Launching Group Travel

• Why Do People Travel in Groups?– Three (3) main reasons:

• Value – many see added value in group travel. Add in little extras you’ll provide and this will ensure the client feels special

• Variety – one benefit of group travel is extra amenities. For example a “welcome” cocktail party

• Compatibility – people like to be with others like themselves. Group travel achieve a common goal or share a similar interest. The two fastest growing areas of group business are fund-raisers and reunions

Understanding Group Travel

• Two Types of Groups– Affinity Groups

• Common interest groups (ex: Alumni Groups) that have a common purpose can easily be targeted to generate more profits for you

– Promotional Groups• Groups that are undefined and not target able. Most

require more time and money than an affinity group. Joint Marketing with Suppliers is the most cost effective way to satisfy these type of groups

How Big are Groups?

15 - 30 people31 - 50 people51 - 80 people

How Big are Groups?

*THINK SMALL*• Average Group Size: 15 to 30 people.

• Don’t let Group Travel Scare You

• It’s easier than you think

• Where do you find groups that travel?

In Search of Groups

• Look at your existing business.

• There are a lot of groups right in front of you!

• Ask your clients if they belong to any clubs/organizations and if they travel.

• Always remind your clients that you specialize in group travel.

Starter Group Ideas

• Apartment Communities/Condo Associations• Bank Travel Clubs• Bowling Leagues• Chamber of Commerce• Charities/Not for Profit Organizations• Churches• Colleges (Reunions)

• Community Centers/Park Districts• Country Club/Golf Groups• Credit Union• Dance Group• Family Reunions• Fund Raisers• Garden Club

Starter Group Ideas

• Gourmet Club• Health Spa• Hospitals• Lecturers• Mother/Daughter Cruise• Radio• Senior Groups/Retiree Groups

Starter Group Ideas

• Spa Weekend for Girls

• Golf Outings for Guys

BE CREATIVE AND NETWORK TO FIND GROUPS IN YOUR AREA

Starter Group Ideas

Neighborhood Marketing

• New Buzz amongst Home-based Agents• Marketing within 10 minutes of Home• Advantages:

– Keeps you focused on the tools at your fingertips– Neighbors know your familiar face – Neighbors have common interests and are easily

targeted for quick & easy sales.– Keeps your Marketing Budget MANAGEABLE

Neighborhood Marketing

• Neighborhood functions = $$$ Sales– Example: Sponsor a Little League Team

• Have a “Meet Your Travel Agent” Party– Allows You to Network with your Neighbors – Profiles the Travel Products You Offer– Door Prizes offer Incentive for Return Business

• Tote Bags, Luggage Tags, Discount Travel Coupons

Neighborhood Marketing

• Welcome New Neighbors – Include Business Cards & Promotions– Average American moves every 5 years?

• Create Local Travel Newsletter– Fill with stories from Neighbors Travel– New Travel Locations & Ideas– Current Promotions Your Offering

Make Yourself Visible

• You’re SELLING YOURSELF and YOUR PRODUCT (YOU ARE YOUR PRODUCT)

• Place Your Agency Name Everywhere– On Your Car or in your Front Yard– On Children’s Book bag or gym bag– Any place you can get your Logo

• Make people ask “WHAT DO YOU DO?”

Whose Your Group Leader?

• Group Leaders Sell Travel & Trips– Should be Personable, Outgoing Person

– Compensated with FREE Travel Paid • Based on a minimum # of passengers• Based on the # of return passengers

– Helps act as the GO TO Person• Liaison between the traveler and you• Can Help Resolve Problems that arise

Be a Community Leader

• Be the Pied Piper of Your Community• Determine Friends and Families that belong

to organizations interested in a group trip?”• REMEMBER: Small Groups (up to 15 people)

– Family Vacations, Reunions, Weddings etc.

• Network with Church Leaders who already have a following you can Network with

The Group Leader

• Stay in constant contact with this person• What should I expect of my Group Leader?• What should they expect in Return?• Leave nothing to chance

– Create a Group Leader Pamphlet and distribute it to anyone and everyone.

– This should create a buzz in the community and have several people competing to take part

Group Leader Pamphlets

• Should include: – A Description of your Agency & Mission– What Your Agency will do for the group– What is expected of group leader– A Sample of group tours and cruises– List of departure points and areas– Reservation and cancellation information– Agency affiliations

Creating a Group Profile

• Found a Leader – NOW create a profile.1. Categorize the group

Example: church, sports team or organization?

2. What is the total membership?

3. Divide Membership Two GroupsActive participants

Members only

4. List previous group travel & including destination, # of people, price, etc.

Realistic Figures

• Expect only 5-10% of the active participants to join a group trip. – Example : Planning a family reunion

• Total Number invited: 195 • Active participants: 163 (Based on Previous Travel)

– Successful Group Leaders gets 10% to join– Your Group Total = 16 to 17

Group Pricing

• GOLDEN RULE: If you are not going to make money …don’t do it

• Do Your Homework First– Cost Recovery Test

• Will determine groups profitable• Will determine minimum # of clients to ensure

your outlay of expenses is recovered to make the group travel profitable

Amount of Commission?

• Group Travel = Set Commission Amount

• CAUTION: Never Set Price TOO High– Group Travel should be AFFORDABLE– Commission is based on the type of trip– More involved trips = Higher Commission– Normal Range is 5-10%.– Use Your Best Judgment to decide

Recovery Test Formula

• Determine Break-Even Point

• TOTAL EXPENSES (/) COMMISSION– Example: Promotion & Handling $170

Commission $100 per person– Break Even Point: 17th Person Booked – Covers Your Expenses meaning 18th Person

Booked is when YOU start Earning $$$

Ways to Price Groups

• Price Only– Offer LOWEST POSSIBLE PRICE– No built-in options – Groups have NO LOYALITY

• They leave when you for a lower the price

– Profit may be lower but so are the Expenses and Work Load too

Ways to Price Groups

• Value Added Price– Make this Group Trip Memorable – Add Value items with the built-in options

• Transfers, Sightseeing, Welcome Party

– Focus on the Groups Needs– Sell Value & YOUR Customer Service

Get Everything in Writing

• Avoid “He Said – She Said” hassles

• Get everything in writing for protection

• Letter of Agreement for Group Leaders– Helps put expectations in writing– Agreements are Binding Contracts– Spelled out details can’t change like how

others can interrupt verbal contracts

Promoting Your Group Tour

• Consider Your Own Group Tour (No Leader)• Promotion can be either:

– Exercise in frustration & patience– Extremely successful for you

• Five Steps to Help:1. Assess the potential of the group2. Decide on a product and pricing3. Plan your promotion4. Organize your personnel and booking system5. Estimate your potential profit

Tips for Selling Groups

• Book early for best rates and itineraries.• Start promoting your group When its booked• Set up a Calendar with due dates

– Move these dates up a week to 10 days to avoid last minute chaos.

• Offer Incentives for Booking Early• Automatically include travel insurance.• Hold a party to distribute documents.• Hold a photo party after for re-bookings.

Promoting Your Group Tour

© 2005 Career Quest Training Center