In my last post, I outlined recent changes we made here at Travelwatch and I hinted at how survivors in our industry need to constantly tinker with their business. In this post, I’m limiting my comments to the marketing aspect of running a retail travel business.
In recent history most agencies have had to move away from selling air for obvious reasons. Now, many are rethinking the packaged holiday business based on shrinking margins and discounting (although somewhat curtailed these days). There’s also a group out there that argue that packages have become a commodity that is best serviced in volume and with a strong online/phone presence. I’m not sure I agree, I think you can still make a decent living selling packages but your marketing has to be right.
So where does that leave the main street, independent owner/manager shop?
A common move for most is to join a group/consortium/association. This is an excellent solution as long as you’re clear on your objectives vs. theirs. For example, is your membership simply a tool to generate sales for the supplier/owner of the group? Or are you there to drive overrides to the umbrella company that promises to share them with you (only after all expenses are covered)?
Let’s for the time being consider only the marketing aspect to determine if you are associated correctly or for that matter, whether it’s worth associating:
- What are the tools used – email, direct mail, traditional advertising and who is deciding on content?
- Is there an overall strategy and do they offer the flexibility you need to meet your objectives and target your customers, not just the group’s?
- What is the target market of the preferred suppliers that form part of that group and are they in line with your clientele?
- Are you sending disorderly email blasts or do you have a cohesive plan with a start, finish and measured ROI?
- Are you getting relevant (to your business) simplified stats, marketing advice or do they offer a mentor you can chat with?
When I talk with agents about a marketing plan, most don’t have one, think it’s not necessary, it’s too difficult to build or becomes obsolete as soon as you write it. I beg to differ. If you belong to a group, review carefully what you can use from their arsenal. Do your research and arm yourself with additional tools freely available on the market. Check out www.travelagentapps.com (I know, it’s self-serving but couldn’t resist)
There is nothing wrong with these business models as long as you understand how you fit, how you can tweak it to make it relevant to your business and leave you and not someone else in control.
I recently dealt with a group where less than 30% of the agencies belonged to their ‘marketing solution’. Once I reviewed what they offered and what the cost/value proposition was, it was a no brainer! Great Value! Why didn’t the other 70% belong? They didn’t bother taking the time to understand it.
The days of suppliers giving agents everything from marketing dollars to computers to training to fam trips are gone. It’s time to rethink your business and get aggressive because the guy next door is!
Thanks for reading and my best to you and your family for the holidays,
Cheers
Frank
