Download Terra Lycos Segmentation and Positioning

Travelocity
Build a Trusting Relationship
with Customers
Networks
About Travelocity
Travelocity strives to give its customers the information they need
to make the most educated shopping and buying decisions
possible.
Travelocity has private marketing agreements with many travel
companies, under which Travelocity agrees to do special
promotions, e-mail campaigns, advertising, sweepstakes and
other marketing initiatives.
Travelocity's agreements with travel companies are designed to
help travel companies compete against one another for
consumers' business. The effect of this healthy competition compounded with the value that Travelocity provides through its
volume - results in lower prices for consumers.
Web site at http://www.travelocity.com.
About Travelocity
Travelocity pioneered the online travel space and continues
to be the most popular travel service on the Web, giving
consumers access to hundreds of airlines, thousands of
hotels and cruise, last-minute and vacations packages, and
best-in-class car rental companies, all backed by 1,000
customer service representatives staffed to provide 24-hour
assistance.
With 41 million members, Travelocity is the sixth largest
travel agency in the United States. It has been recognized
worldwide for its leadership in the online travel space, and it
operates or powers Web sites in five languages across four
continents.
The Big Picture
ASSETS & WEBSITES
Zuji
• Australia
• New Zealand
• Hong Kong
• Singapore
• Korea
• Taiwan
• India
Market Segments
Travelocity understands that no matter where
their customers are geographically, all its
customers are price sensitive
Travelocity uses a
loyalty program to
differentiate itself from
The Competition
Networks
The loyalty program provides Travelocity with valuable
consumer data that helps indentify new areas of innovation
that its customers would value.
Travelocity gives its most loyal customers automatic access to a range of perks
minus the fine print and red tape of traditional loyalty programs.
Trust is a process
Travelocity customers feel confident buying travel products and services from a brand they trust.
Travelocity’s Competitive
Response
"As we strive to provide our customers
with amazing travel experiences, we
are also committed to thanking and
rewarding our most loyal customers,”
~Jeffrey Glueck, Chief
Marketing Officer
Customers who make multiple qualified bookings automatically become VIP's, with no sign-up or
initiation fees required, & it could take as little as two transactions on Travelocity to become a VIP
since some single reservations may count as two or three qualified bookings.
VIP status gives top customers:
• A dedicated customer service 800-line staffed by seasoned
agents specifically educated in VIP benefits
• VIPs will earn even more Travelocity Points on Travelocity
Purchases
• including 3 Travelocity Points for every $1 spent on Flight + Hotel
packages, flights, hotels, Last Minute Packages when they apply and
are approved for the Travelocity MasterCard
• Advance notice of sales and special VIP-only promotions
• Travel perks such as airport shuttle and car rental discounts
• Everyday exclusive discounts on hotels, vacation packages
and last minute deals
Travelocity Preferred Program
Preferred
Preferred Elite
•
Make 5 or more bookings in
a 12-month period
•
10 bookings must be made
within a year
•
15% savings at 4,000
nationwide resturants
•
5% cash back on certain
specialty marked fares
•
be purchased for $29
•
be purchased for $79
Valuable travel benefits and services are offered in the
program such as discounts on car rentals, access to airline
club lounges at airports across the world, access to a
personal concierge service and much more.
Current Proposal Strategy
Strong
 Benefits do not hurt
bottom line
 Customer must spend more
money with company or
partners to receive any
benefits
 Fee revenue is collected
even if customer does not
collect benefits
Weak
 To attain a credit card to
collect points, the
consumer must be creditworthy
 Not all benefits appeal to
large customer base
 Not enough automation
E-marketing Strategy
Most recently Travelocity announced an alliance
with Maritz Loyalty Marketing to continue bringing
the best value to its loyal customer
base
Travelocity
Maritz
“Combining Travelocity’s superior technology, excellent customer service and
competitive pricing with Maritz’ depth of experience in loyalty programs and
knowledge from working with more than 100 million loyalty program members, has
helped us create a superior, seamless offering,”
“This alliance also allows us to expand on the customer value we deliver for our clients,”
~Rich Phillips, president, Maritz Loyalty Marketing