Arnie Weissmann
Last year was about conserving cash. The vast majority of the Travel Weekly 2021 Power List agencies saw their business plummet in high double-digits. Curbing spending -- and borrowing -- was what kept agencies alive.
But at long last, the phones are ringing. Cruise lines are sailing from U.S. ports, airlines are adding routes, shuttered hotels are reopening. The promised pent-up demand for travel is materializing, and, as expected, travel advisors are among the beneficiaries of a still-complex travel ecosystem.
Now that the travel floodgates are opening and business is returning -- in some cases, walking through the door unbidden -- is it time to build up cash reserves by both taking advantage of consumer demand and keeping the purse strings tight?
Carl Emberson
I asked several of the industry's top marketers that question. When I was in Punta Mita, a luxury development on Mexico's Riviera Nayarit, a few weeks ago, I met with Carl Emberson, its director of marketing and operations. He told me that Punta Mita was among the travel companies that thrived in 2020 as the wealthy sought out low-density, safe environments to ride out the pandemic. Punta Mita's home-rental business soared, and new homes were sold in whispering campaigns before they were officially put on the market.
With high demand and over-the-transom business consuming his supply, would it make sense, I asked him, to take full advantage of the boom and wait to spend on marketing until after pandemic-related activity subsided?
"Some people make that mistake," he said. "You don't want to make that mistake. If you understand the value of marketing, you know to do it in a crisis or when business is bullish. Either way, keep on marketing."
Rob Kwortnik
Robert Kwortnik, associate professor of services marketing at Cornell University's hospitality school, likened reducing marketing in an upmarket to a runner's false sense of confidence when they have a lead. "Reduced marketing spend during periods of high demand is like coasting to the finish line as a determined challenger kicks into high gear to win the race. Or, in this case, win the customer.
"Investing in marketing when demand is on the rise creates opportunities for companies to move potential customers further down the purchase funnel and even to raise prices," he explained. "At the very least, marketing should be sustained when times are good to better ensure that the brand is in the customer's consideration set."
Julius Robinson
Julius Robinson, Marriott's chief sales and marketing officer for the U.S. and Canada, said that "the travel environment is still incredibly fluid and will be for some time. But we can't assume that the trends we see today are here to stay. It's important now more than ever to keep our brands front and center."
Betsy O'Rourke
Betsy O'Rourke, chief marketing officer of Xanterra, parent of Windstar Cruises and several tour operators and national park concessions, said her company has "opened up every marketing channel in order to generate bookings both close in and further out. Now is the moment to claim those bookings. We have been tracking consumer sentiment since the pandemic began and saw the wave coming, first for 2022, but very quickly thereafter for 2021. We deliberately budgeted to spend money in Q3 and Q4 in anticipation of this wave of pent-up demand, and we are reaping the benefits."
Kevin Froemming
Kevin Froemming, executive vice president and chief marketing officer of Playa Hotels and Resorts, offered that "consistent marketing during good times and bad is important. Good marketing campaigns not only improve overall occupancies, they're also a driver of improving overall average daily rates. As demand rebounds, we will continue to build aggressive marketing and promotional campaigns in conjunction with our global branding partners Hyatt and Hilton, focusing on campaigns that build awareness and which are less about price and discounts and more about the quality of our products."
Keith Lane
Celebrity Cruises vice president of sales Keith Lane added, "We've all been hunkered down for 16 months, and now is the time to tell the story, to market and sell. U.S. citizens have saved more over the last several months than at any other time in history, so let's help them spend those savings on a great vacation experience."
Stephen McGillivray
And, as regards travel advisors, Travel Leaders Group chief marketing officer Stephen McGillivray strongly believes that "now is exactly the time to ignite targeted marketing about your product, and who better to focus on than the loyal customers of our travel advisors? These high-intent consumers have travel in their sights, and if your product is not being seen or heard [in this channel], someone else will scratch their travel itch."
The verdict was unanimous: Tempting though it may be, now is not the time to hold back those marketing dollars. Good times or bad, some things never change: Business always goes disproportionately to those who ask for it.