Aitken Spence Travels Is A Joint Venture Company

Published Date: 02 Nov 2017

Aitken Spence Travels is a joint venture company of Aitken Spence Plc and TUI Travel Plc.

Aitken Spence Plc., establish in 1868 is one of the leading, most financially stable and diversified holdings in Sri Lanka and TUI Travel Plc the worlds largest integrated tourism company. Aitken Spence is fully diversified into every aspect of tourism thus creating the inherent synergies that power our partnerships and sets apart as the most preferred Destination Management Company in Sri Lanka. Their core strength in professionalism

Source: www.aitkenspence.com

Company Vision

To achieve excellence in all our activities, establish high growth businesses in Sri Lanka and across new frontiers, and become a globally competitive market leader in the region.

 

Company Mission

" We are here today, here tomorrow. "

MARKETING MIX

The objectives of the marketing mix have been listed below to enable Aitken Spence Travels to understand and controls its marketing plan to achieve common goal.

Marketing Mix of Aitken Spence Travels

1.Product:

ASTL offers their clients the opportunity to experience a great vacation in Sri Lanka with options of Luxury and also regular holiday packages. With hotel booking and transportation booking and tailor-made bookings.The package will also assist clients who are interesting on Adventure tours and cultural and also for resort relaxation with SPA package.

II.Price

Price became a key component is marketing as it became one of the major factors considering by customers when purchasing a product or service.

Current packaged offered in the market that have been listed below along with the details the charge

PACKAGE

CONTENTS

Price

Stay 7 Nights and only Pay for 5Nights

Free Night Offer for more than 05 nights.

Honeymooners Package

Candle light dinner per stay

Fruits and wine to the Room

Free excursion

Early bird Booking

Make your booking 90 Days Prior to Arrival Date and gain 15% Disc. On top of other offers

Table1: The New Package Introduced

Above packages are offered for the clients and also new packages to be introduced as above mentioned on timely manner.

III.Place

The product will be distributed directly to subscribers through our network of branches.

Consumers will be able to subscribe through the company’s website(http://www.aitkenspencetravels.com/)

24 Hours Customer Service for the customers.

IV.Promotion

ASTL will be promoted under following aspects

a) Sales promotions

Loyalty concessions :Repeat clients will be getting special discounted packages with Added services

Market offers :A temporary reduction in the price.(based on clients nationality )

Interactive Promotion: guest questionnaire gifts

b) Public relations &publicity

Sponsorships :Sponsor for Tourism related events.

Press release: Press release will brief the up coming product best media coverage.

Internet: Websites can build a positive image on stakeholders

c) Advertising

Magazines : Corporate Magazines & Travel Magazines

Online Traveling Sites: Most of travelers go online to check the tour packages in modern world.

E-Mail Campaigns – Monthly news letters

V.People

People are strongly stick with the hospitality industry as it based on people cater to people concept more than concept that product satisfy a client..

Excellent customer care is vital in order to retain the customers with the organization

Professional Training- Professional people need to be recruited with pleasant customer service attitudes.

Customer Service : 24 Hours emergency numbers given to the clients (Airport Reps , Beach Reps, Tour operator Reps)

Vi.Process

Processes are important to deliver a quality service for valuable clients.

Consider on the process of catering to clients, company maintain proper reservations system, Special tours arrangements.

Also following process are in place :

Processes for handling guest issues & problems

Processes for handling tours/excursions /hotel accommodation on professional manner.

Vii. Physical layout

Create a brand image sing distinctive décor for the premises.

Physical layout to virtual stores and web sites must be focused by Walkers.

http://www.aitkenspencetravels.com/images/content/1289544863ab7.jpg

Marketing Audit

A marketing audit scans both internal and external environment of the organization. The audit consists of information regarding brand and its performance which will lead to develop an effective business case for the project.

Monthly statistical bulletin for the months from January to December which consists of information on tourist arrivals and hotel occupancy was published in SLTDA

Source:(http://www.sltda.gov.lk/monthly_statistics)

Month

2011

2012

% Cha. 2011/12

January

74,197

85,874

15.7

February

65,797

83,549

27.0

March

75,130

91,102

21.3

April

63,835

69,591

9.0

May

48,943

57,506

17.5

June

53,636

65,245

21.6

July

83,786

90,338

7.8

August

72,463

79,456

9.7

September

60,219

71,111

18.1

October

69,563

80,379

15.5

November

90,889

109,202

20.1

December

97,517

 

 

Total

855,975

 

 

Up to Oct

667,569

774,151

16.0

Source: www.sltda.gov.lk

Figure 1

Marketing Objectives

Followings are the marketing objectives of Aitken Spence Travels.

