“Flash Selling” Drives Leisure Travel Sales
One of the more controversial marketing techniques to emerge from the challenging business climate that prevailed in 2009 is “flash selling,” or the blasting of time-sensitive offers to targeted prospects via email. The technique started in the airline business as a way in which to liquidate unsold inventory on selected routes. Hotel companies trying to pump up occupancy on otherwise slow dates were quick to follow. Even meta search engines now flash selling complete vacation packages.Flash sales feature offers that arrive unexpectedly and require an immediate response to book the featured promotional fare or rate. For example, the email may announce a “12-hour” fare sale on selected routes flown by an airline. Alternatively, it might announce 50 percent off the entire room inventory at a featured hotel or resort over a forthcoming weekend. In either event, the offer is: 1 generally restricted to individuals with whom the travel service supplier has an established relationship e.g., member of a frequent flyer or frequent guest program, 2 one that features a compelling discount and/or premium, and 3 one that may only be booked if acted upon within the stated time frame.Flash selling emerged as a low-cost alternative to other forms of business development used by a growing number of travel service suppliers during the depth of the Great Recession. Not surprisingly, the technique is controversial because it may compromise rate integrity, not to mention raising the ire of meeting planners and/or clients who may be bound contractually to pay higher fares/rates. Nevertheless, the decision about whether or not to launch a flash sale frequently boils down to the expected incremental revenue, oftentimes adjusted to reflect the cost of alienating some existing customers/clients along the way.According to the results of the new Ypartnership/Harrison Group 2010 Portrait Of American TravelersSM: Almost three out of ten 27% active travelers took at least one “last minute” leisure trip last year; One out seven 14% purchased a travel service as a result of receiving an unexpected email from a travel service supplier; Almost half 40% of those who purchased a travel service as a result of receiving an unexpected email booked an airfare and/or lodging, while fully four out of ten 38% purchased a complete vacation package, and one out of five booked either a cruise or car rental.