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As the old saying goes, “The only constant is change.” Judging by the first half of the 2020s, that’s certainly true in the travel industry. Between world events, consumer trends, economics, and the influence of social media, there are so many factors at work that can transform the way operators do business overnight.
We can’t predict the future, but it is possible to be prepared with future-proof plans and business strategies that can keep up with a changing industry.
Well-timed promotions and targeted offers can help you stay competitive, boost bookings, and attract new customers. A flexible strategy that accounts for changing customer preferences sets your business up for long-term growth.
Understand your audience – and segment for success
A future-proof strategy starts with knowing who you’re talking to. Use insights from past customer data to segment your audience by factors like age, travel purpose, and booking history. According to a Skift study, 75% of travelers say they expect tailored experiences, so by personalising offers, you can better engage and retain customers.
- First-time travelers may be enticed by discounted introductory tours.
- Frequent travelers might appreciate loyalty offers like complimentary upgrades or exclusive discounts.
- Special interest groups (e.g., history buffs, culinary enthusiasts) are likely to respond to targeted offers that align with their passions.
Time offers around demand peaks and local events
To maximise impact, align your offers with high-demand periods or local events. Calendar-based promotions help increase visibility during popular booking windows, such as holidays or festivals, while slow-season offers can help balance business across the year.
- High-season promotions: For peak times, limited-time offers (like “Early Bird Discounts”) encourage travelers to book in advance.
- Event-based offers: If a major event or festival is happening, create special packages around it. Custom tours, enhanced experiences, or VIP add-ons can make the trip more appealing.
- Off-peak deals: Boost low-season revenue by offering discounted rates or bundled deals to attract customers during quieter months.
Embrace dynamic pricing to stay competitive
Dynamic pricing isn’t just for airlines. With the right tools, tour operators can adjust prices based on demand, competitor rates, and other market variables. Research from Phocuswright highlights that 55% of travel operators are adopting dynamic pricing to stay competitive.
By fluctuating rates during peak times or offering early-booking discounts, operators can maintain optimal occupancy rates while maximising revenue.
Use specialised offers to attract new customers
New customers are crucial to any growth strategy, so consider using introductory offers that build brand awareness and incentivise first-time bookings. Discounted rates or “Bring-a-Friend” promotions can be effective in expanding reach.
- New customer discounts: Offer a small discount or bonus to first-time bookers. These promotions not only encourage new travelers but also increase the likelihood of repeat visits.
- Referral programs: Encourage loyal customers to refer friends or family in exchange for a future discount or free add-on experience. Word-of-mouth marketing is powerful, especially when backed by data showing that referrals are more likely to convert than other channels.
Personalise offers with data and automation
Automation tools can now help operators create offers based on customer data, generating higher engagement rates. Tools that track behavior and interests can help you automatically send offers that match a traveler’s preferences.
For example, 75% of consumers are more likely to buy from brands that personalise their experiences. Personalised messaging and timely reminders can improve conversion rates and enhance customer loyalty.
Encourage direct bookings with exclusive perks
Online Travel Agencies (OTAs) are useful, but direct bookings give operators more control and often yield better profit margins. Use exclusive offers to incentivise direct bookings through your website or booking portal.
- Website-only discounts: Offer a slight discount or extra perk, like a free guidebook or early check-in, for those who book directly.
- Loyalty perks: For repeat customers, consider a points system or membership that rewards direct bookings with discounts, exclusive experiences, or other benefits.
Create flexible, hassle-free cancellation and rescheduling options
Post-pandemic, flexibility has become a core priority for travelers, with around 65% of travelers preferring companies that offer flexible booking options. Make sure that your cancellation and rescheduling policies are clearly communicated and reasonable, as this can be a deal-breaker for many potential customers.
Measure performance and adjust based on results
To ensure your strategy stays relevant, track the performance of each offer, whether it’s booking rates, engagement levels, or customer feedback. Use this data to optimise your offers over time, phasing out less effective deals and focusing on what works.
Building a future-proof strategy with flexible, data-driven offers isn’t just about getting more bookings—it’s about making your brand resonate with travelers and staying agile in a fast-changing industry. By continually refining and adjusting your approach, you’re not just staying competitive; you’re setting up your business for growth, relevance, and customer loyalty for years to come.
