The Travel Industry News - Editorial Archives

November 15, 2001

WHAT IS MERCATUS?

Well everyone knows that the word Marketing originates from the Latin word ‘Mercatus’...meaning ‘to buy’....however I’m still not convinced that everyone out there spends enough ( in some cases almost no) time on ‘Marketing’ or pre selling a product or an idea.

If there is one thing that you cannot afford to do in our current biz environment, it is....nothing!!!

Waiting for the world to get better and everything to return to status quo is not only going to be a long wait, it also may be the final wait for businesses of all sizes that cannot survive the lack of cash flow. If airlines are dropping like flies it behooves you to seek every chance to fill the voids being left, voids not only in the existence of companies but also in the ‘confidence’ factor that currently ails us.

You have already proved your worth when the ‘travel turmoil chips’ are down...don’t let the public forget too quickly. Your ads, maybe even your stationary and cards should tell potential travelers “We are there when you need us!”

WHAT IS MARKETING?

In formal terms...’Marketing consists of the activities which effect transfers in the ownership of goods and services’. IT IS NOT media advertising alone! Selling, advertising, public relations, distribution and merchandising, all gather loosely under the ‘Marketing’ banner.

YOU MUST MARKET your services and products. Causes for business failures are numerous and include 1. Poor location 6.9% 2. Accounts Receivable 4.3% 3. Operating expenses 3.7% and the leading cause with a 53% batting average....Lack of Sales.

These figures are one of the main reasons that I have a hard time with the ‘Airlines’ rationale of reducing agent’s commissions...or their ‘Operating Expenses’ , knowing full well ( I should hope!!!) that sales would be affected...sales as in ‘lack of’. Hey, if an agency doesn’t sell the airlines product the agency doesn’t get paid...whereas..additional res staff and ‘state of the art’ technology acquired by the airlines to handle this increase in volume...which never came... or the increased profit they would gather (no TA’s commissions ) through the higher fares and ...again...increased sales, not only didn’t those things happen but the airlines REDUCED their airfares. OH YES..this was all before Sept 11th, I might add.

Perhaps you do have a ‘Marketing Plan’, I tend to learn that most travel agencies do not...HOWEVER...one could certainly not have foreseen the current situation, but that’s OK. A marketing plan is as much a ‘process’ as a document! It should guide your company to THREE essential tasks.

1. Identify the key marketing issues that determine your comparnies long term success.

2. Attempt to organize your staff - around - the marketing tasks and goals. In other words...you ALL have to be going in the same direction.

3. Measure your company’s effectiveness in identifying AND attracting customers. YOU MUST know just how your clients perceive you...you, also being your company.

Well that all sounds very grand...and it is the basis of marketing... BUT... you don’t have a whole lot of cash to throw into the fray, right?

The term for such activity and attempted solutions is known in the ‘AD BIZ’ as Guerilla Marketing. Translation...doing as much as possible with a little and trying to achieve some success. The basis for this approach is ‘Creativity’, you’ve got to out think the competition and attract new clients.

The current situation poses problems that go far beyond the normal ups and downs of the marketplace. You have to not only encourage your ‘faithful’ followers to travel at all, you have to hang onto your non-traveling current clients for your future welfare AND all the while seek new customers.

AND JUST WHERE DO YOU START??

I certainly do not have any corner on the ‘Creativity Market’...and neither do you. I’ll share a few ideas with you on these pages, BUT make sure you utilize every employees / clients / customers / suppliers input....after all “out of the mouths of babes’....

Some of my suggestions and those of those around you will probably take time and effort on your part to achieve...but if you have more time and effort than ‘cash flow’....maybe now is the time!

DIRECT MAIL: I have always believed that the results of Direct Mail for travel agencies has a better chance of success than some other media, particularly on a limited budget. It also has at this current time, the added advantage of keeping your name in front of your clients who may not be traveling during this period...but they will eventually.

