Delegates to the past four
ATME annual conferences have likely noticed the increasing percentage
of program content devoted to Internet marketing. The 2000 conference
theme, Fast Forward: Setting the Pace of Progress for a New Millennium,
focused specifically on the flurry of technological changes impacting
the way travel products and experiences are marketed. A bevy of Whos
Who of dotcom companies provided daily keynote speeches. These included
Terry Jones, president of Travelocity, Jerry Shereshewsky, senior marketing
executive with Yahoo! and Mike McCadden, chief marketing officer of
Priceline. Of the impressive lineup of speakers, some opinions differed,
some overlapped, but all stressed the impact of the Internet in marketing
and aspects that are yet to be discovered. This ambitious conference
program was held at the Chicago Swissotel this past spring.
Its not surprising that marketing executive Jerry Shereshewsky,
who has the title Direct Yahoo! for the online search engine Yahoo!,
is a big proponent of integrated online direct marketing, which he says
is founded on the concept of permission marketing. Rather
than advance the theme of the bestseller book about negotiating, Getting
to Yes, by Roger Fisher and William Ury, Shereshewsky spoke about the
importance of designing marketing strategies to get to maybe
or even no from prospects, before striking it rich with
There are three conditions
to getting a yes, Shereshewsky says. A person
must be ready to buy what you are selling, willing to buy it from you,
and able to complete the transaction. Succinctly put, they must
be ready, willing and able. If one of those conditions is missing, the
transaction will not occur. Rather than hear a yes or no,
however, marketers typically get a no response.
The question is: Does
no response mean no? Shereshewsky asks. With conventional
media-television, radio, print, etc.-a marketer cannot afford to find
out if no response means no. But the Internet
allows marketers to continue the dialog at virtually no cost. Shereshewsky
calls it Net-onomics 101. In traditional marketing, reach
and frequency are related and have a cost. Unless it is by way of the
Internet, companies cannot afford as much frequency as they would like.
Advertising on the Internet
does not supplant content (as it does on television), it coexists with
content. As a medium, the Internet is not relaxing like watching television,
it is a lean forward medium, Shereshewsky says, where people
come with a high degree of purpose, such as to check their e-mail or
stock prices. If, at some point, a person online discovers your site
or clicks on your advertisement and agrees to provide his or her name
and e-mail address to access more of your message, than you have created
a relationship with someone with whom you may continue the dialog virtually
forever and for nothing, he says. Unless they take back their permission,
Shereshewsky touted the Nets ability to record sequence, allowing
a business to know when someone visited its site. With this information,
marketers can send e-mail messages that remind visitors about their
products or services with promotions or other offers consumers are likely
to be interested in, based on previous online inquiries or purchases.
The Internet is about the ability to slowly, gradually move a
person from where they were to where you want them to be, Shereshewsky
explains. Persuasion is about permission. You cannot persuade
someone unless you have their overt and willing permission to be persuaded.
Because of the Internets unique capability as a medium, it should
not be used as just another traditional medium. If
you know how to harness it, it will make you rich beyond your wildest
dreams, he exclaims.
YOU MUST DATE
Just as people typically do not marry until after they have been dating,
marketers must follow the rules of permission before making that final
transaction. Permission is an asset; it has value. I work for
a company that values permission and knows what it is worth. We have
permission from 150 million people, and extraordinary levels of permission
from about 125 million of them, Shereshewsky says. These online
visitors have registered with Yahoo! and provided personal information.
We guard that permission very carefully...It is the mother asset
of our company, he reveals.
Permission cannot be bought
or sold, like a list of names. You must ask for it, and they have
to give it to you. Permission can be revoked at any time. Most importantly,
permission is selfish, Shereshewsky explains. If customers
do not see their obvious and overt self interest, they will not do what
you have asked them to do. They know what their self interest is, do
you? And have you shown it to them? Because the Net is different,
marketers must think differently, and act differently. Build programs
to get the greatest amount of maybe at the lowest possible
cost, in the shortest amount of time, and you will win big time,
Permission is the major
asset. Learn how to get it, and learn how to maximize it over time.
The way lifestyle has changed in this country has profoundly impacted
the way people think about using travel services, according to
Peter Yesawich, president and CEO of Yesawich, Pepperdine & Brown,
a marketing, advertising and public relations agency. YPB is affiliated
with Yankelovich Partners, with whom it co-sponsors the National Travel
Monitor from which Yesawich presented findings from the 1999 survey.
