Travel to Profit Land
Make plans to provide customers serving the travel and hospitality markets with business-boosting printed documents and promotional items.
The travel and hospitality industries were hard-hit by the events of Sept. 11, 2001, but business is now back on track, according to manufacturers and distributors.
"I think 2004 will be a far better year," said Bryna Blum, president of WCBS/E.H. Bickett & Co., Palm Desert, Calif. After Sept. 11, her business—which is 100 percent devoted to travel and hospitality vertical markets—nosedived 70 percent.
Many clients were placing only small orders for stock business forms, unsure of how long they'd stay in business. By 2003, as the travel industry recovered, Blum was advising those clients to customize forms and save freight by consolidating orders. Still, order activity was sporadic—frantic when the stock market was up and nearly nil when stocks dipped, she said. "It's been an emotional and financial roller coaster," Blum remarked, "but now, business is healthy."
"My clients are all saying that they're very optimistic," Blum noted. "And, when they're optimistic, they're willing to make investments in their businesses."
Specific items needed in this vertical market include presentation folders, ticket jackets, guest checks, reservation confirmation forms or self-mailers and document folders.
Changing Needs
As with most industries, customers in travel and hospitality have experienced changing needs, with some traditional products declining and others becoming more common.
For instance, "We still sell pegboard systems for this market, but the volume is down significantly over the last five or six years," said Nathan Jenkin, product marketing manager for Wilmer's core document solutions division.
One new product generating excitement among Wilmer's distributors who sell to the travel industry is the CardJet 410 photo ID system, Jenkin said. The PC-based system is comprised of an ink jet printer, a digital camera and badge-making software, and allows customers to create customized, four-color 30 mil. plastic cards at up to 138 cards per hour. Logos, photos, bar codes and other graphics can be imported for use on security badges for hotel, airline and resort employees, as well as ID tags for convention attendees.
"It's very compact and very easy to use," Jenkin noted, "and it comes at a more palatable price point—$2,500 retail—than larger units." The system is designed to be used on a desktop, such as a hotel registration desk, and takes about 30 seconds to generate a card with graphics, printing and a person's photo, Jenkin said. Bar codes can include information on the applicable package plan to allow access to various amenities.
The included software provides a number of formats for the credit card-sized badges and saves all information in a database. Optional accessories include plastic holders and a punch; consumables are specific to the CardJet and represent steady reorders for distributors.
Marketing Moves
Similarly, Blum said that she'd seen a decrease in the volume of ticket jacket orders with more electronic tickets being issued, but observed that some of her travel agency customers will put anything they can in such customized pieces "just to get their name out there." With consolidation among agencies, "It's vital for the small agencies to market their names," she said.
When Blum observes a decrease in dollar volume on an order—for instance, when multi-part forms are replaced by cut-sheet forms—she explains to the customer ways to use savings to help them market themselves. "I'd rather see them order fewer invoices and add customized ticket jackets so that they're marketing themselves," she said.
The need for marketing has led to increased orders for WCBS in promotional items. Blum said that she sold more luggage tags in 2003 than in the previous five years combined. Name badges, wallets and other small promotional products are also popular.
John Andersen, sales manager for Admore, Macomb, Mich., said that the company produces a standard line of ticket jacket holders designed for the travel industry with nine different designs. Admore coordinates a total package of presentation folders, inserts and collateral materials, all of which are using more four-color processes, foil stamping and embossing than previously, Andersen said.
"Jobs come in for banquet and catering companies, convention centers, visitors bureaus, and for hotels," he said, adding that an advantage to having all materials produced by one source is confidence in the product. "There is nothing worse than sending out a project to three different vendors and getting it back and discovering that the colors don't match. We guarantee satisfaction and demonstrate a passion for taking care of the customer."
Jan Burden, product marketing manager for Wilmer's specialty market solutions division, noted that presentation folders represent steady reorders. In addition to a variety of stocks, inks and foil colors, folders can be laminated, varnished, die cut, embossed, foil stamped and saddle stitched.
Although such reorders generally have seven to 10 days turnaround, Wilmer's quick folder program offers a common folder style featuring business card slits that can be one-color imprinted and shipped in 24 hours.
In addition to printed presentation pieces, Blum urged distributors to provide electronic presentations that customers can send to remote clients.
Although there has been some industry consolidation, Blum said that many "mom and pop" travel agencies are now home-based and often part of much larger consortia.
Within this market, there are also a number of very specialized businesses—for instance, catering to Fortune 500 corporate meetings, entertainment, luxury travel, or specific demographics, Blum noted.
With such a variety of avenues to pursue, "The travel industry is exciting," Blum said.
By Janet R. Gross