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Travelocity, Orbitz taking off in opposite directions
Travelocity is looking for more television buys while another industry giant, Orbitz Worldwide, is looking at a very different strategy to help it grow in the future.
Travelocity is shifting money out of newspapers and radio to boost its TV ad budget to encourage travelers who book online to search out its name rather than generic terms such as “discount travel.”
“The dirty little secret to search (engine advertising) is you make money buying your own brand name, but on generic terms, the clicks are more expensive and the return is low,” Jeffrey Glueck, chief marketing officer, told AdvertisingAge.
He said Travelocity believes it can attract more customers searching for it through more TV advertising.
For the first six months of this year, Travelocity spent half of its $53.5 million budget on TV.
Orbitz on the other hand has cut back on TV ad spending by almost a third, says TNS Media Intelligence.
The company recently announced a five point strategy for how it delivers services. They include:
- Operational efficiencies as part of the customer experience, and constantly improved service.
- An emphasis on travel packages that involve combinations such as hotels plus airfare and hotels and car packages.
- New services such as Orbitz’s TLC (tender loving care) that supports customers by issuing care alerts, which provide customers information about destination cities such as traffic problems.
- Improved distribution channels.
- Focusing on providing even more efficient and low-cost online travel services.
Report by David Wilkening
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