How Tourism Boards and Airlines Should Work Together to Increase Demand by Leveraging Airfare Tracking Websites (ATWs).

An Introductory Report by Rain Digital Inc. and RainTravels.com. PDF available here.

With the rise of Google Flights, ITA Software and other similar tools, it is now significantly easier to search and compare airline pricing. This has lead to the rise of Airfare Tracking Websites (ATWs), which originally shot to popularity for publicizing mistake airfares. Some are listed below:

Canada:
http://www.yyzdeals.com
http://www.nextdepature.ca

U.S.:
http://www.airfarewatchdog.com/
https://flightfox.com/
http://www.secretflying.com/

These sites crawl the web for airfares that fall below its moving averages. For example, if a flight from New York to Tokyo averages $900 during off-peak season, but one becomes available for $650 or less, this would trigger an alert to the above ATWs who would then post it to their sites as a flight deal. This in turn gets seen by thousands of the sites’ followers through email and social media.

Getting Posted

It goes without saying that in order to get posted on these sites, the airlines simply need to reduce their airfares enough to get noticed; a tactic already employed by airlines (hey, at the end of the day it’s free advertising).

The Other Player

Taking a step back, let’s take a look at the role of Tourism Boards. Most countries or regions have one that are usually funded by its respective Tourism Ministry or government body. The Board’s goal? To increase awareness and ultimately increase tourism to the country/region. This ‘awareness creation’ can take the form of advertising, PR, sponsored events, and conventions to name a few. The problem with most of these tactics is that it’s hard to measure its effectiveness and to track back the results to a specific campaign.

The Board Math

Although not a perfect science, the effectiveness of a Tourist Board can be measured by the below.

X = Total visitors for the period (usually yearly)

Y = Number of estimated visitors that would come regardless of the Board’s efforts

$ = Total board budget

Therefore, the average cost of ‘acquiring’ a new visitor = $/(X-Y)

Once this figure is known, it must be compared against the estimated economic benefit of an additional tourist to determine the return-on-investment (ROI) generated from the respective Board’s efforts.

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A new report released by the American Society of Travel Agents (which reached out to 14,000 households) suggests that U.S. Millennial travellers are increasingly turning towards travel agents to book their holidays. Per the report, 30 per cent of Millennials have booked through a travel agent, while another 45 per cent of Millennials polled also said they would recommend a travel agent to a friend.

“At this point, consumers have tried it all – they’ve booked online, they’ve gone direct, and they’ve used a travel agent,” said ASTA president Zane Kerby in a statement. “This study dispels once and for all the myth that booking direct with suppliers or spending hours online yourself gets you a better deal or gives you a happier travel experience. In short, if you want a better travel experience, use an agent.”

Although this statement is slightly biased due to the releasing organization, it does reinforce the many advantages of using a travel agent, which include:

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If you’re a fan of flight deal websites, you should sign-up for NextDepature.ca immediately! Even if you don’t read the rest of this post, you won’t be disappointed.

NextDepature.ca, similar to YYZdeals.ca, scans almost all routes that involve Canadian airports and post about flights and packages that are showing above-average discounts. The thing that it does well is its regular updates/communication of these finds through email, Facebook, Twitter and Instagram.

So who can benefit from this site? Mostly Millennials, who are known to be spontaneous travellers, and anyone that’s still in the early stages of deciding their next vacation destination. Sometimes, the best way to decide where you’re going next is to let a good flight deal decide for you.

Some recent finds include:
BUSINESS CLASS DEAL: Canada to Germany – Starting $1489 CAD
Toronto to San Jose, Costa Rica for only $370 CAD round-trip
Flight+Hotel Deal: Starting $450 CAD – 7 night stay at the Sonesta Kura Village & Spa in Curacao
Calgary to Copenhagen or Paris & Iceland for only $652 inc tax | Icelandair

For a list of active deals, head over to NextDepature.ca now!

For those of you that are sick of the poor service and unreliability of North American airlines, KLM is a must-consider alternative. I had the privilege of flying with them by fluke from Toronto (YYZ) to Florence (FLO) this spring and I can honestly say they gave a very good first impression!

If you’re looking to reduce your flying frustrations, below is how KLM is winning over customers and the flight game.  Also, be sure to sign-up for their eNewsletter to get notified of some great flight deals (I just booked Toronto to Berlin return in business class for $1500CAD).

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