Case No: 2Thomas Cook’s Club 18–30 Introduction The Club 18–30 brand is owned by Thomas Cook Holdings Limited, London. The Club 18–30 unique holiday formula has remained more or less unchanged over the years and provides holidays for this specific age group of customers to the liveliest resorts in the central locations of major holiday regions. The company currently offers holidays to ten destinations across the Mediterranean and the Canaries, and flies from a number of UK airports. The company also offers a full range of accommodation from budget to all-inclusive packages. History of the development of the Club 18–30 brand Club 18–30 has been in existence for over thirty years, and was the first holiday company in the UK to specialize in holidays exclusively for young people. Club 18–30 was, originally, part of the International Leisure Group (ILG), which collapsed in 1991. The collapse of ILG forced Club 18–30 into voluntary liquidation, despite the fact that it had been a profit-making division. Five weeks after the collapse, the existing directors of Club 18–30 bought the trade name and reformed the company. This move received enormous support from the travel trade and overseas suppliers. The company was prevented from trading under the Club 18–30 name owing to Association of British Agents (ABTA) legislation; hence the re-formed company became known as The Club. The Club witnessed enormous growth during the 1990s from a small tour operator to a top ten UK operator. The ABTA granted the company permission to trade under the original branding, Club 18–30, in August 1994, and so The Club reverted back to the original name. Thomas Cook AG is now one of the biggest European holiday companies. Some facts and figures about the company are shown in Exhibit 2.1. The company continues to offer a ‘one-stop’ holiday planning experience to its customers by using a strong portfolio of brands that it has acquired. The Club 18–30 brand is positioned in the UK market to target the young holidaymaker. The Flying Colours Leisure Group became the owners of the Club 18–30 brand in 1995. This group was formed in November 1995 and was backed by a ￡40 million deal involving a major family tour operator, Sunset Holidays, and Club 18–30 were bought. The management team of the Flying Colours Leisure Group has extensive breadth and depth and, until March 1997, was headed by Jeremy Muller who was formerly Managing Director of Club 18–30. More recently Thomas Cook took over the company. The final article in the history of the brand was when the German tour company, NUR Touristic, and a new company, Thomas Cook NG, was formed in 2001. 1 Thomas Cook AG: facts and figures * Number two in the European leisure industry * 7. More than 100 000 passengers were carried in 1995. and has remained unchanged over the years of development. The Club 18–30 holiday concept The Club 18–30 holiday formula was the first of its kind in the UK. Regional flying from a number of airports ensures high profile . Club 18–30 carried over 100 000 passengers in 1995.2. Some facts and figures about Club 18–30 are shown in Exhibit 2. and available from over 6000 travel agents.2 Club 18–30: facts and figures Club 18–30 is the market leader in overseas summer-sun based youth holidays.The current business of Club 18–30 Thomas Cook aims to drive ambitious growth through successful market segmentation and positioning. The success of the Club 18–30 brand shows that well-targeted products using a portfolio of differentiated travel products can provide a successful business strategy in the competitive holiday market. _______________________________________________________________ Exhibit 2.5 billion euros in sales * 24 600 employees * 37 tour operator brands * 75 aircraft * 2400 travel agencies * 75 000 controlled hotel beds * operates in European and international markets * offers the customer ‘one-stop’ holiday planning ________________________________________________________________ Exhibit 2. The product is highly respected in the travel trade. The development of the Club 18–30 brand has been recognized as a dynamic response to the conservatism which has typified the UK market for overseas holidays. Club 18–30 also offered its clients a range of unique excursions and club reps help make up an unrivalled fun holiday experience for their clients.3.com in 2004. The range of countries on offer in the Club 18–30 range is shown in Exhibit 2. disco bars and clubs. The beach and pool are the main focal points of daytime activity. They chose the best resorts that stayed awake twenty-four hours a day and selected accommodation which was near to the centre of the action. however. . in Ibiza. San Antonio. Less than 100 new Clubreps are required. lots of pubs.image is maintained throughout the UK. Over 5000 applications are received annually for jobs as Clubreps. Constant evaluation of resorts ensures that only the most ‘happening’ of places makes it into the company brochure. The twin fun-spots of Magaluf and Palma Nova on Majorca were selected for their range of bars. Resorts on Gran Canaria and Tenerife were selected for their bars. The resorts which the company picks have a good variety of local colour and generally have two or three major venues or attractions close at hand. ________________________________________________________________ The company concentrates on attracting clients in the eighteen to thirty-year-old age bracket. was selected because it is well known as the dance capital of Europe and the area offers blue zone beaches. seven days a week. The Club 18–30 accommodation is often used exclusively for the company’s clients because it was recognized many years ago that it was preferable for the clients to have their own separate facilities and places to stay. The holidays were originally marketed as ‘a fortnight of Saturday nights’ and entertainment is available twenty-four hours a day. Resorts on the Greek Islands of Corfu. starts after dark. Crete and Rhodes were selected for their around-the-clock entertainment. The company selected resorts in an attempt to put together a Mediterranean party scene. with a suntan the priority for most clients on a Club 18–30 holiday. A recent addition to the product range is Cancun in Mexico. The company launched the idea of flexible booking in a ‘pick and mix’ approach with the launch of flexibletrips. Club 18– 30 contracts hotels and apartments in the liveliest resorts and in central locations. The main action of the holiday. English food and nightclubs. ______________________________________________________________ Exhibit 2. These are shown in Exhibit 2. The Clubrep is an important aspect of the Club 18–30 holiday. 