5 minute read
Low Season Does not Mean Low Profits or Reason for Closing Down the Business
BY JOSE PINTO
Owners, Hotel Managers, Tour /Ground Operators and Airlines have the responsibility to maximize their revenues, keep their human assets active throughout of the year. During my years of experience I always overcome the seasonality that we service providers have as our “nightmare” by being creative, innovative and working with all concerned including the Ministry of Tourism, Transportation, Airlines, Airport Management, Association of Travel Agents identifying the weaknesses and strengths of each place and develop strategic plans and ways to promote and create awareness of the different available resources to the different markets around the World. During crises or pandemics GO REGIONAL.
Most of us hoteliers, travel agents, airlines and Tourism Authorities know how to adjust our strategies in anticipation of upcoming trends or overcoming short notice adversities but we are not used to do things together by and use the collected guest/ visitors data provided to us via different sources.
This key information can and will unlock profitable opportunities during traditionally low and medium periods of the year. I’m concerned that we alone or in each unit struggle what to do with the data individually instead of collectively getting together and use all City, Resort, Country available data and develop “magic” to attract customers. The data you and all sectors have on their CRMS is a powerful tool. Many others who don’t have such spent several thousands of Euros in software programs, salaries to capture such, and many of you are not properly managing such valuable data as long-term value. STOP, think about it and ask your IT team.
Imagine the golden data capture upon arrival of each and every one, accompanied with origins, precedencies, gender, age, geographical source, country of origin, email address , phone and all other collected data by the different areas who handles tourists
or visitors, that is gold if well used . By connecting data across multiple platforms and use strategically this data such can provide patterns and many other information that if well processed we can prepare well in advance your strategy for the season or even to have an immediate action in case of any outbreak of Virus, weather , earthquakes and many other factors that can negatively impact your “ profits”. With personalization becoming a priority for many of us that live and have our source of income from the tourism the social media becomes a very important tool to arrive to tourists and visitors across the world in a very quick and efficient manner. Hotels and all service providers can learn to collate across multiple touch points and data profiling to deliver a better customer experience, by sharing their data.
Local tourism authorities must lead these actions and together with other Hospitality / Tourism Sectors must structure and combine data to focus on key periods that need a boost the slow periods by developing one single action plan for all.
Off-Low season promotions are not only important, they are crucial.
Using the data it bring the knowledge about your customers and helps to promote specific internal destinations, hotels and experiences during low or off seasons, particularly when it comes to special discounts.
Imagine such, done collectively with Airlines, Tour/ Ground Operators, Hotels, Resorts, Municipalities, Ministries and other third parties. Imagine the “Forza” or Power and the major advantages when going to the selected segments recommending local, culture, activities, restaurants, local / regional off season events experiences with spectacular packages. Use whatever is available in your city or area like regional activities of the Municipality, small or large festivals, seasonal sporting events, concerts and pop culture tie-ins to fill the sales gap. Why not starting with the forthcoming Holiday season , let Municipalities and local business as well as multi-national companies organize city events showing their traditions in the gourmet and culture areas, schools to organize their choirs , local Multinational companies sponsoring and promoting their products etc This only can happen if all of
us at the Minister of Tourism, Municipalities etc. get together and use the data collected merge funds and act as one. This my experience from many years , and can assure you it only gave results.
The different tours and events market are huge and has become a multi- billion dollar global industry. By positioning the hotel or Regional Convention Centers as the focal point of the destination and offering this as part of your product, you will increase revenue and room occupancy, and local awareness
MICE (Meetings-IncentivesConventions-Exhibitions)
The business travelers are not influenced by seasonal trends and this helps the tourism sector continue to thrive all year around, but they can react to SOUND promotions.
The MICE sector is extremely profitable. The combination of meetings, incentives, conventions and exhibitions is now an integral
part of the global hospitality industry.
Targeting REGIONAL delegations can help even smaller operators earn a healthy profit, as these groups, particularly the smaller ones, often tend to look for unique and tailor-made services in terms of accommodation and tours. More travelers are combining work with leisure activities in their business destination, which again presents a great opportunity for travel agents and tour operators to keep sales going during off-seasons.
Innovative strategies to maximize revenue are key for all Hospitality service providers, destination management companies and travel agencies. A marketing framework is necessary in order to maximize the scale of profitability during low season. Globally, this industry alone generated more than US$ 1 trillion worldwide in 2017.
By 2025, this amount it is predicted to grow to an outstanding US$ 1,5 trillion mark as companies will need to motivate re incentivize their
associates and partners for the new ERA.
Albania needs to increase focus in
off Season and the MICE Groups are an important area TO EXPLORE.
According to a survey done by The Incentive Search Foundation, Incentive Travel is a fundamental corporate culture builder, within or out of any crises. Resort retreats, annual summits and familiarization tours or even a day trip are common examples, and ALBANIA as it all for that.
