Websites Marketing Strategy of Travel Agency Using an Integrated Theory of 4C and 4P

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1 Websites Marketing Strategy of Travel Agency Using an Integrated Theory of 4C and 4P LIAO Huilan School of Business Administration, Guangxi University of Finance and Economics, China, Abstract: For the travel agency, its website is not only the tool of marketing, but also is a special product provided to tourists. So it is necessary for travel agency to develop the website marketing strategy scientifically and systematically. This paper analyzes the development of travel agencies website in China and their marketing situation at present. Then innovates the website marketing strategy and optimizes the marketing activities for the travel agency with the help of the integrated theory of 4C and 4P. That is to say, the travel agency need to provide target customers with websites information they need, determine price basing on the cost structure that customer are willing to pay, establish more convenient distribution channels for customers, and emphasize promotion way for equally conducting a two-way communication with consumers. All of these are in order to improve the effect of website marketing carried out by the travel agencies. Keywords: Travel agency s website marketing, Marketing mix strategy, Integrated theory of 4C and 4P 1 Introduction With development and popularity of Internet, more and more travel agencies are conducting marketing activity by establishing their own websites. Due to lack of related experiences and less mature theory as a guide, the websites established of travel agency are nothing but a static business card and plays a limited effect on marketing goals achievement of enterprises. So how to apply the Internet to marketing activity has been increasingly a focus. Judging from the present related studies, most of studies regard the websites of travel agency as a tool in network marketing. [1-9] Whereas, as we all know, the websites of the travel agency is not only a carrier used to conduct network marketing, but also a special product for customers. Like other products, the websites of travel agency also need to develop a complete marketing strategy. However, this has been rarely studies. The researchers only discuss the marketing function, marketing model and marketing effect evaluation of travel agency websites. [10-12] The majority of present studies findings can only solve the problems on how to use the websites of travel agencies to conduct marketing activity, and can do nothing to problems caused by its unreasonable scheme of travel websites. This paper attempts to integrate 4P and 4C theory and uses it as a guide to make an analysis of websites marketing strategy of travel service, providing reference for travel agencies to conduct scientific website marketing. 2 The Development and Present Marketing Situation of Travel Agencies Website in China By the end of 2011, the total number of Chinese travel agency was But China tourism academy believes that there were actually more than entities that operate tour business 2. Using Baidu search engine, we query the company s URL which was placed on the Chinese top 100 travel agencies , find that 94 of 100 travel agencies have self-built website; 4% of the total have no self-built but hosting website which rely on the B2C platform such as Xinxin travel network ( 1 China Travel Agency Statistics Bulletin for the Fourth Quarter of CNTA, 2 China Travel Agency Development Report The China Youth Daily, December 28, 2012, 11th edition. 3 China the Top 100 Travel Agency Bulletin CNTA, 62

2 and so on; Only two travel agencies which accounts for 2% have neither self-built website nor hosting website. In general, most of the travel agencies have realized the importance of network marketing. But there are still some problems in enhancing marketing effect by establishing websites. 2.1 Unscientific name and information classification of website Website names of some large travel agency groups are not scientifically classified, e.g. their subsidiaries and business department have different domain names of websites, but share the same website names. For ordinary tourists, they are too patient to distinguish whether it is true or false and just neglect these websites to avoid the so-called fishing websites or traps. For the sake of management, in such websites, the travel agencies classify tour routes into team tours and individual tours, or directly classify tour routes according to travel destinations. An ordinary tourist concern is not the travel form of tourism but travel arrangement which maximize his or her travel purpose. 2.2 Incomplete information of products and service The main purposes that tourists visit the websites of travel agency are to understand in depth the complete information about the tour product and service, and define the benefits he or she will receive from the product purchase. Currently, most of network marketing of travel agencies prefer to sell large-scale products which information are new to travelers rather than customized products that they know well. And these large-scale products are usually copied each other between the enterprise but not created by enterprise itself. This product information contains words and pictures for presenting spots and activities in the travel routes. While personalized product benefits description are not fully demonstrated to customer, especially the unique experience in the aspects of meals, accommodation, transportation, traveling, shopping and amusement. In addition, some essential information such as weather reminding, luggage and health care advices are rarely seen. 2.3 The inconvenience of website distribution Online transactions provided by some websites of travel agencies present no obvious practical effect, which is far from expected effect which aims to expand distributions of travel agencies to improve the consume conveniences of travelers. The reason lies that: tourists are not confidently sure products to be bought as the websites cannot fully inform the tourists with complete information. Therefore, to deal with the transaction with much money and time, travelers are likely to choose transaction face to face instead of online. Although online counseling function of QQ or do help bilateral communication between travel agencies and travelers, but the poor function of words and slow responses of customer services fail to apparently reduce the time cost of travelers during transaction consultation. In a word, most travel agencies consider websites as an auxiliary tool rather than product of enterprises, thus they have less awareness of network marketing, and lack overall planning of website construction and marketing. Although some websites employ new marketing tools, the application of those tools is used casually with strong subjective due to lack of an overall and systematic marketing theory as a guide. 3 Theory of 4C and 4P and Their Advantage and Disadvantage Marketing mix was used for the first time by American market expert, Baodun, and then concluded to 4p by Prof, McCarthy that is product, price, place and promotion. While Prof. Lauterborn put forward a marketing mix theory with 4C as the core content which includes consumer, cost, convenience and communication. 4P theory, taking customers with no notable differences as objects, is designed for enterprises based on product strategy. This theory emphasis one-to-more communications between enterprises and customers, and neglect demands differences of customers. By 4P theory, it is difficult for enterprises to establish a long-term relationship with customers. Due to controllability of 4P, 4P can be readily operated and realized. While 4C theory aims to satisfy the requirement of customers, and stress 63

