When the going gets tough, brands get going

Nick Henley

Media & Planning Director, Conrad Advertising

As consumers tighten their belts and wonder where they will make savings there is a mixed outlook for consumer spending in different travel related sectors. Ernst & Young’s ITEM Club reports (16th May) that Recreation and Culture is likely to see a 5% increase in consumer spending in the coming year, whereas Hotels and Restaurants will see a 0.7% decline.

It’s important to remember that consumers trade-up and trade-down between sectors and within sectors. Holidays and travel is certainly a discretionary spend, but consumers have proven time and again over the last few years that they are prepared to make sacrifices in other areas of expenditure to keep their annual holiday, to visit friends and relations or to take a short break away from daily life.

But we have to accept that consumers are more cautious and will take longer and consider more options when planning their holiday. It’s not just a question of waiting for late sales or not. Consumers will change their behaviour in many other ways and it’s important at times like this that companies wishing to get consumers to enquire about their holidays understand the importance of their brand.

When times are tough consumers not only use more media to search for holidays, but also pay more attention to and subconsciously take into account, brand cues contained within advertising and marketing activities.

We’re not just talking about looking for evidence of ATOL bonding, although of course that is important. Here are 5 things we can see help brand credibility to create better customer confidence and so response:

1. Company website content, quality and speed is an indicator of investment and so solidity. For those brands that can’t afford mass media TV advertising and high visibility in press, then website perception and performance is probably the single most important cue for consumers trying to judge what a company is about.
2. Detail about holiday offers - what’s included, what’s not, flight details, the itinerary, resort support, transfers – will all be read in more detail to help customers reduce the risk that their hard-earned and limited cash is well spent. Advertising and marketing must meet this enhanced need. More detail will pay back in better cost per booking, although it may push up cost per call due to the need to buy longer advertising spots or larger spaces.
3. Online and offline customers expect ever-increasing levels of service and integrity. That means not just a helpful and attentive phone manner and online booking facilities, but also how companies can match up sales team knowledge with customer enquiry needs and how companies package and communicate their offer to create a perception of superior overall value. Price is only one indicator of value we shouldn’t forget and may not be the most important cue when customers are looking for security.
4. Continuity of presence is especially important when consumers are taking months rather than weeks when searching for and reviewing holiday options. Whilst selling off-the-page and immediate response rates are often critical, generating customer interest and credibility that is later activated when that customers gets to the business end of making a booking is also valuable. Maintaining an advertising presence helps reassure customers and reminds them you are a major player in a sector.
5. Integration between online and offline marketing is key. Not only do companies have to manage their reputation and appearance across channels, but website offers and call centre offers must coincide as enquirers expect to have a relationship with the brand as a whole. Someone somewhere said that you need to hit customers with 7 buy messages to be effective in today’s multimedia world. That’s 7 messages a month not a year.
6. To illustrate brand trust and credibility there’s no better way than to have customers advocate your product or service. Providing a means for prospects to see testimonials, endorsements and reviews is important, not just online but in all advertising.
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