During these hard economic times, agents are looking even more intently for ways to increase income and retain clients. One would assume that every effective tool is being brought into play, but in many instances, that is not the case, and suppliers can’t understand how these efficient means of driving business are being underutilized.
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For example, Jan Swartz, senior vice president of customer service and sales for Princess Cruises, said that the cruise line’s sales deal, offered exclusively onboard, requires only a $100 deposit which can be refunded at any time. It also gives passengers up to $150 in onboard credit on a future sailing of their choice, with no stipulation on how soon they sail, and it is combinable with other offers. The agent, who receives the booking confirmation, has the potential of another sale with very little administrative cost, and the agent earns the loyalty of the client for explaining and promoting this benefit before the cruise. Swartz said that top performers send notes and e-mail reminders to clients — some even make flyers with a request form that the client can just drop off once they are onboard. One successful agent recently told Swartz that she now has 80 percent of her clients claiming the onboard offer.
Another resource Swartz feels should be getting more use is the Princess Alliance program in which agents can take advantage of expert consumer research and, with no minimum, customize a totally professional mail piece regardless of the size of the agency or the order, using a third party to produce and mail the piece at rates far below anything an individual agency could obtain.
"This is one of the highest-impact, lowest-cost tools available," Swartz added.
Salespeople are seen as underutilized, as well.
"Industry-wide, the most underutilized resource is the field salespeople," said Tim Rubacky, senior director of corporate communications for Prestige Holdings. "Carnival calls them Business Development Managers; at Oceania, we call them Regional Sales Directors. They are not being used to the best advantage, and they have a wealth of knowledge and are very astute. They are often approached just to distribute brochures or get upgrades, but they can help agencies improve their business plans, acquire new business and market groups effectively, and agents can take advantage of them to host cruise nights, luncheon or dinner functions. They have an untapped wealth of knowledge."
Joni Rein, vice president of worldwide sales for Carnival Cruise Lines, said that the most crucial task an agent faces is not only matching the client with the right product but approaching the client in the right way, which is different for Gen X and Y than it is for the baby boomer.
"The various generations have different ideas of value, and since Carnival’s first customers are now sailing as boomers with their children and grandchildren, [agents] have to understand who wants a phone call, who prefers an e-mail and what [the client] cares about," she said.
To that end, Rein said Carnival is overhauling its Carnival University, which was formerly product-based, to show agents how to respond to various types of clients.
Norwegian Cruise Line’s (NCL) Terri Burke, MCC, CTC, vice president of industry relations, said close to 100 agent-friendly initiatives were launched in 2008 under Partnership 2.0 but that some agents seem paralyzed.
"People get caught up in a hunker-down mentality," she said. "They need to remember that Procter & Gamble launched Ivory Soap during the Great Depression — a lot can be done now."
As a frontline agent for 18 years, Burke said, "Each line has so much, and it’s difficult to be master of everything. Sometimes there are too many tools [so, following] the same logic as the agent’s motto, ‘Don’t give the client more than two brochures.’"
NCL is offering a series of executive Webinars in January and February to help sort out its tools and techniques. One thousand agents may attend each session, and anyone can register to attend, although NCL University (NCL U) members will be given priority. Burke indicated that NCL U is a prime example of an efficient use of tools.
"Besides the crucial educational content and social networking, we’re seeing the highest usage of our tools [at NCL U]: express marketing, customized ads, e-mails and flyers — members get 1,000 free flyers," she added.
Royal Caribbean International vice president of sales, Ken Muskat, believes that agents are overwhelmed by the number of tools offered and that agents are also showing a natural human resistance to the learning curve offered by each. In response, Royal Caribbean has launched a program where every agent registered in its system has a physical sales representative. Sales reps’ time is freed up by an in-house team that handles administrative tasks and follow-up, and will go around to agents — brick-and-mortar and home-based — and work directly with them, showing them how to get the most leverage from tools including the Agent Support Action Program (ASAP).
