How travel companies boost revenue with newsletters [Part 1 of 2]

NB: This is a guest article by Adam Costa, co-founder of Trekity and Travel Blogger Academy.

Recently, I conducted an experiment. I signed up for nearly a dozen travel newsletters to see how their newsletters worked and I’d like to share with you my findings.

Let’s get started. The purpose of a newsletter is to build deeper relationships with your audience. Contrary to what many believe, a newsletter’s first aim is not to increase revenue, but to build trust with your audience.

A successful newsletter is a multi-step process:

  1. Create a compelling reason to sign up (e.g. travel deals, white papers, eBooks, photos, etc.)
  2. Design an opt-in form and place it prominently on your site
  3. Create a thank you page which provides further value
  4. Write a “Welcome” email letting your subscriber know they’ve signed up successfully
  5. Deliver your opt-ins promise (e.g. travel deals, white papers, eBooks, photos, etc.)
  6. Send a series of emails which continue to add value
  7. Build a trusting audience

These seven steps provide a framework for an effective newsletter. So how do major travel sites measure up? As you’ll soon see, there is a wide discrepancy between them.

Let’s take a look at each step in further detail with examples of what major travel sites are doing:

Step #1. Create a compelling reason to sign up

In many markets, it’s common to create a free giveaway like an eBook or white paper. This, however, is not the case with major travel sites. In fact, none of them created a “giveaway” in the purest sense – their compelling reason primarily landed on “daily deals”.

While we will look closely at email examples later on, it’s important to determine which reason (e.g. travel deals, white papers, eBooks, photos, etc.) will help bring your subscribers value, build trust and meet their needs.

Step #2. Design an opt-in form and place it prominently on your site

The design and placement of an opt-in form radically affects the conversion of visitors to subscribers. Some travel sites (notably Priceline) had no opt-in form at all in their main navigation (if I missed this, please let me know).

Three sites stood out with their opt-in design and placement.

The first is TravelZoo:

TravelZoo’s opt-in can be found under the “Travel Deals” section and is placed above the fold and is easy to read. The benefit is clearly identified (“access to the best deals”) and “Our Promise” reassures the reader they won’t be spammed with needless ads and product pitches.

Another example is Lonely Planet:

Like TravelZoo, the opt-in form is placed under the “Newsletter” section, prominently above the fold. But Lonely Planet makes several improvements:

  • It shows a picture of the newsletter
  • It highlights several benefits instead of one (“travel inspiration, tips and exclusive offers”)
  • It links to a current issue so readers will know what to expect
  • It adds a hint of urgency (“Sign up now and receive 20% on your next guidebook purchase”)

The final example is JetSetter. When you land on its homepage, this pops up:

There seems to be no way to close this box while leaving the site. It’s a bit heavy handed, but extremely effective.

Multiple newsletters = market segmentation

Frommers and Airfare Watchdog give visitors the option to sign up for multiple newsletters. This segmentation allows for more relevant conversations with their prospects, which in turn boosts email open rates, engagement and ultimately revenue.

Here’s Frommers:

It’s a nice stab at segmentation, but they could improve conversions by adding links to sample pieces like Lonely Planet did.

Airfare Watchdog does this very well:

Before moving on, let’s review several best practices:

  • Place the opt-in form prominently on your website with a clear design
  • Include strong benefits to signing up
  • Offer multiple newsletters if possible for further segmentation
  • Add links to current newsletter issues so readers know what to expect
  • Include elements of social proof (e.g. testimonials or “As Seen In…” logos)

Step #3. Create a thank you page which provides further value

New subscribers must be immediately reassured that:

  • they’ve done the right thing by signing up, and
  • they’ve successfully signed up

An effective “thank you” page accomplishes both of these, while providing further value.

The most basic example is from Kayak:

As you can see, it’s not even a page. It’s a simple popup which merely lets the reader know they’ve subscribed successfully.

While effective, Kayak is missing out on several opportunities. They could use a thank you page to build further brand awareness, ask for referrals and/or shares on social networks.

JetSetter does a decent job of this:

In this case, new subscribers are offered a $25 credit when someone they refer makes a purchase. It’s a smart business move which helps build their subscriber base through word of mouth.

However, let’s look at a really good thank you page. This screenshot is from Daily Worth, a daily financial newsletter for women:

New subscribers are welcomed immediately, and are asked to add Daily Worth to their emails safe list. Right below, there is a short but powerful video message from the founder who refers to Daily Worth as a “movement.” How’s that for branding?

