1. SUCCESSFUL MARKETING STRATEGIES CASE HISTORIES © RESEARCH FOR TRAVEL BARBADOS, SEPTEMBER 2006

2. The £99 Offer

3. A PANEL ADVERT ON THE HOME PAGE OF YAHOO UK Offering 5000 seats on BA Flights, anywhere in the world for just £99

4. RESULTS 5000 seats sold within 3 hours BA also sold 25,000 Special Offers and 35,000 Standard Fares Also collected over 100,000 e-mail addresses

5. RESULTS Cost to BA Nil

7. 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...

8. 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)

9. E-MAIL CAPTURE Travellers have to subscribe to the weekly newsletter to access Special Offers 10 million e-mails acquired to date 5 separate e-mails sent to 10 million people each week

10. 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

11. BOOKING OF LONG HAUL TRAVEL

12. OBJECTIVES TO DETERMINE HOW TRAVELLERS WILL PURCHASE LONG-HAUL FLIGHTS IN THE FUTURE

13. Booking Methods - All Respondents

14. Satisfaction With Booking Methods

15. The Market is Moving Towards Online The Majority of Shop Customers Can Be Persuaded To Book Online

16. Future Booking Methods

17. 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

18. 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

19. 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

20. RESULTS Shops Closed Annual savings of £5 million Only 7% customers lost

24. RESULTS New Marketing Initiative CDs, Website, E-mails

25. FEMALE TRAVELLERS What Opportunity Do They Offer The Travel Trade?

26. FEMALE TRAVELLERS Survey conducted among Female Travellers in Europe and US

36. RESULTS Formal Policies for Females Introduced By Hertz, BA, Ritz Carlton, BAA etc

37. Pay Per Click To Sell Weekend Breaks

38. 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

39. 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"

40. The Results Over 150,000 clicks delivered Over 1,200 orders received Investment £27,000 Sales Income £287,000

41. HOW THE UK TRAVEL INDUSTRY CAN ATTRACT MORE ONLINE CUSTOMERS A PR SURVEY

42. RESEARCH APPROACH The questionnaire was e-mailed to 12,120 people and a total of 2,022 completed responses were obtained.

43. 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

44. AFFILIATE MARKETING Aimed At 400 websites to sell long haul travel

45. COMMISSIONS Average of 4% per website Average booking = £2700

46. RESULTS BOOKINGS = £740,0000 COMMISSIONS TO AFFILATES = £43,000

47. THE TRAVEL TRADE IS CHANGING Travel Agents  Online Booking 

48. THE TRAVEL TRADE IS CHANGING Online Travel Agents  - Expedia, Travelocity, lastminute Direct Booking 

49. THE TRAVEL TRADE IS CHANGING New Market Entrants Supermarkets Credit Card Companies Mobile Phone Operators Banks Insurance Companies

50. DIOCH YN FAWR