2005).4. and encourages potential visitors to visit the website beonthelist.3 The Club 18–30 product range * Ibiza * Majorca * Tenerife * Gran Canaria * Cyprus * Corfu * Crete * Rhodes * Kos ______________________________________________________________ The clients prefer to stay in self-catering or bed and breakfast accommodation. so the Clubrep provides a vital role in making sure the clients have an enjoyable time. He or she will be with the clients pretty well around the clock and will act as a party organizer. The company subsequently withdrew ‘bar crawls’ from the product and tried to encourage customers to engage in more upmarket pursuits such as scuba diving and paintballing. The company hoped that this programme would dispel misconceptions about the hedonistic image of the brand. Many of the clients are travelling abroad for the first time. The ratio of Clubrep to clients is 1:25 because he or she is a social catalyst and the client’s best friend.com. personally taking the clients to the best bars and nightspots. Since the introduction of the Club 18– 30 concept there have been a number of competitors that have entered the market. and so the company ensures that there is a good selection of well-priced restaurants and cafés close to the accommodation. in 2002. . Greece. This campaign was developed by the advertising agency Saatchi and Saatchi in February 2005 based on the strapline ‘be on the list’. The company is now trying to improve the image of the brand with the use of an advertising campaign that communicates the ‘cool’ nature of the Club 18–30 holiday. radio advertising and the introduction of exclusive nightclub events across the country (Mintel. The campaign includes print advertising. The Clubrep concept became the focus for the Club Reps television programme based on Faliraki. The Club 18–30 client A summary profile of the Club 18–30 client is shown in Exhibit 2. . In low season. If a client feels that the holiday would be suited to them. withan average age of twenty-one to twenty-two. but varies between 40:60 and 60:40. year after year. The male to female ratio is generally 50:50. then they are welcome to go on the holidays. In high season. Lower age limits are enforced fairly stringently. even if they are older. but the upper limits are fairly vague.5. This is partly due to price as female clients tend to go when it is cheaper. The company has a record of customers coming back. this rises to three or four with groups of friends sharing apartments. Many customers go on a Club 18–30 holiday for their first holiday experience away from their parents. the average number of people per booking is two. and some female clients even bring their mothers with them. and it is also fashionable for them to get an early suntan in May or June. Most of the clients go on a Club 18–30 holiday with a friend of the same sex. The predominant age range for clients is eighteen to twenty-six. . dance and entertainment (their spending patterns reflect this) An 18–30 holiday is usually their first holiday abroad with friends. The original campaign objectives set by Club 18–30 were to increase bookings for summer 1995.6 The initial campaign spend was ￡250 000 which allowed the company to concentrate a month-long.5 The Club 18–30 client Average age: 21/22 Male: female ratio: 50 : 50 Socioeconomic group C1/C2/D/E Marital status: Single Lifestyle: In full time employment. The advertising agency designed a series of posters which incorporated controversial and suggestive statements which were designed to appeal to the target audience.___________________________________________________________________ Exhibit 2. It was designed to speak to the target market (seventeen to twenty-five year olds) via their type of media (forty-eight sheet posters) and in their style of language. Examples of the poster copy are shown in Exhibit 2. music. ___________________________________________________________________ The advertising campaign The Saatchi and Saatchi advertising agency. were appointed by Club 18–30 in October 1994 to handle the above advertising campaign for the brand. but without parents. raise the awareness of the Club 18–30 brand name and accurately reflect the nature of Club 18–30 holidays to the appropriate target market. The campaign which the advertising agency developed. and they have handled the advertising campaign since then. Influenced by fashion. London. highlighted the fun of a Club 18–30 holiday in a ‘tongue in cheek’ way. Resident in parental home. medium-weight campaign around the area where there was potential for growth. such as Newcastle. which is produced on an annual basis. The company decided to take positive action about . The awareness and public relations gained from this campaign made an essentially small budget work very hard. Research showed that the target group found the poster campaign humorous and appealing.6 The 1995 Club 18–30 poster campaign poster copy ‘It’s not all sex. and there is a strong emphasis on