"When you sit down and show [agents] and they actually do it, they see how easy and effective these tools are," Muskat said. "We’ve found we can’t just make an announcement. Even though this way takes longer, it is much more effective.
Muskat added that these tools really do work.
"After a year of tracking, we’ve found that sending e-mails with a live quote gets results," he said. "Forty-eight percent of consumers who receive them will call the agent and book within 48 hours."
Like Royal Caribbean, Celebrity and Azamara also emphasize the importance of e-Connect’s compelling e-mails and e-quotes. Agents only need the date, ship or destination to select up to five products and send personalized e-mails or e-quotes directly to their clients.
Education is another primary tool: In September, Celebrity launched the 5-Star Academy, offering Celebrity certification. The academy’s fifth level debuted this month.
Many cruise lines say that their regional sales managers’ expertise is underutilized.
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Holland America Line also stresses the resources of its training program, which has been transformed over time from a paper book to the new Travel Agent Headquarters, a sophisticated, interactive online course. The program was launched recently with six core courses and 20 total lessons, and it takes about eight to 10 hours to complete, at which point agents earn up to 15 credits toward Cruise Line International Association (CLIA) certification, eight credits for The Travel Institute or 15 credits for the Canadian Institute of Travel Counsellors.
The Niche Cruise Marketing Association (NCMA), including 16 specialty cruise lines, also stresses education, with online training opportunities, live training seminars in conjunction with major trade shows in the U.S. and Canada and Webinars that qualify agents as niche cruise specialists and certified niche cruise specialists. Canodros, for instance, has Webinars on its Galapagos product through NCMA and directly, as well as a section on its Web site designed for agents.
Silversea Cruises also stresses the Travel Agent Extranet on its Web site. The Extranet allows agents to create customized e-mail promotions/offers, but executives say agents don’t seem to be using it as much as the line thought they would. Also on the Extranet is a 71-page interactive guide to selling Silversea, complete with hyperlinks to specific areas of the Web site and customizable Adobe PDF marketing pieces that can be saved and customized for distribution to corporate accounts, existing clients, local condominiums, suburban neighborhoods, charity organizations, etc.
Windstar Cruises, too, would like to see more use made of its Webinar marketing tool from WebEx, a video and e-conferencing company. The tool offers specifically designed presentations broadcast to agents and the company’s co-op professional postcard mailings with a strong call to action.
The Yachts of Seabourn also places great value on its Webinar tool through WebEx, which has been used quite successfully by the regional sales managers (RSM) to educate travel agents. Agents must arrange to access training through national accounts or the local RSM. The line will be expanding its offerings to include modules on specific destinations, such as Asia, that require further education.
Cruise West also offers ongoing Webinars it describes as "invaluable tools for travel agents to learn about our products or how to sell small ships." These are live, scheduled presentations and travel agents must register to participate at CruiseWestAgents.com/training.php.
Likewise, Fred. Olsen Cruise Lines will have online agent training available early this spring at BortonOverseas.com, along with a series of three Webinars at no charge.
Avalon Waterways, too, has concentrated its tools on the agent portal GlobusFamilyPartner.com, with education very high on its priority list. Avalon has three Virtual Tours showcasing the Avalon Scenery, Poetry and Tranquility — inside and out, sales flyers underlining the difference between Avalon Waterways and other river cruise operators and materials that are targeted to agents who sell big-ship cruises.
The line’s four-part training series is also archived on the agent site, with additional Webinars to be offered in March.
Uniworld Boutique River Cruises president and CEO Guy Young said the line is launching an important tool early this year: Currents, an online booking engine, will be for agents only. In addition, Uniworld provides agents with an extensive online agent tool kit, customizable flyers, postcards, letterhead and collateral material, as well as a CLIA-approved and recognized River Cruise Specialist Program.
