Being in the business for around 2 years, we are a relatively newcomer in the travel industry. As of today, there are 6751 travel agencies in Malaysia, the question that has always been on my mind is this – how do we breakthrough and succeed in this market?
Consumers in the travel market has always been bombarded with advertising messages of low travel prices, regardless of the content of the itinerary and also the quality of the itinerary. On top of that, countless news of travel agencies disappearing with customers’ money has made consumers become even more skeptical of travel agencies. It’s definitely not an easy market.
How do we get travelers to remember our brand name? How do we get travelers to pick us over other competitors? We needed to overcome these 2 challenges in order to bring the company to the next level. I think the answer to these 2 questions is this – specialization in a niche market
IMHO, this strategy is one of the best ways for a newcomer to survive and thrive in a saturated market. And for our business, it will give us 4 benefits
We are currently selling more than 800 itineraries. If we specialize in 10, we will be able to deliver better quality products – better control over the guest experience, better hotels, better food, better activities, and overall better value
Efficiency in marketing cost
Promoting 800 itineraries versus promoting 10. In my previous posts, I mentioned that a customer needs to be exposed at least 7 times to a marketing message in order for them to take action. It’s more efficient for us (in terms of cost) to promote 10 strong itineraries compared to spreading our marketing budget thinly to promote all countries
In our line of work, we sell travel packages organized by other travel agencies too. It makes a lot of sense for us because cooperation means bigger numbers and lower costs. If we specialize in one niche, it is easier for us to establish ourselves as the expert and for other travel agencies to promote travel packages that are organized by us
Have you ever heard people saying this? “Oh, brand X is well known for Japan premium tours, they are slightly more expensive, but their stuff is also value for money”
Need I say more?
More important than the premium we can command is the name of our company lodged in the minds of our customers. If customers remember us as the authority when it comes to a certain country, it’s easier for us to upsell and cross-sell other places in the future
After months of research and hard work, I think Vietnam is our best shot at winning the Malaysian market. So here I am, at Ho Chi Minh city, to seek collaboration with the best in Vietnam, so that I have a shot of winning the Malaysian market. This is the moment of truth, wish me luck!
What are your thoughts? I’d love to hear from you if you have similar experiences!