Thanks in part to the upheaval in the travel industry caused by the global economic crisis, travel agents have suddenly been reminded how important it is to diversify their businesses. As a result, many travel agents have a renewed interest in developing or enhancing a new revenue stream by selling escorted tours.
With this in mind, TravelAge West recently held a live, online Webinar that featured top executives from the tour industry, including Sharon Siskie, vice president of travel agency and national account sales, Adventures By Disney; Brian Stack, managing director, CIE Tours International; Frank Marini, vice president of sales, Collette Vacations; Steve Born, vice president of marketing, Group Voyagers (the Globus Family of Brands); Marc Kazlauskas, president of Insight Vacations; and Adam Leavitt, vice president of marketing, Trafalgar Tours. Here are excerpts from that discussion. For an archived version of the full Webcast, visit www.TAWTourConnection.com.
What are some of the common misperceptions related to escorted tours?
Marini: I think there is an idea that it’s only for older travelers, that it’s very structured and that there’s no free time. And escorted tours are far from that today. In fact, there is plenty of free time, and there is an emphasis on experiences — cultural experiences, food and wine experiences, etc.
Stack: I would just add that a big part of the experience of an escorted tour is getting to meet the new people that you are traveling with. That dynamic in itself is very interesting.
Leavitt: The mix of travelers has also changed. We’re seeing a lot more families traveling together, groups of women friends traveling together and solo travelers. So, it’s really not just for older people anymore.
Do you have any advice for specific steps agents can take to overcome these misperceptions? What do you consider major selling points?
Born: The most successful agents are the ones selling the experience instead of the structure. The fact that their clients’ time will be optimized when they are on an escorted tour; that they are not going to have to worry about getting from here to there; and that they will get a great balance of free time with included features are what sells. The all-inclusive nature of the vacation is key, too. And don’t forget the emotional aspect of hearing the stories brought to life by a tour director who truly knows a destination.
Siskie: I completely agree. And I think it’s really an important point to accentuate the storytelling to the client and sell the experience and the emotion. That’s the first time we’ve touched on it, but emotion is a critical component. It really is about painting the picture for the client and helping them understand what an amazing experience they are going to have. Certainly, the nuts and bolts are important but, at the end of the day, what really resonates with the guests is being able to see themselves in that experience and understand that it will be a deep, rich experience in the destination they’ve chosen.
What would you say are some of the advantages of escorted tours over cruising, for instance?
Stack: First of all, I don’t think there really is competition between cruising and escorted tours. Cruise lines have done a great job getting people interested in travel, and that’s a good thing for all of us because we are all in the vacation business.
Marini: That’s a good point. Also, I think cruising is about the onboard experience, and they do a great job with that, but touring is more about the destination experience — walking the streets of Florence, Italy, or dinner at the Eiffel Tower.
Kazlauskas: Right. Cruising offers you a day-trip experience. You get into a port, you have a couple hours there and you get back on the ship. With a tour you get the nightlife experience and the experience of a local. If your clients are going to Europe, for instance, they are going there to experience the food, the culture and the people, and I think a cruise is an overview and a tour is an in-depth way to see and experience a destination.
Also, as I’m sure agents are interested in, there’s the commission, and that is where tours absolutely blow cruising out of the water — no pun intended. When you factor in the entire cost of a cruise compared to the entire cost of a tour, and you take a look at what the travel agent earned on both of those, on the tour the agent will earn on average 12-16 percent, and on a cruise, they will earn an effective commission of 5-8 percent. It’s just a known fact that agents are going to earn double, sometimes triple, selling a tour over a cruise.
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