In the digital age of limitless choices, consumer decision making has become even more difficult. Behavioral economics, the study of how and why we make choices, can teach travel marketers new ways to understand travel bookers and new tactics to guide them towards making purchasing decisions.

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WHAT TRAVEL BRANDS CAN LEARN FROM BEHAVIORAL ECONOMICS
BOXEVER + SKIFT
BOXEVER + SKIFT PRESENT
THE HABITS OF TRAVEL BOOKERS:
WHAT TRAVEL BRANDS CAN
LEARN FROM BEHAVIORAL
ECONOMICS
By Skift Team + Boxever
In the digital age of limitless choices, consumer
decision making has become even more difficult.
Behavioral economics, the study of how and why we
make choices, can teach travel marketers new ways
to understand travel bookers and new tactics to
guide them towards making purchasing decisions.
special
report

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WHAT TRAVEL BRANDS CAN LEARN FROM BEHAVIORAL ECONOMICS
BOXEVER + SKIFT www.boxever.com
TRAVEL BUYERS
CAN BE
UNPREDICTABLE &
IRRATIONAL.
HOW YOU ENGAGE
DOESN'T HAVE TO BE.
Boxever - predictive marketing
& customer intelligence platform.
Built specifically for travel.
For better customer engagement,
higher conversion, and more
revenue.

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WHAT TRAVEL BRANDS CAN LEARN FROM BEHAVIORAL ECONOMICS
BOXEVER + SKIFT
ABOUT BOXEVER
Boxever’s predictive marketing platform helps airlines and online
travel agents (OTAs) deliver personalized, 1:1 marketing experiences
to their customers across all channels and at all stages of the cus-
tomer lifecycle. The company, founded in 2011 in Dublin, provides
a cloud-based customer intelligence and personalized marketing
platform specifically tailored for the needs of the travel industry. It
combines big data and predictive analytics into a tightly integrated
marketing solution that provides a 360-degree view of the customer.
With it travel companies can develop insights into each customer,
customer segments, products, and channels, and then take action on
those insights in the form of personalized communications, including
email, mobile, web, display, and more.
The solution enables travel retailers to deliver better customer ex-
periences in real time, improve conversions, and drive revenue. The
Boxever platform is a multi-tenant platform built in the cloud. Given
the SaaS architecture, it takes only weeks – not months or years as
with legacy “big data” solutions – for a customer to be up and running
and experiencing benefits.
Companies like Ryanair, Air New Zealand, TigerAir, Wideroe, and more
achieve higher conversion rates, increased revenue, and improved
loyalty using Boxever’s platform. Learn more at boxever.com or follow
us on Twitter @Boxever.

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WHAT TRAVEL BRANDS CAN LEARN FROM BEHAVIORAL ECONOMICS
BOXEVER + SKIFT
About Boxever 3
What is Behavioral Economics and Why Travel Brands Should Care 5
Consumers Are Irrational: How We Perceive Choice 7
What Cognitive Tactics Should Travel Brands be Using? 8
Contextual Pricing 8
Decoy Pricing 9
Anchor Pricing 10
Social Proof 10
Scarcity and FOMO 11
Further Reading 12
What Makes Customers Click? 13
About Skift 15
About Skift
Skift is a travel intelligence company
that offers news, data, and services
to professionals in travel and profes-
sional travelers, to help them make
smart decisions about travel.
Skift is the business of travel.
Visit skift.com for more.
The Habits of Travel Bookers is a quarterly series focused on the driving factors behind travel purchasing behavior.
Missed the first report? Check out Battling Shopping Cart Abandonment here.

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WHAT TRAVEL BRANDS CAN LEARN FROM BEHAVIORAL ECONOMICS
BOXEVER + SKIFT
WHAT IS BEHAVIORAL
ECONOMICS AND WHY
TRAVEL BRANDS SHOULD CARE
If you ask a travel marketer about the tactics they use to drive
online bookings, what do you expect to hear?
It’s likely you’ll get a rundown of the usual suspects—email
marketing, programmatic advertising, improved search function-
ality—all of which are perfectly acceptable answers, but fail to
address the root of the purchase journey: the consumer and
the decision to actually book with you.
We can’t predict customer behavior with absolute certainty, but
we can help form their decisions by understanding how choices
are made and designing solutions around them. This is where
behavioral economics, the study of how and why we make choices,
becomes an advantageous tool for marketers.
Source: Ken Danieli / photo on Flickr