Entering into nearly 22 markets at the end of 2013 and capturing the market share of the particular market.

Improve the customer service from 65% - 90%

Improve overall company operations with the new latest technology and improve company operational efficiency ( Introduction of Travel Assist system)

Keep recovery ration healthful and keep it below 5% of all products at the end of year 2014.

Record breaking profit of LKR 462.00 Millions for 2012 financial year in Travel segment .

Marketing Strategy (STP)

ASTL has been targeting most profitable and potential market segments such as UK, Western Europe, Eastern Europe, China, Middle East, Russia, USA, Canada, Australia, South Africa and India positioned as a value for reputation (Promise & Deliver)

The product of ASTL product portfolio specially designs to express the brand positioning strategy in the market place.

The positioning strategy of is very useful to exploit the customer segments new markets such as the niche segments to gain the market leadership in Tour packages category.

Segmental Analysis of Aitken Spence Group

http://2.bp.blogspot.com/_wqhaDb6Nroc/TGDA3FsrO0I/AAAAAAAACrk/bmQtskLK5IY/s400/as2.JPG

Figure

Operating costs up 12.9% YoY in 1QFY2011. SPEN’s total operating costs have increased by 12.9% YoY to LKR4,892.1 mn in 1QFY2011 on the back of increased activity levels of the group (especially the hotel operations and cargo logistics) which have pushed up the direct operating costs by a significant 34.6% YoY and employee benefit expenses by 21.8% YoY.

Positioning of ASTL.

The positioning strategy of ASTL is very useful to exploit the customer segments new markets such as BRICS countries & Canada to gain the market leadership in Tour packages category.

Figure 3 Positing Map

A useful model to do this is STP (segmentation, targeting and positioning).

Segment your market – divide up your client’s market

Identify a segment to target – look for a segment that offer opportunities from a search and business perspective

Position your offering/content – identify key questions that this segment might have, look at the types of blogs they read, gain a better understanding of the type of content they like to share.

Brand Management

As per the figure one ASTL has been positioned amongst travel agents and consumers as a value for money brand.

Direct web sales – This is the latest trend of the travel trade.

Wholesalers – Consumers purchase products through large scale travel operators such as TUI UK, TUI BELGIUM, STAR TOUR, THOMSON HOLIDAYS

Sub Agents – Small scale foreign travel agents sells wholesalers products to clients via brochures, web and etc.

Current Brand Equity

Brand equity of ASTL can be measured via Brand Asset Valuator model which consist with following pillars.

Differentiation: As mentioned in the positioning map ASTL is clearly differentiated from its competitors since they offer the highest quality products at the best prices which no competitors are able to match

Relevance: Brand "Aitken Spence" has a high degree of relevance to its core business activity which is inbound tourism.

Esteem: As per the research findings 90% of ASTL clients who visit through overseas tour operators do not aware that they visit to Sri Lanka via Aitken Spence Travels.

Knowledge: When considering corporate clients such as travel partners have a good relationship with ASTL and have a good knowledge about its products, services and etc.

Differentiation and relevance combine to examine brand strength. These two elements point to the brand future value, rather than just reflecting the past. Esteem and knowledge together create brand stature, which is more clarified on past performance.

(Kotler and Keller, 12e, 2006)

Required Resources for Implementing New Brand Awareness Project

Skills

ASTL has an employee base of over 275 employees who are expertise in the industry. Meantime they have been able to provide superior customer service due to the expertise skills of their employees.

Resources

Since ASTL has been backed by Aitken Spence Group & TUI which is Europe largest Travel Organization had the guidance and technical advice .

Following resources will be required to conduct this brand awareness project.

High quality technological equipments for promotion campaigns.

Government funds will be essential because vast of money will be required for international marketing programs

Budget for market research

SWOT Analysis

Strengths

Being in the industry for more than 3 decades has earned ASTL renown both globally and locally for their service quality and reliability

Backed up by Aitken Spence Hotels

Opportunities

The growth in e-bookings gives an opportunity to develop a new channel and promote internet selling.

