In a world of commoditised travel and volume-driven strategies, the trend of grabbing a quick booking and moving on to the next customer seems to be seen as the fastest route to bottom-line profitability.
In many cases, where the price is the best in the market, and the booking route – mainly online – is fast and efficient, then the tour operator or travel agent may well have found the Holy Grail.
However, there are few in the travel industry that have managed to combine low prices and booking efficiency. Those who have done it have tended to dominate. EasyJet is one example.
So, for most in the marketplace, the long-term strategy for growth needs to be based on an increase in profitable business, rather than purely an increase in high-turnover business delivering low margins. Deriving a greater return on investment from a prospective, new or current customer will ultimately deliver greater dividends.
The following suggestions focus on a few simple ideas that follow the customer journey from initial contact through to travel, and identify how you can increase income potential by applying a few simple guidelines.
Communicate with your customers
Communication is a basic human need, but often, companies will go out of their way to avoid direct consumer engagement. The internet, for example, allows us to hide from the world.
But the savviest of internet shopping sites have found ways to engage with customers, encouraging them to revisit and spend more money. Think Tesco.com and Amazon – these brands identify customer behaviour, likes and dislikes, and actively promote new product to satisfy their wants and needs.
It’s a simple case of finding out more about your customers and using that information to deliver relevant and appealing offers.
Don’t take no for an answer
Do everything you can to engage with a customer, to develop a relationship and get their contact details, so you can turn opportunity into financial gain.
If a customer asks for a quotation, follow up the initial enquiry with a letter, an email or a phone call. You would be surprised how many companies let an opportunity slip away through a lack of commercial drive.
Be hungry to win the business, as your competitors will be doing everything they can to attract your customers.
Keep in touch
Keeping in touch with a customer once they have booked is fundamental to building a good relationship. But be careful that staying in touch doesn’t border on stalking, as customers will tire quickly if they are bombarded with communications that are poorly targeted.
A customer who only books a flight is generally looking for the best deal, and they will often leave the ground arrangements until the last minute. So keep in touch on a regular basis to check if they’ve booked their hotel, car hire, insurance and currency.
This will be seen as adding value, and if you can add real value to their trip, you will be seen as a good future source for travel arrangements.
New product development
Understand the marketplace. Carry out research to understand your customers better. Stay one step ahead, so that you can deliver great initiatives before the customer even asks for them.
For example, offer to text your customer the terminal they’re departing from. Anything that singles you out as a holiday company worth booking with is going to help you achieve a stronger return on investment.
It surprises me that no firm, that I’m aware of, has launched a holiday offer where you pay full price for two consecutive holidays of a determined value, and then you get the third one at, say, half price. It works in retail, so why not for travel?
Outsmart rather than outspend the competition
If you don’t have a unique selling point, then invent one, or alternatively develop an emotional selling proposition which makes you stand out from your competitors for the way you do business. Do anything that differentiates you from the competition.
In a commoditised market, when it comes to two companies with the same product or service at the same price with no other differentiation, then the company with the stronger brand will generally win.
Gary Jacobs is chief executive of Fox Kalomaski, a London-based marketing communications agency specialising in retail, travel and leisure. Clients include Thomson, Butlins and Thai Airways.