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Written by Emma Green
on February 07, 2024

In the interconnected world of today, businesses that embrace cultural and linguistic diversity can unlock doors to new markets and revenue streams that were once beyond reach. Industries across the board are increasingly acknowledging the substantial role that translation and localization play in global expansion and success. Yet, nowhere is this more pronounced than in the travel and hospitality sector, which depends enormously on attracting and satisfying a diverse international clientele.  

In this extensive discussion, we'll explore how and why businesses, particularly those in the hotel and travel sector, should view translation and localization not just as a cost but as potent engines of revenue generation. We'll employ key insights from the influential "Can't Read Won't Buy" research by Common Sense Advisory (CSA) and integrate other relevant studies and data to underpin this strategic shift.  


The Linguistic Connection to Consumer Behavior  

The maxim "Can't Read Won't Buy" is straightforward but profound. Common Sense Advisory's research into buyer behavior found that 72.4% of global consumers were more likely to buy a product with information in their own language. This connection between language and purchasing decision speaks to the deep-seated desire for a personalized shopping experience — an aspect relevant to all sectors but indispensable in the travel and hospitality industry.  


Emotional Engagement and Consumer Trust

Emotions play a fundamental role in consumer behavior. When a hotel or travel company localizes content, it sends a message that it values and understands the cultural and linguistic context of its customers. Such emotional engagement inspires trust — crucial for the industry where companies are often dealing with significant, high-value transactions.  


Reaching the Non-English Speaking World  

While English maintains a broad sphere of influence, non-English speakers represent an expansive market segment. The travel and hospitality sector thrives on global reach, making inclusion of these segments critical. For instance, CSA's research also indicated that 56.2% of consumers said the ability to obtain information in their own language is more important than price. Therefore, offering services in multiple languages presents not just a competitive advantage but, more so, a revenue-driving necessity.  


Localizing to Unlock Revenue Streams  

Seeing translation and localization as conduits for increased revenue entails delving into specifics, particularly on how these services translate into numbers for a company's bottom line.  


Website Translation and E-commerce Growth  

For e-commerce businesses, website translation directly correlates with increased sales. When web content is available in multiple languages, users are more likely to spend time on the site, trust the brand, and complete a purchase. The return on investment (ROI) for website translation can be substantial. For example, a survey of Fortune 500 companies revealed that firms which increased their translation budget were 1.5 times more likely to report an increase in total revenue.  


Website Localization and Direct Bookings  

For hotels and travel agencies, website localization directly impacts direct booking numbers. Translated websites with localized content rank higher in local search engines, drawing more traffic and potential customers. This often leads to a measurable increase in bookings and, correspondingly, revenue. Additionally, localized websites reduce reliance on third-party booking platforms which charge substantial commissions.  


SEO and Market Penetration  

Localized SEO practices are not just about language but tailoring keywords and phrases to cultural preferences and local search trends. Visitors are more likely to find localized websites, cementing a brand's presence in the international digital landscape. Enhanced online visibility in various language markets translates into higher occupancy rates for hotels and more bookings for travel services.  


The Power of Continuous Localization  

Continuous localization ensures that all content remains up to date and relevant to local market movement, which in the travel industry, is particularly dynamic. By adopting this process, companies ensure that their localized content evolves in tandem with market changes, thereby increasing the long-term sustainability of their revenue streams.  


Boosted by Real-Time Data  

Today's advanced localization tools can accumulate and analyze user interaction data, allowing businesses to make data-driven decisions on further content localization. This analytical capability is invaluable for fine-tuning market strategies and maximizing the impact of localization efforts.  


Translation ROI for the Travel Industry  

To gauge the ROI of translation services in the travel sector, companies use formulas considering several variables, including increased booking due to localization, reduced commission payouts to intermediaries, and the broader reach in search engine rankings.  


ROI = (Increased Revenue - Localization Costs) / Localization Costs  


Assessing this ROI helps travel companies understand the financial benefits stemming from localization efforts, enabling informed decision-making about ongoing investment in translation services.  


Case Studies: Global Growth Stories  

  1. Marriott attributes growth to Localization 
    Marriott International's impressive global expansion, with localized websites in 22 languages, underscores the strategic importance of localization. The company attributes significant revenue growth to their comprehensive localization strategy, leading to an enhanced understanding of varied cultural expectations and facilitating personalized experiences for international guests.  
  2. Airbnb Exemplifies Localization Success  
    Airbnb's extensive localization strategy, which encompasses their website, app, and customer service, is tailored to suit local sensibilities and customs. This has contributed to their skyrocketing growth—as they've made their platform more accessible and approachable to non-English speaking users, their international markets have rapidly expanded.  
  3. LinkedIn Connects Through Multiple Languages  
    LinkedIn's strategic decision to localize was a significant success factor in achieving international market penetration. In 2008, only 3 million of its 31 million users were from outside the United States. Post-localization, LinkedIn now boasts users from over 200 countries and territories, with over 70% of users located outside of the U.S.  


