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Does Travel Marketing = Last Minute Price Cuts? |
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Has Hospitality And Tourism Marketing Been Reduced To Last-Minute Price Cuts? - 11 marketing alternatives that can help boost short-term results. |
More than ever, the travel and tourism industries are experiencing major marketing challenges. According to Ivo Raza, marketing veteran and author of Heads in Beds: Hospitality and Tourism Marketing (Prentice Hall), this is largely due to an ongoing trend of commoditizing with last minute offers in a very price sensitive market.
"But it's not just about getting heads in beds under any circumstance or price," says Raza. "It's understandable that hospitality marketers can't afford to wait years to show results, particularly when their entire inventory expires every 24 hours. However, there are other ways besides discounting to affect immediate sales."
Here are eleven alternatives that can be put to immediate use:
1. A special "limited" package can be a good way to generate immediate sales hikes. They should be kept short, sweet and limited to create a sense of urgency. It shouldn't be a price discount, but rather a value added offer that makes the package more attractive.
2. Sales blitz – A series of targeted travel agency visits during a short period of time focused on promoting a single offer or destination can produce an instant sales boost.
3. Fax blast – An intensive faxing campaign, pushing a specific offer can be effective in generating sales, particularly with travel agents.
4. Newspaper advertising is always a good way to increase the call volume at the reservation center.
5. Direct mail and e-mail offers – A targeted offer promoting a special package with urgency of booking and limited availability can increase interest, call volume and reservations.
6. Internet offers - Particularly for the travel industry, consumers are constantly turning to the Internet for attractive packages.
7. Internet auctions – Another way of generating quick results are the Internet based travel auctions.
8. GDS (Global Distribution Service) offers are great for distributing highly targeted special packages to travel agents.
9. For companies with loyalty programs, additional incentives or multiple rewards during a low period is another way of boosting bookings without reducing price.
10. Booking bonuses and incentives, for travel agents or consumers, may just be that necessary final push to close the deal and increase sales.
11. Lastly, instead of a special push, unused inventory may be used to generate interest or barter for media space by inviting journalists to stay for free, organizing familiarization trips or giving inventory to charity. While perhaps not immediate, they will eventually have a positive effect on the bottom line.
Nonetheless, marketing should be an ongoing process and if not done diligently and continuously, no amount of last minute actions, regardless of how radical, will yield the appropriate immediate results. Radical moves, more often than not, are desperation moves, and will be perceived as such by the marketplace. It is therefore paramount, to consider the "brand message" of your offer before embarking on a special promotion.
About Heads In Beds: Hospitality and Tourism Marketing
Heads in Beds provides readers with a cohesive picture of travel marketing with practical insight into topics from developing products, nurturing brands and managing the entire marketing process. Throughout 14 chapters, the author uses vivid, candid examples to pinpoint the strategies and actions essential to grow brands, occupancies, and revenues. The book contains chapters on Marketing to Travel Agents, COOP Marketing and Loyalty Marketing, several topics not covered elsewhere. (Prentice Hall, July 2004, ISBN: 0-13-110100-5, $40).
To order the book from Amazon click here.
About the Author
Ivo Raza is a marketing consultant with more than twelve years experience in consumer products and travel marketing. Prior to forming his Miami, Florida based agency, Ivo was head of marketing for Allegro Resorts and Occidental Hotels, which he helped grow into the largest all-inclusive hotel chain in the world. Before that he handled marketing projects for such brands as Kraft Foods' Gevalia Coffee, Boston Beer's Samuel Adams, Schick, and Blue Diamond Almonds. He has been recognized with several national awards for his creative approaches to marketing; he is currently working on a book about branding.
"The book is great! It focuses on marketing and branding of the product, the most important factor in today's competitive business world. Heads in Beds is a great branding reference book and a recipe for success." Natko Nincevic, Senior Vice President, Carnival Cruise Lines
"At last, a book that takes a fresh and innovative look at the hospitality industry from a real business approach…" Robert Troni, Managing Director, International Sales & Marketing, American Airlines
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