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By Gary
Sain
To say 2001 was a challenging
year is an understatement. The events of September 11 dramatically changed
our lives and our industry. Each
of us has been affected professionally and personally in ways we still
are seeking to fully comprehend.
The travel industry, already
suffering from a weakened economy prior to September 11, went into a
tailspin. Although we see glimpses of improvement in travel, it will
take many months, maybe years, for us to enjoy the supernatural success
many of us experienced in the travel industry during the “go-go”
‘90s.
The Consumer is the Decision
Maker
I personally believe the travel industry will be much stronger long
term due to the challenges we have faced since September 11. Supply
has certainly been realigned to more realistically match the true demand
of business and leisure travelers. During the ‘90s, more leisure
travel products were created than demand could support.
I am a staunch supporter
of capitalism as it relates to free competition…everyone has the
opportunity to compete and let the consumer decide on who stays and
who goes. Some travel suppliers did not have true discernible differences
in the marketplace, or at least they weren’t communicating them,
and appeared to be just selling on price alone. This may work short
term. However, it will never work long term.
To illustrate, we witnessed
this in the cruise industry with Premier, Renaissance and American Classic.
There are examples in each industry segment. Good companies with good
people…absolutely! The consumer, however, decides who stays and
who goes.
You Must Be Different
and Communicate Your Difference
What does this mean to those travel companies still in business and
those who are thinking of starting up a successful travel business in
these challenging times?
I believe it all starts and
ends with marketing. It means having a brand that connects to consumers
in a way no other brand can…the ability to create a one to one
marketing relationship.
In addition, the ability
to distinguish one’s brand from all others by articulating one’s
discernible differences to their customers is paramount.
When price is used as the
sole discernible difference, this is a short-lived strategy. Remember
the issues with Priceline.com?
Stay Close to Your Customer
For long term success, starting in 2002, marketers must reconnect with
their customers.
Communicate, communicate,
communicate to your most important assets…your customers. Give
them legitimate reasons to do business with you…not marketing hype.
Explain how you can provide them a travel experience suited to their
needs/desires, “BUILT FOR ME” and how you are different than
anyone else out there.
And when you think about
your discernible differences…think about your product, how you
communicate, how you service, how you handle complaints, your hours
of operation, follow up, etc.
There are many ways from
a marketing standpoint to make your travel experience not only different
for all others but also more relevant and personal to your customers.
And yes, promotional pricing does work and has worked since September
11; but it is not a long-term strategy.
Remember, everyone can compete
on price and be matched on price. However, the way you interact with
your customer is far more critical and can be a discernible difference
in itself.
Food for thought for 2002.
The key for all of us in the travel industry going forward is to focus
on marketing basics and to execute flawlessly.
The ‘90s were forgiving.
The 21st century, however, has been everything but forgiving.
Marketers must be disciplined,
patient, and build their customer base one traveler at a time. If done
properly, this strategy will build greater success in the future for
those who realize it’s a new game out there.
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