SUCCESSFUL MARKETING STRATEGIES CASE HISTORIES © RESEARCH FOR TRAVEL BARBADOS, SEPTEMBER 2006
The £99 Offer
A PANEL ADVERT ON THE HOME PAGE OF YAHOO UK Offering 5000 seats on BA Flights, anywhere in the world for just £99
RESULTS 5000 seats sold within 3 hours BA also sold 25,000 Special Offers and 35,000 Standard Fares Also collected over 100,000 addresses
RESULTS Cost to BA Nil
Airfare SalesAirfare Sales (184) · North America · Europe · International · NetFares Vacation Specials (551) · Florida · Hawaii · Las Vegas · More U.S. & Canada · Caribbean · Mexico · Europe · The Americas · Asia & South Pacific · Sports & Adventure · Ski Vacations · Luxury · Romance · More...North AmericaEuropeInternationalNetFares Vacation SpecialsFloridaHawaiiLas VegasMore U.S. & CanadaCaribbeanMexicoEuropeThe AmericasAsia & South PacificSports & AdventureSki VacationsLuxuryRomanceMore... Lodging SpecialsLodging Specials (264) · Las Vegas · Orlando · New York City · Washington, D.C. · California · Florida · Hawaii · More U.S. Cities · International · Resorts & Spas Car Rental Specials (39) · North America · International Cruise Sales (214) · Caribbean · Bahamas & Bermuda · Europe · Alaska · Mexico & Panama Canal · Exotic · More...Las VegasOrlandoNew York CityWashington, D.C.CaliforniaFloridaHawaiiMore U.S. CitiesInternationalResorts & Spas Car Rental SpecialsNorth AmericaInternational Cruise SalesCaribbeanBahamas & BermudaEuropeAlaskaMexico & Panama CanalExoticMore...
American Airlines$98 & up Florida from 20+ Cities (Roundtrip) Atlantis, Paradise Island $129 Bahamas "Atlantis" w/Upgrade, over 50% OFF Virgin Vacations$699 Paris over New Year's: 6 Nights & Air Royal Caribbean$189 Bahamas 4-Night Cruise Scandinavian Airlines (SAS) $199 Scandinavia from 4 Cities (each way) ATA Airlines$59 & up Fall Sale to 20+ Cities, incl. Mexico & Hawaii smarTours$849 Beijing & Shanghai Combo Package w/Air Expedia.com$104 Albuquerque 4- Diamond Hotel (Regularly $200) United Airlines$49 & up Nationwide Sale between 50+ Cities (each way)
CAPTURE Travellers have to subscribe to the weekly newsletter to access Special Offers 10 million s acquired to date 5 separate s sent to 10 million people each week
LATEST RESULTS Revenue of $17.4 million, up 42% year-over-year Operating profit of $7.0 million, up 86% year-over-year Net income of $3.9 million, $0.23 earnings per share
BOOKING OF LONG HAUL TRAVEL
OBJECTIVES TO DETERMINE HOW TRAVELLERS WILL PURCHASE LONG-HAUL FLIGHTS IN THE FUTURE
Booking Methods - All Respondents
Satisfaction With Booking Methods
The Market is Moving Towards Online The Majority of Shop Customers Can Be Persuaded To Book Online
Future Booking Methods
The Shop Plays a Minor Role in Decision-Making 15% aware of Travelbag via the shop 34% buy via the shop This will decrease over time More customers will book online You can persuade them to book online
Implications of Closing The Shops A Potential 34% Loss of Customers – even higher loss of sales and margins However 50-77% can be persuaded to not book in shop The net loss can be reduced to 8-17% of total customer base
You Can Limit The Loss! You know these customers They like Travelbag You are in contact with them You know what will persuade them to book online Effective marketing will limit the loss
RESULTS Shops Closed Annual savings of £5 million Only 7% customers lost
RESULTS New Marketing Initiative CDs, Website, s
FEMALE TRAVELLERS What Opportunity Do They Offer The Travel Trade?
FEMALE TRAVELLERS Survey conducted among Female Travellers in Europe and US
RESULTS Formal Policies for Females Introduced By Hertz, BA, Ritz Carlton, BAA etc
Pay Per Click To Sell Weekend Breaks
The Approach Brand led key phrases to fulfil a retention role Generic key phrases – to grow brand and product awareness Product led key phrases – to promote specific product awareness and drive customer acquisition
RESULTS An increase in number 1 positions on search engines from 0 to 33 was achieved within 3 months An increase in Top 10 positions from 0 to 119 was achieved after campaign initiation Volume of positions has been maintained Top Google positions for keyphrases including “City Breaks" and “Weekend Breaks"
The Results Over 150,000 clicks delivered Over 1,200 orders received Investment £27,000 Sales Income £287,000
HOW THE UK TRAVEL INDUSTRY CAN ATTRACT MORE ONLINE CUSTOMERS A PR SURVEY
RESEARCH APPROACH The questionnaire was ed to 12,120 people and a total of 2,022 completed responses were obtained.
RESULTS SURVEY COST £1100 PR RELEASE SENT ONLINE TO 700 JOURNALS FREE COPY OF REPORT SENT TO MAJOR TRAVEL FIRMS 6 ARTICLES 8 NEW CLIENTS ATTRACTED £220,000 IN REVENUE
AFFILIATE MARKETING Aimed At 400 websites to sell long haul travel
COMMISSIONS Average of 4% per website Average booking = £2700
RESULTS BOOKINGS = £740,0000 COMMISSIONS TO AFFILATES = £43,000
THE TRAVEL TRADE IS CHANGING Travel Agents Online Booking
THE TRAVEL TRADE IS CHANGING Online Travel Agents - Expedia, Travelocity, lastminute Direct Booking
THE TRAVEL TRADE IS CHANGING New Market Entrants Supermarkets Credit Card Companies Mobile Phone Operators Banks Insurance Companies
DIOCH YN FAWR