, which are at the core of the travel industry, the company’s focus on a different kind of experience — the customer experience — could be the difference maker.

When it comes to customer satisfaction, or the “Amazon experience,” as Borko calls it, Amazon has it down pat. The company is well-known for putting the customer above all else. According to Skift, customers typically enjoy their experiences with Amazon more than their experiences with travel companies, which includes airlines, hotels, and “Internet travel services” like Booking.com or Expedia. Amazon ranked above Hilton, Marriott, and Expedia in the American Customer Satisfaction Index.

Source: American Consumer Satisfaction Index, Skift Research.

Many customers simply like using Amazon. The tech giant has successfully parlayed that intense focus on customer satisfaction into customer loyalty: the Prime program, which forms one of the pillars of Amazon’s business, has more than 100 million members globally and generates at least $9.9 billion in annual revenue. This loyalty is …read more

Source:: GeekWire


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