ECO tourism can be developed into a new product,

North and East can be promoted as new tourist’s destination in Sri Lanka as it had been not promoted and visited by the tourist for decades.

Weaknesses

Finance allocation for the marketing budget is very low.

New product development is very low.

Sales promotions are low compared to its competitors.

Some of the fleet vehicles are very older than the competitors.

Lack of Nature department such as core competitors do have spate nature departments such walkers do have Nature Oddessey.

Threats

The increase in popularity of Online booking engines , such as AGODA, BOOKING.COM. HOTEL BEDS

Threats from the existing main competitors and the increasing competitive conditions in the market.

Competitor Analysis

The competitive advantageous and disadvantageous of the Aitken Spence Travels are considered in below chat for better understand of the competitiveness of the DMC.

COMPETITOR DMC

WALKERS

TOURS

JETWING TRABELS

DHETELEM TOURS

Mission/ Vision

Available

Available

Available

Objectives

Be the Market Leader

By pass Walkers & Aitken Spence

Grow their market share

Strategies

Available

Available

Available

Financial Strength

High

High

High

7Ps

Product

High varieties

High varieties

Average

Price

High

Low

Low

Place

Strong network

Strong Network

Average

People

Professional trained staff

Professional trained staff

Experience Staff

Process

Excellent

Excellent

Average

Physical Evidence

High

High

Average

Promotion

Excellent

Excellent

Low

According to the above competitor analysis chart, the competition for the ASTL is courses by both market leaders of other DMCS in challenging category. As ASTL retaining market leadership is doubtful.

Strategies

Ansoff Matrix applied to Aitken Spence Travels

The Ansoff Matrix developed by Igor Ansoff is a framework for identifying corporate growth opportunities; The Two dimensions determine the scope of options, namely products and markets.

Ansoff Matrix

Existing Products

New Products

Existing Markets

Market penetration

To increase existing market shares with the DMCS existing products, any chance of existing customers going to competitive DMCS should be prevented and by doing so clients should be offered benefits the competitors don’t offer.

Product development

North and East can be promoted as new tourist’s destination in Sri Lanka as it had been not promoted and visited by the tourist for decades.

New Markets

Market development

Sending sales people for international sales Calls & attend Global Tourism fares

Diversification

Adventure Tourism based products targeted to new markets are a risk for the company.

Table 01

Porter Generic Strategies (Michael Porter 1985)

Michael Porter has argued that a firm's strengths ultimately fall into one of two headings: cost advantage and differentiation. By applying these strengths in either a broad or narrow scope, three generic strategies result: cost leadership, differentiation, and focus. These strategies are applied at the business unit level. They are called generic strategies because they are not firm or industry dependent. The following table illustrates Porter's generic strategies:

Source: http://www.quickmba.com/strategy/generic.shtml

 

image_thumb13

Cost Leadership Strategy in Aitken Spence Travels

ASTL Performing value-chain activities in more a cost-effective manner as follows

Certain work of ASTL had been Outsourced (EG- Finance departmental functions)

ASTL use its bargaining power to drive down suppliers costs;

ASTL had Invest in technology to increase production efficiency (EG – Operating system called Travel Assist System)

Differentiation Strategy in Aitken Spence Travels

ASTL review their product R&D activities to try and incorporate product features that increase customer value perception;

ASTL review marketing, sales, and customer service activities to incorporate product. attributes and features that increase buyer’s perception of distinctive products

Focus Strategies in Aitken Spence Travels

ASTL reduce cost across by engaging with specialist suppliers;

ASTL make smart investments in specialized technology to increase production efficiency; Communication

Communication Strategies

Communication Activities of Each Company within 2008 – 2011

Above graph shows the communication campaign which was conducted by main 3 DMC’s in Sri Lanka during 2008 – 2011. When comparing to main competitors ASTL were the leaders. Push Strategy - Online Marketing Tools

Push Strategy at ASTL

ASTL promotes the product to Main Travel Partners , they promote it to small agents , and they promote it to customers.

Eg – Contracting Holiday packages with Main Travel agents

Pull Strategy - Online Marketing Tools

Pull Strategy at ASTL

ASTL promotes the product to directly to the Main customers.

