Service Marketing Challenges of Trivago Company and Recommendations on How to Deal With Them
Three Main Challenges
Most Service Products Cannot be Inventoried
It provides an online searching, comparing and booking hotel rooms service for customer. The service they provide is intangible in neuter, and due to the nature of the serves it cannot be stored so, booking a room in a hotel cannot give a guarantee that the room will remain empty if the customer delays a day or a few hours from the check-in of the room because every minute is important in this type of service and this causes the hesitation of many customers from booking a room online. It also makes the customer to worry about things related to payment, for example: the trip was canceled because of bad weather; in this case the customer is concerned about the money paid online. Well the return the paid amount or not? If the amount is returned, how much will be returned? Well they refund the full amount or not?
To resolve this problem trivago did a lot of promotions throwTV, YouTube and other advertising channels as well it shows thy customer all details related to the payment (all issues related to money) for example if the paid money can’t be returned they will inform you about it before making the payment and they will give you more than one option which matches you request. they also provide you some options with discounts on it to attract more customers. They used very simple and related to daily life type of advertisement. They show a man wearing very common daily clothes and looking very simple and ordinary in instead of using a famous person and looking more like a celebrity, they did it on purpose to send the message that everyone can afford it, even if you got a low budget you can get a great deal, so you don’t have to worry about your budget you should go and enjoy your vacation. In the advertisement they focused heavily on how much affordable it is and how much convenient, time and effort saving it is for you as customer to use this site.
Distribution takes place through nonphysical channels
They are providing this service online so they are using electronic channels to provide it to their customers. Nowadays, technology has become much more advanced and provides a lot of information to customer. And also provide comfort for customers through saving their time and effort of searching and choosing the most suitable hotel through providing the customers different options at different prices of different hotels or different prices of same hotel through different providers. By doing this they are shortening the searching time and effort of the customer instead of browsing in different website and visiting different travel agencies they will combine them all in one web page were they can compare and decade easily without wasting too much time and effort, and this will make them prefer it more than the traditional method.
This change in the market behavior pushed a lot of companies to provide their services online for their customer and it create a strong competition among the companies and strong rivalry. Trivago is providing its serves through an online website which is very challenging for them because customers are very careful and choose carefully when they are dealing with a website they don’t trust all websites they do transactions in very few and extremely trustfully specially when they do money transactions. It hard for them to differentiate between a real and fake website and even if they trust the website it may be hard for them to find the website because there is a long list will come on the screen of the customer when he/she search in the search ingénue about the site.
To overcome this challenge trivago made a web page which is very simple and easy for anyone to use it’s a user-friendly website. when they open the first page it will directly take you to the booking page and this page structure is very simple and easy to use as will, in this page there is only four rectangles first one is for name of the place, the second one is for check-in date, third is for check-out date and the fourth one is for type of room you want for how many peoples after filling all this information click search and it will provide you a less of hotels and in this page you can get more options to specify your desired hotel more, for example: you can choose what you want in your room a freezer, microwave, or one single bed… etc you also get the option of choosing the type of place you want to stay at for example: you want to stay in a five, four, three, two or one stare hotel, or you want to stay in a building or flat … etc. they provide this service for the customers for free they don’t charge them anything so this well help them to gain more customer and more profit sense they get money by the numbers of click on the web site.
Services are often difficult to visualize & understand.
It’s difficult for the customer to visualize and understand the value of the serves provided to them rather than the value of the product because customers can touch the product however for the service they cannot see it in hand and it’s hard for them to understand its value. Customers doesn’t trust product that they cannot touch because it creates a feeling of facing a greater risk and uncertainty in the mind of the customer. They don’t want to take any type of risks especially when it’s come to transactions related to money. They prefer to deal with a will known company site or have previous good experience with them to be in a serve said or to go to travel agencies to avoid facing any type of fraud. As will its difficult for the customers to differentiate between them and other companies, they may also find difficulty in the way of using the website and what they are providing them.
In order to surpass this challenge trivago provided many educating adds for the customers showing them step by step how to search for the hotels and were they have to go, what they have to write, what further options they can add, how many specific details about the hotel they can search, how to get the room in the budget they want, and how many stares hotel they want. They also provide many detailed information about the hotel how much room they provide what inside them. As well they provide pictures of the room they are going to book to know how it look to reduce the ambiguous and unsertensety feeling the customer have to help the customer to make the best choose out of all options provided to hem, which one suits hem/her the best. Trivago differentiate themselves from others companies by their unique serves by saying that they are the only website which will help them to compare between the prices of the hotels and they can also compare between the prices of the same hotel and same room provided by different firms. They provide all the necessary information’s about the hotel and more details related to the hotel and what is surrounding it as will some personal tips and all this is fore free not mention they also let them to read the reviews of other customers commenting how was their experience.
The role of employees & customers is critical in a service organization. Now the service industries are passing through customer-oriented customer satisfaction is very era, important to a service company’s survival and development. The company has to applied new management knowledge about service marketing into their actual operation. They must care about employee satisfaction, and keep employee training regularly. That is why they achieve success in delivering quality service. Trivago emphasizes 7ps of advertising. And their recent performance analyzes the demand of the market and then makes a decision based on that analysis.
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