3 that enterprises should have an equal one-to-one communication with customers. By 4C theory, enterprises are encouraged to fully take suggestions of customers to meet their demands for avoiding customers reduction. But enterprises cannot completely manage the factors of 4C. Compared with 4P theory, 4C theory shows less operability. In sum, both theory of 4P and 4C have their own advantages and disadvantages. They should be combined in application. Individual tours in China have been well-received by travelers. The demand differences of customers has been increasingly significant. Therefore, the travel agencies should conduct network marketing based on 4C theory that attaches more importance to customers demands, and design network marketing strategy using 4C theory with good operability. 4 Network Marketing Suggestions in China to Travel Agencies with the Integrated Theory of 4C and 4P as Comprehensive Guide 4.1 Exploring potential needs of customer and providing target customers with websites information they need Network marketing is conducted based on need. The travel agency can identify potential travelers needs using market research system of websites (e.g., tour community, tourism BBS, tour products or services reviews and tour chat room) to further judge tour need orientation by feedback information. By sorting those potential travelers whose needs is consistent to travel agency business operation, then classifying them carefully, the target market can be determined by travel agencies. Finally, the travel agencies design tour routes and collect related information based on need of target market, and release complete travel product information on websites. The comprehensive information of tour product should include tour route, tourist attractions, accommodation, transportation, catering, shopping, entertainment, travel and travel health care knowledge, etc. In addition to conventional contents, tour route information also need describe the theme features and values and the benefits to travelers of the route. Tourist attractions information mainly illustrates the natural, human landscapes, weather, and the ticket price for it, etc. While accommodation information are mainly provided related to the tour products sales in travel agency s websites. Other relevant information of hotels and restaurants are supplement. For travelers to choose suitable routes basing their needs and arrange their trips, the website should provide the transportation information related to the tour routes, at the same time, establish dynamic information query bulletin system for each means of transportation. Furthermore, local food culture with regional characteristics is also an indispensable part of website. The restaurants information that related to tour products offered by travel agencies should inform tourists for making decisions. According to the need of tourists, travel agencies introduce some shopping information and the cultural evolution of some goods. Some big travel agencies can conduct wholesale and retail trade of goods by establishing online shopping malls. Moreover, as an important part of tour product, entertainments activities on the websites should be in agreement with the theme of tour products and present national characteristics and regional culture. And the relevant information of entertainments should be clear at first glance. To make travelers prepare well both physically and mentally for any problem that may occur, travel website should provide the correct travel knowledge to choose suitable travel products and adopt ways of travel health care according to individual differences. Besides, travel agencies shall keep track of the travel product information published on website and update timely if any changes are found. At the same time, websites of travel agencies should also focus on the new emerging projects, timely report the development and operation of these items, and form new information of tour route, travel knowledge and travel health care according to the need of tourists. 4.2 Determine price basing on the cost structure that customer are willing to pay Tour product cost including monetary and time cost that travelers are willing to pay is closely related to travelers individual attributes. Travel agencies can conduct website survey on acceptable cost 64

