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by Bruce Tepper
As you look through this web site, you may be thinking; "What a fabulous destination - it's got everything…glamour, history, scenery, recreation, etc. It's the kind of place my clients would love and they'd love me for sending them there. It's too bad they probably can't afford it."
The reality is…they can afford it! Any client considering Europe, a cruise or offshore destination can afford Monaco. Monaco's hotels have packages that offer all that glamour, excitement, scenery and history at very competitive prices with destinations that offer far less. From the deluxe world-class resorts in Monte Carlo to the more modest inns and hostelries around the harbor, Monaco offers something for everyone.
Though all travelers are concerned with the cost of their vacation, they're more concerned with getting value for money. If price were all that mattered, there wouldn't be any cruise lines, deluxe hotels and elegant resorts. People would be flocking to the world's war zones to take advantage of the great deals they offer.
As your clients look through brochures, don't most ask about the difference between the lowest priced hotel or cruise cabin versus higher categories? Don't most purchase something in the middle because they feel it offers better value? The reality is, everyone wants value for their money and no one wants to pay too much. Monaco offers tremendous value for the money.
- Centrally located for all the Riviera
- Easily accessible
- Extreme culinary appeal and diversity
- Compact size for easy touring and exploring
- One of the safest places on Earth
- Spectacular variety of sights and activities within a very short ride
- And it's every bit as glamorous as it appears in television and film.
That's real value for your clients…and value is what your clients want to buy. As professional agents, it's important to focus on providing clients with a fabulous experience that exceeds their expectations. Monaco will make you a hero. One visitor described it as "Disneyland for adults, only everything is real." So focus on the value for the money when you sell travel. You'll thrill a lot of clients with your very sound advice.
Though Monaco meets the needs of many markets, let's look at two natural choices for this fabulous destination and how to approach them: The affluent traveler and the special interest group.
The Affluent Traveler
An ideal market for many travel agencies
Let's distinguish between affluent and upscale. Affluent means they have a high level of wealth. Upscale means they live well, whether they have the money or not. Both categories represent excellent potential for your agency, however, we'll look more at the affluent segment as it has been growing very rapidly in recent years.
This is a market that is well-educated, generally over 40 years of age with strong interests in golf, tennis, fine wines and fine dining, cultural events and luxurious international travel. They want to live as well or better on the road than they do at home.
Here are seven strategies you can apply to capture more of this exciting market:
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1. Don't be intimidated by what they want to spend and try to sell down to a lower priced product. Many see great value in the luxury and attentiveness that comes with the very best so give them what they want.
2. Offer very flexible service. Don't try to fit them into packages…try to build the trip of their dreams.
3. Provide a high level of personal attention and customization in delivering a unique and wonderful experience.
4. Know your products! Be prepared to work with this market to find the ideal choice for them. |
5. Use a consultative sales process that allows you to tailor what you present to the client based specifically on what they tell you they want.
6. Take an interest in what interests them such as art, music, literature, tennis, golf, fine wines, etc. You need to communicate as an equal to build rapport.
7. Be mature. As this group is generally over 40, they may not go for the latest hip-hop hit or know what clubs are in. Treat them with respect. |
Special Interest Group Market
Here’s a market segment that lets you set your own price and margins based on creating a unique travel experience that is not generally available from others.
Let’s look at the steps to building business in this market:
Choose a basis for your group that matches your own expertise. That could include hobbies, sports, members of organizations or just about any other facet where people would want to travel together. How about a historical tour of the Riviera conducted by a college professor in your community? There’s no limit on what kind of groups you can create.
Find a group leader or "pied piper"-someone knowledgeable about the subject around which your group is built and someone who can attract others to want to go. A local television personality hosting a visit to the Monaco Television Festival might draw very well in your market.
Develop a marketing plan to promote your group using your own resources and those of the group leader. Who’s your target audience and what’s the best way to reach them? If it’s an antique-oriented trip, you may want to advertise and market with local antique stores.
Assemble your group itinerary with a focus to things you can do that would be unique and special for your group such as visits to sites of particular interest or the chance to talk to local experts on site.
The Monaco Government Tourist Office can help you with these markets and many others.
Value for Money: What Your Clients Really Want
What do your clients want when planning a vacation?… a great time, romance, adventure, culture? It depends on the client of course but one thing we know for sure…they all want a good deal. They all want value for money!
Let's clear up one common misconception: value for money and lowest price are not the same thing. If your automatic response is to go for the lowest price, you're doing your clients and yourself a disservice. No one wants to pay too much, however, that's not the same thing as buying the cheapest trip. Agents should never assume that the lowest price will make the sale or even be the basis for making a decision as to what to buy.
A better approach is to practice our selling skills and start by determining what the client needs at a particular time. Yesterday's student traveling on a shoestring budget can be tomorrow's honeymooner wanting the trip of a lifetime. Same person - different needs at different times.
