The Marketing Profile: Andrew Shelton of Virgin Holidays

LONDON - It is difficult to tell whether Andrew Shelton, marketing director at Virgin Holidays, is enjoying life in the spotlight.

Andrew Shelton, Virgin Holidays
Andrew Shelton, Virgin Holidays

With his blonde hair, deep tan and casual posture, the 36-year-old displays a confident exterior. However, he spends much of our interview gazing out of the window, occasionally doodling on a notepad.

Perhaps the marketer is showing signs of nerves about his brand's most recent ad campaign, which swiftly gained notoriety. The promotion, intended to encourage consumers to book early, displayed special offers to destinations including Jamaica, Antigua and St Lucia.

However, the ads incurred the wrath of Lastminute.com group managing director Simon Thompson due to its use of the URL dontleaveituntilthelastminute.com, which forwarded users to Virgin Holidays' main portal. Thompson claimed the ads infringed upon his brand's copyright.

Lastminute.com subsequently alleged that Virgin agreed to pull the campaign - a claim that Shelton vigorously denies. He points out that the press and outdoor executions refer to holiday offers which ended on 14 July, and says the campaign was never intended to run any longer. Nonetheless, Virgin Holidays will not be using the mock URL again.

'The campaign had nothing to do with Lastminute.com - it was all about the benefits of booking early,' he insists.

Shelton reveals that he received personal praise about the campaign from Virgin group founder and chairman, Sir Richard Branson. The activity carries the classic hallmarks of the Virgin brand: advertising designed to maximise PR exposure, a direct swipe at a rival and brand positioning as a champion for consumer benefits.

Shelton has clearly bought into the Virgin ideology, claiming it was one of the main reasons he joined Virgin Holidays from British Airways three years ago.

'I think the Virgin brand is one that marketers aspire to have under their stewardship,' he says. 'It gives you a licence to use those fun brand strengths. I want us to have the Virgin DNA through everything we do.'

Yet Shelton does not possess the extrovert characteristics of so many Virgin directors. Instead, he is measured and quietly-spoken, often pausing for some time before giving brief responses. In short, he is not the sort of marketer one would expect to sign off an all-singing, all-dancing, camp TV campaign starring paparazzi favourite Charlotte Church.

Shelton admits that the primary motivation of last year's ads, which were Virgin Holidays' first foray into TV advertising, was to boost brand awareness. 'When I joined Virgin Holidays, I don't think we were as familiar as we could have been,' he says. 'The competition is very broad, with big travel agents, online players and established tour operators. We needed to create some talkability. The campaign worked perfectly with Charlotte - it required the celebrity to have some credibility as a singer, and she gave us a bit of punch.'

According to Shelton, Church was never brought in to become the official face of Virgin Holidays on a permanent basis, and is likely to be phased out of all marketing activity over the coming months. She will not appear in the brand's forthcoming TV campaign, due to break next month.

Virgin Holidays' marketing will, however, continue to use the company strapline 'Ask for the world' and focus on its range of customised holiday products. Earlier this year, the brand rolled out several press ads promo-ting additional services, such as 'Check in, chill out', where, on the consumer's day of departure, Virgin Holidays staff will check them into the airport, issue boarding passes and take meal requests.

'We have to be absolutely clear that if you book early, you can get these extra benefits,' says Shelton. 'It is not necessarily about being the cheapest on the day. I don't think customers will settle for being told what to do and what to buy.'

A crucial part of this ability to offer consumers more tailored products is Virgin Holidays' growing retail presence. The brand operates 15 sites within branches of Debenhams and Tesco Extra, with plans to open another 15 in major cities including London, Leeds, Manchester and Birmingham over the coming year.

Branches offer the full range of branded Virgin Holidays products, and Shelton claims that many consumers still prefer to deal with agents in person.

'They have that opportunity for a face-to-face meeting with a consultant, and that is crucial,' he says. 'People are being careful with money, and want one-to-one contact. They want to have the ability to speak.'

The strategy appears to be working so far, with sales holding up well in a tough, recession-afflicted market. Virgin Holidays claims that, despite bookings of winter holidays struggling, sales of summer 2010 holidays are up 26% year on year.

 'Bookings for 2010 are where we want them to be,' he says. 'People, especially families, still want to book in advance. The two-week break is the mainstay of someone's holiday, and the one they won't give up.'

Once consumers have chosen to travel with the brand, Shelton's marketing team can get on with the task of convincing them to return, he says. 'It's brilliant to get people into the brand and book with us, but the other key focus is on keeping them happy and gaining that consideration when they book their next holiday. Once you've got them on the second holiday, then the repeat purchases kick in.'

A key challenge for Shelton will be retaining his marketing budget at a time when Virgin Travel Group is making significant cuts. In March, Virgin Holidays revealed it would be making 40 of its 600 UK employees redundant, while earlier this month its sister airline, Virgin Atlantic, confirmed it will be axing up to up to 600 jobs and 10% of its services over the winter season.

Shelton admits there is pressure on him to be accountable and convert Virgin Holidays' marketing presence into sales, but insists it is vital that the brand maintains its public profile. 'Although above-the-line may spike around the three big booking windows in January, early summer and September, we are going to be out there all the time. You need to be in the game and keep the brand in the market when customers are booking,' he concludes.

With big-hitting rivals Thomson, First Choice and Thomas Cook all making their presence felt with heavyweight TV campaigns, Shelton is right to believe his brand cannot afford to slip back into relying on cheaper search techniques. He needs a long-term strategy in place to take on these brands - and there is nothing to be gained by leaving it until the last minute.