Presentation on theme: "1 Emerging Destinations How to Sell Emerging Destinations in Dollars and Cents Fred Gebhart – author, DS East Asia Contributing Editor, Travel Professional."— Presentation transcript:
1 Emerging Destinations How to Sell Emerging Destinations in Dollars and Cents Fred Gebhart – author, DS East Asia Contributing Editor, Travel Professional Contents copyright 2007 by Fred Gebhart All rights reserved
2 The Reporter’s View Who What Why Where When How
3 The Travel Retailer’s View What is an emerging destination Where are emerging destinations Why sell emerging destinations When sell emerging destinations Who buys emerging destinations How to sell emerging destinations
4 To Sell or Not To Sell?
5 What is an Emerging Destination?
10 You’ll Know an Emerging Destination When you See It!
11 An Emerging Destination Is: unknown to your clients exotic to your clients adventurous to your clients on the edge to your clients an experience, not a trip something to boast about
12 An Emerging Destination Is Not: mass market easy to uncover easy to package easy to get to easy to move around easy to forget
13 Where are Emerging Destinations? Beyond your client’s comfort zone Familiar to some Eastern Europe, Africa, Middle East, Latin America, Asia- Pacific
14 Focus on Southeast Asia Cambodia Laos Myanmar Northern Thailand
16 The Nonstop Myth Bangkok Singapore
17 Getting There Direct Japan Korea Taiwan Bangkok Singapore Kuala Lumpur
18 Getting Around Air Ground Water
19 Getting Information Tour operators Wholesalers Trade shows
20 Tour Operators Pro Preconfigured product Add pre & post modules May offer exclusive access Name recognition Familiarity
21 Tour Operators Con Preconfigured product Pricing limits profit potential Image Name recognition
22 Wholesalers Pro More flexibility Brand your own product Easier to add pre & post Better margins Special handling
23 Wholesalers Con Need more product knowledge Time investment No brand support Your name on the line
24 US Contacts Can Help Exotissimo Indochina Services
25 US Contacts Can Help Exotissimo North America Lee Marona, President Tel:
26 US Contacts Can Help Indochina Services Paul Tomash, Managing Director Tel: services.comhttp://www.indochina- services.com
40 Holiday Crowds Christmas/New Year Chinese New Year Buddhist New Year Golden Week Japan May Golden Week China Jan/Feb, May, Sept/Oct—maybe!
41 Why Emerging Destinations are Profitable Dreams Sell
42 Why Emerging Destinations are Profitable Clients don’t know the product Most travel agents don’t know the product Suppliers lack infrastructure to sell direct Websites offfer basic products
43 Showcase Your Expertise Long haul travelers are nearly three times more likely to buy from a physical agency than the typical leisure traveler. Henry Harteveldt, VP Travel Research, Forester Research
44 Showcase Your Expertise “I can sit down with one client and sell a $20,000 booking or I can sit down with a hundred clients for a $2,000 cruise. I can sell as much in half the time, a quarter of the effort, and less guff from clients over expectations the mass market products can never meet. The profitability is there and you can almost name your own price.” Don Kiselewski, Palm Beach Gardens Carlson Wagonlit Travel Travel Professional April/May 2006 pg. 22
45 Who Buys Emerging Destinations? Upper and lower market segments Don’t write of backpackers Don’t write off the rich Don’t count on the rich Aspirations rule
46 Emerging Destination Travelers Want to sightdo, not sightsee Prefer education to entertainment Collect more experiences than souvenirs
48 Emerging Destination Travelers Are affluent, not rich Wealth = net worth, income Affluence = spending habits
49 Pick Your Client Boomer couple, $5 million income, hate to waste money on transient pleasures Boomer couple, $50 K income, happy to run up credit card bills to have fun, impress the neighbors
51 Niche Markets by Passion BeachesEcotourismWildlifeCasinos LuxuryFood & drink HoneymoonRural Hideaways TrainsSelf-driveCruisingAdventure CultureVolcanoesMountain climbing Big Cities HistoryNightlifeEthnic & Religious Hiking
52 Niche Markets by Culture Chinese Thai Indian Khmer Western influences: Spanish, Dutch, French, British, American Buddhist, Confucian, Islamic, Animist
53 How to Sell Emerging Destinations Sell the dream
54 How to Sell Emerging Destinations Not the reality
55 Identify Potential Clients Think dreams, not plans Think affluence, not income Segment current client base Upscale hotels More adventurous travel More international travel
56 Look for Affluence Locally Business owners Self-employed professionals Rising corporate execs Recently retired
57 Become the Local Expert Search out local media coverage Pitch your travel expertise Host a radio show Speak Donate a trip or consultation
58 Build Third Party Endorsements Friend, family member84% Business associate66% Guide book54% Travel agent51% Media reports44% Website32% Brochure30% Source: CLIA
59 Identify Client Dreams The Great Explorer Exotica Explore cultures Bragging rights Lap of luxury Roughing it
60 Identify Client Needs Newbie or old hand? Crowds or solitude? Urban or rural? Pampered or independent? Exotic or familiar?
61 Recommend Products
62 Recommend Products You cannot match client and product unless you know both You must articulate benefits based on the client's dreams and needs
63 Objections Questions about climate, crowds, culture, language, etc can seal the sale Distance and travel time Value, not price If you've sold into the dreams and met the needs, there may not be any objections
64 CTSS: Close the Sale, Stupid Assume “Which credit card would you like to use for the deposit?" Choice “Is it better to leave in the morning or the evening?" Summarize "This destination has everything you're looking for: it's off the beaten track but relatively easy to get to, exotic, great food, plenty of places to explore, and none of your neighbors have been there."
65 Build Relationships and Sales Track client preferences, likes, dislikes, and “I wish I could haves” Send regular updates by , postcard, newsletter and phone with personal recommendations Destination seminars Help clients enjoy favorite experiences in a new destination
66 Let Me Know How I Can Help Fred Gebhart Author, Destination Specialist: East Asia Contributing Editor, Travel Professional Tel: