Since there has been a travel industry,
there's been a ying-and-yang thing going on with the concepts of a
la carte pricing and all-inclusive pricing. The dichotomy has been
with us for a long time, and travel suppliers over the years have
made a lot of money in both modes. Lately, however, the a la carte
approach seems to have moved into some new niches.
There was a time
when cruise lines virtually promised their passengers that once
they got on board, they wouldn't have to open their wallets except
for booze and tips. That was back in the days when air fares
included a paper ticket, a meal, a snack, a movie, a pillow, a
blanket, the services of a travel agent and a dab of club soda to
get that spot off your tie.
We all know what
has happened since. Onboard revenue is one of the cruise industry's
hottest growth sectors, and the recent history of air fares has
been a history of unbundling, to borrow an ugly word from the
economists. In the latest twist, Air Canada has made a virtual
smorgasbord of its Tango fares, giving passengers the option of
adding or subtracting an expanded array of goods and services for a
few dollars more, or less.
The car rental
people are pretty good at this, too. Gas or no gas? Insurance? How
much? One driver or two?
In today's world, a
la carte pricing seems to be popular, in part, because it empowers
consumers and appeals to their sense of fairness, which is good for
those consumers who want to play the mix-and-match game.
But it also adds
complexity, and that could be good for the industry. A little
complexity adds a bit of friction, maybe gives the consumer a
moment of indecision and self-doubt. And in that moment are
opportunities for travel marketers and travel sellers to strut
their stuff.
As much as we need
the Internet, we still believe that travel can be enriched, even
before it begins, by personal communication, face-to-face
counseling and honest advice, even if the cost of that advice is no
longer built in.
Thank you,
Iran
Innovations sometimes sneak up on us from
the most unlikely places. Just last week, Iran -- Iran! -- made
headlines by revealing a plan to boost tourism to that country by
paying Iranian travel agents a bounty for every tourist they bring
in.
But wait, it gets
better. The Iran Cultural Heritage, Handicrafts and Tourism
Organization will pay more for big spenders: $10 for each Asian
tourist and $20 for each tourist from Europe or the U.S.
There's a lesson to
be learned here for the U.S., which can't seem to bring itself to
commit federal dollars to promote itself as a destination in
overseas markets.
If Congress can't
write a check to big advertising agencies for this kind of work,
maybe it would consent to a variation of the Iran plan.
After all, ad
campaigns are tricky. You're never sure they're going to work, and
you're never sure you can measure how well they work. If a campaign
is a dud, your tax dollars go down the drain.
But a bounty
campaign doesn't have those drawbacks. If agents don't produce,
they don't get paid. And any money that the government spends will
go to U.S. tour operators and travel agents, just the sort of
home-grown small businesses Uncle Sam should be helping.
Memo to the Travel
Industry Association: Go for it!