Streamlining and Optimizing Localization  

While the correlation between localization and revenue is clear, the effectiveness of these strategies depends on their execution.  


Technological Advancements in Translation  

The progression of Machine Translation (MT) and language models has profoundly changed the nature of translation and localization. These technologies have not only accelerated the translation process but also made it more cost-effective—two factors that have significant implications for businesses' bottom lines.  


Machine Translation and AI  

AI-powered MT and large language models have reached unprecedented levels of sophistication, delivering translations at a speed and volume that human translators could never match on their own. Organizations like Google DeepMind have made significant strides with AI translation, often generating translations that closely approximate human quality.  


Efficiency and Scalability  

With the reduction in costs provided by MT, businesses can afford to localize more content and enter markets that were once inaccessible due to budget constraints. For instance, Netflix's localization model—which extensively uses MT for subtitling—is a testament to the company's rapid global expansion and localized content delivery across numerous languages.  


The Central Role of TMS  

Translation Management Systems (TMS) orchestrate the entire translation workflow, facilitating a seamless integration of automated processes. The TMS technology automates the assignment of human translators, integrates MT effectively, and ensures consistent use of terminology, which is especially important for brands maintaining a strong international identity.  


Reduced Time-to-Market  

One significant advantage of these technological advances is the ability for companies to drastically reduce their time-to-market. In the fast-paced travel industry, where last-minute deals and seasonal offers are commonplace, the ability to update localized content rapidly can be the deciding factor in capturing market share.  


The Human Element  

Even the most advanced MT technology requires a human touch to perfect its translations, especially when cultural context is involved. This human element ensures that translations are not only accurate but also resonate culturally with the target audience—a critical consideration in the hospitality sector where customer experience is closely tied to cultural understanding.  


Agile Localization for Continuous Growth  

Adopting continuous localization practices enables travel and hospitality businesses to remain agile and responsive to market changes. Staying up-to-date with local trends and customer feedback ensures a consistent and localized presence — critical for maintaining and growing international market share.  

  • Localization in Action: The Hotel and Travel Sector  
    Let's further dissect the role of translation and localization in the context of the hotel and travel sector to appreciate its direct impact on revenue generation.  

  • Enhancing the Guest Experience  
    From the moment a potential guest visits a hotel website until they complete their stay, every touchpoint can and should be localized. A study by TripAdvisor revealed that travelers are 3 times more likely to stay at a hotel with higher review scores. Part of maintaining high scores is ensuring all communication — be it on the website, during the booking process, in confirmation emails, or on-site services — is comprehensible and culturally relevant.  
  • Diversifying Offerings for Global Appeal  
    Creating special packages or targeted promotions requires an understanding of regional market preferences and celebrations. For instance, a hotel in Europe might want to offer unique packages for the Chinese Spring Festival to attract tourists during that peak holiday season.  

  • Localizing Ancillary Services  
    Travel involves an ecosystem of services — flights, accommodation, tours, transports, and insurances, to mention a few. For travel agencies or booking platforms, localizing the entire range of ancillary offerings not only adds convenience for the user but also increases the potential to upsell and cross-sell services.  

  • Leveraging User-Generated Content  
    Encouraging and leveraging reviews from international guests can be an indispensable tool for hotels and travel companies. Translating and highlighting positive experiences from a diverse customer base can profoundly influence booking decisions from similar linguistic groups.  


Conclusion: Revenue Growth through Strategic Localization  

Reflecting on the compelling evidence and successful case studies, businesses, specifically those within the hotel and travel sector, should now recognize the significant revenue-generating potential of translation and localization. The investment in rendering services accessible, personalized, and culturally resonant for international customers pays off by fostering brand loyalty, capturing new markets, and driving higher sales.  


Far more than an operational cost, translation and localization can become powerful levers for boosting profitability and market share across international frontiers. By integrating localization into core business expansion strategies, companies will not only garnish customer satisfaction but also ensure sustained growth in international revenues.  

  Contact Andovar

In sum, translating and localizing content is a smart financial decision for businesses aiming for long-term growth within the global market. These processes extend beyond mere translation, encompassing deep cultural insight and understanding, elevating businesses in the eyes of international consumers. This strategic shift from expense to investment has the power to shape the future of international business across sectors, creating a more accessible and personalized global marketplace.

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