Viking River Cruises has developed a report for agents that gives them all the information on past passengers that they have booked with the line (year, ship, itinerary, address and e-mail) so they can cross-sell these customers. The line also has a new travel agent portal with a new Webinar each day from Tuesday through Friday, bonus commissions to download and promotional offers that can be customized.
Louis Cruise Lines has just released a free tool for agents: The enhanced Aegean Cruises DVD focuses on the line’s product in Greece and the Greek Isles as told by travelers. It says agents have reported success in using it as a third-party endorsement from travelers just like their client. Agents can order the 2009 DVD free by e-mailing LCLUSA@louiscruises. In addition, the line notes that its strategy of working through tour operators provides commissions on airfares and shore excursions for agents.
At Tauck, Tom Armstrong, corporate communications manager, said that, in addition to e-marketing and online resources, agents should look more to leverage satisfied clients.
"Your satisfied clients are great sources of testimonials and even photographs that you can use on your Web site, in e-mails and at cruise nights," said Armstrong. "At Tauck, some 70 percent of first-time guests come from word-of-mouth endorsements from friends, family or travel agents."
AmaWaterways’ director of business development, Ana Figueroa, said that the company’s best resource is its accessibility.
"We have one phone number," Figueroa said. "Agents can call us and speak directly to executives about their plans with Ama."
She added that another one of the greatest tools agents have is to take advantage of fams.
"River cruising is different in so many ways; it’s a natural for many seagoing clients, with the built-in shore excursions, its great value and great commissions. But you need to directly experience it. Our goal is to get as many agents onboard as possible. I can’t tell you how many come back and book groups very quickly."
Group Rate
Selling to groups is lucrative for agents
By Marilyn Green
Among the tools for more efficient sales, nearly all cruise lines mentioned groups.
Joni Rein, vice president of worldwide sales for Carnival Cruise Lines, observed, "Groups are really smart selling. I call FITs Noah’s Ark, two passengers at a time. Why not sell 20 passengers at a time?"
Rein said it’s not difficult to find affinity groups, from Irish-Americans to golfers. She added that there are many other ways to put a group together.
"We have one partner who only sells church groups," she said. "The members don’t necessarily know one another and she donates a percentage of her sales to the church for the marketing opportunity. And you can sell through schools: give away a free cruise for the school to auction; use your TC cabin."
Rein said at Carnival groups always get a price discount, not the FIT price. If only part of the group is sold, those guests still get the price break and amenities, and the groups department will help each agent all the way.
"Also, Business Development Managers have over a thousand years of Carnival experience; they will go to the church or association and do the presentation; they’ll share best practices," Rein stated.
Princess’ senior vice president of customer service and sales, Jan Swartz, agrees completely.
"Agents take groups too literally to mean affinity groups only," Swartz said. "The people don’t have to have anything in common; they just have to be sailing on the same cruise."
Swartz said Princess offers a limited number of staterooms with no money down, an advantaged price to promote and amenities all who buy will get, even if the agent sells only one stateroom.
"What’s not to like?" she asked. "And if an agent does sell to 16 passengers they get the TC cabin, and regional pricing and other offers roll right into groups, except last-minute deals. An agent can create a group in a matter of seconds on Polar Online, and there’s a lot of profit to be made."
Swartz said Princess has top producers, most of whose revenue comes from group space. Although there are limits and it is important to act early on some itineraries, she said most of the Caribbean and Mexico are open without rushing. However, even when group space is sold, some agents drop the ball.
"We see groups where they sold the space and didn’t use the amenity points at all, for onboard credit or for agent commissions," Swartz said. "I don’t get it. We’re giving owners and managers constant reports on the status of their bookings and reminding them to use their points."
In late January, Princess will offer a Webinar on groups to help.
Oceania Cruises is on the same page, and for the first time, automatically protects and adjusts pricing for groups, notifying the agents when it does so.
