Market Catalyst's appointment - following a four-agency shootout and P&O's acquisition by Swiss-based Kuoni Travel - comes as rival travel companies restart their branding offensive as the recovery in the industry gathers pace. P&O managing director Richard Willis said: "We are still looked upon as a premium operator, but we are trying to reach out to a broader market. We want to develop a brand or brands as we broaden our market base and in particular to reach out to the young experienced traveller."
Market Catalyst CEO Conrad Chiu said the agency would explore ways to effectively express the message and channels in line with P&O's market expansion plans. "P&O is broadening its base in line with changing market dynamics but we need to express this in line with its premium and quality image."
One channel that Market Catalyst will explore is the P&O Travel Club, which is looking to grow membership from the current 17,000 to 50,000 in three years. "As a communications channel, the club allows P&O to personalise its communications ahd services. We will be looking at strategic partners," said Chiu.
The two-year-old club is professionally run, has its own premises and has expanded from travel to include lifestyle-related events. "The club has been extremely successful. It's about the only club of its kind in the local travel business," said Willis.
In recent weeks, two of the market's top three travel agency advertisers have kicked off multimedia branding campaigns. Wing On Travel overhauled its brand identity and has launched a television blitz after the company was acquired by new owners.
Hong Thai meanwhile boosted its branding spend by 100 per cent over the same period last year, according to senior marketing manager Charlie Lok.
It used the additional spend to add outdoor to its mainstays of television and print. Lok said Hong Thai's 'Earn extra happiness' campaign by MK2 sought to build the company's positioning as a provider of happiness through initiatives such as its service and price guarantees, where it would refund the price difference in the event of fare reductions. "Although we did cut our adspend in the last two years, our share of voice did increase because media costs have fallen through rebates," said Lok.
TOP 3 TRAVEL AGENCY ADVERTISERS (HKDOLLARS 000's)
Oct '03 YTD Oct '02 YTD YOY %
Kwan Kin Travel Svc* 19,147 15,871 20.6
Wing On Travel Svc 11,308 10,386 8.9
Hong Thai Travel 10,850 11,920 -9
* Kwan Kin Travel Svc includes Kwan Kin Travel and Kwan Kin & Sun Energy
Travel. Source: Nielsen Media Research/based on ratecard.