8 reasons to adopt the gift card in tourism
After the sharp decline in tourism activity due to the pandemic, the industry has made a strong comeback by leveraging digital solutions, particularly gift cards. With the rise of e-commerce and health restrictions, these programs have grown significantly, now accounting for nearly 50% of gift card sales. Travelers are eager to get back on the road, and experiences have become a top priority for consumers. This shift has led to a surge in the popularity of experience-related gift cards.
In this article, we’ll explore 8 key reasons why brands should capitalize on this opportunity and fully develop their gift card programs to unlock their true potential.
1- A way to enhance the offer
In an experiential market built around services, adding an extra service helps enhance a brand’s overall offering. Gift cards make an ideal addition, offering consumers a simple and practical gift option.
Moreover, launching a gift card program allows a brand or retailer to expand its offering with a long-term vision. It requires developing a clear strategy and a specific marketing campaign to truly promote the brand through gift cards.
For this to be effective, it’s crucial that the service is both physical and digital, keeping pace with evolving consumer behaviors. Today’s buying journey is undeniably omnichannel—consumers want options when making purchases.
Additionally, today’s travelers are increasingly drawn to "very last-minute" bookings and are eager to explore nearby destinations and authentic experiences, diving into cultural heritage. This trend is highlighted by certain travel industry players. Lastminute.com, for instance, allows customers to give a digital gift card to help a loved one take the trip of their dreams instantly—book a last-minute ticket, gift a card, and head off to the sunshine!
2- Reaching a new audience: professionals
Adopting gift cards in the tourism sector also opens the door to reaching a new audience: professionals. In recent years, the business travel sector has been embracing digital transformation at a rapid pace. The professional environment is becoming more disruptive, driven by new technologies, particularly digital, which is reshaping how business trips are booked and paid for.
For example, there’s a notable increase in the use of online payment methods, making the process more efficient for professionals. It’s also a convenient way for companies to enable their employees to pay, especially when traveling abroad.
3- A strong presence in the digital world
For several years, the tourism sector has been undergoing a digital transformation. This shift has brought significant changes to both the supply and demand sides of the industry, redefining the roles of key players—both visitors and providers. It has opened up new opportunities but also presented challenges, such as the rise of online travel agencies and mobile wallets.
Tourism professionals can leverage this trend by offering online gift cards. Beyond bookings, this adds a digital service to the company’s offering, creating an additional touchpoint for the brand. The cardholder always has it on hand.
If the brand has an app, integrating the e-gift card directly into it can be highly beneficial. It allows the brand to send push notifications, reminding customers to use their cards or notifying them when the card is about to expire, for example. If the brand does not have an app, allowing customers to store their gift cards in wallet apps can be advantageous. Users can check their balance, and the brand can send geolocated notifications through the wallet.
4- A powerful marketing tool
The gift card can be seen as both a marketing and relational tool. It can be used to boost customer acquisition by following specific strategies, such as referral programs, using gift cards as promotional codes, or as prizes for contests. For instance, a gift card could be used to promote trial experiences, offering customers a stay in a hotel or a meal at a restaurant.
It also serves as a powerful recommendation tool, turning some customers into brand ambassadors for prospective clients.
5- A new payment method
The gift card is also a legitimate payment method. It offers a unique way to gift a trip or stay, especially through collective gifting, which allows multiple people to contribute online to the same trip and then convert the total amount into a gift card. This group gifting option is increasingly popular in the tourism sector.
6- Enhanced customer experience through gift cards
The sixth point revolves around customer experience. With the rise of the internet and connected devices, consumers have significantly altered their lifestyles and now expect a similar shift in their consumption habits.
Marketers must create a unique and personalized customer experience to build lasting relationships, particularly in the tourism industry. Gift cards can enhance this experience, strengthening relationships and after-sales service. For instance, offering a gift card to compensate for delays or event cancellations, such as launching a loyalty campaign with gift cards for delayed trains, can be an effective way to offer a unique experience, increasing customer engagement and reducing churn.
7- Gift cards as a promotional tool
Brands can use gift cards to encourage specific consumer behaviors. For example, in the context of "over-tourism" at a particular destination, offering a gift card for a less popular destination can be a smart solution. In fact, 75% of travel agents report that their clients want to avoid over-tourism while still visiting key attractions.
Gift cards can also drive the adoption of a new tool or sales channel. Some tourism companies, for example, develop apps to assist customers during their travels (guides, deals with potential partners, etc.). To encourage consumers to download and use the mobile app, a gift card could be offered. For example, a €5 gift card could be given for every €30 spent on the app.
8- Expanding internationally with gift cards
Gift cards offer brands an opportunity to tap into international markets, especially with their digital version. After ensuring the proper management of currencies and languages, gift cards can enable professionals to sell their services globally.
Gift cards can become a powerful asset in a brand's strategy, even in the tourism sector. Whether it's enhancing customer experience, expanding internationally, or establishing a presence in the digital world, they represent a significant opportunity for professionals. Now is the time to get started!
