Introduction
UK travel company On the Beach has seen positive results from its more focused marketing expenditures in H1. This change in marketing investment has led to a decrease in marketing costs as a proportion of revenue for the fiscal year ending on September 30, 2023. The company’s strategic shift has resulted in a more efficient use of funds, allowing it to optimize its advertising efforts while maintaining steady growth.
Fiscal benefits
The marketing budget for On the Beach made up 38% of total revenue, a drop from 45% the prior year. This decline has the potential to positively impact the company’s profitability and financial standing as it continues to navigate the changing landscape of the travel industry.
Strategic shift
On the Beach has chosen to redirect its marketing investments toward offline channels, challenging the conventional tour operator industry. This new focus highlights the company’s unique brand and benefits, such as complimentary fast-track and lounge access.
Reaching a broader audience
By shifting its focus to offline channels, the company aims to reach a wider audience and showcase its exclusive offerings in a more tangible manner. This approach allows for personalized interactions with potential customers, creating a stronger connection to the brand and building trust in the premium services offered by On the Beach.
Increased brand awareness and consideration
This strategic shift in marketing investment has raised prompted awareness levels to 88%. Furthermore, it has secured a 30% ranking in the top three considerations among prospective clients.
Growth and expansion
On the Beach’s new approach has attracted numerous potential customers, leading to more fruitful partnerships and a larger clientele base. As a result, the organization is well-positioned for further growth and expansion as it works towards achieving its long-term strategic objectives.
Looking ahead
With the success seen thus far from its shift in marketing investment, On the Beach is poised to continue its positive trajectory within the travel industry. Its strategic focus on offline channels and unique offerings have already led to increased brand awareness and a growing client base. On the Beach is well-positioned to further capitalize on these efforts, ensuring the company’s continued success and ability to smoothly navigate the ever-evolving travel landscape.
First Reported on: marketingweek.com
FAQ
1. What changes has On the Beach made to its marketing strategy?
On the Beach has shifted its marketing investments from online to offline channels, focusing on showcasing its unique brand and benefits, such as complimentary fast-track and lounge access. This strategy aims to reach a broader audience and create personalized interactions with potential customers.
2. How has the new marketing strategy impacted the company’s finances?
The strategic shift has led to a decrease in marketing costs as a proportion of revenue. The marketing budget now accounts for 38% of total revenue, down from 45% the prior year. This change has the potential to positively impact the company’s profitability and financial standing.
3. What is the purpose of focusing on offline channels?
By concentrating on offline channels, On the Beach aims to engage with a wider audience and have a more tangible presence. This approach allows for personalized interactions with potential customers, fostering a stronger connection to the brand and building trust in its premium services.
4. Has the new marketing strategy been effective in increasing brand awareness and consideration?
Yes, the strategic shift in marketing has raised prompted awareness levels to 88% and secured a 30% ranking in the top three considerations among prospective clients, both of which reflect an increased awareness and consideration of the On the Beach brand.
5. How has the new approach contributed to growth and expansion?
On the Beach’s new approach has attracted many potential customers, which has led to more fruitful partnerships and an expanding clientele base. As a result, the company is well-positioned for further growth and expansion in line with its long-term strategic objectives.
6. What does the future hold for On the Beach?
With the success seen from its shift in marketing investment, On the Beach is poised to maintain its positive trajectory within the travel industry. Its strategic focus on offline channels and unique offerings have already led to increased brand awareness and a growing client base, positioning the company well for continued success in the evolving travel landscape.
