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1 Emerging Destinations How to Sell Emerging Destinations in Dollars and Cents Fred Gebhart – author, DS East Asia Contributing Editor, Travel Professional.

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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 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 2 The Reporter’s View  Who  What  Why  Where  When  How

3 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 4 To Sell or Not To Sell?

5 5 What is an Emerging Destination?

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10 10 You’ll Know an Emerging Destination When you See It!

11 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 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 13 Where are Emerging Destinations?  Beyond your client’s comfort zone  Familiar to some  Eastern Europe, Africa, Middle East, Latin America, Asia- Pacific

14 14 Focus on Southeast Asia  Cambodia  Laos  Myanmar  Northern Thailand

15 15

16 16 The Nonstop Myth  Bangkok  Singapore

17 17 Getting There Direct  Japan  Korea  Taiwan  Bangkok  Singapore  Kuala Lumpur

18 18 Getting Around  Air  Ground  Water

19 19 Getting Information  Tour operators  Wholesalers  Trade shows

20 20 Tour Operators  Pro Preconfigured product Add pre & post modules May offer exclusive access Name recognition Familiarity

21 21 Tour Operators  Con Preconfigured product Pricing limits profit potential Image Name recognition

22 22 Wholesalers  Pro More flexibility Brand your own product Easier to add pre & post Better margins Special handling

23 23 Wholesalers  Con Need more product knowledge Time investment No brand support Your name on the line

24 24 US Contacts Can Help Exotissimo Indochina Services

25 25 US Contacts Can Help Exotissimo North America Lee Marona, President Tel:

26 26 US Contacts Can Help Indochina Services Paul Tomash, Managing Director Tel: services.comhttp://www.indochina- services.com

27 27 Trade Shows Leisure vs. MICE

28 28 Trade Shows IT&CMA—October ATF—Jan/Feb PATA Travel Mart—Sept ITB—March ITB Asia—Fall, 2008

29 29 Combo Sales are Key On the edge + luxury Adventure + civilization Emerging destination + mature destination New + familiar

30 30 Why Sell Emerging Destinations?

31 31 A Tough Sell  Clients don’t know the area  You don’t know the area  Information gap  Long, drawn out travel  Poor infrastructure

32 32 Fear of the Unknown

33 33 Is it Healthy? Photo copyright Christine Potter

34 34 Is it Healthy? Centers for Disease Control and Prevention (CDC) at.htm at.htm World Health Organization (WHO)

35 35 Is it Healthy? International Society of Travel Medicine (ISTM) The Traveler’s Medical Guide Gary Fujimoto, MD medguide.html

36 36 A Money Machine

37 37 A Profitable Sell  Higher dollar value per sale  Higher commission rate  Higher yield  Higher visibility to clients  More loyal customers  More repeat business

38 38 When to Sell Emerging Destinations? Anytime!

39 39 Seasons  Winter cooler, drier Nov—Feb  Summer hotter, wetter Apr-- Sep

40 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 41 Why Emerging Destinations are Profitable  Dreams Sell

42 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 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 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 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 46 Emerging Destination Travelers  Want to sightdo, not sightsee  Prefer education to entertainment  Collect more experiences than souvenirs

47 47 Emerging Destination Travelers  Want unique experiences  Want authentic experiences

48 48 Emerging Destination Travelers  Are affluent, not rich  Wealth = net worth, income  Affluence = spending habits

49 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

50 50 Finding Potential Clients  Beach & resort lovers  Active & adventure travelers  Eco-travelers & nature lovers  Culture collectors  Sybarites & backpackers  Divers, snorkelers & sailors  Honeymooners

51 51 Niche Markets by Passion BeachesEcotourismWildlifeCasinos LuxuryFood & drink HoneymoonRural Hideaways TrainsSelf-driveCruisingAdventure CultureVolcanoesMountain climbing Big Cities HistoryNightlifeEthnic & Religious Hiking

52 52 Niche Markets by Culture  Chinese  Thai  Indian  Khmer  Western influences: Spanish, Dutch, French, British, American  Buddhist, Confucian, Islamic, Animist

53 53 How to Sell Emerging Destinations  Sell the dream

54 54 How to Sell Emerging Destinations  Not the reality

55 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 56 Look for Affluence Locally  Business owners  Self-employed professionals  Rising corporate execs  Recently retired

57 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 58 Build Third Party Endorsements  Friend, family member84%  Business associate66%  Guide book54%  Travel agent51%  Media reports44%  Website32%  Brochure30% Source: CLIA

59 59 Identify Client Dreams  The Great Explorer  Exotica  Explore cultures  Bragging rights  Lap of luxury  Roughing it

60 60 Identify Client Needs  Newbie or old hand?  Crowds or solitude?  Urban or rural?  Pampered or independent?  Exotic or familiar?

61 61 Recommend Products

62 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 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 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 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 66 Let Me Know How I Can Help Fred Gebhart Author, Destination Specialist: East Asia Contributing Editor, Travel Professional Tel:


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