style and fun. The campaign commenced in January 1995 and for the 1995 season Club 18–30 enjoyed record bookings. Belfast and Bristol. The advertising campaign continued to make sure that the product remained at the forefront of youth culture. These magazines were chosen because they are read by the target audience. and other groups of people who would not enjoy this type of holiday. Early brochure design caused comment in the trade. The brochure. The posters were placed in major town centres where the largest population of young people in the 18–30 age range live and work. The brochure also incorporated advertisements for other companies that sell products targeted at the same market segment. in the light of HIV and AIDS. The brochure used ‘Flo’ and her ‘pensioner pals’ to introduce the products and it was designed to be humorous. and was particularly concentrated in catchment areas of regional airports. Can we interest you in a package holiday?’ ‘It’s advisable not to drink the local water. . As if . . Cardiff. Loaded and Company. The brochures are designed with this in mind. Manchester. The company decided to run an amended version of the campaign in 1996. sex. Birmingham. There had been criticism of the campaign and the Advertising Standards Authority (ASA) insisted that the Club 18–30 campaign should be vetted by themselves before it was run. but similar to the first campaign. The company decided to run a forty-eight sheet billboard campaign along the lines of the previous ‘Jolly Japes’ campaign.’ ‘Beaver Espa?a’ ‘You get two weeks for being drunk and disorderly’ ‘Discover your erogenous zone’ ‘The summer of 69’ ____________________________________________________________________ The campaign was nationwide. The campaign also portrayed the products in a true light and consciously discouraged families. other than Scotland and London. 30 per cent higher than the previous year. East Midlands. from booking a Club 18–30 holiday. is a major part of this.____________________________________________________________________ Exhibit 2. The company were criticized for their product range and their controversial advertising campaigns by some pressure groups. sex’ ‘Girls. but informative. but the posters urged the reader to look for the real advertisements in magazines such as Sky. It also allowed the company to design press advertisements which were much more explicit. This has meant that the company are seen to be acting positively for their clients in the face of major health concerns.this and although they did not consider themselves as moral guardians. The customer will also start to travel further afield as they become more experienced holidaymakers. and for that reason. The company has repeatedly targeted the clients with effective and eye-catching advertising. Club 18–30 recognized that young people may have sex on holiday. Club 18–30 responded accordingly and offered realistic advice on drugs and the laws governing their use overseas to clients before they travel. The company is now having to react to increased competition and changing consumer behaviour. which asked travel companies help educate young travellers in the dangers of casual sex overseas. Conclusions Club 18–30 is one of the best examples of a UK brand which has aggressively targeted a particular market segment and positioned their products to suit the behaviour patterns of their clients. The Future It is predicted that the market for holidays aimed at the youth market will grow as disposable income continues to rise among the group. Young people in the 1990s had been the first group to benefit from the government Health Education Authority’s advice on sex education. Club 18–30 was one of the first tour operators to respond positively to the government Health Education Authority’s initiative on drugs. . Condoms are not as reliably available in many Mediterranean resorts. More recent advertising campaigns have also been devised by Saatchi and Saatchi advertising agency. we believe that it is only responsible to take up these initiatives on our client’s behalf. unfortunately are widely available everywhere. which has been controversial enough to attract substantial media attention. The company also reacted positively to the government Health Education Authority’s campaigns on safe sex and drug abuse. Drugs. It is likely that the customer will start to demand more independently designed holiday packages with an increasing emphasis on adventure based activities. 2005). Astatement by the Club 18–30 Managing Director. the company reacted positively to the government Health Education Authority’s initiative of 1991. and we have 30 years of experience in dealing with this. Although we have no wish to set ourselves up as moral guardians. Club 18–30 included information on safe sex and protection within every ticket wallet. as they are here. Everybody knows that holidays are a time of romance and excitement. We believe it is important to be proactive on these issues. An increase of bookings via the Internet is also predicted to be a feature of the market (Mintel. they thought it would be sensible to reiterate the ‘safe sex’ message wherever possible. Stuart Howard. The company also provided confidential supplies of condoms to clients for their Club 18–30 holiday The government Health Education Authority sought to address the problem of drug abuse among young people in 1997. in February 1996 emphasized the point. 2. Discuss the ways in which club 18-30 has overcome this potential problem. . Explore the dilemma which a company.30 has been very effective in designing holidays which suit the lifestyle of their target clients. such as club 18-30 can have when it is trying to design effective and appealing advertising campaigns without offending society at large. Discuss the ways in which club 18.Discussion Points 1.