What market situations should tourist companies and regions prepare for after the lockdown? What level of budget is required to generate bookings at short notice?
At some point in July or August, national and cross-border tourism will get going again. We might compare this situation to a weekly market which only opens up at 2.00 pm instead of the usual 7.00 am. The challenge, then, is to sell your goods in the much shorter time left. So, what are some of the possible scenarios that traders might face in this market?
Every man for himself
Here, each individual retailer tries to save his or her own business and a merciless price war breaks out. Just as fruit and vegetables are perishable, so are hotel beds and seats on buses or planes. Whatever you can’t sell today gets thrown away and is wasted. And banks, of course, also want to see sales.
Whoever shouts the loudest gets heard
Just like market traders, those who shout the loudest will do good business. Because if you can be heard in the whole market, your chances of attracting additional customers increases considerably. And customers tend to infer from a strong market presence that the business is doing well and that it is good value for money. Undecided customers, in particular, are grateful for any form of ‘guidance’ or ‘signposting’
We are strong together
It might also be the case that all the participants in this weekly market work together. Traders are well aware that having a wide variety on offer is the most important thing in keeping their market attractive for their customers. So nobody benefits if some traders go empty-handed due to short-term profit seekers.
As always, the reality will probably fall somewhere between these options.
We can imagine that there will probably be a degree of national and regional solidarity. But merciless competition between regions and nations is also likely to break out. Preparations for a strong market presence are already well underway. But how much do you need to invest in order to be ‘heard’ as much as possible?
What’s the cost of a guest, a prospect, a website visitor, a like?
Without doubt, this depends on several factors. Based on our experience as experts in tourism performance marketing, we would suggest the following: Starting with a media budget of just € 1,000, tourism providers can maximise our experience with a good concept, adverts and campaigns, achieving up to:
- 15 bookings of long distance travel packages
(average package price 4.000 EUR) or
- 40 bookings of holiday rental homes or
- 3,000 website visitors via Facebook ads or
- 5,000 website visitors via Google search ads or
- 40,000 likes for their posts on Facebook or
- 5,000 Facebook likes for your website or
- Gain 100,000 video views on YouTube.
In some cases, we were even able to achieve much better results and exceed forecast performance values by up to 500%. An example of this is the #richtiggemacht social media campaign for the Centre of Excellence for Federal Tourism on behalf of the Federal Ministry for Economic Affairs and Energy (BMWi). This resulted in an impressive fivefold increase in campaign performance, without requiring any additional media costs.
How is that possible? From our perspective, it’s crucial to have a campaign idea which is both unique and outstanding, implement it creatively and provide high quality in campaign planning and implementation. All this needs to be based on having a high level of expertise in tourism, being open to creative ideas and optimal cooperation between all those involved.
Do you want to generate bookings efficiently and at short notice?
Get in touch with us.
Christian von Häfen