Black Friday Sales - Should I Participate?

This year, Black Friday falls on Friday 29 November 2024. Black Friday is one of the biggest shopping events of the year, and it’s no longer limited to retail products—travel businesses have been jumping on the bandwagon too. Offering deals on flights, hotels, cruises, and packages can seem like a win-win for both companies and customers.

In this article, we’ll explore the benefits and potential challenges of running a Black Friday sale if you’re a travel business, helping you decide whether it's the right move for you.

Benefits of Running a Black Friday Sale

1. Increased Bookings and Revenue

One of the main advantages of Black Friday sales is the opportunity to drive a surge in bookings. During this period, consumers are actively seeking deals, which means your offers are more likely to grab attention. By providing limited-time discounts, you can encourage customers to book immediately rather than wait, resulting in increased revenue over a short period.

For travel businesses, this might mean selling more holiday packages, flights, or tours during what might traditionally be a slower period. Even premium packages, which customers might hesitate to purchase at full price, can sell faster with a well-timed discount.

2. Boost to Brand Awareness

Black Friday can serve as a major marketing opportunity, especially for smaller or less well-known travel companies. The event can bring your brand into the spotlight, attracting new customers who might not have considered you otherwise. A well-promoted Black Friday campaign can expand your reach and establish your presence in a highly competitive market.

Social media campaigns, email marketing, and collaborations with travel influencers (if relevant) during this period can boost visibility. By creating compelling offers, you can make your brand stand out, increasing the chances that travellers will remember you for future bookings.

3. Clearing Inventory

For companies that operate tours, cruises, or other time-sensitive travel experiences, Black Friday sales can help clear up inventory. Instead of leaving seats empty, or potentially cancelling departures, offering last-minute deals can help fill the gaps. This applies not only to tour operators but also to airlines, cruise lines, and hotels.

Selling unsold inventory at a discount can still be profitable compared to the revenue lost on unoccupied seats or empty rooms. Black Friday gives you a chance to move these offerings, ensuring you maximise income even at a lower rate.

4. Customer Acquisition

Sales are a great way to bring new customers into the fold. Travellers who purchase a Black Friday deal may not have engaged with your business before, but if they have a great experience, they are likely to return. Additionally, Black Friday sales can lead to increased loyalty if customers feel they’ve received great value.

You can use this opportunity to encourage repeat business by following up with new clients. For instance, offering exclusive future discounts to those who book during Black Friday can keep customers coming back.

5. Competitive Edge

With many travel businesses joining the Black Friday frenzy, not participating could mean missing out on potential bookings. Offering competitive deals can help you gain an edge over other companies, especially if your deals are better or include added benefits (like free upgrades, guided tours, or complimentary meals).

Potential Cons of Running a Black Friday Sale

1. Potential Revenue Loss

While discounts can drive bookings, there’s a risk of losing revenue if the pricing isn’t well-calculated. Deep discounts may attract customers, but if you’re not careful, you could end up devaluing your services. It’s important to ensure that the reduced price covers your costs while still offering a reasonable profit margin.

For smaller businesses, the revenue loss can be more significant. Unlike larger companies, small businesses may not have the financial leeway to slash prices too deeply, making it harder to compete on Black Friday without risking their bottom line.

2. Attracting Bargain Hunters Instead of Loyal Customers

One downside to Black Friday promotions is that they can attract a crowd of one-time buyers who are only interested in deals. While this can help with short-term revenue, it might not be beneficial for long-term growth if these customers don’t convert into loyal, repeat clients.

To counteract this, travel businesses can structure their Black Friday deals in a way that encourages future interaction. For instance, offering a discount on a future booking with every purchase can incentivise first-time customers to return.

3. Limited Window of Opportunity

Black Friday is a short-term event, and while it can drive a surge in bookings, the effect is also fleeting. Travel companies may experience a dip in sales before and after the event, as customers wait to see what deals will be available. This could affect overall sales consistency, and if the Black Friday deals don’t perform as expected, it could lead to a slump.

Additionally, running a sale only during Black Friday could mean missing out on customers who might be ready to book before or after this period. It’s essential to create a strategy that sustains interest beyond a single day or weekend.

How to Make Black Friday Work for Your Travel Business

While there are clear advantages and challenges, the key to a successful Black Friday campaign for travel businesses is strategy. Here are a few tips to help make the most of the event:

1. Plan Your Offers Carefully

Think about which services you can afford to discount and which ones are more suitable for value-added perks. Ensure that your deals are attractive yet sustainable. For example, instead of discounting prices, you could value-add, for example free room upgrades, airport transfers, or added excursions that increase the value of the package.

2. Promote Early

Start promoting your Black Friday deals well in advance to build anticipation. Use social media, email newsletters, and even teaser ads to generate buzz. The more time you spend building awareness, the more likely customers will be ready to purchase when the sales go live. This is especially important for travel as the dollar investment is much higher for the customer than a pair of shoes, they need more time to consider and plan their purchases.

3. Prepare Your Operations

Make sure your booking systems, website, and customer service teams are ready to handle the surge. Nothing ruins a deal faster than a website crash or delayed responses from customer support.

4. Focus on Upselling

Black Friday customers may come for a discounted product, but that doesn’t mean they can’t spend more. Use the opportunity to upsell or cross-sell premium services and products, like special tours, add-on experiences, or future bookings. Upselling can help offset the lower margins of discounted offers.

5. Track and Analyse Results

Evaluate the performance of your Black Friday campaign to understand what worked and what didn’t. Analysing data like the number of bookings, revenue generated, customer feedback, and post-sale engagement can provide insights that help improve future campaigns.