Consumer confidence is hovering
at unprecedented levels. Because seven out of 10 Americans agree that
they are better off now than they were eight years ago, and the same
ratio of Americans would welcome more novelty and change in their lives,
Yesawich suggests that consumer sentiment is beginning to rewrite the
rules of travel marketing, especially for leisure travel. Seventy percent
of Americans say they would like to plan a vacation to someplace they
have never been. That percentage has never been as high,
Yesawich says. This means that a family could have a wonderful vacation
at a resort, but would not plan to come back. For marketers, The
single greatest challenge in travel marketing is generating try.
Consumers are also saying
they are bored; in fact, four out of 10 say they are bored with the
Internet. Yet they say they feel better off, Yesawich notes. This
is somewhat of a paradox, if consumers feel things are good, then why
dont they feel that way? he asks. Over the new few years,
shifting dynamics, which are redefining the way people feel about lifestyle,
will influence the travel business.
CONSUMERS VALUE SIMPLICITY
Because people feel life is too complicated, they want to find ways
to simplify their lives. Convenience has become a premium for some people,
it they can pay one price for goods and services, including travel,
they increasingly will do so, Yesawich says. Surveys show that people
feel that bundled travel is more convenient and provides better value.
For instance, six out of 10 consumers agree with the statement that
if a hotel does not provide breakfast with the room, it is not competitive.
Fifty percent of Americans
feel they do not have enough time. Whether it is the long commute time
or more work, what was once a forty-hour work week has stretched to
50 hours for many people. Sixty percent feel they dont have enough
vacation time. They are burdened with time poverty, Yesawich
says. Travel marketers can provide ways to simplify and expedite travel
arrangements. For example, customers would appreciate the use of technology
that coordinates their travel arrangements and schedules holiday activities,
such as tee time and spa visits, before arrival.
TIME IS CURRENCY
Time is the new currency of greatest value, especially as people
earn more [income], Yesawich notes. Rather than receive bonuses
in the form of monetary compensation, people often would prefer more
leisure time, especially if they are among the Generation X, i.e., people
thirty-five years or younger. Customers consumption patterns are
driven by shifts in attitude. How can these evolving attitudes work
into a marketers strategy? The long two or three-week vacation
has almost become an anachronism. Only 23 percent of Americans took
a vacation of five contiguous nights in 1999. Thirty-one percent took
vacations of four or fewer nights which included a Saturday night. Yesawich
suggests that suppliers provide marketing programs for Sunday through
Thursday, and Thursday through Sunday.
He divides the population
into audiences based on their attitudes and lifestyle. One set of consumers
is the me dot generation. This group uses technology in every realm
of consumption. They share three major values: autonomy, diversity and
Ninety percent of Americans agree with the statement, Its
important for me to feel in charge of my life. Yesawich describes
consumers of the new millennium as vigilantes, who exercise strategic
control, a term coined to describe the negotiating process that
consumers have developed. They also agree with the statement, Sometimes
you have to compromise your principles. Although it is mathematically
impossible, two-thirds of Americans believe they are smarter than other
people. And seventy percent believe they can figure things out on their
own. This last sentiment could affect distributors.
These last four sentiments
translate into unprecedented consumer activism, Yesawich says. The
activist consumer has access to the ultimate weapon in commerce: the
Internet, he says. As consumers become more affluent, they also
become more aggressive in seeking the best price, he notes. Two-thirds
of Americans believe that the Internet is a tool which gives them better
control, although not that high of a percentage of Americans are currently
logging on, he says. We are about to enter the era of the end
of consumer dependence on suppliers....Control is shifting away from
the supplier to the buyer. That has never happened before, Yesawich
says. This means that the supplier does not determine what their offer
is worth, the consumer does.
Yesawich says that because
of these consumer attitude trends, brand clarity is essential in the
travel marketplace. Brand loyalty is a fragile commodity when
8 out of 10 consumers say they would look at alternatives if they could
get a better price, he notes. Because consumers favor a cluster
of brands, they can easily choose a substitute if a price is better
or a favored brand is unavailable.
In 1994, two thirds of consumers said it was risky to buy a brand
with which they were unfamiliar, today only half say that. This means
that the enlightened and empowered consumer who practices strategic
control is prepared to accept a little more risk, Yesawich says.