The only situation where lowest price always wins is when the product is seen as a commodity. Point-to-point airline tickets for a highly flexible traveler are a commodity. A hotel room for three nights in one destination is a commodity (if the traveler knows the destination and the hotel). That's the kind of business that goes to the Internet or an automated voicemail system.
Travel agents are in the business of selling advice and service, not commodity products. Most vacations are not viewed as a commodity - they're viewed as an experience to be savored. Planning a great vacation requires product and destination knowledge as well as the ability to put together the right products for the right customer for each and every trip.
If in fact, every traveler were only concerned about price, there would be only economy class airline seats to sell, subcompact cars to rent and youth hostels and budget motels to stay in. The travel and tourism industry obviously offers a much wider choice than that and there's a good reason - to many people, those better products represent a better value.
Think about the last time you went shopping for a television, a car, a book or anything else. If it's an expensive item, you probably did some research. If it's an inexpensive item, you may have bought it on impulse. It doesn't matter how you bought the item - catalog, Internet, retail store or from a friend, you did some evaluation before making a decision. Did you buy the cheapest television or car; or did you ask about the features and make your decision based on the value you got for your money? Did you buy the cheapest novel or how-to book or did you try to determine which one would be most interesting and useful to you? If you're like most of us, you chose what seemed to offer the most for the money... even if it was more expensive! That's exactly what your clients do when they buy travel.
Monaco is a great example of value for money. It's certainly not the cheapest destination to visit in Europe, however it continues to attract visitors from all over the world when there are less expensive options relatively close by. It does so because of the value it offers. It presents an image of glamour, a fabulous setting, a rich cultural history, lots of activities, etc., all of which add value. Even though nearby destinations are less expensive, they don't represent the same kind of value to the consumer
Value for money is always a key decision factor. How about the traveler who wants a blend of beautiful beaches, gambling and fine-quality cultural activities? He or she might combine a visit to Las Vegas, San Diego and San Francisco or New York and Atlantic City. Monaco offers all three in one location. By the time you add up the cost of two or three destinations as well as the time and inconvenience, for many Monaco could well be the better value.
Monaco is a principality of royalty, opulence and grandeur. As a result, it is often perceived as far more expensive that it really is. That factor alone makes it an outstanding value! When you clients see what it really costs, they're often amazed at just how affordable it is. Recognizing that value for money is a key decision-making factor, Monaco might be 10-20% higher price and still seen as an extraordinary value compared to a very "ordinary" destination. Even though the "ordinary" destination is 10-20% less in cost, it may be see as 40-50% less in value to the consumer.
Let's look at the role price pays in our clients decision-making process. Clients will spend what it takes to get the kind of experience they want…as long as it's a good value.
1. The first step in determining value is comparison-shopping. How does this option compare to others and for "me", is it worth the difference?
Think about the last time you showed a client a tour brochure. If it offered a choice of 3 or 4 hotels what did your client say…"I'll take the cheapest? Not likely! It's far more likely they said something like, "what's the difference between these hotels?" If one is $30 a night more but in the client's mind, vastly superior, they may consider it a much better value for the money. This is how all-inclusive properties and cruise lines position their product. they charge more than their "non-inclusive" competition but focus on the value of a complete meal plan. To some, it's well worth the difference. Others may prefer having more options even at a higher total cost.
2. Prices of any product are not determined in a vacuum. Price is only one of the 4 "Ps" of marketing and it is greatly influenced by the other three:
A. the Product itself - its quality and its image
B. how the product is Promoted and marketed
C. the Place or distribution channels used to sell it
All four "Ps" interact for every product and service; including travel. When you compare destinations like Monaco, Atlantic City or Dubai, do you have the same image of each? All offer beaches and casinos, however each is priced differently and reaches a different audience. The Monaco or Dubai customer would probably have little interest in Atlantic City as an alternative... even though it will be considerably less money. The Atlantic City customer may however, step up to Monaco for that special occasion.
3. We're far more concerned about price than our clients. Vacation travel is a special experience. It's not something people do routinely. For many, vacations are a major investment in expanding their knowledge, finding adventure, relieving stress or any other good reasons to explore the world.
When someone is seeking an experience, the lowest cost choice may be a very poor value. A more expensive choice may represent a far better value.
If you take pride as an agent in giving your clients the best possible experience they can have on any trip…
Take the time to find out what's important to your clients individually. Don't assume they always want the cheapest choice available. Focus on the value to the specific client, not the cost.
Present choices and explain the benefits offered by the more expensive options. Frequently they're a much better value.
Don't let your own feelings hamper the selling process. Your clients may have concerns that mean little to you but are vital to them.
Focus on the value of the services they receive from you and the experience you're going to provide... the kind of vacation that people dream about taking and remember for years to come.
About the Author:
Bruce Tepper of Joselyn, Tepper & Associates, Inc., is a noted speaker, trainer, consultant and author to the travel, meeting and incentive industries.
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