Sports tourism operators are missing two key tactics guaranteed to improve their game.
Golf has always been a popular sport amongst men and women of a certain vintage, circa Japanese Prime Minister Shinzo Abe and President Trump on a recent diplomatic visit. However, golf is increasing in popularity among the younger generations, with Forbes reporting that 2.2 million people took up the sport in the period between 2015 and 2016.
With the 81st US Masters golf tournament taking place in April, sports travel operators could experience a dramatic uplift in enquiries into golfing holidays, but operators hoping to convert those enquiries into confirmed bookings should consider ways to gain a competitive edge and secure big rewards from the growing sports tourism market.
Just like any golfer who has perfected his game, a successful travel operator must understand that the path to glory isn’t seized by technique alone – strategy is also a major factor. One of the most common mistakes made by the amateur golfer is believing the key to success is to put everything into their swing; convinced they should clear as much ground as possible between the tee and the hole, overlooking the opportunities that could have arisen between start and finish.
Much like the hit-and-hope of an amateur golfer, the eager sports travel operator may recognise discounted holiday promotions as their best chance at scoring those cherished bookings, however, the big wins are more likely to be secured by operators participating in the long game, and that’s where two tactical promotions come into play; cashback and the gift-with-purchase. With a great track record for increasing sales in other consumer sectors, these promotions could have great potential for the sports tourism sector.
Cashback
The cashback promotion makes clear that if customers book the holiday, pay in full and then having enjoyed it, find it was cheaper elsewhere, they can claim the refund of a set amount. Alternatively, once they have been on the holiday, they can claim a cashback value set by the company of anything up to £250.
Financially, this is far more effective for a sport-related travel operator than simple discounting, as historic data shows a huge boost in sales with only half of those entitled to cashback rewards bothering to claim them. There could be as much as nine months between booking the trip and entering the claims during the window of availability, which is a lot of time to forget.
Gift-with-purchase
The same applies to gift-for-purchase promotions, in which expensive, desirable items such as Bose noise-cancelling headphones are offered as a thank-you to customers for having booked the holiday with the company. If they can only be claimed once the holiday has been enjoyed, only about 50 per cent of the full number will be taken up. The alternative is to offer the gift on condition the customer books another trip with the company. Again, there will be limited take-up of the gift.
These promotions have genuine potential in sporting travel, where competition is less about price and more about quality. Customers expect a special, luxury experience that may include meeting a big name in the sport. Gift-with-purchase schemes can up the ante when the gift is a high-quality, desirable item that fits in with the customer’s lifestyle or preferences. The same goes for an appealing cashback offer, tilting the balance in favour of the company when the customer is at the point of making a decision.
To reduce a company’s handicap, these promotions are run by specialists working to quality standards, who have vast experience in managing and reducing any risks. They also build the redemption website, handle claims and take care of customer service, causing the travel company minimal disruption.
Such is the effect of these cashback and gift-with-purchase schemes, there is also real potential to drive volume and increase sales in the sporting goods sector, where they remain under-utilised.
Using the data and the deep expertise of a sales promotion specialist, these offers are set up to be extremely attractive to consumers, boosting sales while protecting travel operators from the risk of promotions. Unlike the uncertainty of teeing off into a strong crosswind, this is a bye into the next round of the sales game.
