Coupons are one of the most popular marketing and advertising strategies used by travel companies to gain more profit, either by attracting new customers or by selling more frequently to existing ones.
There are several ways to distribute the coupons, including direct mail, in-store or central location, print media, and through retailer advertising. Because of its targeted distribution, coupons sent by direct mail offer higher redemption rates than coupons distributed by print media.
Why are coupon codes great? What will you be able to achieve with them?
1. Engage with customers using coupon codes
Attracting customers with the convenience and comfort a coupon code offers leads to more sales. Customers want to be included in the purchase process and have more options when buying. This is definitely bringing you attention and brand awareness.
2. Create the opportunity to work with new customers
Saving money and getting the same quality of service is always the best strategy for attracting customers. Maybe some clients aren’t financially ready to buy some of your products but seeing they are on the promotion can encourage them in their purchase decision. Also, perhaps your competition does not offer this option so you will be in the spotlight.
3. Offer some extra value on your web page
Each coupon code can be linked to a travel product and it can be used both in the back office and on the online booking. This could help your web page stand out a bit more and offer something extra to tourists surfing online through dozens of web pages when deciding on who to travel with.
4. Increase online conversions
If you offer online booking on your website, this just brings in additional value. Usually, the decision process lasts some time, but coupon codes can give an extra push for your customers to make their purchase faster!
5. Create a loyal relationship
Many travel companies focus on getting new customers and making an acquisition, but it can cost you 7x more than customer retention. Coupon codes could actually help you build long-term relationships and save the money. The point is to nurture your existing customers by adding something fresh (like coupon codes), making them return to you (and spread the word, which is a cherry on top).
Why tourists love it?
- They get a good offer.
- They pay less than they originally would have.
- It allows them to shop whenever is best for them.
- It’s easy to implement and use.
- You can track insights from the back office (which coupon code had the best feedback, how many new customers did it get you etc.)
An extra plus if you have a reservation system!
With a reservation system that supports managing coupon codes both from the back office and online, you can see different reports on that topic, e.g. who used the coupon code, how much profit you get from each coupon code, what time of the year yields the best feedback, how many new customers you got, how many existing customers returned to you because of this code, etc. You can use this information to plan actions, plan promotions, nurture your top customers and get loyalty.