This year is not about the stay-cation. Customers are tightening their purse strings fueling online travel companies to lower their prices. They're also "woo-ing" their customers with elaborate marketing schemes.
In a survey by
Kayak.com, an online travel company, 95 percent of over 4,100 participants say they plan to take a vacation this summer. Brian Harniman, executive vice president of marketing and distribution says “Thanks to an abundance of travel deals, last year’s stay-cation trend appears to be over as we’re seeing consumers using savvy cost-saving strategies to once again embark on a traditional summer vacation.”
What are these savvy cost-saving strategies? Customers are shopping around online, using their buying power to find the greatest deal on their summer vacation. The average customer savings of booking a hotel online is only $7 a night, and online travel companies feel the pinch. Online companies are fighting for travellers by use ads and promotions.
Priceline.com (an online travel company), features William Shatner in advertisements as the "negotiatior." Shatner encourages customers to "haggle" online for better deals. Meanwhile, a clerk in the advertisement drops the price from $299 to $99. Shatner's response? A racy line, "You're so naughty." Travel sites such as
Orbitz,
Expedia, and
Travelocity have slashed service fees. TNS Media Intelligence reports that Expedia spent $139 million on advertisements last year. Regardless, MSNBC
reports Expedia.com's 1st quarter net income fell 20 percent, and their revenue fell 7.6 percent.
Price "assurance" promotions have been picked up by most online travel companies. If you book a flight or a hotel at Orbitz and find someone who has booked a lower price, Orbitz will cut you a check for the difference. Spokesman Brian Hoyt says he would "rather spend our money on our customers than buy ads on "American Idol"."
With online companies set to "woo" customers despite of the economy, travellers have the buying power for this summer's vacation.
Check out some online travel deals here:
Priceline.com: Save on Marriott hotelsHotels.com: Save up to 50% on hotels for Memorial Day weekend- expires May 25, 2009
Hotwire.com: Save up to 40% on last minute fares
CheapOair: Use Memorial Day exclusive coupon code Memorial10 for great savings. Offer expires May 25, 2009
This year is not about the stay-cation. Customers are tightening their purse strings fueling online travel companies to lower their prices. They're also "woo-ing" their customers with elaborate marketing schemes.
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