Well done Travel Weekly for the ‘Discounts don’t work’ front-page story last week – it provoked more comment from retailers and tour operators I spoke to this week, than any subject for a while.
While hardly a scientific survey, it says much about our relationship with our customers and most importantly, what we think makes them tick.
When was the last time you were motivated to buy furniture with the endless amazing prices and interest free credit? Sure, some people will take advantage but most of us are fed up with or suspicious of the endless torrent of marketing hype regurgitated on a daily basis.
We created demand in the business a couple of years ago, when capacities were trimmed, prices increased and there was an impetus to secure a holiday almost at any price or remain in Blighty at the mercy of a British summer. Profits increased as did share prices. People booked earlier for a while but thenover-capacity took over again and down went margins.
We mustn’t forget that it takes a couple of seasons tore-educate the market. For example, friends of mine who got a 15% discount for booking early, feel conned when it escalated within days and will not be so quick to part with their cash in future. I am sure there are many who feel the same.
Roy Myhill, managing director, Getaway, Bromley, Kent