If ever a business was tailormade for the new paradigm in marketing,
it is the travel industry. Think about the wonderful applications
of technology that allow customers to build the experiences they seek,
TECH-KNOWS & KNOW-NOTS
Yesawich divides travelers into two groups based on their attitudes
and lifestyle. Tech Knows spend more time online and are
the first to try technology to improve their lives professionally and
personally. Know Nots are adverse to the use of technology,
and fewer of them want to satisfy their hunger for new experiences,
he says. Because Tech Knows have a higher incidence of travel, they
are the ones with whom marketers want to target. Yesawich pointed out
that even with all the buzz regarding the Internet, television, as an
advertising medium, is still the gold standard to reach most American
households. However, the number of Internet users is increasing, and
so is their online time. Are people logging on to get information and
plan their travel, or to make purchases? he asks. Online consumers say
they are concerned about two things: the complexity of the process and
security regarding credit card information. In 1999, the typical American
consumed 1,100 hours of broadcast time and 30 hours online. What
will happen when those Internet hours rise to 40 and 50? Consumers
still consume the old fashion way, Yesawich points out. Our
sense is that they will use Internet technology in a different fashion
than most of us believe.
THE ELECTRONIC BAZAAR
One-third of leisure travelers in 1999 logged on to plan some type of
travel experience, says Yesawich, and one-fifth logged on to attempt
a transaction. The number of leisure travelers has reached parity with
business travelers who use the Internet for travel purposes. Just over
one third of Americans believe they can receive the best price from
a travel agency. Yesawich believes this is because of the comfort associated
with personal interaction. Thirty percent of Americans believe that
they can get the best price from online services and suppliers. Already
the Internet is increasingly used as a clearinghouse for unsold or distressed
inventory, notes Yesawich, who predicts that as security issues-real
or perceived-are resolved, we will enter the age of the electronic
bazaar where there is quite a bit of comparison shopping. Yesawich
urged marketers to consider that about 10 percent of consumers who log
on have never visited an auction or name your own price site, but forty
percent say its a neat idea.
Mike McCadden, chief marketing officer of Priceline.com, noted that
marketing is greatly different than it was five or even two years ago
because marketers today know their customers so much better. Priceline
recently surveyed consumers to determine where they plan to spend their
discretionary income over the next 12 months. He was surprised by some
of the results, thinking a computer would be higher on the list. Consumers
chose a meal in a restaurant first, followed by new clothes, a movie,
and then a stay at a hotel. McCadden pointed out that the price for
dinner-for-two at a restaurant in many cities is about the same price
as a hotel night.
He noted that attaining status
is a motivator of discretionary spending, and how brand conscious many
consumers have become, even many pre-teens know the brand of their sneakers.
FAVORED WEB SITES
Of 3.6 million web sitesand 4,400 are added each day80 percent
of web traffic goes to just 15,000 sites, McCadden points out. Thats
less than 1 percent of the total number of sites....We believe that
consumers in 1999 spent 19 percent more time at their favorite sites
than in 1998. While they were at these sites, they looked at 25 percent
more pages. Consumers are taking time and energy to explore the
web, but over time they become loyal to these favored sites. Although
marketers today have so much more customer information collected on
databases, when you consider the immense clutter of advertising, McCadden
believes it is becoming harder to reach peoples. Consumers also have
become more brand savvy at an earlier age. What this has done
is made it more difficult to cut through, he says.
As a brand, Priceline regularly communicates to customers. We
need to reach a broad range of consumers, and we need to do it across
multiple vehicles, McCadden says. The Priceline brand was built
on radio for its first two years. But since Priceline introduced itself
to the world by way of spokesman, William Shatner of Star Trek fame
(Captain Kirk), the companys marketing plan has evolved to a layered
marketing scheme, which includes television, print, e-mail, and direct
mail. Were talking about a gigantic mix, McCadden
says. In my mind, no matter what industry, what product, what
brand or dotcom company, the marketing mix must evolve... There is tremendous
velocity on the consumer side, and the challenge for all marketers is
to keep up with that.
