Building blocks for excellence
Tour operators need to return to the driver's seat of the travel industry. You can achieve this by systematically striving for excellence in the D2C space. We identify 10 building blocks for achieving such excellence. A common understanding within the company, a strong web address, a truly dynamic website, effective customer retention, a multichannel approach that combines brick-and-mortar and e-commerce, storytelling, social media players, and strong marketing. Budgets (especially during the D2C launch phase), horizontal or vertical strategic partnerships and alliance possibilities, organizational adaptation, intelligent KPIs and steering systems. These 10 elements form the basis of a power play that can help businesses regain control.
Each of the ten components listed above is worth discussing in detail. As an example, customer retention management (CRM) involves efforts to continually grow consumer accounts through diverse entry points, and effective strategies for acquiring consumers who originally came from other channels. , it must include a number of distinct elements, including being AI-based. Customer segmentation focused on individual needs, a deep understanding of consumer preferences, behaviors and desires, and an engaging loyalty program that drives repeat business. Importantly, tour operators need to view customer relationships not as one-time interactions, but as multi-year and even never-ending connections.
Actively incorporate D2C
By implementing a D2C strategy, consumer-oriented businesses not only gain independence from aggregators, but also have an unprecedented opportunity to connect with their customers. To overcome the challenge, we recommend the first four-step approach. First, he looks in the mirror and reflects on his past performance, checks what his competitors are doing, and in light of his current e-commerce business, he determines the need for D2C. Next, find answers to strategic questions, such as where to play and how to win, and define an overall distribution strategy that includes D2C as one of the key parts. Third, devise an operating model that has all the capacity, functionality, tools, and structure needed to realize your chosen distribution strategy. And finally, commit to a roadmap with clear responsibilities and actions.
Interested in how D2C can transform your business? Download the full report below.
We would like to thank Severin Bischof, co-author of this article.
