In October 2023, the JR Pass affiliate program faced a significant challenge due to a substantial 69% price increase in the Japan Rail Pass. This, coupled with a necessary adjustment in commission rates (from 2% to 1% for JR Passes and 5% to 3% for regional passes), led to a decline in affiliate sales and overall program engagement. This case study examines the strategic response implemented to navigate these challenges and revitalize the program.
Challenges
Price Increase and Commission Adjustment: The substantial price hike in the Japan Rail Pass directly impacted affiliate earnings, making the product less attractive to promote.
Affiliate Hesitancy: Many affiliates were reluctant to promote the more expensive JR Pass, leading to a decline in overall sales.
Decreased Sales and Engagement: The combined effect of the price increase and commission adjustment resulted in a significant drop in affiliate-driven sales and a decrease in active affiliates.
KPIs
– Affiliate sign-up rate
– Affiliate sales growth
– Number of active affiliates
– Conversion rates
Our Strategy
Transparent Communication: Open and honest communication with affiliates about the price increase and commission changes was prioritized. The potential for increased earnings due to the 80% rise in tourism to Japan in 2024 was emphasized.
Regional Pass Promotion: The focus shifted to promoting regional passes as a more affordable and appealing alternative to the national JR Pass, capitalizing on the higher commission rate for these passes.
Relationship Building: Efforts were made to nurture relationships with affiliates through content sharing, cross-promotion, and guest posts, fostering a sense of community and collaboration.
Gathering Feedback: Regular check-ins with affiliates were initiated to gather feedback, address concerns, and identify opportunities for improvement.
Results
Sales Recovery: Despite the initial decline, sales rebounded as affiliates embraced the promotion of regional passes, which proved to be a popular and accessible option for travelers.
Continuous Growth: The affiliate program continued to grow, attracting new partners and expanding its reach.
Affiliate Trust and Engagement: Transparent communication and the introduction of regional passes helped rebuild trust and re-engage affiliates in the program.
Who We Worked With
– https://www.youtube.com/watch?v=7hPkkgr59Q8 and https://kenshoquest.com/2023-japan-rail-pass-a-comprehensive-guide-to-buying-and-using-it/
– https://www.nytimes.com/2019/03/30/travel/celebrating-platinum-week-in-japan.html
– https://www.theguardian.com/travel/2013/jan/04/30-best-bargain-adventure-holidays-2013
– https://elpais.com/elviajero/2010/12/16/actualidad/1292495645_850215.html
– https://www.tripadvisor.com.au/Tourism-g294232-Japan-Vacations.html