Value Proposition of Tour Operators

A relationship policy can be developed for each of the customers segments to meet their needs. It specifies the value proposition in terms of customisation and pricing, and also deals with the way in which the company strives to communicate with the segment. A Tour Operator with an undifferentiated approach would miss out on most opportunities. (Ed Peelen & Rob Beltman, 2013)

A value proposition is a promise of value to be delivered. In other words it is the primary reason a prospect should buy from you. A value proposition determines whether people will bother reading more about your product or not. By researching certain markets, you can gain insights in how to best describe your offering and how this certain market benefits from it. In a value proposition you can usually find a headline, a sub-headline or a 2-3 sentence paragraph, bullet points and visuals. (Peep Laja, 2015)

The value proposition approach is illustrated by some examples Tour Operators. Travelta and Corendon offer holidays for different segments, like holidays for youngsters, families, elderly etc. Corendon even offers travels for only adults. Tour Operators can develop a value proposition that is attuned to the specific needs of each of these groups.

If we look at Tour Operator Corendon they have several headlines like: Last minutes, Wintersport, Kids & Co, Only Adult etc. As can be seen these headlines mention the product and often the segment. As well under each headline Corendon gives a short explanation of the offering. Under this short explanation there are some holiday offerings with visual images. If we click on these offerings, again there is a headline with a sub-headline beneath it. In the offer the bullet points with the list of key benefits and features can be seen with some visual images. Visual images are used to show the product and reinforce the main message. (Corendon, 2015).

If we look at Tour Operator Travelta also a value proposition can be seen. This website has as well several headlines with different kind of holidays. Only If we look at Travelta they have a more broad explanation of the offering and as well they have the bullet points with the key benefits or features of a certain holiday on the same page. Again visual images can be seen that are there to attract the different segments who are looking for a nice holiday experience. (Travelta, 2015).

Looking at the value of a customer, selectivity within each segment is required. Tour Operators research which type of customer is more profitably than the other and they will tend to direct their value proposition at the most profitable segments. The actual and potential customer life-time value can be used to decide whether more or less customers within a certain segment should be approached and whether to focus more on retention of one group than the other. This leads to decisions on whether or not promotions or extra attention is spent on certain customer groups. (Ed Peelen & Rob Beltman, 2013).

A value proposition can help by targeting certain markets and by doing so making more profit. In other words this approach helps maximizing opportunities.

Become each customer group’s ideal travel partner, by making their requirements a central component of the holiday experience. (Ed Peelen & Rob Beltman, 2013).

Bibliography

Ed Peelen & Rob beltman. 2013. Customer Relationship Management. United Kingdom: Pearson Education Limited.

Peep Laja. 2015. Useful Value Proposition Examples (and How to Create a Good One). Retrieved from:

http://conversionxl.com/value-proposition-examples-how-to-create/

Corendon. 2015. Retrieved from:

http://www.corendon.nl/

Travelta. 2015. Retrieved from:

http://www.travelta.nl/

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2 thoughts on “Value Proposition of Tour Operators”

  1. Dear Judith,

    you created an interesting article and your positions on Correndon and Travelta are well to observe. I would like to add a dimension to your post though:

    Within your article you analyze two different kinds of companies. With Travelta you have an online wholesaling companies in you analysis that should originally focus on tour operators. In fact, also Correndon does not operate all the offered tours themselves but integrates competitors’ offers into their program.

    It would be interesting to focus on niche market operators that necessarily need a clear value proposition in order to create their reason for being in their actual niche.

    To my mind, “Travel Trex” is an interesting example (www.traveltrex.com, website also available in English). Founded in 1999, the company from the very beginning focused on clear value propositions, even in their single brands.

    Perhaps this could be an interesting aspect to be added to your post.

    For the rest, as stated, I believe you made your point pretty clear and with reasonable integration of academic sources.

    Niklas

    Like

    1. Dear Niklas,

      Thank you for your response. Your response gives me better insights in the actual offers and markets of Tour Operators, I will take a look at the website of Travel Trex.

      Best regards,
      Judith

      Like

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