OUT WITH THE OLD IN WITH THE NEW

WHETHER it’s strategic marketing or clever PR, new products demand our attention. Tech giant Apple has got it figured out, rolling out product updates in blink-and-you’ll miss it succession, and customers snap them up as they look to cure their insatiable appetite for the latest innovations. The same goes for the travel industry as operators look to woo travellers with new packages that seem too good to pass up. But as consumers grow increasingly wary of marketing hype and PR gloss, the pressure is on to reinvent the wheel with innovations that are one step ahead of the game. As Trafalgar managing director Matt Cameron-smith explains, the pressure to evolve is driven by consumer demand, but brand positioning is at its core as wholesalers endeavour to stay front of mind for customers. But the challenge, he says, is to strike the right balance between old and new without losing touch with customers. “Guests have a certain level of expectation … you can’t just put lipstick on something and call it new – they’re too smart for that. It’s about giving guests something they don’t expect and that they can’t get anywhere else,” he told travelbulletin. Like any business that relies on bookings, customers hold the power and products are rolled out in response to market demand. But rivalry also keeps new product pouring in as operators look to nudge their competitors with innovations that win over customers. Cox and Kings CEO Caroline Kennedy says evolution is central to the travel industry as customers come to expect more unique experiences. Speaking with travelbulletin, she said travel companies feel the heat from their competitors as they all vie for a piece of the same pie. But rather than be distracted by the noise, the focus is on tweaking product that performs rather than that which lags behind. C&K adheres to the 80/20 principle in which 80% of revenue comes from 20% of the overall product range. “We focus on proprietary product that delivers something unique while meeting market needs. We make sure the formula works accordingly and try to improve our product’s performance without compromising on quality or company revenue,” she says. The 80/20 rule may suggest that sticking to the norm is better for the bottom line, but Kennedy says taking chances is also vital to keep repeat customers coming back. Every new product comes with a certain element of risk, she says, but the response is to tweak new products that are slow with bookings, or drop them all together if they fail to deliver a return on investment by the third year. Trafalgar adheres to the same guidelines, but Cameron-smith says exclusivity is key in an industry which is driven by “me too” syndrome. “Having a unique selling point is absolutely critical in our industry when everyone is claiming to have exclusive and unique tours. There’s a lot of noise out there so we have to find tours that are not only appealing, but are genuinely unique and that challenge the norm,” he said. But he admits change doesn’t come easy. Trafalgar last year severed ties with a host of ground operators and changed a whopping 200 hotel partners in a bid to shake up its product offering. The company has also cut the single supplement on most of its tours, introduced more free time and introduced a new Hidden Journeys portfolio where group sizes are capped at 26 guests. The changes are part of an ongoing evolution, he says, but it also comes down to brand positioning and building a rapport with clients: “We all need to be nimble and manipulate itineraries to succeed.” It’s a view that is shared by APT, which would still be a coach tour operator of the ‘80s if the company hadn’t taken evolution into its stride. Marketing manager Justine Lally says travel companies that fail to evolve will fall behind their competitors and see their bottom line slide over time. “To rest on your laurels in this business would be risky, and companies need to be innovative, expand and to think broader than the current state of play,” she says.