| Businesses are really getting creative in their marketing | | | | customer in a vacation at the published rack rate (the |
| efforts during this economic hardship our nation is | | | | same rate you find on Expedia or Travelocity). So let's |
| facing. Retail clothing stores have been seen giving | | | | say you purchase 100 7 night cruise certificates at the |
| customers a 3 day 2 night Las Vegas hotel stay to | | | | going rate which is around $30.00. You just paid |
| the first 100 customers that come down to their store, | | | | $3000.00 to give 100 of your paying customers a |
| no purchase necessary. The same retail store also ran | | | | vacation certificate. The travel agency takes out $500 |
| a second promotion where if a customer would spend | | | | of the $3000.00 and pays the sales rep a commission. |
| $100 in the store they would upgrade their Las Vegas | | | | Then they take $500 or so for their take and put |
| hotel stay with two round trip airfare tickets. Car | | | | $2000.00 in a reserve account to pay for the |
| dealers are advertising free 2 night hotel certificates in | | | | vacations when your customers try and redeem the |
| many resort city destinations to customers that just | | | | vacation certificate. The problem is that $2000.00 is |
| come down for a test drive. When the customer | | | | not going to cover 100 7 night cruise getaways for |
| purchases a vehicle, they upgrade their hotel stay to a | | | | two. They bank on only a small percentage of your |
| 7 night cruise for two to the Bahamas or Caribbean. | | | | customers to redeem the vacation certificate just like |
| Vacation certificate incentives can work for virtually | | | | an insurance company banks on the insured never go |
| every industry. | | | | to the doctor. When they run out of money to pay for |
| Realtors are using vacation certificates to bring in | | | | the vacations they make up excuses to your |
| more potential buyers to their open houses. Insurance | | | | customers telling them that their requested travel |
| agencies offer vacation certificates to customers if | | | | dates are not available and have them re-submit dates |
| they call for a free quote. Then they upgrade the | | | | over and over only to have your customer give up in |
| customers who purchase policies. With vacation | | | | the end which can create unnecessary customer |
| certificate incentives you can create very effective | | | | service issues to your business. |
| employee recognition and loyalty programs, customer | | | | Can you imagine having to come out of pocket to pay |
| retention programs, referral programs, customer loyalty | | | | for all the vacations your business promised all |
| programs, lead generation program, customer | | | | because the travel agency you paid $3000.00 to stops |
| appreciation programs, etc. When a businesses use | | | | fulfilling your customers requests? Now you have once |
| incentives in conjunction with their existing advertising | | | | satisfied customers talking negatively about your |
| and marketing efforts, they can see a 30% increase in | | | | business, and worst yet, it's not even because of the |
| response rates to existing advertisements. Vacation | | | | product or service you have provided. What if it |
| incentives help business ring in more paying customers | | | | happens to the wrong customer, could you imagine |
| from their existing marketing efforts and from their | | | | about having to deal with a law suit because a |
| repeat and referral business. | | | | customer that loved your business 2 years ago wants |
| Vacation certificate incentive companies can be found | | | | the luxury 7 night cruise you promised them. |
| by going to Google and entering the keywords | | | | Cruise ships, hotels, resorts and other travel |
| vacation certificates or even vacation incentives. You | | | | establishments rarely have full occupancy accept |
| will find hundreds of companies to choose from. All | | | | during major holidays and weekends. So what they do |
| businesses should be aware that 99% of these | | | | is contract directly with certain incentive marketing |
| vacation certificate incentive companies work on a | | | | companies who fill their empty rooms. When hotels, |
| business model called "breakage". "Breakage" works | | | | resorts, etc. have empty rooms, it's basically a waste |
| like insurance. Insurance companies charge you a | | | | of a good room. They would rather have someone |
| monthly fee, in the hopes that you never go to the | | | | stay in the room for practically free in the hopes to |
| doctor. These vacation certificate incentive companies | | | | make some revenue from their in house shops, |
| do the same thing and charge you anywhere from | | | | restaurants, room service, spa and if it's in Las Vegas, |
| $1.00 - $150.00 per certificate. They do not have any | | | | their casino where they make all their money. Vacation |
| real contracts with hotels, cruise ships, airlines, etc. but | | | | Certificate Incentive companies that work with this |
| instead just get the commissions anytime they book a | | | | model are hard to find but they do exist. |