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Criteo driving higher retail conversions and sales for Tugo

Released at: 17:09, 21/12/2018

Criteo driving higher retail conversions and sales for Tugo

Photo: Criteo

Travel startup using Criteo's Dynamic Retargeting solutions to boost business performance.

by Hong Nhung

Up-and-coming Vietnamese travel startup Tugo is using Criteo’s proprietary dynamic retargeting technology to achieve an increase in year-on-year conversions and higher sales contribution and clickthrough rates.

Criteo S.A., an advertising platform for the open internet, recently announced how it has worked with Tugo since May last year to offer a hassle-free travel booking experience. The ongoing collaboration has resulted in a 7.5-fold increase in year-on-year conversions since August 2017 and a 23 per cent contribution to total sales.

Started in 2015, Tugo specializes in organizing tours to Asia-Pacific, Europe and the US. Travel demand in Vietnam is on the rise due to higher consumer confidence, and meeting this greater demand required Tugo stand out amid a competitive travel market to be the travel agent-of-choice.

This is especially so for the online travel sector, which is still dominated by international online travel agents. With 60 per cent of Vietnamese consumers using mobile apps to shop more than three times a month, Tugo also wants to leverage this opportunity by enhancing their app-booking experience.

To address these trends, Tugo turned to Criteo’s Dynamic Retargeting solutions. Driven by machine-learning technology, Tugo can analyze travelers’ online browsing patterns, their preferences, and their propensity to spend. This allows it to deliver the most relevant ads in real-time.

Tugo was able to drive sales from travelers who have visited its website again after leaving without making a purchase. It can also maximize their ad spend and develop automated and personalized marketing campaigns at scale, which are crucial in driving up conversion rates and sales.

“Vietnam’s booming internet economy is partly due to higher demand for online travel,” said Mr. Alban Villani, Managing Director, Southeast Asia, Hong Kong and Taiwan, at Criteo. “This market is expected to grow to $3.5 billion in 2018 and $9 billion by 2025.”

“This presents potential for Tugo to grow their business even further. Through our partnership, Criteo aims to help Tugo better understand Vietnamese travelers’ online booking needs and preferences to deliver optimal engagement. Criteo will work closely with Tugo as it aims to establish itself as a key market player amid a competitive online travel landscape.”

Aside from being mobile-savvy, Vietnam is fast becoming app-savvy too. This trend was seen in Criteo’s The Big App Commerce Opportunity in Vietnam study, where more than four out of five consumers said they prefer to shop via a retail and shopping app compared to a mobile website. Sixty-nine percent of respondents also mentioned that they are most likely to use a shopping app at home.

“Criteo’s technology was easy to implement with their close guidance and quick turnaround in providing the required support,” said Mr. Nguyen Duy Vi, Co-Founder and Marketing Director at Tugo. “Their machine-learning solutions have helped give us a better understanding of our customers’ travel booking preferences and readiness to purchase. We have also observed that the rise of a more urbanized workforce is contributing to higher expenditure in outbound travel. As we look at expanding our app capabilities, Criteo’s support will be crucial in helping us deliver a better travel booking experience.”

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