ATLANTA � March 14, 2006 � At Res-Expo in Dallas last week, nearly
every presentation, breakout session and panel focused on marketing strategy.
Highlights were: marketing to women who have money; marketing to
the 111 million Chinese who do not have credit cards and are not allowed
to travel outside their own country; and discussing how airlines and hotel
chains are lifting global online group pricing strategies above one-property
tactics.
No Credit Cards, Please: China�s Travel Learning Curve is Looming China was another hot topic at Res-Expo 2006 because of the challenges travel providers experience in accessing that country�s much publicized nouveau riche market. The �China problem� has two major components, attendees were told. First, China has a huge inbound, mainstream tour and travel industry, but very few Chinese are allowed to travel outside the mainland. More importantly to non-Chinese travel companies, credit cards are not accepted inside the bamboo credit-curtain. Continental Airlines� Senior Director of International Distribution, Planning and eCommerce, Mr. Chris Amenechi, said �Doing business with Chinese online travel companies is difficult because they do not provide credit card fulfillment, and the travel relationship is not bi-lateral. Very few young professional Chinese are allowed to leave the country. They are early adapters, and they want a fuller travel experience. China will face a steep learning curve surrounding travel very soon.� Optimize Group Rates: Online Event Bookings Jump 43%
Res-Expo keynote speaker Don Tapscott, author of Digital Capital and The Naked Corporation, pulled everyone away from their Blackberries by announcing that, when it comes to Internet travel sales, technology is only a tool. While the audience of 500 industry tech professionals was still recovering from that blow, he told them the important part is what companies sell and how they sell it. I would agree with Tapscott and urge you to consider: checking your travel booking site for emotional content; readying your China policy for an eventual opening of the gates; and educating your team about technology that can siphon some of the online booking revenue into your bottom line. Michael Squires is president of Softscribe® Inc., a public relations and consulting corporation that helps clients sell technology products to the US Government, healthcare and hospitality industries. [Disclosure: Manugistics is a public relations client of Softscribe Inc.] |
Online
group rate optimization was also covered at Res-Expo because of that segment�s
43% increase in online event bookings (Passkey statistics). Manugistics
Senior Scientist and Consulting Services Director, Jon Higbie, Ph.D., explained,
�The combination of contractual relationships, the desire for future business,
forecasting incidental group revenue and Internet booking cancellations
makes group forecasting complex.� Higbie noted vendors like Manugistics
are building solutions that addresses these factors �so operators can evaluate
all aspects of the expanding group revenue picture accurately to avoid
leaving money on the table.