As the age old question has been asked for many years, would you rather have $1,000,000 today or a penny doubled every day for 30 days? If you’re in business, you know that the more sustainable and lucrative model is to take the compounding interest return of a penny doubled every day. Unfortunately, we don’t always see this approach in businesses today as many businesses want it all now with instant gratification.
Warren Buffett adopted this approach of thinking at the ripe age of 11 when he made his first investment with compounding interest in mind. Using cash he had earned in a paper route, he purchased his first stock. From 1941 to 1943, Buffet increased his net worth to $6,000 from his purchase of 6 shares at $38 a piece, 3 for himself and 3 for his sister. Like all businesses, Buffett did not diversify early on and made the young mistake of selling a stock at $40. A few years later after the sale, the stock shot up to over $200 which was a good chunk of change in the early 40s!
In the early years of Buffett’s major growth in business and massive yields from his investments, the mastermind was focused on diversification and investments that had historical trends of the compound interest effect. From there, Buffett used his knowledge of the markets to visualize the potential growth.
Where Does Buffett Fit Into The Travel & Tourism Industry?
Though the investments may be in a different industry, the returns have a likewise look when put into numbers. In 2016, the travel & tourism industry had a total global impact of 7.61 trillion dollars and a direct contribution total impact of 2.21 trillion dollars. Yes, that’s trillions with a “T,” and there are destinations, hotels, vacation rentals, attractions, restaurants, etc. who are all getting a piece of the pie. But the question is: are they getting enough and is what they are getting going to be obtained through the same channels as it has for the last 25 years or is it going other places? Traditional marketing still has its place, but not nearly as much as it used to. Digital marketing will allow a business to understand now and tomorrow with data that can allow them to scale and grow.
Digital Marketing Channels That Produce Short And Long Term Returns In The Travel & Tourism Industry
Acquisition cost is the cost that a business must invest to acquire a customer to do business with them. If you invest in Google AdWords, your cost could be several dollars per keyword which adds up to thousands of dollars to acquire a customer. In digital marketing, there are proven strategies to acquire these customers with much lower acquisition cost when marketing strategy investments are made across multiple channels with a strategy to day trade attention.
A business can create content and push it on one channel to get in front of a customer and spend $4.00 to obtain that customer while producing a good return for their business or they can use tools and resources to find these same customers on different channels with a acquisition cost of $0.69 all while also predicting where their next move is going to be and being there before the masses show up getting acquisition cost even lower!
How Can This Be Done Successfully In The Travel & Tourism Industry
The choice is simple. If you want to follow what others are doing, you will always get the results of other people. Then there is the first principles method approach in business. A method starting with the fundamental truths of the beginning and end. For example, IMEG, Internet Marketing Expert Group, has over 200 clients who have implemented this strategy along with us and have seen their business and numbers grow each year while on pace to continue year after year. These are real bottom line numbers that grow businesses—no fluff.
We are offering a FREE marketing analysis for your business to show you areas you could be capitalizing on – to speed up your growth and the size of your bank account! This way, we can show businesses just how much digital marketing can play a role in their business from micro and macro levels. It has time and time again improved the bottom line of businesses in the travel and tourism industry. We hope your business is the next one we take to the next level of growth and sustainability. Contact us today to get started!
