How partnerships can lead to profits - Insights
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How partnerships can lead to profits

partnershipsWe all want to believe that no one from outside our industry influences it. Or at the very least, that they influence it in minor ways. Of course, that is not true. Large companies tend to have a say even outside their own fields. Similarly, in the travel industry, there are companies that influence it without being a direct part of it. Let’s take a closer look at those influences.

What draws the companies in?

It is no secret that the travel industry is one of the largest industries in the world. Its revenue in 2016 reached over 7.6 trillion U.S. dollars – it’s no wonder that corporations want to find their way in.

More people travel now than ever before. The market is enormous and its customers are very attentive and susceptible to influences. Partnerships with travel industry giants often turn out to be incredibly profitable. That is also the reason why so many investors choose to support such companies. When the number of people who travel is counted in billions, it is no surprise that many decide to use that to their advantage. Selling their product to the airline or hotel chain can be a brilliant move.

The travel industry creates fantastic new opportunities for advertisement. Companies can use traditional outlets, but also think outside the box and be more creative. Especially since we usually associate good memories with trips and vacations, we tend to lean forward to the companies we saw and tried during that time. On top of that, if the business works with a trusted travel brand, it immediately creates more trust for itself.

How does it work?

So how can the companies from outside the travel industry join in on its incredible success? There are hundreds of ways. Some of them I have alluded to in the previous paragraph. Advertising is one of the most obvious ideas. That can be putting the name of a brand on banners, advertising its product in catalogues or having its name somehow underlined on those products.

That takes me directly to the second point – samples. They can be truly a powerful tool if used well. Especially if the product is in some way connected to their offer. Cosmetics provider offering mini versions of their shampoos and shower creams to a large chain or an alcohol brand ensuring its beverages are served on the largest airlines of their target countries can find those actions to be very effective.

B2B services are especially popular in such instances. Being the main provider of one product or service to a large travel company can be extremely profitable.

One sector that can benefit from such partnerships but also provide travellers and travel companies with something new and unique is the tech sector. New solutions, exciting ideas and affordable energy sources are all very much sought after. Increasingly, more guests search for advanced technologies but also “green” companies. Both of them can be provided by the tech industry.

Partnerships as a way of influencing the industry

Many companies choose partnerships of a different kind. That means not necessarily selling or advertising their products through the travel companies, but working both with them and for them to enhance the customer experience.

Some of the companies that use it best to their advantage are the credit and debit card issuers. An excellent example may be Visa. It partners up with many companies from various sectors, trying to cover as many of its customers’ needs as possible. One of the significant types of its partners are the companies from within the travel industry. Very recently it teamed up with the commission-free booking platform Bidroom.com. This way Bidroom receives visibility from a large partner, while Visa can offer its customers an additional benefit in the form of discounts on the membership on the platform.

Sometimes such partnerships are even more complimentary, like the cooperation with AirRefund, the company that helps its customers receive compensation for a cancelled or delayed flight.

Those are just two examples, and the industry sees thousands of them. Working together like that is often the safest way to show your product to a wider audience or simply give your own customers an additional benefit.

What are the results?

So what are the results of all the partnerships and exchanges? What does all of it mean for the travel industry? Well, firstly it can be a source of income. If the company wants to advertise itself on your building or any other resource that belongs to you – it means profit for you. Usually, of course, the companies will choose large hotel chains or popular airlines for advertising, as they give more guarantee of success for the campaigns.

Companies from within the travel industry can be some of the best customers for a business that produces goods and services used inside the travel sector but not considered part of it. Such deals can be very substantial for both sides. Selling one’s goods in large quantities is of course very profitable while receiving them from one supplier can also lead to the reduction of expenses.

Partnerships are a great strategic move. They are not only a fantastic way of advertising. They can also lead to more sales and a significant increase in revenue if done correctly. Partnerships mean introducing your brand to a wider audience, but also offering additional benefits for your current customers.

That is why the companies from outside the travel market try to join it in some ways, and also why the travel companies are eager to use such cooperation to their advantage.

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