THE LEAST EXPENSIVE form of Direct Mail....is ‘piggy backing’ on your airline ticket deliveries. Confidence in E-tickets dropped as did popularity during the recent travel upheaval, meaning more ‘real’ tickets will be in demand. NO TICKET SHOULD LEAVE YOUR OFFICE without a simple sales promo flyer or postcard enclosed/attached. it won’t add to your mailing costs and the sales material ( you select) is offered by your cruise company and/or supplier/operator....who are also just as concerned as you are about getting out “the word”.

This system of ‘piggy backing’ also allows you to mix and match the promo material to the interests of the client ( perhaps a ‘Golf’ package for your biz traveler etc) AND you have the advantage of not having to sell the recipient on your company, they are already using your services.

Let’s face it, many travelers in the next few months will be opting for ‘Domestic’ and probably ‘Canada’ for their vacations...go with the flow... learn about new products that have become available, brush up on train travel (this was increasing in popularity before the current situation), offer cruises on the Columbia River, talk of showing children the history of their own country.

IN-OFFICE PROMOTION....I have seen very little change of brochure racks, point of sale material and displays within travel agencies themselves. THIS IS A GREAT TIME to make changes, changes that encourage potental clients to ask about specific vacation packages for if you have them displayed well and are knowledgable about the ‘Copper Canyon’...or wherever...your odds of selling increase! Do you really think that ‘Grocery Stores’ would do such time consuming ‘Point of Sale’ displays if they didn’t work? Ask your suppliers to work with you on these displays, particularly the ones who have sales reps calling on you.

JOINT PROMOS WITH OTHER BUSINESSES’. I’ve actually done this and it did work. Get together with a nearby local retaurant...preferably ethnic...and offer to either form a group or simply display your packages to say ‘Mexico’ at their front desk and/or on their tables. Try to work out a reduced cost for the restaurant owners. I had luck with a Thai Restaurant. AND even if few or no sales result you will be spreading the desire to ‘travel’ as well as introducing prospective new clients to your company name.

WORK WITH SCHOOLS. Here you have the opportunity to reach not only the ‘NOW’ prospect but also the ‘FUTURE’. Offer to hold classes on a particular destination...supply specific destination material as required...hold an art contest for Junior Schools/maybe a ‘Photo’ contest for High Schools, with prizes of course. The art and/or photos will of course be displayed in your offices for a month with a ‘Parents and children’ evening thrown in....Parents love to look at little Suzi’s strange little painting on display! AND they will like you for being a local school supporter and ‘good guy’...someone to buy their future travel arrangements through.

GROUPS. Some of you have this one under control while others have always shied away from ‘groups’ and now aren’t sure where to start. GROUPS are good business! Ideally you find a ‘Pied Piper’, or someone who will either attract a following or develop one...if successful...they travel free through the built in package costs. However, if a ‘natural’ doesn’t jump to mind or appear, you’ll just have to manufacture a group.

What do you do, how do you get into the Group Biz... you know that segment of the ‘Biz’ that is even less likely to book ‘on-line’. What clubs/ outside work activities do you and your staff participate in? Yacht Club? Golf? Gardening? Bird Watching? Ethnic related clubs like ‘Sons of Norway’ or Club Brittania...etc? Motorcycling? Classic Cars? Theatre? Book Club? Fishing? Cycling? Running? sSoccer? Tennis? Cooking? Skiing.....the list goes on and on....and so do the events and destinations that cater to these interests.

You can reach some of these people with a common interest, be it only four people or forty. Ask yourself and be honest. Do you really know what interests your ‘Aussie Specialist’ or your ‘Hawaiian Expert’ follow in their own time...it could lead to business for you.

These are tough times as proved by Swiss Air, Sabena, American Classic Voyages and just today I gather Canada 3000 has filed for bankruptcy. The Travel Business will survive, those that have the ability to be flexible , creative and cost conscious will certainly reap the benefits that will eventually return. I hope that this includes you.

David ( Do Something ) Bond

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