4 oftravelers with different attributes towards same theme travel product and carefully calculate every cost of optional elements. Then the contents and prices of same theme travel product for different consumers can be eventually determined. Also, the travel product cost that customers are willing to pay depends on the customization degree they require. The higher the customization degree, the more travel product theme personalized, the more the travelers are willing to pay. 4.3 Establishing more convenient distribution channels for customers Tourists are willing to accept various services that website provides only the website can bring benefits and convenience for them. So websites construction and content arrangement should performed basing on the tourists interests. First of all, website domain name of parent company of the travel agency and its subsidiaries should be unified and has a high ranking in major search engines as possible. The design of travel website homepages should be concise by only setting two links including enterprise information platform and e-commerce platform. E-commerce platform, as a service platform, provides all products and services information to ultimate customers. Other enterprise information is classified as the enterprise information platform. At the same time, e-commerce platform should also provide all links of subsidiaries websites for tourists selection. Secondly, information service of e-commerce websites should be classified based on the process of before-sale, in-sale and after sale. Before-sale service mainly introduces consumption common-sense, tour product information and solving questions of customers online. In-sale service provides a good online trading platform, convenient way of settlement for customers. After sale service is to deal with customer complaints, answer doubts of travelers after experiencing, ask opinions and suggestions, and promote new tour products. Thirdly, the tour product information on website should be classified and edited in a form of destination and theme. According to demands of travelers in different time, the travel agencies classify all information, integrate destination information on website, and arrange web page information of product based on themes. In addition to use of traditional graphic introduction method to release product information, some websites of lager travel agencies should also actively use the virtual tour technology to have tourists to experience spots and accommodation of the tour products before booking. Considering the convenience of travelers, the links of every item name introduced in each essential tour elements of tour produce should be embedded so that tourist can enter into e-commerce reservation platform of single item by clicking the link. Fourthly, travel agencies preliminarily provide on-line customization service of personalized tour product. In order to solve the contradiction between demand of personalized tour products and scale economy of travel agencies, websites of travel agencies shall make a compromise, namely an ordering service. According to such service, considerate number of standardized options and service modules basing on different tourism elements such as the tourism attractions, facilities, catering, accommodation and so on can be set up so that travelers can freely choose collocation and form special travel product combination. When the market of personalized travel product gradually becoming mature, the travel agencies provide the real tour product one to one custom service. 4.4 Emphasizing promotion way for equally conducting a two-way communication with consumers In addition to traditional means of promotion like advertising, travel agencies should establish new promotion idea based on an equal two-way communication on their website. By using the existing tools in travel agency website (e.g., tour community, tourism BBS, , tour microblog and database) as a promotion method, they communicate with customers using services and products, let customers to obtain correct information and make satisfied decision; thus, satisfaction and loyalty of target customers on the travel agency products and services can be improved. Therefore, the travel agencies should take the opportunity to collect materials of consumer by a variety of network means, establish their own 65

5 information database of tourists to implement targeted marketing; meanwhile, by collecting tourists' opinions and suggestions regarding tour products, travel agencies can know travelling experiences of customer to further improve the existing travel products or develop new products. What s more, travel agencies can encourage tourists to comment on products and services by providing necessary technologies; thus, tourists can form a network community or forum with common topics in website. 5 Conclusion The travel agency s website, as a special product provided to the tourists by the travel agency, need a complete marketing strategy based on how to satisfy the needs of the target tourists. This website marketing strategy will be more scientific and systematic under the guidance of the 4C and 4P theory. That is to say, the travel agency need to exploit potential needs of customer and provide target customers with websites information they need, determine price basing on the cost structure that customer are willing to pay, establish more convenient distribution channels for customers, and emphasize promotion way for equally conducting a two-way communication with consumers. All of these are in order to achieve the goal of website marketing in the travel agency. Limited to the method of qualitative analysis, some viewpoints in the paper can t be confirmed by the practical data. So the method should be used for the later research which includes the qualitative and quantitative analysis. Also the field of vision can be broadened from the difference research in the website marketing strategy between foreign travel agencies and Chinese. These later researches will provide more valuable findings for our travel agencies to shape their marketing strategy of website. References [1]. Jyh-Jeng Wu. Effect of transaction trust on e-commerce relationships between travel agencies [J]. Tourism Management, 2006 (6): [2]. Hsien-Tang Tsai, Leo Huang, Chung-Gee Lin. Emerging e-commerce development model for Taiwanese travel agencies [J]. Tourism Management 26 (2005): [3]. Meltem Ozturan, Sevgin Akis, Roney. Internet use among travel agencies in Turkey: an exploratory study [J]. Tourism Management 25 (2004) [4]. Leo Huang. Building up a B2B e-commerce strategic alliance model under an uncertain environment for Taiwan s travel agencies [J]. Tourism Management, 2006 (6): [5]. Raja Mazhatul Yasmin Suraya. Internet diffusion and E-Business Opportunities Amongst Malaysian Travel Agencies [J]. Journal of American Academy of Business, 2005 (1): [6]. Wei Ailian. The Research on Microblog Marketing Strategy in Travel Agencies Illustrated by the Example of South Lake International Travel Agency. China Business and Trade, 2012, (11): 38 and 39 (in Chinese) [7]. Wei Ri. On the Problems and the Innovative Strategies in the Network Marketing in Our Country s Travel Agencies. Market Modernization, 2010 (1): (in Chinese) [8]. Huang Ping. The Research on the Network Marketing Strategy in China Travel Agencies. Modern Business Trade industry, 2009, (29): (in Chinese) [9]. Zhan Zhaozong. Travel Agency How to Develop the Network Marketing. Tourism Tribune, 2007, (5): 9 (in Chinese) [10]. Yang Suoqiang, etc. The Strategy of Information Product and Marketing Model on Tourism Website. Journal of Intelligence, 2003, (12): 55 to 57 (in Chinese) [11]. Fu Rong etc. Marketing Function Analysis of the Travel Agencies Website in Hunan Province. China Market, 2008, (4): (in Chinese) [12]. Wang Lili etc. The Marketing Effect Research on the Chinese Travel Agency Website by the Content Analysis Illustrated by the Example of 44 Domestic Travel Agencies Website. Shanghai Management Science, 2008, (5): (in Chinese) 66

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