Contiki: Using multiple channels to support tour operating

Given that its customers are the young and restless, Contiki Asia communicates with them at every channel available on the web.

But when it comes to sales, it still relies on the human touch of the traditional travel agent.

Nicholas Lim, director of sales and marketing in Asia for the 18 to 35-focused tour operator, says: “Our customers are very fickle in where they are on the internet so we reach out to them at every point – YouTube, Facebook, Twitter. Then when they’re ready to buy, we direct them to the travel agent.”

“We are not built to be a travel agent – it’s a lot of work, airline booking, insurance, special services and requests. Travel agents are convenient and add value to us.”

In Asia, almost 100% of Contiki’s sales are fulfilled by travel agents. In the US the mix has changed, says Lim.

After September 11 2001, when a lot of travel agents in the US went out of business, the company went direct-to-consumer to sell its tours.

Currently around 80% of its sales are made directly through the web or call centres. Will the business model move this way too in Asia as mobile and broadband penetration increases in the region?

Lim says: “At some point in time, perhaps yes. In certain markets where we don’t get the travel agent support, we will embark on direct sales. In China, for example, we are poorly represented, but that’s a market we need to be in.”

For now, its three biggest markets in Asia are Singapore, Korea and Japan, and the most popular destination is Europe, its core product, even though Contiki Asia also offers Australia and Asia package holidays.

“We get a mix of customers – the first half of the year is mainly student traffic and the second half are professionals and honeymooners,” says Lim.

Globally, about 80% of its customers are single and 60% are females, although Lim says that in Asia, women form a bigger chunk of the market, with 70%.

Travellers from Asia are also getting more confident. They are no longer buying the see-all-of-Europe in one trip. Rather, they are buying shorter trips in more focused areas – Italy, Greece and Spain are popular spots, for example.

“People now want more time to do their own thing,” says Lim, noting that Greece is the current bestseller. “People are also more informed. They actually realise that to do Europe as a do-it-yourself costs more than doing it with us. What they tell us is, don’t include us in your activities, we will do our own thing.”

And while its young customers may be fickle in where they are on the web, they are surprisingly loyal.

“If they buy something they like, they will champion it. They will tell their friends. This is where social media works well for us – they put their videos on YouTube or they share it with their friends on Facebook.”

Thus far, the company hasn’t come across negative reviews of their Contiki Asia experiences. “Usually they complain about the hotel and the food and we give feedback to the hotel,” says Lim.

Lim is also eyeing other new markets in Asia, such as Vietnam, Philippines and Indonesia. Contiki handles around 120,000 passengers a year worldwide, of which Asia forms less than 10%, a figure Lim admits needs boosting.

But the key to Contiki Asia’s success remains the human touch – particularly that of its tour leaders. “It doesn’t matter how we sell or promote, if they don’t deliver, that whole trip has gone.

Out of 100 tour managers that we train, only five will make it. We invest Euro 1.2 million a year to train our 200 tour managers.