I have many good memories formed while I should have had my head in a book, but I don’t recall much of history and English Lit.
There was however a little bit of economics that did stick; the simple law of supply and demand. A quick Google search will provide many an explanation for the law, the most succinct one I found the other day reads: “The law of supply and demand states that when an item is scarce but many people want it, the price of that item will rise. Conversely, if there is a larger supply of an item than consumer demand warrants, the price will fall.”
As we head into January peaks when huge volumes of holiday sales will be made, what can us travel folk take from one of the most basic economic laws? Well, we can expect demand to be high as many people like to beat the post-Christmas blues and give themselves something to look forward to by booking a holiday. Which means we can all focus on making lots of money by selling at good margins right? If only!
My heart sank in mid-December when an email from a travel company hit my inbox announcing their pre-January sale. Sale! Now, I will take my hat off to anyone looking to make stuff happen in December, it’s something we do well at Holidaysplease every year, but the barrage of lame January discount emails and adverts that have followed really gets my goat.
In January, the demand will be there. Sales can be secured at good margins. All you need to do is put the right message in front of the right customers and then deliver. Think about why customers book with you. Is it really because you offer to do the deal £5 cheaper than the guy down the road, or is it because your staff have built great relationships which are truly valued by customers, or have amazing knowledge and can offer that incredible extra insight of a destination that can turn a good holiday into a fantastic one.
Maybe customers use you because in these uncertain global times they feel safe in your hands. When something goes wrong, they know you will be 100% there for them. Or your technology is such that it takes all the pain out of a customer spending hours and hours trawling around online trying to find the perfect holiday. Focus your message on where you are strong this January, rather than where you are likely to take a kicking.
Those travel companies that are the cheapest in the marketplace have every right to shout loud and proud about price. The rest of us should avoid being lured down the dark discount message alley during peaks. At Holidaysplease we have seen great sales between Christmas and New Year. The market is busy, make the absolute most you can from it!
Richard Dixon is director of Holidaysplease