Travel is the Number 1 shop category on the web, notes Terry
Jones, Travelocity president. We sold $500 million of travel on
Travelocity in the first quarter, so were on the road to becoming
a $2 billion to $2.5 billion company by year end. The number of people
buying from us is truly staggering. The company has 19 million
members logged on its database. Travelocity sold over $21 million of
advertising last year. We are the largest e-commerce site that
takes advertising, with eight million unique visitors a month. In comparison,
the largest circulation of a travel magazine is about a million, and
the New York Times has about a million and one half, he notes. After
Amazon and E-Bay, Travelocity is the largest e-commerce site, and the
ninth largest U.S. travel agency.
The basis of competition
is different on the Internet than in the physical world because the
electronic world has no respect for location or geography, Jones says.
Competition is only an eighth of a second a way. This is very
important because 60 percent of satisfied online users have not developed
an online retailer preference yet. So loyalty is now being built,
he notes. The online world also shows no respect for longevity or scale,
Jones says. Its what I call the victory of the Lilliputians.
New models are starting up and challenging the dotcom and the brick
and mortar companies.
The Internet is not like television, where advertising interrupts the
content. On the Internet, people are searching for something, a company
has to be a beacon to attract them, and show them what it has. Very
few people are surfing, most people are searching for something,
Jones notes. Consumers use e-commerce for its efficiency and convenience,
rather than to save money, although they want good value, he says. Surveys
show price as Number 4 or 5 as a motivator, he says.
A key point of the Internet is that product, brand, and experience happen
simultaneously. This means that marketing and information technology
departments must work closely, and these are not groups that play well
together traditionally, he says.
MARKET SHIFTS TO THE BUYERS
The market balance is also shifting to the buyer. Because online prices
are readily available, a company cannot maintain geographically different
prices, as they do in the brick and mortar world. Also the online audience
shares reviews and travel information about experiences and products.
The business model is changing, and distribution is becoming more complicated,
Jones says. Because consumers will be able to interact with new electronic
devices, such as interactive television, telephones, faxes, and with
the travel agent or supplier directly over the web, a whole new web
of relationships are now being formed, Jones says. As marketers
we have to be more segmented in terms of how we reach out to people,
and micro-market because channels are more complicated. Priceline, for
example, is a new model of distribution More companies are forming consortiums
to market themselves better.
E-commerce is creating a
fundamental shift in the economy, which is influencing the market going
forward. Currently, word-of-mouth advertising is the Number 1 way in
which people learn about Internet sites, and it spreads nationally,
given the accessibility of sites, Jones notes. Travelocitys competition
is the telephone, so the company aims at being better than the phone
by creating a dialog with its customers. Travelocity sends hundreds
of thousands of e-mails every month to members who want to watch a particular
route. Anytime a fare goes down, we send an e-mail, they click
on, and can make a purchase instantly, Jones explains.
The company also offers amenities more easily on the Internet, such
as seat maps. Consumers can access online information about available
hotel rooms, their rates, tours of the hotels, and reviews from other
travelers. In the physical world, you would need several books and a
telephone to do this, Jones notes. Now customers can provide zip codes
of where they are going, and travel specifications, and Travelocity
can offer them choices in air and accommodations. Since we started
doing that plotting, our business is up dramatically, Jones says.
The company also provides customers with information on how to achieve
the lowest fare, i.e., when it is offered and the day to travel. It
also provides alternative destinations that offer similar characteristics
to a travelers specifications. For example, Travelocity can suggest
to a customer who is planning a ski trip to Denver to consider Reno,
for which there is a cheaper air fare, and more snow at the destination.
Customers can also provide their budgets for vacations, and Travelocity
can match destination choices to those budgets. Travelocity can also
refer customers to travel consultant specialists with whom the company
Travelocity does both online
and offline marketing. Online portals receive the best placement, but
Travelocity also places ads at airports, and on the radio and cable
television. With broadband connections, Travelocity will be able to
provide customers with selections from 7,000 hours of travel videos
it acquired when it purchased Preview Travel.
ULTIMATE MARKETING MEDIUM
When marketers combine great marketing with key data on the Internet,
it becomes the ultimate direct marketing medium, Jones says. When compared
to traditional direct marketing, which provides customers with catalogs
or brochures to pique their interest and stimulate them to make purchases,
the Internet can provide the stimulation, and then customers can select
and purchase without ever leaving the medium.
Jones believes Travelocitys
database containing 19 million members may be the largest in the world.
