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admin
Site Admin
Joined: 23 Feb 2006
Posts: 8
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 Posted: Thu Feb 23, 2006 11:15 pm Post subject: PRICE COMPETITION IS TOO INTENSE IN THE TRAVEL INDUSTRY |
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Price competition is inevitable and perfectly normal in any industry. It is not surprising that the price competition is extremely intense in the local travel industry where there are more than 500 travel agents (including tour operators). The number has remained rather stable over the last few years - while there are travel agents exiting the industry, there are also new players coming in at the same time. This indicates the availability of opportunities in the travel industry.
To stand out among your competitors is not easy and yet not that difficult either. What is needed is a strategy and patience to see through the changes you would like to have. I always believe that focus should not be on price alone (the cause of the price competition) but also on providing good customer service. I am not advocating free and good service though it would be good if the business can afford it. In fact, good services do come at a certain price. Free service does not equate to good service. |
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utravel
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| Posted: Fri Feb 24, 2006 10:34 am Post subject: |
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| The problem with Singapore customers is they will conplain about bad service but will still buy from the agent which provide the rock bottom price. |
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Vincent
Joined: 24 Feb 2006
Posts: 5
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| Posted: Fri Feb 24, 2006 11:33 am Post subject: |
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| The margin is definitely eroding. Price has become such an important factor for the Singapore comsumers that they have forgotten about service. Moreover, products are all homogeneous. Some consumers just take and go. Service not really a factor to them. |
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Guest
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| Posted: Mon Feb 27, 2006 6:00 pm Post subject: |
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| Vincent wrote: | | The margin is definitely eroding. Price has become such an important factor for the Singapore comsumers that they have forgotten about service. Moreover, products are all homogeneous. Some consumers just take and go. Service not really a factor to them. |
The destination may be the same but the experience is definitely difference for different agencies. I always remember how some customers would talk about Ken-Air before they were sold off. If Ken-Air could do it, I don't see why others cannot. |
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JK
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| Posted: Mon Feb 27, 2006 6:04 pm Post subject: |
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| utravel wrote: | | The problem with Singapore customers is they will conplain about bad service but will still buy from the agent which provide the rock bottom price. |
If the travel package comes from the airlines and you are just reselling, then you have to thnk of means to lower the cost of selling. Such as how to lower the cost of promotion while still reaching the same number of people. That is when customer list comes in handy. |
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