2008-04-14T14:11:00.000-07:00

The Economy Means Different Things to Different People
- Jim Cooper, Market Intelligence Analyst, Conscientia Research, California

By now everyone who has been reading the papers is probably aware of some kind of impending doom in the US economy. The media bombards us all with stories of imminent financial collapse, and uncertainty in the lending markets.

While many newspapers proclaim Wall Street's dramatically softened expectations, fortunately the reality is somewhat different, and more so in US tourism markets.

America's tourism industry, both in-bound and out-bound has gotten off to a pretty good start. While there may not be an encore performance in 2008, all indicators point to growth.

For luxury and business travel, it appears to be "business-as-usual". A recent survey by the National (US) Business Travel Association 62% of respondents indicated that business travel would be continuing, despite the economy's weak turn-out. Luxury travel, according to a recent Wall Street Journal article is already up 6% from the same period in 2007.

In an interview with Scott Kirby, President at US Airways, "We remain concerned about the economy, although it is hard to find any concrete evidence of a booking slowdown".

Based on this analysis and others, I have only found information to the contrary that the weakening economy has affected travel, both domestically in the US, and in the international market, of a luxury and business travel slowdown.

Further, although the US dollar is weaker in many destinations, like Europe’s Euro Zone, luxury consumers and vacation makers are seeking other destinations. For Australia and New Zealand, as an example, the dollar price, while bumpy against the NZD and AUD, is just as high currently as it was in September and October 2007 (respectively), but don't expect a return anytime soon to the heady days of US travel to Australia and New Zealand like the summer of 2006.

According to our assessment, destination operators need to become more creative in their approach of luring US customers, offering perhaps "Pay-for-four-get-5th-free" or some other alternative. The luxury American consumer likes the little touches, flair and engagement. Taking care of the US luxury customer will need to become the new mantra in the market slow down.

2008-04-09T18:33:00.000-07:00

Marketing in a Recession
– Anahere Inc

We’ve all read the news and know that consumer spending is down so what do you do –cut budgets? What you should do is change tactics, shift your spend, increase your visibility and grow your market share.

During economic downturns people tend to cut marketing budgets but this is when your savvy competitors become more active. With an empty market space and no competition the companies with the highest visibility will be well positioned to reap the rewards on the up swing.

It’s as simple as increasing your information distribution. No matter how or when consumers buy they will always need information. Even if they don’t buy today they might buy tomorrow and you want to be top of mind when they do.

Whilst the following five suggestions are not the only options they are at best a cost effective way to market in a recession.

1. Use the time to update your website
Since all your marketing activity should be driving people to your website this is the most important asset you have. If your site doesn’t reflect the quality and nature of your business you can guarantee that your customer won’t get the connection either. Consider the following
a. Use of images – are they compelling, motivating, do they make you look desirable?
b. Have a trade and consumer testimonial page – using trade partners shows your commitment to them and provides booking options for your customer
c. Is your location visible on the front page – sounds silly but don’t assume that some one knows which country you’re in by your company name or region.
d. Is your site uncluttered, easy to read and navigate
e. Is your content relevant
i. Contact details – all details, make it easy to request info
ii. Rates – are they easy to find
iii. Location / directions – the consumer is trying to work you into an itinerary, make it easy for them
iv. What to expect or what to bring – applies to activities
v. FAQ’s

2. Keep in touch
Continue communicating with Inbound Tour Operators, US wholesalers, retailers and past customers. Increase your typical communication cycle as it shows your commitment to your business and to the relationships that sustain your business.

In times of need we like to know we’re not isolated so we welcome support from our friends. It’s no different in business. It’s even more important to show your associates they’re not forgotten. When things turn round they’ll let you know that you aren’t either.

3. Increase product placement therefore your visibility
a. Search for on-line travel wholesalers and start getting your product placed. At Anahere Inc we work with a number of niche on-line travel sellers who are always looking for new product to offer their clients. The more sites your on, the more you are seen, the greater the chance of getting the booking no matter how or when it is purchased
b. Work with local businesses to create packages for US wholesalers/tour operators to distribute to their retail and consumer databases. Wholesalers need to provide opportunities to their audience as well so make sure you’re on the list for distribution. Be proactive and present them with something marketable.

4. Leverage word of mouth
a. Go over board with your service, make sure you have super exceeded your client’s expectations – word of mouth is no longer about telling one or two friends it’s about telling the global community. You must make sure that your internal and external customers speak about you positively because if their experience is bad then the whole world will know.
b. If you believe your guests enjoyed their stay then ask them to help with your marketing strategy. Suggest that they upload their images and videos onto social media sites you are targeting. As the saying goes a picture paints a thousand words which is more effective than a comment written by an anonymous writer – a picture doesn’t lie.
c. Take the time to research what people are saying about you. There are a number of ways to use the internet through RSS & news feeds to capture comments. You can use the results to improve your business or even thank guests for their comments.

5. Start a webinar or join an on-line event
Too expensive for in-market training, then start your own webinar or join an on-line trade show. On-line events attract a higher attendance then in-person events. Take for example a Virtual Trade Show being launched in the US in May. Registered travels agents have already reached over 4,500 with 990 stating they have an interest in Australia or New Zealand.

It is an exciting time for leveraging opportunities – probably because now you have time to do it and to do it well. And remember marketing is simple when you have the right strategy. If you don’t have the right strategy and you don’t know where to start then send us an email and let us help.