"Everyone thinks groups require an affinity," said Tim Rubacky, senior director of corporate communications for Prestige Holdings. "Affinities are great; people with common interests enjoy traveling together. But whether you sell affinity or groups made up of FITs, the selling point is added value, added value, added value."
Oceania’s rate is always lower for groups and there are amenities to offer clients. Rubacky noted that on a non-affinity group you don’t need a tour conductor, so the TC allotments are pure profit; the agency pockets the full fare.
For 2009, Norwegian Cruise Line has underlined its commitment to group sales with Groups 2.0, which gives agents more flexibility to market and sell cruises to groups.
"We listened to our travel partners and acted on their feedback as we continue to deliver the right tools for them to market and sell our Freestyle Cruising vacations," said Crane Gladding, senior vice president, revenue management and passenger services.
Agents can hold up to 16 staterooms with no deposit required until four months prior to sailing, when a deposit of $25 per stateroom will be due. For group bookings requiring between 16 and 99 staterooms, they have 60 days to hold space with no deposit. Agents who book more than 100 staterooms will negotiate a timeline. Individual bookings to be transferred into groups up until the day prior sailing and NCL’s group-rate integrity policy allows agents to convert an existing group into new FIT pricing, should overall rates be lowered. In addition, commissions are paid up to two months faster than before.
Along the same lines, Ken Muscat, vice president sales for Royal Caribbean, says the new Groups Your Way program gives agents great flexibility. If agents don’t want to deposit they can hold up to 16 rooms for six months; the rate and amenities are locked in even if the agent sells fewer than 16 rooms, and if the rate is lowered, the price can be protected by request only, although the line is working to offer category upgrades and other value and retain pricing and commission levels. Those who anticipate a need for more space can arrange a minimal deposit, Muscat said.
Crystal Cruises is emphasizing multigenerational groups, expanding its Crystal Memories family and multigenerational group promotion to be applied to virtually all the line's 2009 itineraries.
"This is the first time Crystal has launched a family promotion of this size and scope so far in advance," said Bill Smith, senior vice president, sales and marketing.
The program includes a free sailing for every 10 full-fare, full-paying guests, prepaid gratuities, a $100 per person onboard credit for a maximum of two guests per stateroom, free fare for third berth guests 17 years old and under, a $500 credit for a Crystal Private Adventure shore excursion of $2,500, enabling large multigenerational family groups to custom-tailor land experiences, and an 8x10 group/family photo and one photograph of guest's choice per stateroom. Crystal has been especially creative with the multigenerational groups program, selling successfully to families with Asian and Asian-American branches on their more exotic itineraries, for example.
Holland America Line also is promoting family reunions, along with Culinary Arts groups, their Winemakers Package and Weddings at Sea. The line’s Culinary Arts Centers have become well known to guest chefs, who want to take them home with them, as well as aspiring guests, and HAL executives point out that the cost of hosting a culinary group experience onboard a HAL ship is much more affordable than a similar experience in a land-based resort or cooking facility.
The company has introduced two creative new tools to help travel professionals capitalize on more cruise business by booking groups. The Winemakers GAP Package and the Wedding GAP Package both expand Holland America Line’s Group Advantage Program. With the Winemakers GAP Package, each group receives two one-hour wine tastings in either the main dining room or the Pinnacle Grill restaurant, a Winemakers Lunch with a pairing of three wines in the Pinnacle Grill and a choice of either chocolate-dipped strawberries or Holland America Line commemorative bottle of wine per stateroom. The package requires a minimum of 25 guests.
"These packages offer travel agents two more opportunities to book groups and ensure those groups enjoy exciting onboard experiences," said Richard D. Meadows, CTC, executive vice president, marketing, sales and guest programs. "Groups are one of the most effective ways for agents to increase revenue, and now they can sell the new Winemakers and Wedding GAP Packages in addition to Holland America Line’s Culinary Arts Center and Family Reunion Group programs."
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