With all the doom and gloom engulfing the travel industry right now, some brands may think it is wise to pull their advertising until things die down.
However, such a knee-jerk reaction may actually be more harmful than helpful to a company’s recovery from the COVID-19 outbreak.
A recent Facebook presentation seen by B&T titled ‘Fighting against COVID-19’ notes that while the travel sector has been hit hard by the COVID-19 outbreak, consumers are still willing to spend if the industry encourages it through promotions and deals.
The presentation warned against removing all ads, and recommended reprioritising marketing channels during the outbreak, as well as planning a “bounce-back consumer consumption” campaign in advance to quickly pick up ad spending post-outbreak.
Furthermore, two studies from Cornell University found it wasn’t a good idea for hotels to cut their marketing budget during times of economic crisis.
The author of the first study, conducted by Sherri Kimes in 2009, looked at tactics for hotels to survive an economic downturn, and surveyed 900 respondents from around the world.
Writing on her blog in February about how hotels can survive the COVID-19 outbreak, Kimes said her research provided “some very insightful comments that are as true today as they were 10 years ago”.
Kimes noted one of the key lessons for hotels from the study was to avoid cutting their marketing budget.
“Respondents discussed the need to keep current guests and to develop packages and promotions that both attracted current and potential guests,” she wrote.
If you cut your marketing budget, this won’t be possible.
The other study from Cornell, published in 2015, looked at the positive impact of marketing expenditure on the performance of hotels during the Great Recession.
In particular, the research findings highlighted the importance of personal sales efforts, including promotions, familiarisation trips, trade shows, and the training of sales personnel, personal sales visits to clients, and use of outside sales representatives to help hotels thrive in a recession.
This data led to the conclusion that hotel companies that invest in marketing, especially in tough times, “can achieve a payoff via various revenue drivers” and “will realise gains beyond just the short term”.
So, before you or your travel client go scrapping all advertising, consider the above and remind yourself that the way brands deal with the COVID-19 crisis now will likely influence future customer habits.
Featured image: iStock/VTT Studio
Union, WPP AUNZ’s bespoke national group model created to service Bankwest, has launched a new national brand campaign for the visual-style terms and conditions the financial institution developed with the University of WA in a bid to make T&Cs more engaging for customers. Bankwest has rolled out visual terms and conditions for its Bankwest Easy […]
Adland doesn't appear to function much before 11am, so it's hats off to these early birds who had to set the alarm.
The first ever web series to be funded by both Screen Australia and Film Victoria for TikTok, will launch on May 17. Produced by Hayley Adams and Michelle Melky, and directed by Logan Mucha, Scattered is a new queer drama comprised of 38 x 1-minute daily eps. It follows three best friends, Jules, Sami and […]
Schwartz Media will extend its audio offering with a new culture podcast. Building on the success of its flagship daily news podcast 7am, and it’s growing arts and culture coverage, Schwartz Media is launching new podcast The Culture at the end of the month. Award-winning journalist, editor of 7am and pop-culture obsessive Osman Faruqi will […]
Building a connection with existing customers is just as integral to any marketing strategy as winning new ones, but how do we turn customers into spokespeople for our brands? By Peggy de Lange, VP of international expansion at Fiverr It’s a well-known rule of thumb that it costs 5-times more to get a new customer […]
In the next instalment of the ‘Proudly Ordinary’ campaign for Tooheys Extra Dry, Lion and 72andSunny continue their partnership with work from Vice and Aaron Gocs (Gocsy). Gocsy is a beloved icon of Australian outsider comedy who creates content for Vice and his own broadcast channels. As part of the highly successful ‘Proudly Ordinary’ brand […]