V.com Aiming For 50% Of Distribution Market
with Nina Slawek


Vacation.com's Stephen McGillivray, Chief Marketing Officer; Christine James, V.P. Canada and John Lovell, President


Dinner at 150 Central Park

A sea of Vacation.com “Think Big” badges wandered the neighbourhoods, lounges and theatres of Royal Caribbean’s Oasis of The Seas last week. The mega vessel played host to over 1,000 member agents for their annual conference.

According to John Lovell, President of Vacation.com, the decision to take the conference to sea was risky since it required a massive commitment to staterooms. The conference sold out quickly and evidently the opportunity to experience the ship partly accounts for the record turnout.

Then again, V.com is all about numbers. The massive selling power of the organization seems to attract suppliers like bees to honey.

Not only do members tow the line, their participation in V.com’s ‘engagement’ program allows Canadian suppliers to reach out to ½ a million consumers with direct mail offers. Collectively, V.Com members represent 7 million North American consumers. That reach comes with a hefty price tag, but in today’s fragmented market, reaching consumers who have a personal relationship with their agent can be worth the investment.

When asked to comment on the consortium’s selling power, John Lovell said, “Suppliers look at us as a proven channel. We move share.” Adding that, “Travel Leaders goal is to own 50% of the distribution channel.”

There may be a bit of chest beating in that lofty goal, but according to Lovell, the consortium represents 10 billion in annual sales – that’s $¼ million every hour. Which is why they can be forgiven for expansive statements such as, “We exist to make the distribution channel stronger”.

Beyond the big talk at the Think Big conference, the focus of the workshops was to introduce members to some cool tech advancements designed to increase conversion. Most notable is a nifty “retargeting” program – a technique borrowed from large online sellers whereby a consumer is tracked as they surf the web. For instance, if a consumer receives a V.Com retailer’s offer in an e-mail and clicks on it – but does not go the next step and book – the same offer is served to that consumer as a banner ad on various broad based websites. The assumption is that repetition will increase the likelihood of action. If the consumer then clicks the ad, they land on a page which is customized to the retailer who originally sent the e-mail offer.

Another innovation is the mobile travel app “Go Site See” which members can selectively provide to clients as pre or post sale added value. The app is custom branded for each member and is sold in packages of 3 cities for $6.

The highlight of the event, however, was a low tech but high impact presentation by Bruce Poon Tip, the founder of G Adventures, about engaging travellers in a higher purpose. His belief is that sustainable tourism objectives can work hand in hand with profits. That, in fact, they have to if we don’t want to destroy the very destinations we sell. He calls it a purpose driven business model and by the time the hour was up, there was not a dry eye in the house.

Poon Tip’s address ran in sharp contrast to the hoopla associated with a conference of this size. At times one can’t help but ask, ‘Is this Amway or is it travel?’

 


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