Travel Agency Marketing

Head-On.
Marketing in a Nutshell
for your Start-Up Travel Agency
Why MARKET in travel industry?
• Asia leads the
emerging growth in
the travel industry.
• SE Asia showed
growth spurts in travel
booking since 2009,
despite economic
crisis.
2010 Market Trend Forecast
• TRAVEL HABITS would improve
especially that 2009 economic
crisis is over
2010 Market Trend Forecast
• South East Asia LEADS regions
MARKET TREND: INTERNET-AID MARKETING
"Higher internet
penetration and rising
incomes from the
emerging markets will
bring forth an increased
dependence on [the
online] channel for
travel consumption…
Overall, we are
forecasting +20%
industry growth in 2010
as technology adoption
across the [Asia] region
continues to increase"
Robert Bailey
President and CEO
Abacus International
Online distribution can take travel
businesses to when normal business
cycles take place, discretionary
income rises and opportunities in
emerging markets further mature.
Unique Selling Proposition: StartUp Travel Agency (Non-IATA)
•
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FULL SERVICE OFFERING
Airline arrangements - local and international
Land arrangements (hotel bookings sightseeing tours)
Package tours
Passporting and visa assistance
Also offers documentation on the side (NSO birth cert,
CENOMAR etc)
•
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MULTI-DEMOGRAPHICAL INDUSTRY
21-50+ year olds
men and women
Travellers, entrepreneurs, employees, etc.
May also target people within companies:
pharmaceutical companies, schools, BPOs, for
company travel needs
• NON IATA AGENCY SET UP
 No payment bonds required.
 No expensive set-up costs because no international
requirement standard must be maintained.
 More income-opportunity centred than IATA agencies
who commit time to balancing acts.
The Travel Agency: SWOT Analysis
STRENGTH
• Direct to lowest wholesalers or tour operators
• Low-cost set up (PC/laptop, printer, fax,
internet)
• Opportunity to acquire dollar earnings
• Compared to online booking, clients have the
opportunity for live interaction which builds
trust and confidence.
• No need to pay bond costing hundred of
thousands with airline companies.
• Non-IATA provides better “service-oriented”
scheme and because of “time-savings”, can
offer other “service processing” and market for
more income.
The Travel Agency: SWOT Analysis
WEAKNESS
• Requires hands-on dedication to ensure
revenues.
• Bookings made are not guaranteed by
ticket issuance.
• Start-up agency so it will have to build
credibility and network
• Will require diligence on coordination and
patience in dealing with demanding
people and nitty-gritty transaction details
The Travel Agency: SWOT Analysis
OPPORTUNITY
• In an “experience economy,” more
destinations are now offering unique tour
experiences which may help entice more
travellers.
• Internet-aid marketing is fast-growing
which cuts transaction time and reaches
more extensive contact base.
• Added services provide direct income
and may draw people to be travel clients.
The Travel Agency: SWOT Analysis
THREAT
• If consumers strongly consider IATA as a
standard, there will be less business opportunity.
• Since no “back-up organization” is available,
agent is due for complaints by clients, should
booking and transactions fail.
• Since internet is a fast-growing market, one must
strive to learn and execute a competitive strategy.
Online networking businesses may act as
competitors.
Start: THINK PINK
• According to Pine and
Gilmore (Harvard
Business School Press),
the 21st century is the
“Experience Economy.”
• Thus, we start with a
THEME in offering
“experience” to
consumers.
• “A theme should fit the
character of the
enterprise staging the
experience.”
• “The transition begins
when you give away
experiences in order to
sell existing offerings.”
Start: THINK PINK
WHO ARE THE PEOPLE IN YOUR
NEIGHBORHOOD?
Know your direct and indirect market
(potential customers). Start with your
“sphere of influence.”
HIT THE LIKE BUTTON.
Know their preferences so the “theme”
(business name, offerings, promos,
programs, brochures, web, social
networking, etc.) will be cut-out for them.
POSITION-MAP and
BRANDING
Social Marketing: THINK BLUE
• According to Kim and Mauborgne
(Harvard Business School), businesses
must penetrate the “blue ocean” instead
of red seas.
• Blue Oceans are unsaturated avenues,
which can actually be low-cost.
• Abacus International research states
that while there is global growth in
internet avenues, 70% of the agencies
have not yet adopted the system due to
unpreparedness. You can PIONEER.
Social Marketing: THINK BLUE
• Strategize: Know the mediums they use.
Learn them. Use them. Adapt to their
“culture.”
• Nielsen’s first media use survey (2008)
revealed increasing growth in internet
use as time goes by.
Social Marketing: THINK BLUE
Social Marketing: THINK BLUE
Social Marketing: THINK BLUE
Maximize all OPTIONS especially the
internet as it offers low or no cost.
Social Networking – for creating threads,
awareness and forums, hype and
increasing client base. (Facebook, Multiply,
Friendster, Youtube, Flickr, Twitter, Digg,
etc.)
Website – for establishing credibility and to
permanently advertise offerings. (geocities,
webs.com, yola.com, etc.)
Social Marketing: THINK BLUE
Search / Trade Engines – for categorical
consumer internet shopping (online ads).
(sulit.com, ph.88db.com, ayosdito.ph,
buyandsellph.com, ebay.ph, etc.)
Blogs – for offering “experiential”
marketing of your services and for
logging in enticing travel chronicles.
(blogspot, blogger.com, wordpress, etc.)
This is “searchable” word-of-mouth.
Social Marketing: THINK BLUE
Direct Mailers (Email) – for direct communication
with identified contact base. This is ideal if agent
has extensive contact base (company colleagues,
sororities/fraternities, church/rotary/hobby orgs,
sports clubs, condo associations, etc.).
Always think “EXPERIENCE.”
Pay per Click Ads – for aggressive internet
exposure, wherein cost to be paid depends on
achieving of action desired.
Surge: THINK GREEN
Since studies conclude the rise of internet
usage (and the drop of other media), it can
be the cheapest and most effective
medium for the business.
But to generate maximum income, other
marketing schemes may be explored such
as:
REWARDS PROGRAM
APPRECIATION PROGRAM
PARTNERSHIP PROGRAM
AFFINITY PROGRAM
Surge: THINK GREEN
Make a differentiated marketing
message even when using traditional
media.
TV: May work if “travel experience” is
highlighted/showcased in lifestyle/travel shows,
women magazine shows, Shoptalk, etc.
Magazine: In an ex-deal set-up, a snippet with a
“uniquely branded agency offering” may entice
readers.
Radio: A talk-show type may work if there is time to
narrate “travel experience.”
Flyers / Billboard: May work in high-traffic areas.
So... PUT YOUR FOOT DOWN.
START MARKETING AND
EARNING.
OFFER THE BEST SERVICES
WITH YOUR BEST FOOT
FORWARD.