Travel occupies a unique place in the services sector. The customers are brand-promiscuous, and hence the category is fragmented. It is dominated by three types of players.
- Travel service providers
- Agents
- Aggregators
Travel service providers include air/road/rail/water transport service(s) providers. Agents sell travel services as theme-based packages. Aggregators are online platforms that pull travel services from different service providers and sell them as value-for-money deals on their respective platforms.
Accordingly, businesses in this category hinge on one of the three drivers.
- Brand-driven, supported by membership privileges.
- Cost-driven, supported by assured levels of service.
- Benefit-driven, driven by the availability of choices.
Why Gift Cards as preferred growth builders for Travel category?
Gift cards are strategically built to help not only brands but also their B2B and B2C consumers. This e-book delves into the multitude of ways through which gift cards achieve this mission.
Here’s a small excerpt.
Channel-wise Sales Drivers
B2B channel contributes to the majority of bulk bookings. Thus, the demand for discounts on travel coupons is very high. The two dominant drivers for B2B sales are
B2C channel makes up the majority of retail bookings. The most dominant driver for B2C sales is ‘value-added services’.
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- Win-win alliances
- Conditional vouchers
- Win-win alliances: An inorganic form of customer acquisition, win-win alliances are agreements inked between brands of complementing categories.
B2C channel makes up the majority of retail bookings. The most dominant driver for B2C sales is ‘value-added services’.
- Value-added services: These are non-monetary privileges, provided by Airlines and Aggregators to their frequent customers, such as priority check-ins, preference in choice of seats, etc
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