This time Wotif are inviting Kiwi accommodation suppliers to offer an exclusive deal to fit one of the following price categories:
- Under $100 – Sweet as savings
- $100 to $200 – Cheap as chups
- $200+ - Pretty flash
The broad tariff bands should be a little less provocative amongst travel industry circles that criticised the "through the floor" sub-$99 deals and 50 percent-off stimulus promotions that were offered when Wotif and Tourism New Zealand joined forces twice last year.
Interestingly, Wotif will not be using paid MSM for this promotion. There is no mention of supporting radio or newspapaper advertising that have been used in the past.
Promotional support will be by Wotif newsletters sent to its vast database of clients, website buttons on the Wotif.com website, press releases, use of social media such as Facebook and Twitter.
Tourism New Zealand will be assisting with promotion and links on www.newzealand.com.
The dynamics of Tourism New Zealand again partnering with Wotif is interesting. On one hand Tourism New Zealand elevates New Zealand accommodation that has been "Quality Assured" by Qualmark NZ Ltd and on the other hand they could be perceived as assisting an Australian Online Travel Agent promote "unlicensed" accommodation. Does this worry us? Not at all, but we think there is a certain amusing irony.
So what about the parochial issues? Shouldn't a Kiwi-owned OTA be partnering with our taxpayer funded tourism marketing agency? There seems to be no reason why not, however it is difficult to pick a Kiwi winner that could better Wotif's reach into the Australasian market.
It has been argued that Wotif's successive promotions are assisting to normalise expectations of discounting in the accommodation industry. We make the observation that it is the accommodation provider that is doing the discounting, not Wotif.
Accommodation providers should be able to set up a tariff structure matrix that can offer good value at different market points without dropping their pants. Using OTAs to market inventory is one of many marketing methods that can give excellent ROI.
Hopefully we can see the end of the deep discounting that was highly visible on OTAs last year.
