Big travel brands are poor at building customer relationships
By Darren Cronian on Monday, January 12th, 2009

You see high-street stores offering their point’s card so that every time you shop there you receive points and eventually you can purchase something for free. Considering we are in a recession you would think that companies would build relationships with customers so that we return time after-time.

Big travel brands are poor at building customer relationships

I am not suggesting that travel companies offer points cards but let me give you a real scenario.

Big brand ruining the relationship

My dad has gone on holiday to Florida for the last four years and has always booked with Travel City Direct. Every year they have given him a discount, without him asking. Not a massive amount but because of the relationship he has with them he has returned year after year.

Last weekend my dad was telling me how upset he was that they had gone into administration and I told him that Virgin holidays had taken over their business. Happily he rang them up for a quote, and he was disappointed because they offered no discount.

My dad’s ranting now

My dad’s ‘travel rant’ was that he told them he had used Travel City Direct for four years and they never offered him a discount, and he shouldn’t have to ask. I’m sure if he had asked they would have given him reduction on the price of the holiday.

Small brands try harder

Let me give you a scenario about why small brands try harder. Booking a holiday in 2006 with an independent travel agency, I received a small map to Kos, and some information on the island with my tickets and invoices.

Holiday booked in 2007 to the island of Crete with Greece specialist, big brand, tickets and invoices stuffed in a small envelope, no information to help me plan my holiday. Who would I go back to if I was going to Greece in 2009 – yep, you guessed it, the independent agent.

I’m interested to hear your experiences.


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7 responses to “Big travel brands are poor at building customer relationships”

Murray H | 12 January, 2009 at 11:32 pm

Well, blow me down and call me an antelope. Road to Damascus moment, Darren?

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Gennaro | 13 January, 2009 at 4:37 am

Agreed. I also think that’s true for most industries. Smaller businesses need each customer to thrill whereas larger companies can rely on more volume. There are larger companies that do both, but they are few and far between. Unfortunately.

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Lee Harrison | 13 January, 2009 at 12:12 pm

I’m Glad you found our map and information useful Darren. One point about your Dad and Travel City Direct, could it just be that discounting was one of the main reasons for the demise of said company?

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Darren Cronian | 13 January, 2009 at 12:51 pm

@ Murray

Was it my independent travel agent comment that blew your Antelope over or something else I missed?

@ Gennaro

Your right, I have found my hosting company to be the best I’ve used, they are a small outfit, the company I used are a big brand, and they were useless at support, the site was down all the time. Smaller brands focus on customer support, and that’s what stands them out.

@ Lee

Yep, it was very handy. As for TCD, your right, that could be one of the reasons why they are no longer. If the sales people are on commission then they want to get the sale, and offering a small discount will make you lean more towards them when choosing the company.

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Chris Bauer | 13 January, 2009 at 9:56 pm

Two things to consider when asking for a discount is what the business margin and yields are for the travel supplier. Since travel, especially air, is very LOW margin most discounts that seem small are in fact forcing the travel suppliers to adjust them based on their volume of business.

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Nick | 14 January, 2009 at 11:01 am

A couple things.

First, Travel City was a much bigger company than Virgin.

Second, Virgin may have some information, but may not have more than a mailing list from Travel City, so they may not know your Father has booked. Also Virgin offer a repeat booking club so he will be able to use this next time.

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Darren Cronian | 15 January, 2009 at 3:37 am

@ Nick

Thanks for mentioning the Virgin repeat booking club, I will pass that on. As for the passing on of records, yes, that could be another reason. Hopefully my dad isn’t reading this but he’s old fashioned and believes that you should be compensated for being a returning customer, I am sure if he had asked they would have done something

@ Chris

That margin and yields means nothing to me as a consumer, I have no idea what it means, but surely if you stick by a brand, no matter who it is, they should show some signs that they want to keep you as a customer.

I think very few people nowadays re-book with the same company year after year and prefer to go on price. So if you have customers who do want to return make sure you keep them close to your chest. Er if you know what I mean.

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