Members of the Hays Travel Independence Group (IG) have been strongly encouraged to move away from aggressive discounting strategies. Instead, the focus should be on leveraging their expertise to increase margins and grow profitability.
During the recent Hays IG domestic conference in Leeds, discussions centred on the need for controlling discounting practices and focusing on higher-margin products, particularly in the cruise sector.
Monitoring Discounting Practices
Hays Travel Independence Group (IG) members have been strongly advised to monitor their discounting practices closely. Jonathon Woodall-Johnston, Chief Operating Officer of Hays Travel, emphasized the importance of recognising the added value agents offer to clients, rather than engaging in price wars with online competitors. He stated, “We don’t need to go in with the best price. We’re very good at customer service and we’re investing in it, so why wouldn’t customers want to buy with somebody they can trust?”
During the Hays IG domestic conference in Leeds, Woodall-Johnston addressed around 130 delegates. He highlighted that IG members’ passenger numbers had increased by 15.80% year on year, for the period from May 1, 2023, to February 29, 2024. Moreover, gross sales for the period rose by 22.25%, and profits saw a growth of 21.70%.
Emphasizing Expertise and Product Mix
Woodall-Johnston urged members to focus on their expertise and the value they provide to customers. He noted the importance of getting the product mix right to maximise profitability. Products offering higher profit margins per passenger should be prioritised, particularly those in the cruise sector.
He pointed out that while IG members had increased their share of cruise sales to nearly 17%, this still lagged behind the proportion seen across Hays’ retail division, which stood at 25.29%. The target is to elevate cruise sales to represent 33% of the overall business.
Leveraging Booking Opportunities
Woodall-Johnston identified prospective opportunities for increasing sales, particularly through Sunday bookings. Maximising these opportunities can help in boosting overall sales and profitability.
He also advised agents to sell ancillaries and insurance at the point of booking, which can significantly contribute to increasing margins. This approach not only adds value for the customer but also enhances the overall profitability of each booking.
Driving Growth Through Strategic Initiatives
The conference underscored several strategic initiatives aimed at driving the growth of IG members’ businesses. These initiatives included targeted marketing efforts, enhanced customer service training, and the adoption of advanced booking technologies.
Woodall-Johnston stressed the importance of continuous investment in these areas, stating that such investments are crucial for maintaining a competitive edge and ensuring long-term sustainability.
Harnessing the Power of Data and Analytics
Key to the strategies discussed at the conference was the utilisation of data and analytics to inform decision-making processes. Leveraging data allows agencies to better understand customer preferences and market trends, facilitating more effective and targeted marketing efforts.
The effective use of analytics was highlighted as a tool for not only tracking performance but also identifying opportunities for improvement and growth. This data-driven approach ensures that IG members can make informed decisions to enhance their service offerings and market positioning.
Collaborative Efforts for Enhanced Results
The importance of collaboration among IG members was a recurring theme throughout the conference. By sharing best practices and insights, members can collectively work towards achieving the common goal of increasing profitability without resorting to discounting.
Woodall-Johnston encouraged members to engage in open dialogue and knowledge sharing, which can lead to innovative solutions and strategies for overcoming market challenges. This collaborative approach is viewed as essential for the collective success of the group.
The guidance provided at the Hays IG conference underscores a strategic shift towards enhancing profitability through expertise and value addition. Members are encouraged to adopt these strategies to ensure long-term growth and competitiveness.
By prioritising high-margin products and leveraging data-driven insights, IG members can achieve sustainable business growth without compromising on service quality.