We know addresses, travel preferences, shopping habits, and demographics.
I know everyone that looked at Las Vegas yesterday, he reveals.
The company uses that data in aggressive e-mail campaignswith
permission from the membersfor private sales, for targeted ads,
for upselling, for newsletters, and for direct mail. Jones stresses
the importance of having permission to talk to customers. Permission
is hard to obtain, and easy to squander, he says. You need
to nurture and husband it.
Travelocity also addresses
customers concerns about privacy by practicing a strong privacy
policy, which is displayed at the front of its site saying that the
company will not sell its data. We would be stupid to sell our
data, when we can make more money leveraging it, Jones says.
As a marketing medium, the
Internet can be extremely targeted, and also used for upselling. Smart
online companies often send followup e-mails a few weeks after purchases
or inquiries to suggest similar products or services. Travelocitys
upsell suggestions are extremely targeted and database driven. Were
not yet in a world of totally customized recommendations, but, standby,
thats exactly where were going, Jones says.
INTERNET & DATABASE
There has never been a more powerful tool in your [marketing]
arsenal than the Internet. It is a medium that has broad application
across the entire spectrum of the sales marketing process. Among the
most important is how Internet technology can be integrated with your
database to manage prospect and customer relationships, espouses
Madigan Pratt, executive vice president and managing director of Madigan
Pratt & Associates.
Pratt, who has championed
the concept of integrated marketing at the past several ATME conferences,
explained how the traditional marketing model has been recreated to
facilitate and leverage new technology.
Marketers who simply use
the Internet as another marketing tool, need to revise their entire
approach to marketing, Pratt exhorts. The paradigm shift is more than
about change, it requires a totally different way of thinking, which
requires CEOs, presidents, and senior marketers to adapt, he says.
The traditional marketing
communications model had television occupying the all-important center
with other tools such as public relations, print, radio, direct mail
and even the Internet as its spokes.
Forward thinking marketers and advances in database technology, with
its ability to provide mass personalization and customized product offerings,
have replaced television at the wheels hub.
Integrated marketing, which developed in the late 1980s, is about data
driven one-to-one marketing and, perhaps most importantly, accountability.
It is much more than simply having the same tag line in all your communications.
Armed with the customer knowledge
provided by the database, marketers can now provide products people
want to buy, when they want to buy them. To do so requires a total change,
Pratt explains. It requires the right strategic approach to integrating
the Internet into the marketing equation and in the process creates
the new, integrated marketing communications model.
Early on the Internet was
used as electronic collateral, a web brochure, added to the marketing
mix. You still hear some marketers say the Internet is just another
medium that hasnt produce the results expected, he says. These
people dont want to shift their thinking. They dont get
how it all fits together...The Internet should be behind all your communications
the magazine, the direct marketing, the telemarketing, collateral,
public relations-with the database feeding into the Internet,
The sales process is designed
to turn prospects into customers, then deepen the relationship to keep
them as loyal customers, Pratt says. Only one medium works along
the entire [marketing] continuum. That is the Internet, which has global
reach, its there 24 hours a day, seven days a week, and continually
feeds the database. This in turn allows for more cost efficient electronic,
permission-based marketing in the future.
The flexibility of the Internet
is astonishing. You can use it for trade promotions, consumer promotions,
pricing, and advertising, Pratt points out. Your Internet
strategy should therefore be perfectly aligned [with your marketing
If the Internet is viewed
as only one communication tool instead of your communications backbone,
then it will not produce the results you want. You are not using the
power of the Internet and the available technology, and you are not
going to achieve competitive advantage over companies that have placed
the Internet along with the database at the center of their strategies,
Look at the new integrated marketing communications model. Realign
your priorities. Get with the program. Give the Internet its due. Enjoy
A panel of company presidents representing eight travel segments spoke
about their marketplace and marketing strategies and why and how they
are likely to evolve over the next few years.
Phil Calian, president of American Classic Voyages, notes that his company
is building a vessel designed to capture the consumer. He knows that
7 million people visitor Hawaii annually, but only 1 percent cruise.
His company intends to reach prospective customers through the Internet.
Company presidents spoke about customers defining the price. For car
rental companies, says Mike Going, president of Alamo, their main customers
are their business partners who bring them the behind the wheel
customers. Web entrepreneurs are increasingly providing a bigger piece
of the business, he notes. Since rental car companies have become public
companies, they must consider their new constituent-the shareholder.
