As demand starts to return, tour operators and vacation packagers are beginning to shift marketing strategies, carefully weaning customers off the heavy discounting environment of 2009 to bring prices back up while also taking steps to persuade them to book earlier.
"Our objective this year was to offer the best deal we could farther out," said Marc Kazlauskas, president of Insight Vacations. "As you get closer to the departure date, [you get a] less attractive offer."
Last year, Insight introduced promotions in January and February. But its best offers for 2010 bookings were in November, December and January. Additionally, Insight's offer of free companion air, which was available for much of last year, was extended through the end of last month, at which point it was converted to a $99 companion offer to Europe.
Going forward, the further out the client books, the better the deal. That represents a more traditional promotional strategy than was the case last year, when last-minute deals became an industrywide norm as operators and packagers often chased any possible additional business at any possible price.
"We are still seeing aggressive promotions from our suppliers, and customers are still looking for them," Sallie Rawlings, Travel Impressions' senior director of corporate communications, wrote in an email. "But we're also noticing a slow trend of pricing beginning to climb toward pre-downturn levels."
She said that stronger booking levels meant that the pricing environment was gradually stabilizing, adding, "Passenger volume is definitely building, but aggressive promotions will continue until hotels and resorts start registering higher occupancy rates."
Part of the challenge lies in the message. Tour operators and packagers don't want to trumpet the fact that pricing is inching up. Instead, they want customers to feel that there are still great deals out there, and most claim that is still true.
Mike Ehlers, senior manager of pricing and inventory for Funjet Vacations, said, "So far in 2010, our deals are not any less aggressive than they were at this same time last year. These offers likely won't reach the all-time-low levels of last summer, but by having great summer rates out early, we should be able to avoid the need to discount so heavily last minute, as the base of business will be much stronger."
The strategy is as much about increasing revenue as it is about business management. One of the biggest challenges last year was that many customers were waiting for great last-minute deals, which had the entire industry on edge, including retailers.
With an expanded booking window, Ehlers said, "travel agents should be able to better manage their business and establish more predictability and stability, while also earning more commission because of a higher average package price."
At Globus Family of Brands, the idea was to get the message out about 2010's good prices, rather than about cutting those prices.
Jennifer Halboth, marketing director for Globus, said that was the strategy "more than ever" this year.
"Right at launch, we came out with, 'Our prices are 20% lower than 2009,' and we passed all that savings on," Halboth said.
The healthier bookings, she said, are giving Globus more control over how and when it chooses to promote its product.
"Last year, we were definitely a little more reactive, because the bottom fell out at the middle of the year," Halboth said. "We were in a position to sometimes be matching with our competition. This year, we've been able to do more of our [own] promotion planning."
General Tours World Traveler said it tried to resist the slash-and-burn discounting trend of 2009.
"Our marketing strategy has never relied heavily on deep discounts and fire sales," said Mickey Huang, General Tours' marketing manager. "Every company says this, but we really do try to sharpen our pencils every year to publish prices that are more than competitive and value-driven."
But to help customers get used to an environment in which fire sales might not be available to them at the last minute, General Tours for 2010 introduced a family and friends savings option in which guests save between $50 and $150 per person when three or more people travel together.
"The idea is to avoid the limited-time, fire-sale mentality," Huang said.