How And Why Travel Incentives Work
Why Use Holiday Certificates?
Everybody likes to get something free and it’s the ‘free’ part that is important. Most people do not think that the cost of free offers are actually included within the purchase price of goods or services, they regard them as benefits. Some people will make a purchase choice based entirely on what free offers are available, almost irrespective of the price of the product.
In fact many would prefer a certificate for a free cruise than have money off what they are buying. Why? Because travel gets you away and gives you a break from work - and the reality of the 'daily grind'. It's good psychology and it has been proven time and time again that it works. The basic principle is this – give them something that they not only want, but also something that will have a lasting effect and engender company loyalty that goes beyond the incentive period. Cash just doesn’t do that.
What can be better than a 4 Day Jamaica All-Inclusive Resort Holiday, or an 8 Day, 7 Night Resort Getaway simply for requesting a quote, joining a club, extending your life insurance policy or making a small charitable donation that you were considering making anyway!
How Travel Incentives Are Able To Work
There is one question that is consistently asked regardless of what industry we are working with.
"How is it possible for you to provide these holidays so inexpensively?"
To answer that question, we need to first understand why hotels and cruise lines offer these free or reduced cost holidays in the first place. It is because at certain times of the year, not all rooms, seats or cabins are taken. In fact, the average hotel has 30 - 35% of their rooms vacant every day. Hotels rent out their rooms by the night, and unlike a normal product, once tonight is gone you can't go back and sell yesterday. It's gone forever!
Hotels, resorts and cruise-lines like our program because we provide them with a solution for this problem by placing additional travellers in their already vacant rooms at a heavily discounted price. Why would they do that? Because it is better to have someone stay at a discount than not have them stay at all. If they cannot sell the room space, then rather than have empty rooms, they will offer them at vastly reduced prices - sometimes even for free. They know there is every likelihood that the visitors will spend money in their restaurants, bars, casinos and on other services. Plus the visitor might have enjoyed their short stay so much that they may return for a longer visit at a later date.
Everybody wins – the customer, your organisation and the hotel, cruise-line or airline.
Why Holiday Incentives Motivate So Well
Marketing with travel incentive programs helps you push three key emotional “hot buttons” with prospects and existing patrons. And unlike many marketing strategies that speak to negative emotions, such as fear and greed, travel incentive programs tend to make people feel good.
Here's why:
Travel Incentives Make People Feel Smart
Travel incentives add tangible value to offers from online and off-line businesses alike. A vast majority of consumers are guided by price when they make their purchases and they have learned to demand more than what they paid for.
If they know they’re being offered a good deal and they get a holiday certificate as well, the customer feels smart because they have received more value for what they were already prepared to pay for.
Travel Incentives Make Consumers Want to Say “Thank You” Back
When we receive a valuable gift, most of us want to say thank you. A travel incentive is a valuable gift to prospects and customers and they'll want to say ‘thank you' the only way they know how: with their business.
The "Law of Reciprocity" states that when you give people something, they will want to give you something in return. It's the reason there's a prize in the McDonald's "Happy Meal" and the thinking behind advertising agencies taking prospective clients to dinner. In each instance, the hope is that the freebie will result in more sales.
The same is true with holiday incentive marketing.
Travel Incentives Make You Unforgettable
Incentives have long been used to make businesses memorable. On the low-cost end, there are key chains, pens, mouse pads, and refrigerator magnets. On the high end, there's logo gear such as hats and t-shirts. These items may be useful, but they're not especially memorable.
A travel incentive to an exotic location or popular destination however, burrows into a consumers mind like a diamond tipped drill. In addition to making you stand out from the crowd, a well-run travel incentive program makes consumers feel special and well taken care of.
Think about it. Which would make a bigger impression on you: a coffee mug or a free holiday certificate for a
5-day/4-night trip to Hawaii? Read what some satisfied certificate users say.
