The Drum Awards for Marketing - Entry Deadline

-d -h -min -sec

Marketing Brexit Travel

Brexit and the travel business: what do digital marketers need to consider?

By John Barham | Head of paid media

ROAST

|

The Drum Network article

This content is produced by The Drum Network, a paid-for membership club for CEOs and their agencies who want to share their expertise and grow their business.

Find out more

April 7, 2017 | 5 min read

The clock is now officially ticking until Britain's exit from the European Union. What are some of the key areas that digital advertisers in the travel space need to concentrate on to aid their planning? Will domestic operators fare differently than those promoting outbound journeys?

What does Brexit mean for the travel business?

What does Brexit mean for the travel business?

Having worked across a range of travel clients – including car rental, package holidays, airlines, cruises and direct with hotels – encompassing a variety of media channels and markets, these are the sorts of questions I’ve been asking myself since last summer’s referendum.

So, what do we need to be aware of and how do we factor this into our paid media approach?

European travel rights

Hopefully we won’t get to the stage where the residency status of ex-pat UK citizens or EU nationals living here become a serious bargaining chip. If we do, then something has gone terribly awry. Similarly, and despite the obvious removal of our free movement on the continent, we should be relatively confident that UK tourists won’t find it too arduous to continue to travel to their favourite EU holiday destinations. The tourism trades of many key European nations are just too reliant on their UK visitors to make this a significant negotiating chip.

Long haul visas

Remapping our relationship with the EU is only one side of the coin, however. We now need to head out into the world to arrange our independent trade agreements with the rest of the world. China, India, North America, South Africa, Australasia et al. We would be naïve to assume that they will not see Brexit as an opportunity to renegotiate their own citizens’ travel rights – be it for leisure, work or education. If this becomes a sticking point, will our future global partners tighten their own border controls for UK visitors to force their own agenda?

Economic implications

Any change to the economic prosperity of the UK will have a direct impact on the travel industry. Negative movement within consumer debt, wages or unemployment will lead to a contraction in travel demand. For leisure travel, the first thing to go in times of economic downturn is the family holiday abroad or the short city breaks. For business, will we see a drop in short haul in favour of Dubai, Delhi and Daegu? Will new business routes open-up due to our diversified trading ecosystem?

We also surely must monitor who is being affected by economic change (be it positive or negative). Are the upper socio-economic groups pulling further away from the national average, for example?

Exchange rates

The initial result of the referendum in June 2016 had an instant and drastic impact on the value of the Sterling which dropped 15% against the Euro and 18% against the Dollar over the following four months.

With the devaluation of GBP, travel brands should plan around the implications for their products.

British domestic tourism should understandably benefit from this situation with visitors enjoying better value. Outbound volume is where the real issue will lie though. With the Pound less valuable, British holidaymakers will have to consider carefully which destinations sit within their budget or which countries offer better exchange rates.

Early figures for 2017 already show a decrease in search interest for New York and Las Vegas – two cities that due to their nature as shopping and gambling centres respectively are “cash” destinations. Will a similar pattern become apparent for travel to economies tied to the US Dollar, such as the Caribbean? Will there be an increase in all-inclusive holidays as users are cautious over additional expenses while away? Which will be the growth regions with favourable rates? And finally, have you mapped out you own supplier commercials – which contracts with airlines or hotels are in US Dollar, for example?

Changes to booking patterns

2017 had an excellent start for many of our travel clients, with market interest up year-on-year and conversion rates strong. However, we noticed a few warning signs from the market as we moved through the first quarter – most notably a stark year-on-year drop in search volumes in several key areas once we came out of the traditional peak season of sales and offers. It would make sense if there is a leaning towards price competitivity.

The other possible reason here is that there are now additional factors we need to be aware of in our users’ decision making process. Will we see market interest align to the major milestones in the Brexit negotiations? Should we plan budget to mirror these as users want to remove uncertainty by booking just before significant announcements? Will this result in an increase in lag time between booking and travelling?

In part two of this blog, having outlined the various factors to consider, we’ll look at what digital marketers in the travel business should be doing over the next two year negotiation period.

Marketing Brexit Travel

Content by The Drum Network member:

ROAST

We are ROAST.

Our goal is simple, to increase the return on your advertising spend (ROAS).

We do this by simplifying the problem and moving forward with the right performance marketing tactics targeting the correct audience, at the right time.

We extract solutions from data science along with experimentation and apply it where it will be most valuable. By using digital data at scale, combined with the very best industry tools and tech, we can build highly successful Performance Marketing campaigns for you, as well as new ways you can use that data.

How we work with you

Being independent allows us to be flexible with our clients. Digital Marketing moves quickly and we can change our strategy and tactics just as quickly.

We make sure we build you the correct team, formed around your business. This team will be selected as the right team to drive success for YOUR business.

We never build our teams around certain departments, we make them client centric. This way your challenge and goal are always the focus.

Multi Award Winning Digital Performance + Media

We’re proud to have won many prestigious awards over the years - being recognised for the results we have achieved for our clients, our innovative approach, our clever use of data, our culture, as well as named ‘Best Digital Agency’.

We form partnerships built on TRUST.

Word of mouth and strong client relationships have been the driving force of our agency growth from day one. With trust laying heavily at the heart of all of our partnerships, we are fortunate enough to see our clients return to and refer us, time and again.

With decades of industry experience, we know which brands work best with us, if we don’t think we are right for you, we will let you know. We always strive to build meaningful and genuine connections with the clients we do work with, and highly value the importance of reputation and integrity – both of which have allowed us to get to where we are today.

As part of Independent Digital Network, TIPi Group, we use digital data at scale, combined with the very best industry tools and tech to create a comprehensive view of your business and the opportunities we can maximise. We then apply this to our digital strategy to deliver accurately targeted, highly successful award winning campaigns.

Our services include Integrated Search, Customer Experience & CRM, SEO, Content Marketing, PPC, Display & Programmatic, Mobile, Paid Social, Amazon Marketing, Data Science & Analytics and OOH.

For more information visit our website http://weareroast.com/ or get in touch at roast@tipigroup.com

Find out more

More from Marketing

View all

Trending

Industry insights

View all
Add your own content +