Understanding the Context
The travel & transport sector is extremely competitive and constantly evolving. The main players are always looking for more effective ways to manage their volume & profit margins while also having a firm hand on their distribution network and strategy (travel agencies, direct channels, web travel agency platforms). Companies are striving to have a strong understanding of the different levers at their disposal (On & Off) and a full comprehension of each one’s strength and weaknesses in order to successfully build brand equity in the long term, while generating sales in the short term.
We strongly believe that in order to accurately optimize the marketing mix, it is important to exhaustively include all relevant levers. Within the travel sector, levers including price, promotion and travel/ stay options are key elements of the business to be included in the analysis and through their inclusion; we bring different teams in our client’s organization around a table and speaking a common language (ROI).
Additionally, we have found that having a strong reactivity to external factors impacting business has led to opportunities to cash in on gains from being the first to react. In Europe, the Icelandic volcano eruption in 2010 halted air travel in Northwestern Europe providing an opportunity for trains to reactively adjust their offer to maximize profits.