Eg – Company Web Site

E-marketing & Viral Marketing activities and strategies

E-Marketing is any type of marketing activity that needs some form of interactive technology for its implementation. (S,Dann,2011)

E-Marketing strategy’s implemented are :

E-Business – Aitken Spence has link through "World com" website which is integrated with 22 destinations among globe has basic information about the Travel Products

E-Commerce / E-Marketing

The facebook pages for latest offers of hotels in the town .

Guerilla marketing activities and strategies

Guerilla Marketing is a Marketing strategy that is done through unpredictable marketing methods using minimal resources but gaining a maximum result. Guerilla marketing main features are drafted.

Guerilla Marketing Features

Source: www.dreamstime.com

It is basically generating a buzz about the product or service. In figure-3 it states how it generates a buzz to the public. This strategy is not implemented in many DMCS.

Role and effectiveness of public relation activities and strategies

Public relation is all about reputation; it’s basically the result of what you do, what you say you do and what others say about you. (Morris & Goldsworthy, 2008)

The Role of public relation

Media relations

Basically creating and placing newsworthy information in the media to attract attention about the product and service. Right now ASTL latest completed project is develop a separate " Nature Wing " . The launch of the new Nature based products Advertisements in news paper articles, magazines and radio.

Product Publicity

Publicizing specific products and services, by creating awareness and differentiating the product or service to the public eye from other similar products, also when trying to push an existing product public relations uses improve product visibility.

Public Relations

Building and maintaining national or local community relations, corporate social responsibilities, its basically bridging the corporate-communication gap, by enhancing company image and reputation by supporting activates and programs.

Investor Relations

Maintain relationships with share holders and other in the financial community, Effectiveness of public relation activities

Aitken Spence Travels Public relation activities

Media Events

An annual sports event is held ever. More than ten sports activities open their employees & for their family members with a press conference organized for about 100 media representatives this is done in Mid Year food stalls are available for the public as well.

Christmas & Wesak Festival Promotions on news paper articles

Press Releases

Christmas promotions

New Year promotional activities

Effectiveness of Public relation strategies

Media Coverage

Increasing credibility

Public relations focuses less on advertising and more on giving valuable information to the public, usually without including a sales pitch. Paid advertising increases name recognition of a company, however media relations increase credibility of a company. And to maintain a high level of credibility your public relation campaigns should be successful. When the public reads a story about the excellence of an organization in a news paper or magazine or see a story praising the company on television, it is much more likely to have a favourable opinion of that organization. Hosting public events or even fun day or even informational events all helps to bring the company name into the spot light rather than actually advertising a specific product or service.

Helps an organization to attract ‘quality’ prospects

Because public relations increase credibility, it helps you to attract the customers looking for the best in terms of quality. When people hear of a certain positive message about a company they have a favourable opinion about the product or service. Because public relations revolves around the universal truth, people act based upon their perception of facts, so by managing, controlling or influencing people perception, Public relations initiates a sequence of behaviours that will lead to achievement of an organizations objectives.

Public relations

Helps you avoid price competition

Through good public relations people believe that you are the best, they will understand why it is worth paying your price.

Recommendations by Marketing Mix

Recommendations for the development will be explained under marketing mix.

Product

Products offered by ASTL need to be diversify by introducing a new products category for Nature lovers, Naturalists, Researchers. To this special interest markets, ASTL need to develop strong Nature Department which they could bench mark " Nature Odyssey " of Walkers tours.

Price

Most of Products of ASTL are over price compare to their competitors, so they need to present their such products on competitive price after some research of cost analysis.

Promotion

There will be huge opportunity in new market segments, where competitors of ASTL are more aggrieve in their promotional campaign.

Place

ASTL do not have airport operations team which is located near to the International Airport as competitors DMCS do have office premises near such vital operationally important land marks where they are customer services more efficient

People

ASTL do have high staff turnover , which they had lost their best staff on time to time , these need to addressed very seriously as competitors are eying on best staff of ASTL

ASTL need to improve their staff welfare system.

Process

ASTL need to implement a new mechanism to minimise guest complains which results a delightful customer will return after rendered their services as word of mouth matters which either completely destroy their brand name or have many more clients by guest recommendations.

Recommendation by Marketing Communication Strategies

Network Marketing

To improve this strategy bellow are a few suggestions.

