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Aviation History
1961
1961 - 1584.PDF
688 FLIGHT, 2 November 1961 Cunard Eagle Western . . . Left, chief executive of Cunard Eagle's western hemisphere division is Mr M. A. Guinane, based in New York. Right, general manager for Bermuda and the Bahamas, and Mr Guinane's deputy, is Mr H. P. Snelling, based in Bermuda It only stands to reason that another British carrier would help tocapture a bigger British share. The people that travel with BOAC will continue to travel with BOAC. I would say that non-Britishairlines are carrying a proportion of the potential British market. About 70 per cent of the US-UK market is comprised of US citi-zens, and we intend to develop that market." These remarks typify, one might say, the airline's broad strategicapproach to business. What about the tactics that actually get the results? The Viscounts have 2 by 2 seating; this unique competitivefeature is made the most of in all promotional material. There is a propeller discount fare of $95 on the New York - Bermuda route,applicable if New York departures are after 9 p.m. The airline has made the most of this by catchily promoting its services asSunset Flights. Similarly, the airline's early morning discount- fare services on the Nassau - Miami route, when they applied, werecalled Early Bird nights. In the UK such fares would be called "off-peak night tourist," or something; catchy names like Sunsetor Early Bird can do much to alleviate the confusion which promo- tional-fare structures create. The airline believes strongly, small though its staff is, in main-taining close personal contacts with pamphlet-choked travel agents. It puts out pamphlets too, but tries to make them refreshinglyunusual without being gimmicky. Personal contacts are maintained with the top twelve US travel agents and package tour wholesalers—-in particular with the three who produce 60 per cent of the Bermuda business—Thomas Cook, American Express, and Haleys.The company's sales people also believe in trying to gain the respect of agents by always giving them the whole picture. For example, when a new promotional New York - Bermudaeight-day excursion fare was introduced, Cunard Eagle sent a letter to agents explaining its general applicability, and not justits applicability to CEA. The respect of one recipient at least was gained. One of the largest hotel corporations in America took thetrouble to write: "Congratulations on an excellent piece of public relations and a good push for Cunard Eagle. Your letter unques-tionably eliminates confusion in the various mailings by the various airlines. Considering the way some have printed their air fares Iam surprised anybody gets to Bermuda!" Other examples of CEA commercial tactics are worth recording.'"We will always take the time to help," said Mr Garrity, '"even if there's nothing in an enquiry for us." Again, Cunard Eaglegot the agreement of Bermuda hotels to give visitors arriving after 10 p.m. on stays of seven days or more complimentary first nightaccommodation. Pursuing those many Americans who like to go to Bermuda for golfing holidays, the airline "got a corner on thismarket" by offering to carry golf bags at the nominal rate of $2 a time. The competition followed suit, and the IATA rate is now$4 for everyone, but as Mr Hudson remarked, "golfers still think of us as the promoters of golfing holidays." About 15 per cent ofthe traffic to Bermuda is comprised of honeymoon couples, offering the airline a special opportunity—-it gets a laugh—for promotionof 2 by 2 seating in its Viscounts. Cunard Eagle was, I was told, the first to promote the air/sea market between New Yorkand Bermuda, in an effort to tap new surface-travelling business. Having been onboard the Queen of Bermuda (now in the UK for a refit and a single-funnel mod) Ican appreciate the appeal to Americans of gracious, spacious sea travel. Mr Hudson said: "We try to do the un-usual within the confines of the regulations. With a small company, a small fleet, asmall staff and a small budget you can't afford to scatter your buckshot." Thus,last year, the services from Bermuda to Montreal andWashingtonwere temporarilysuspended to enable concentration of sales They came to a city—view of America's most fabulous holiday resort, Miami Beach, as seen from the flight deck of a morning Viscount service (Capt Vivian Robinson) from Nassau effort on New York. About 80 per cent of the air businessto Bermuda comes from within 300 miles of New York City; of this 60 per cent comes from the three main travel agents, and 20per cent from interline sales. The Al Hudsons and Bob Garritys of Cunard Eagle are great believers in market research, an activity—unusual in small airlines with limited staff—which Mr Hudson describes as "extremely important." I was shown by Mr Garrity a map of the USA showing, stateby state, whence and in what numbers all US - Bermuda traffic originates. New York generated by far the most in 1960—32,281,followed by Mass with 10,758, and New Jersey with 10,459. (Idaho produced eight.) This map was cross-referenced with tablescomparing one year with another. One whole day each week is spent by Mr Hudson in analysing the sources of the previous week'ssales results, by looking at US Passport office figures, interline sales, agency sales, and the reservations department's reports. At a later stage in my tour, in Miami, I got the impression thatnot all the airline's promotional ideas are monopolized by the sales people in New York. When Cunard Eagle's mid-Atlanticservice from London to Bermuda and Nassau was extended to Miami, Cunard Eagle's man in that remarkable city, Mr WilliamKinnear, an American, got hold of a London bus from some- where and had it driven round Florida for two weeks with twostewardesses on board to promote this new US gateway to London and Europe. The response was tremendous; yards of press cut-tings, dozens of civic receptions, and 26 radio and 14 TV broad- casts. The tour cost $3,500, but sales of 104 London - Miamitickets (at more than $400 a time) were pinpointed as having directly resulted from the trip. When the tour was proposed somepeople thought that the idea was corny, and not altogether con- sonant with the dignity of the Cunard name. But, as Mr Kinnearremarked to me, "it netted x dollars and y cents." And, as some- body else added, aren't there fruit machines on board the QueenElizabeth? About £95,000 a year is spent on promotion in CEA's westernhemisphere markets. This budget covers advertising, publicity, leaflets, counter cards, etc. The company employs an Americanadvertising agent. I asked Mr Hudson the relative productivity of the media in which the airline concentrates its advertising buck-shot. First, he said, newspapers, particularly the New York Times travel section. Certain magazines are, he feels, as productive asnewspapers—New Yorker, Sports Illustrated, Holiday, Time, for example. TV is "extremely important," but so expensive in NewYork that "everyone has looked twice at it." A sum of £95,000 a year is not much to have available for pro-motion, a lot of money though it may be in Cunard Eagle's western hemisphere budget. It doesn't get the airline as well known asPan American; as Mr Garrity said, babies are born saying "Pan American." But, thoughtfully spent, it all helps; and anyway,there must be some of Cunard's competitors who would say that babies are born saying "Cunard." [In the course of half a dozen flights with Cunard Eagle the author saw for himself the end-product of the commercial effort. We hope to record his impressions in a later issue.]
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