Contiki makes distribution pledge to agents
Contiki will continue to focus its distribution on the trade in Australia as its global brand director praised the strength of the local retail industry.
London-based Alastair Campbell, in Sydney to interview candidates for Contiki’s vacant managing director role, said the vast majority of its sales in Australia are still driven through agents.
He insisted the strategy will not change despite the web-savvy nature of its target market.
While other markets where Contiki operates have seen a weakening of traditional distribution “that has just not happened in Australia”, Campbell told Travel Today.
“I wish the retail sector in other markets was as strong as it is in Australia,” he said. “It makes it easier for us to sell the product.”
The youth operator confirmed that consumers have the ability to book direct but the vast majority still choose to visit and book through a travel agent.
Campbell said agents’ knowledge of the product – and the “iconic” nature of the Contiki brand – were key to its trade distribution strategy, while the operator’s marketing was geared towards driving business through agents’ doors.
Agents’ ability to package an entire trip was also an attractive proposition for consumers, he added.
Toni Ambler, global head of brand communications, said the sheer range of product and experiences could be “overwhelming”, leading consumers to seek the help and expertise of an agent.
The continuing trade focus comes as Contiki reported a strong start to its 2014 European season which launched earlier this month. Sales are up 10% on the same time last year, albeit off a small base, Campbell said.
He predicted another record year for the brand as it markets the demand of its target audience for “shared experiences”.
“We have changed the voice of the brand,” Campbell said. “We are now selling the proposition about what travel is and what it means to travel.
“I don’t think we were talking the right language before We are changing the conversation from one that was pragmatic to what kind of mind blowing experiences and the shared experiences our guests can have.”
The approach, and the introduction of more ‘easy-pace’ product, was reaching a broader range of consumers, he said, with Contiki now attracting a far higher proportion of those aged 22 to 26, older than its traditional core demographic of 18-22.
“We have widened the appeal,” Campbell said.
Meanwhile, Contiki has drawn up a shortlist of five or six candidates for its managing director role with an announcement expected in early October.
Campbell said the role had drawn a huge amount of interest with applications received from within the industry and outside, and from within Contiki itself.
Current MD Fiona Hunt will take a new global role within The Travel Corporation once a successor has been found.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
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