Opening Braches in potential destinations. Due to brand recognition customers will be interested to use the services for book their holidays to Sri Lanka

Need to tie up with Online booking engines like "AGODA" with mutual understanding to grow the business on WIN /WIN basis for both parties

FAM visits & Work Shops for target Tour Operators

This strategy is basically targeting best selling travel agents and middle managers from all the top companies for workshops in Sri Lanka introducing our products and services It will basically be a visual knowledge of the product. This activity will be done during the off season and special discounted rates will be given for clients who attended the workshop. This strategy helps reach all corporate clients and gives awareness of the facilities, and mainly build relationships.

E-Marketing Communication

A launch of a facebook page with attractive cover pictures and display pictures should be uploaded. Today most people from the age of 2555 are active users of this social network, which has over a million users. It is one of the most accurate, efficient marketing tools today. The main idea about holiday packages that sell by ASTL. Daily promotions should be posted on the wall daily, also updating statuses on daily happenings and promotions to keep customers updated. This activity will really improve customer awareness and network.

Viral Marketing Promotions on Facebook

Daily Promotions, Major Events handled should be publicized on albums should be used as a promotional quiz.

Following Advantages could be benefit by ASTL by implanting Viral Marketing Strategies

An Enhanced Customer List

Remarkable Growth in Comparatively Lesser Time

ASTL Gain More Credibility

Cuts your Promotional Costs

Guerilla Marketing

The latest completed project as mentioned earlier on is the newly designed and Nature Wing of ASTL.

Guerilla Marketing is basically generating a buzz among the public, therefore ASTL need to educate public regarding their new product development by billboard & posters. This poster is a uncommon and unique way to generate a buzz to ongoing potential clients. To viral market this strategy a hidden camera should be fixed and expressions of on going customers should be videoed and posted on facebook and you tube.

Further more ASTL should emphasise on following Guerilla Marketing activities .

Source: http://www.ideafit.com/fitness-library/guerrilla-marketing-strategies-and-benefits

Create " Free" Mailboxes

Set up mailboxes in Plazas located near your facility (with landlord permission)

Partnership with Local Business

Dedicate a section of ASTL website to coupons, accessible to members, from local retailers. In exchange for providing the retailers with exposure, have them promote ASTL business on their website or by visibly placing ASTL brochures at their locations

Enlist Member Participation

Ask members who have achieved great success in weight loss to serve as role models. Create giant "before" and "after" posters of members who have reached noteworthy goals.

Speak Up

Offer ASTL services as speaker for community organizations and local business. Your

Presentations should be creative and unconventional.

Public Relations

Bellow are a few PR Strategies suggested

PAY 05, STAY 10

This promotion is basically for clients to book more beach stays; this should be applicable if the customer’s to extend their holidays, This will help increase the number of customers which will increases company revenue.

Loyalty Programs

This is one of core area ASTL need to be implement.

EG -

Hilton Honors Program is the thread that connects to all 10 distinct Hilton world wide brands. And is knows as the leading loyalty program in the hospitality industry world wide. 2 million members join each year and 25 million members stay loyal to Hilton hotels and resorts world wide. Hilton Honors has 4 levels of loyalty customer, which are

Blue

Silver

Gold

Diamond

Each level has its own benefits. Hilton Honors members earn points for every dollar they spend.

Corporate clients

Corporate Clients, should have a choice from the list bellow

5 - 10% off on the total package bill

Value Additions

Conclusion

The Aitken Spence Travels is a leading DMC in Sri Lanka ,

Even though, there are potentials for attracting customers to them , its matter of time for them retain their position in the market .

This assignment has identified all the opportunities and weaknesses; introducing solutions for overcome those disadvantages and has recommended the elements for development of the organization.

The product diversification, segmenting sub markets in the potential markets and retain their market position .

List of Reference

Web Sites

www.aitkenspence.com , Access on November 02, 2012

www.walkerstours.com, Access on November 05, 2012

www.jetwingtravels.com Access on November 08, 2012

http://www.quickmba.com/strategy/generic.shtml

www.sltda.gov.lk Access on November 28, 2012

http://www.srilankaequity.com , Access on January 15, 2013

http://www.sundaytimes.lk/120610/BusinessTimes/ January 15, 2013

http://www.seasmokepr.com, Access on January 15, 2013

http://www.hhonors.1.hilton.com, Access on January 08, 2013

http://www.marketingprofs.com Access on December 02, 2013

http://www.tutor2u.com Access on January 05, 2013

Personal Interviews:

‘Director Marketing of Aitken Spence Travels, April 01, 2012’