Building awareness and engagement is vital for coach touring to retain market share as competition from ocean cruise lines grows, according to Travel Corporation chief executive Brett Tollman.
As ocean cruising continues to grow its profile in the local market, Tollman confirmed the Travel Corporation’s portfolio of brands is concentrating on making sure consumers and agents “don’t forget about us”.
However, vast differences in cost structure can make it challenging to effectively compete.
“Cruise lines own the product whereas we own almost none of the product and so we have to get people there at a reasonable margin in order to do something – that’s a key difference,” he told Travel Today.
“We’re moving 40 or 50 people with Trafalgar or Insight versus moving thousands on a sailing so the numbers are also different.”
As a result, the firm’s emphasis is now on providing a “more compelling proposition”, Tollman revealed.
“We’ve certainly invested in the product, service and delivery so customers that book with us will have an incredible experience and come back for more,” he said.
Tollman also highlighted Trafalgar’s recent multi-million dollar campaign with Kerri-Ann Kennerley as a “major step” in creating awareness of guided holidays in the public eye. But he stressed the messaging is “very subliminal”, prompting consumers to go into a travel agents to make a purchase.
“It’s not a consumer direct push, we’re still totally aligned with and for our agency partners,” he added.
However, he expressed some “frustration and disappointment” that the support is sometimes not reciprocated by the trade, with many agents choosing not to get behind coach touring.
“But habits aren’t going to change so it’s incumbent on us to build that awareness and engagement.”
Meanwhile, Tollman confirmed marketing dollars will continue to be dedicated primarily to targeting the trade.
“We just don’t have the dollars for consumer,” he said. “Our marketing support goes to the agents to talk directly to the customers who plan to come in anyway rather than spending millions to try to create awareness and demand with the customer to then come in.”
The savings enable the firm to “still make money and pay the travel agent a really good commission,” Tollman continued. “And we still believe in that.”
