Travel Companies

Different industries that focus on certain markets are now delving into the strategy of channel partner management because of the many benefits it offers organizations and end consumers. Amongst the many patronizing entities that are utilizing the said strategy now are the travel companies. The online travel booking market is at an all time high, and these companies want to defend their share of the "online pie". And indeed, one of the ways of driving revenue nowadays is through online channels.

Travel companies that have fortunately become savvy when it comes to eCommerce issued guidelines to their online sales channel regarding how their products should be positioned, branded and priced. This includes the use of logos, brand names, competitive strategies and content, loyalty programs, as well as the provision of reservation facilities and discount information via internet.

However, guidelines are limited. If a channel partner fails to adhere to it, the bottom line of the companies involved may be negatively affected, and costly marketing and branding endeavors as well as customer experience and loyalty will be compromised.

Here are some tips on effective channel partner management to avoid complications and other problems for travel companies pursuing eCommerce:

(1) Choose quality over quantity. Relying on less niche partners that greatly contribute to increased drive transactions instead of cheap and "cheerful" affiliates is the best way to handle the market. Majority of the big companies are adopting the 80/20 rule which means 80 percent of transactions come from 20 percent of partners. The marketplace of today is so competitive. There is no question that affiliates are useful in the dissemination of a brand through the internet, but partners that are centered on niche communities bring in the real transactions.

(2) Take stock and gain control. Travel companies with large distribution networks are unable to keep track of what their partners are doing on the web and how well or bad they are representing them. The first step to manage this problem is to understand what sites claim or imply existing partnerships with the parent company.

(3) Be matter-of-fact. Tell it like it is. Some partners do not comply with guidelines because they view the internet as a place where there are no rules or restrictions. It is up to the manufacturer or the parent company to educate the channel members regarding the appropriate use of the brand and its position online.

(4) Don't "Sleep with the Enemy". Sometimes, there are partners who partner up with competitors. It is important to find out if this is so immediately because if these sites are displaying competitor logos or banners, then the parent companies are presented with two options: withdraw from the partnership or contact the partner and explore the possibility of an exclusive arrangement.

(5) Generate more with Value Bundling. Seeking a strategic placement on content rich sites can encourage and revitalize partners and thus drive business. Value bundling means to team up with sites with complementary offers and are for and about the target market.

The author is fascinated by things that are simple and minimal. He likes minimalist art, lives a simple lifestyle and writes things that are light and easy to read.

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Labels: channel partner management tips for travel companies