IMPROVE Report 2006 L. Debell, K. Gebhart, B. Schichtel and W. Malm.
1 Emerging Destinations How to Sell Emerging Destinations in Dollars and Cents Fred Gebhart –...
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Transcript of 1 Emerging Destinations How to Sell Emerging Destinations in Dollars and Cents Fred Gebhart –...
1
Emerging DestinationsHow 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
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The Reporter’s View WhoWhatWhyWhereWhenHow
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The Travel Retailer’s View
What is an emerging destinationWhere are emerging destinationsWhy sell emerging destinationsWhen sell emerging destinationsWho buys emerging destinationsHow to sell emerging destinations
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To Sell or Not To Sell?
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What is an Emerging Destination?
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What is an Emerging Destination?
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What is an Emerging Destination?
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What is an Emerging Destination?
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What is an Emerging Destination?
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You’ll Know an Emerging Destination When you See It!
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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
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An Emerging Destination Is Not:
mass market easy to uncover easy to package easy to get to easy to move around easy to forget
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Where are Emerging Destinations? Beyond your client’s comfort
zone Familiar to some Eastern Europe, Africa, Middle
East, Latin America, Asia-Pacific
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Focus on Southeast Asia Cambodia Laos Myanmar Northern Thailand
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The Nonstop Myth
Bangkok Singapore
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Getting There Direct Japan Korea Taiwan Bangkok Singapore Kuala
Lumpur
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Getting Around Air Ground Water
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Getting Information
Tour operators
Wholesalers Trade
shows
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Tour Operators
Pro• Preconfigured product• Add pre & post modules• May offer exclusive access• Name recognition• Familiarity
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Tour Operators
Con• Preconfigured product• Pricing limits profit potential• Image • Name recognition
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Wholesalers
Pro• More flexibility• Brand your own product• Easier to add pre & post• Better margins• Special handling
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Wholesalers
Con• Need more product knowledge• Time investment• No brand support• Your name on the line
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US Contacts Can Help
• Exotissimo• Indochina
Services
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US Contacts Can Help
• Exotissimo North America• Lee Marona, President• Tel: 877-396-8687 • http://www.exotissimo.com
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US Contacts Can Help
• Indochina Services• Paul Tomash, Managing Director• Tel: 415-434-4015• http://www.indochina-services.co
m
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Trade Shows• Leisure vs. MICE
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Trade Shows• IT&CMA—October
• http://www.itcma.com.sg• ATF—Jan/Feb
• http://www.atf2007.travel • PATA Travel Mart—Sept
• http://www.pata.org • ITB—March
• http://www.itb-berlin.com • ITB Asia—Fall, 2008
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Combo Sales are Key
• On the edge + luxury• Adventure + civilization• Emerging destination +
mature destination• New + familiar
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Why Sell Emerging Destinations?
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A Tough Sell Clients don’t know the area You don’t know the area Information gap Long, drawn out travel Poor infrastructure
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Fear of the Unknown
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Is it Healthy?
Photo copyright Christine Potter
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Is it Healthy?Centers for Disease Control and Prevention (CDC) http://www.cdc.gov/travel/destinat.htm
World Health Organization (WHO)
http://www.who.int/ith/en/
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Is it Healthy?International Society of Travel Medicine (ISTM)
http://istm.org
The Traveler’s Medical Guide
Gary Fujimoto, MD
http://www.prairiesmokepress.com/medguide.html
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A Money Machine
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A Profitable Sell Higher dollar value per sale Higher commission rate Higher yield Higher visibility to clients More loyal customers More repeat business
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When to Sell Emerging Destinations? Anytime!
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Seasons
Winter cooler, drier Nov—Feb Summer hotter, wetter Apr--
Sep
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Holiday Crowds
Christmas/New Year Chinese New Year Buddhist New Year Golden Week Japan
• May
Golden Week China• Jan/Feb, May, Sept/Oct—maybe!
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Why Emerging Destinations are Profitable
Dreams Sell
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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
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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
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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
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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
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Emerging Destination Travelers Want to sightdo, not sightsee Prefer education to
entertainment Collect more experiences than
souvenirs
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Emerging Destination Travelers Want unique experiences Want authentic experiences
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Emerging Destination Travelers Are affluent, not rich Wealth = net worth, income Affluence = spending habits
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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
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Finding Potential Clients Beach & resort lovers Active & adventure travelers Eco-travelers & nature lovers Culture collectors Sybarites & backpackers Divers, snorkelers & sailors Honeymooners
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Niche Markets by PassionBeaches Ecotourism Wildlife Casinos
Luxury Food & drink
Honeymoon Rural Hideaways
Trains Self-drive Cruising Adventure
Culture Volcanoes Mountain climbing
Big Cities
History Nightlife Ethnic & Religious
Hiking
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Niche Markets by Culture Chinese Thai Indian Khmer Western influences: Spanish,
Dutch, French, British, American Buddhist, Confucian, Islamic,
Animist
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How to Sell Emerging Destinations Sell the dream
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How to Sell Emerging Destinations Not the reality
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Identify Potential Clients Think dreams, not plans Think affluence, not income Segment current client base
• Upscale hotels• More adventurous travel• More international travel
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Look for Affluence Locally Business owners Self-employed professionals Rising corporate execs Recently retired
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Become the Local Expert Search out local media
coverage Pitch your travel expertise Host a radio show Speak Donate a trip or consultation
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Build Third Party Endorsements Friend, family member84% Business associate 66% Guide book 54% Travel agent 51% Media reports 44% Website 32% Brochure 30%
Source: CLIA
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Identify Client Dreams The Great Explorer Exotica Explore cultures Bragging rights Lap of luxury Roughing it
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Identify Client Needs Newbie or old hand? Crowds or solitude? Urban or rural? Pampered or independent? Exotic or familiar?
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Recommend Products
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Recommend Products You cannot match client and
product unless you know both You must articulate benefits
based on the client's dreams and needs
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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
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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."
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Build Relationships and Sales Track client preferences, likes,
dislikes, and “I wish I could haves” Send regular updates by email,
postcard, newsletter and phone with personal recommendations
Destination seminars Help clients enjoy favorite
experiences in a new destination
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Let Me Know How I Can Help
Fred Gebhart
Author, Destination Specialist: East Asia
Contributing Editor, Travel Professional
Tel: 415-681-3018
http://ww.fredgebhart.com
http://ww.thetravelinstitute.com