In this new consolidated environment, car rental companies are sharing
information about their markets.
AIRLINE INDUSTRY CHANGES
The airline industry was represented on the panel by William Compton,
president and CEO of Trans World Airlines, who notes that the industry
has most recently been influenced by three major changes in the marketplace.
Both international and domestic alliances are providing easier air travel
arrangements for customers who are not offered nonstop routes that match
their itineraries. The alliance strategy is aimed at attracting their
The introduction of the regional
jet, which has replaced the turboprop plane, has allowed airline companies
to bypass their competitors hub airports to fly to airports where
their own jets have slots. Called hub poaching, it allows
airline companies to access customers they could not geographically
The third area, which is
impacting airlines are the amenities airlines are beginning
to offer customers, called customization, such as more leg room by removing
some rows of seats. While some customers may consider this necessary
to accommodate the length of a persons top leg when sitting, Compton
notes that customers do not want to pay for the additional space, even
though airline fares are lower than they have ever been in decades.
Cheryl van Horn, president of Vacations by Globetrotters, points out
that as companies acquire each other, they must consider how to keep
the business of the brands that are bought, and then to increase the
business of all the consolidated companies. She sees the challenge of
the Internet as an art, more than a science, and is concerned about
the cost of marketing on the Internet, when she knows that people will
not book tour products online in the short run. For her business, she
currently views the Internet as a promotional tool. Her companys
focus is supporting its distributors, the travel agencies, and keeping
Because the packaged tour
product is more complex and expensive than other travel products, such
as transportation or accommodations, she believes that customers prefer
to purchase tours from agents. Van Horn also notes that technical people
often overlook the difference between a transaction and an experience
on the Internet. Globetrotters customers are having an experience-expending
valuable time, incremental income, and pleasure-in booking their trips.
Its the whole experience that we have to recognize when
were booking leisure and vacation travel, especially on the Internet,
HOTELS AND DISTRIBUTION
Scott Miller, president of Hyatt Hotels, notes that control of the companys
distribution is a main concern as new intermediaries in the marketplace
are introduced that would come between the hotel company and its clients.
While many distribution changes can be beneficial, Miller says that
Hyatt intends to ensure that it controls the sale of its branded product,
which it believes is different than other deluxe hotel companies, not
just another high-end commodity. He notes that the hotel business structure
is changing, so that many traditional marketing and distribution channels
are also becoming booking engines. Also within the hotels business
operations, the separate functions of marketing and advertising versus
sales and reservations are coming together, as the company moves to
database-driven marketing programs that incorporate both sales and reservation
propositions over the Internet.
In the convention center
business, James Reilly, CEO of the Chicago Convention and Tourism Bureau,
notes that large convention centers, such as Chicagos McCormick
Place, are expanding their structures to accommodate more mid-size and
smaller conferences shows rather than mega shows. He notes that as the
buyer market consolidates, CVBs are working for the first time with
helping large shows grow their attendance, which may involve international
marketing. This is because consolidation has created fewer hardware
retailers, although sales are just as high and growing.
On the leisure side of marketing,
some CVBs are working to package the city experience, so that a visitor
does not have to make separate reservations for a hotel, a rental car,
a theater ticket or other entertainment, or at a restaurant, but could
do it all from one central point, whether it is the CVBs web site
or information center. The destination which can accomplish this one-stop
approach first will win over other destinations, Reilly says. Andrew
McKee, founder of Vacation.com, a nationwide network of more than 9,800
travel agencies, composed of more than 36,000 agents, specializing in
leisure travel, believes that travel agencies who learn how to market
and sell online will prosper. His company, which provides agencies with
the electronic tools to build an online presence, expects to add 8,000
to 9,000 travel agency web sites over the next two years.
REVENGE OF THE TRAVEL
McKee says travel agents have already developed relationships
with customers and received permission marketing, what they lacked was
the same technology that online mega-travel agencies, like Expedia and
Travelocity, have. He believes that once agencies are webified,
the industry will see the revenge of the travel agent, referring
to predictions that say the Internet will put many agencies out of business.
Most segments are selling between 1 percent and 15 percent
of total revenue on the Internet, but all presidents believed this percentage
would grow for their companies-some to as high as 30 percent by 2002.