Group Buying – Is it right for the travel industry?

Are group deals a flop or not for the travel industry?

With a study having revealed that a third of Australians have bought a travel deal from a group buying website, flash sales sound like a great solution to fast marketing. On the contrary, it seems like daily deals for travel are dying.

In a 2012 global survey of 400 hoteliers, TravelClick found that only 27% of hoteliers would repeat flash sales, citing disappointing revenues and high commission rates as the reason.

Flash sales are useful to drive up sales during low-occupancy periods, but the truth is that the sales fail to reach the targeted customer base because most customers are only out for a quick and cheap deal. While restaurants and beauty centers have the benefit of returning customers, for hoteliers, they lack this perk, especially when their customers are from abroad. Often, small businesses find themselves unable to cope with customer flow and hence are unable to provide the best service possible, leaving bad impressions on customers. It has even been suggested that Groupon actually hurts small businesses and drives the tourism industry to a race to the bottom by setting rates too low.

A quick search on the internet about the leading group buying site, Groupon, turns up plenty of negative reviews about Groupon’s travel deals. The confusing fine print resulted in many disgruntled customers, and it doesn’t help that Groupon has a less-than-stellar reputation for customer service. In the event of a deal falling through, the negative experience might actually turn customers away for good.

 

Groupon only scored a meagre 49.43% rating on the global customer service rating site, customerservicescoreboard.

So, to all hoteliers and travel agencies, take up that offer from Groupon only after careful consideration, or it might be end up becoming an expensive business lesson and a blow to the company’s image.

Contiki Launches Roadtrip 2013 With 13 Youtube Personalities

In an ingenious marketing move, Contiki Holidays, which markets itself as the leading travel agency for youths, launched the ultimate travel adventure. Dubbed The Roadtrip 2012, the trip took 13 Youtube celebrities on a 10 day trip across 5 European countries.

The Youtube personalities, which include popular UK vlogger charlieissocoollike and travel blogger heynadine, are said to have a combined subscriber list of over 6 million and 1 billion video hits. The Roadtrip 2013 was filmed in a documentary cum travel show format, an entertaining cross between Globetracker and The Amazing Race.

10 days, 5 countries, the trip of a lifetime?

What sets The Roadtrip apart from other sponsored trips is that Contiki decided to engage the audience in a more intimate manner. In addition to videos covering the trip, fan meetings were set up in each destination to allow the vloggers to personally greet their fans. There were also three challenges where the winning team could win a 14-day trip giveaway for their fans.

The trip was considered a success because it was an innovative way to engage fans and bring them closer to the brand and the celebrities. The Roadtrip included a wide range of personalities to appeal to different demographics, from charlieissocoollike’s following of teenage girls to PrankvsPrank‘s largely male audience. In doing so, they tapped into the personalities’ large fanbase which fits their target demographic of tech-savvy youths, cementing their place as a hip, young travel agency.

Contiki also urged viewers to subscribe to Contiki’s Youtube channel to view the videos and vote for their favourite vlogger, making it able to track audience participation and retention rates. Fans are unlikely to unsubscribe from the channel after the trip ended, and Contiki has continued to use the Youtube channel to promote their travel packages.

To learn more about the Roadtrip, go to Contiki’s site or Youtube channel.