value & pricing solutions for tourism
DESCRIPTION
Presentation delivered at Paris Seminar on Marketing, Value Propositions & Pricing strategies for Travel, Tourism & HospitalityTRANSCRIPT
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Value &Pricing Solutions
for Travel Services
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How doclients chooseyour Companyin a world of 1 000 000 Destinations ?
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Price/
Quality?
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Image / Advertising ?
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Visibility / Convenience ?
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FUTURELAB
Word of Mouth /Recommendations ?
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Price Promotions
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Value Proposition
What drives Consumers’ Value Perception?
What are your product ratingsvs competition?
Perceived Value
Product Quality
Brand/Image
Service /Experience
Convenience / Availability
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Value /PriceFind the right Balance
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Second phase of Marketing:
Then we started talking to someone called ‘Consumer’
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Who uses your services ?
What ValueProposition?
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Travel 2.0
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Travel Agent 2.0
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• A joint study by the University of Augsburg, the consultancy firmConvois and Google Germany does not give a particularly glowingreport of holidaymakers who book over the Web – at least wheretheir decisiveness and brand loyalty are concerned.
• Customers are extremely hesitant and choosy, and are notparticularly concerned about known brands.
• Customers visit up to seven different sites before eventuallychoosing a particular offer.
• Only 19 per cent of those who make a booking are regular customersof a particular provider.
As Jan Oetjen, the head of the research project atAugsburg University, says: “The average internetbooker has the patience a truffle pig, but theloyalty of a street dog.”
• A joint study by the University of Augsburg, the consultancy firmConvois and Google Germany does not give a particularly glowingreport of holidaymakers who book over the Web – at least wheretheir decisiveness and brand loyalty are concerned.
• Customers are extremely hesitant and choosy, and are notparticularly concerned about known brands.
• Customers visit up to seven different sites before eventuallychoosing a particular offer.
• Only 19 per cent of those who make a booking are regular customersof a particular provider.
As Jan Oetjen, the head of the research project atAugsburg University, says: “The average internetbooker has the patience a truffle pig, but theloyalty of a street dog.”
The Real e-consumer in Travel
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Value & Pricing strategy
Results
� Sales growth
� Segment share
� Profitability / ROI
Actions
Pricing & Value levers
� Value Proposition
� Marketing Spend
� Price
� Product quality
� Promotion
Consumer
Attitudes / Calue Drivers
Consumption funnel
%
% % %
userepeat
awarenesstrial
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What are
the
Value Drivers
for
your
target segments ?
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Experience / Adventure ?
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Nature/ Taking a Break ?
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Hotel / Accomodations ?
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Brand?
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You are not in the Tourism business servingpeople, but in the People business, providingTravel(to paraphrase Howard Schultz, Starbucks)
Commodities Products Services Experiences Culture
$.10 $.25 $1.00 $4.50?
$???
Targeted Value Propositions
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Take a closer look…
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Consumer Research
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Experience & Brand Mapping
Region / Area
Segmentation
Experience / Service
Pri
ce
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Illustrative: source: Amadeus Segmentation
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Segment of One?
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Experience / Brand Advocacy
FarnienteIn Tuscany ?
Trekking in Thailand ?
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Atlantic Travel sold 449New Orleans Mardis Gras Travel Packages at€4400
Pricing research showedthat volume would not drop if they were to charge €4995 per trip
Indeed, it did not and that595€ difference translatedinto€267 155 in extra profit
43,900
9.30
9.95
Bottom Line Impact
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Pricing & Value ConsultancyCreated in 1993Present in 10 countriesResearch, Strategy, ImplementationThought leader + state of the art tools
clients include
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Pricing Solutions – Range of services
Research
• Client/Consumer Value Drivers research• Price change impact research• Transactional analysis/ Modélling• Client Value & Satisfaction studies• Product potential & ‘Willingness to pay’• Client/Consumer segmentations• …..
Advisory • Value Based Pricing
• Pricing Strategies & Tactics• Competitive Pricing / Price Wars• Implementing Price Increases• Channel Pricing• New Product Launch• ….
Process
• Development / Reinforcement of Pricing Capabilities
• Redéployment of Pricing Processes• Management & optimization of ‘client conditions
’• Multi-Channel Pricing / Pricing Corridors• Change Management• Value Propositions / Design to Price• Pricing Software implementation• …..
Support
• Sales Force Training / Motivation • Support/ Training of Pricing / Marketing teams• Decision Suppoirt Systems• Deplyment & management of ‘Test Platforms’• Product/Service Full Cost Analysis• Pricing Process deployment• Pricing & Competitive Intelligence &
Benchmarking• …..
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