The second half of the thank you page reinforces what to expect and asks readers to share Daily Worth with their friends:

As you can see, this approach strengthens branding, increases referrals and social reach… And the newsletter is growing 15% monthly because of it.

In second half of this series we will examine the final four elements listed earlier. Standby…!!

NB: This is a guest article by Adam Costa, co-founder of Trekity and Travel Blogger Academy.

NB2: Newsletter computer image via Shutterstock.

Related posts:

  1. Travel companies highlight revenue loss as biggest concern in online fraud
  2. How to pre-open a hotel [Part Two of Two - distribution, revenue management, sales]
  3. Part Two of Two: Hotel revenue management, meet reputation management
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Special Nodes is the byline under which Tnooz publishes articles by guest authors from around the industry.

Comments

  1. Carl Kim says:

    Thanks for this article, Adam. It is clearly laid out and you noted some great best practices.

    One thing I would add as a counterweight for consideration is that, like with anything on the web, a balance needs to be struck between the website’s need to ‘sell to’ (and I mean that in the broadest sense of the phrase, including sending out articles via the email newsletter) and being too obtrusive to the user’s experience. Let me explain. Email newsletter is (for the greater part) a marketing channel. Just because a user has shown a desire to sign up to a newsletter, that doesn’t mean that the website now has a carte blanche to market to the user. Therefore, jetsetters’s approach is indeed heavy handed (as you rightly point out) but before website owners take that approach I urge them to also consider whether doing so deter’s users from using the site at all. I know that if I happen to come across a site and the first thing on the homepage I see is a message twisting my arm to sign up with them, I won’t be too impressed. In fact I’ll be a bit more worried about what Im getting myself into. The site is asking me to trust them and hand over my email address, but I havent even had the time to see the site.

    Along similar lines, the Daily Worth example is novel in its approach with the use of video (great idea!) however, the second half of the thank you page to me feels like an assault of favours: “like us in Facebook, follow us on Twitter, let’s hooked up on LinkedIn, hey we’re on Tumblr, etc etc’ – If at the end of a first date, the girl grabbed me by the hand to meet her parents, her friends, uncles, unties, and grandma, I’ll be running in the opposite direction fast no matter how nice a person she seemed over drinks.

    Simply put my point is that as a website we musn’t overdo the selling. As with any form of marketing trust must be earned before we ask for favours, and trust takes time. In respecting our users a much more effective marketing takes place. It is also for this reason multiple types of emails are a good idea, not just for segmentation which is for the benefit of the website, but also to not bombard the user with emails about digital gadgets from Marks & Spencer when you’re only interested in women’s clothing from M&S.

    • Adam Costa says:

      Hi Carl,

      Thanks for your response. I completely agree that newsletters are more about building relationships than selling. Long term relationships = long-term profitability.

      Cheers,

      Adam

  2. Ian says:

    @ Adam- Thanks for the overview, you may also be interested to see how some travel businesses are offering opt in to newsletter box within their Google search results. Type Thomas Cook into your Google chrome browser and you should see what I mean.

    • Adam Costa says:

      Hi Ian,

      It’s an interesting idea, for sure – though I wonder how effective they are? Do you have any data on this?

    • Ian, I am not seeing the newsletter signup (just “Search thomascook.com” form). Maybe it’s only visible to certain IPs (I’m in France), or maybe that feature has been removed. Have you got any screenshots you can share and do you know how that is done?

  3. Dave says:

    I found this to be quite interesting and well thought out.

    I’m a hard sell in signing up to newsletters. Generally speaking if there’s content being published I’ve an interest in, then let me have it.

    Special offers just squeak by if it’s only every two weeks. Once a week stuff I usually unsubscribe from. It’s too much for me personally. Airline have been okay with offers once every two weeks. But I’ve yet to buy as the offers are invariably sold out. This make me want to unsubscribe.

    Likewise newsletters repeating the same thing every month or week. Offers, updates etc. I need more, I need a hook. An inside edge that’s not online. I can count maybe 3 newsletters/websites out of 500 + RSS feeds I subscribe to due to the above.

    • Adam Costa says:

      Hi Dave,

      Glad you liked Part 1 – Part 2 touches more on the effective use of email (and why over-selling is very, very bad for long-term growth).

      You raise an interesting point about RSS vs. email subscriptions. Like you, I skim through my RSS feed. But email? I tend to read the (lucky) few I’ve subscribed to.

  4. Psycho says:

    Trekity link is broken here and in the 2nd part.

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