Many companies shy away from offering incentives because it is seen as nothing more than cutting into profits.  However, this overlooks the immediate benefit of site conversion to those undecided and, of course, the increase in sales that this usually represents. The bigger picture also shows immense benefits beyond the initial increase in conversions, with the resultant brand loyalty and free word of mouth advertising that is generated further down the timeline, the benefits to your company can be priceless.

No matter how expensive or inexpensive something usually is, we all like that satisfying feeling when we find a great deal.  This holds true of course also for holidays and, by offering deals, the evidence is out there that this can help increase sales.  But it needn’t be just about price as a way of encouraging new buyers - improved value can come from other techniques which can entice buyers without making you seem (the bad kind of) cheap.

The danger of offering bargain discount prices is that, unless the product is purely price led, as this with some types of package holidays, it can cheapen a company’s reputation. Depending on your market, this may not be a problem, but if you are selling luxury city tours, many customers can be put off by these sales tactics. However this is not to say that they do not want a good deal as much as everyone else.  It just means you have to deliver the value to them differently. To the retired couple looking for a cultural tour of Vienna, rather than offering them ‘amazing discounts’, try offering them free tickets to see the Vienna orchestra if they order before the end of the month.  This will not only increase conversions but maintain the tour’s feel as cultural and highbrow.

If your holiday company is not at the upper end of the luxury market, a slightly different offering can be made to the mid-level customer. If they’re teetering on the brink of booking a two week holiday, why not offer them an extra couple of days for the same price? In many cases this will make all the difference between an immediate booking and them thinking about it and possibly not coming back.

There are certain dangers involved of course – you need to be consistent in your offers. If you advertise your offer as being a one-off and it keeps reappearing with the closing dates changed, your credibility will badly suffer. In a similar way, if you make the offer seem exclusive to a particular customer, only for them to find out that ‘unique’ to everyone who visits the site, then the chances are that you’ll never hear from them again.

If you get it right, the potential benefits are huge.

In addition to the obvious potential increase in the number of sales, people love a bargain and a deal.  And the sense of achievement in finding one means they will more than likely boast to friends, family and, increasingly in these days of Web 2.0, to like minded individuals in online communities.  This offline and online word-of-mouth marketing can hopefully create more customers from the ranks of those looking for holidays and deals. 

Another benefit you may find is a sense of brand loyalty from those who benefited from your offer in the past.  Afterall, giving an incentive can seem like a personal favour and make your company seem decent and trustworthy.   If you get this right, it can also increase your repeat purchase statistics. 

Maybe, instead of shying away from such gestures to your customers, it would be more beneficial to see this as a way of increasing site conversions from traffic to sales, increasing word-of-mouth marketing and increasing repeat purchases.