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Summer 2016 has begun! For TUI Poland at least...

At the beginning of September 2015, the travel agency TUI Poland announced the inauguration of sales of tours packages for the summer nest year! Of course, as usual, providing plenty of attractions for all those who desire to use the year ahead an offer of this reputable, German (though small company TUI Poland, fully dependent,  is registered in our country) tour operator.

TUI Poland Summer 2016The main slogan (probably main, as  there are so many bonuses that it is impossible to guess which is more important) is: today, you pay only 5%, the rest - next the year. Sounds good. But why pay 5% today? So what to have? That is to say, what has a customer? Because travel office benefits are all too visible. In fact the customer gets nothing. He has to pay and that's it. It does not matter that it is only 5%. Why would you prepay anything at all? In such a huge advance? This is a whole year! TUI does not promise any discounts related to the prepayment. You need to pay 100%. Exactly the same what people will do while they will be make reservations several months later.  The only gesture of good will from TUI is an acceptance of covering costs in two installments, from which  the first one is completely unnecessary and unjustified.

I wonder what other ideas marketers will find to catch people willing to do "bargain". Every year the same situation repeats. Tour operators wishing to estimate the size of demand in advance and to collect some funds conduct boisterous promotional campaigns. They promise a lot. This is always associated with financial benefits awaiting customers participating in presale. This time, TUI has gone even further. The main attraction is to be possibility of paying for a tour one year before a departure… Although "only" 5%, but still. A real bargain!

TUI Poland, starting the early sale did resign from more conventional incentives. Customers not only have to pay 5%, but can count on big discounts - up to 300 PLN / 70 EUR (airplane tours) and 7% (own transport).

TUI Poland is not an exception.  Extremely attractive deals available "only" during “early birds period” are touted by other travel agencies. I guess all. Even without differentiating them. Almost all tour operators promise similar benefits. Although experience shows that directly before a beginning of a season prices usually drop, reaching lower levels than those of pre-booking period, there is still quite a large group of people who decide to secure a place in the tour well in advance. Strange, but the system of promoting presales works efficiently. It must be effective, otherwise companies would give up and find other way of selling. But they do not. And every year return to this system with growing determination and enthusiasm.

In order to realize how realistic cosmic rebates are it is worth to remember that the profitability in outbound tourism is very low.
Recently, one of the leading companies, Rainbow Tours published a financial report which shows that its profitability was as high as 3%. It's really very much. Maybe even a record was beaten. Typically, travel companies enjoy when they reach 1%. It is rather difficult to grant 15 or 20 percent rebate (even taking into account fixed costs, reducing some profitability) ...

 

September 5, 2015