The small and mid-size enterprise (SME) market represents an enormous growth opportunity for travel industry brands. SMEs account for over 90% of businesses worldwide, making them a critical segment for airlines, hotels, car rental companies, and other travel brands.  Recent data from the U.S. Small Business Administration shares there are around 33.3M small businesses in the U.S. While major corporations often have negotiated contracts and extensive travel programs, SMEs typically lack such structures—leaving an untapped market ripe for innovative engagement.  In fact, at the recent HSMAI Futures Forum, we heard brand and chain hotel leaders talk about the rise in competition to capture this segment of business.

However, capturing the SME market isn’t as straightforward as it seems, and at GitGo we’ve been tapped to assist customers who’ve experienced these struggles and need a team who is deep in the trenches with experience in overcoming these challenges.

SMEs differ significantly in their travel behaviors, budgets, and decision-making processes. These challenges can make it tough for travel brands to create programs that resonate with and retain this audience.

Here’s why focusing on the small & mid-size business sector matters, the obstacles brands face, and five crucial factors to consider when designing SME-targeted programs.

Why SMEs Matter to Travel Brands

1. Sheer Volume: SMEs make up the backbone of most economies, representing a vast pool of potential customers.
2. Growth Potential: Many SMEs are in growth phases, leading to increasing travel needs as they expand operations, open new markets, or meet clients.
3. Loyalty Opportunities: SMEs are less likely to have existing loyalty program commitments compared to larger corporations, making them more open to new partnerships.

Challenges in Capturing the SME Market

1. Diverse Needs: SMEs range from startups with minimal travel budgets to established mid-sized firms with more complex requirements. This diversity makes a one-size-fits-all approach impractical.
2. Time and Resources Constraints: SME decision-makers often juggle multiple roles and lack the time to navigate complex travel programs.
3. Cost Sensitivity: SMEs are typically more budget-conscious than larger corporations, requiring value-driven solutions that align with tight financial constraints.

Five Key Factors for Success in Targeting SMEs

1. Simplify Access and Enrollment
SMEs need travel programs that are easy to understand and join. Avoid lengthy onboarding processes or excessive requirements for membership. A streamlined, user-friendly platform with clear value propositions will attract busy decision-makers.

Oftentimes, our clients have to navigate legal requirements and operational logistics inside their large corporation that hinder their ability to make it easy for SME’s to do business with them.  We’ve been successful at navigating these issues to find common-ground and grow the SME programs exponentially through our advisory and guidance using data to tell the story.

2.Deliver Clear and Immediate Value
SME leaders are unlikely to invest in a program that doesn’t show clear ROI. Focus on benefits that resonate with their pain points, such as cost savings, exclusive perks, or flexibility in cancellations and rebooking. Demonstrate how the program directly impacts their bottom line.

Gathering insights from SME customers and potential customers is critical in year one to ensure the program has legs to grow.  Implementing a process to gather critical insights and report back to business leaders to make program adjustments and enhancements is a valuable and necessary component.

3. Personalize Offerings
Segment SMEs based on their size, industry, or travel patterns and tailor programs accordingly. For instance, a tech startup might value Wi-Fi access and co-working spaces, while a manufacturing SME might prioritize logistics and ease of booking for multiple team members.

SME’s are not one-size fits all, and don’t want to be approached in this way.  It’s vital to make personalization a key component of your program, and incorporate the tech stack and enablement tools to make this happen.

4. Leverage Technology for Self-Service and Insights
SME leaders appreciate efficiency. Use technology to provide a seamless self-service experience, where users can book, track, and manage travel effortlessly. Additionally, data-driven insights can help brands offer tailored recommendations and optimize the travel experience.

GitGo has been involved in tailored tech-stack from research to ideation to testing and implementation.  From chatbots to full stack web portals, we’ve experienced what it takes to stand-up a SME program with the proper technology that the SME customers will adopt.

5. Build Relationships, Not Just Transactions
SMEs value personal connections and support. Establish dedicated customer support teams or relationship managers who can guide them through the program, address concerns, and proactively suggest ways to maximize benefits.

The proof is in the outcomes.  One such customer of GitGo is seeing a 40% increase in customer adoption and bookings by implementing our customer support desk strategy and tactics.

The Bottom Line

The SME market is a goldmine for travel brands willing to meet the unique challenges this segment presents. By simplifying processes, personalizing offerings, and demonstrating clear value, brands can forge lasting relationships with this influential audience. As SMEs continue to grow, they’ll remember the companies that invested in making their travel experiences seamless and rewarding.

By targeting SMEs thoughtfully, travel brands can unlock long-term loyalty and a significant competitive advantage in an increasingly crowded market.