Travel Agent Magazine. November 18, 2002 Living in Luxury Tricia A. Holly With all the uncertainties affecting the lifestyles and buying habits of consumers, you might expect the luxury travel market to be in a downturn. But some agents specializing in the luxury travel sector say that their business is thriving despite the shaky economy, the prolonged stock market slump and lingering fears of terrorism. The trick is knowing where to look and how to sell in the current environment. Following are some tips from experts in this field on how to cater to the standards of this demanding clientele in an atmosphere of lingering apprehension. Help clients interpret promotions. Miriam Rand, president of Beverly Hills, Calif.- based Rand-Fields Travel Service, a division of Pro Travel, says that even consumers who can afford to purchase high-end travel are looking for deals. "We're still booking the really expensive, around-the-world type trips, but it's not the way it used to be," she says. Today , in light of the stock market debacle and overall economic worries, Rand says everybody is looking for a deal. She cautions agents to warn their clients that the lower price, the more mass market the trip might be. "It's hard to lower the price on a high-end product and maintain the same level of service and surroundings that high-end travellers are accustomed to," she says. Stay well informed. Peter Herff, vice president of Herff Travel in San Antonio, Texas notes that virtually all consumers are surfing the Internet before they book a trip. This makes agents' job tougher because they must decipher all that information that is out there," says Herff. "The general feeling now is of scepticism because of the economy and world events, so agents need to stay focused on what's happening in order to keep their clients focused." Keep an eye on trends. World events do sway luxury travelers' choices. Says Lois Moran, CTC, DS, an agent with Betty Maclean Travel in Naples, Fla,: "Some clients, after Sept. 11 [2001], want to travel, but not necessarily as part of a group, but not totally by themselves. [Membership in luxury marketing group] Virtuoso allows us to offer clients the ability to travel independently, but event such as onboard cocktail reception and shore events let them connect with other cruisers in a club-like atmosphere." She also notes that "Post-Sept. 11, we are seeing great interest in celebration of family anniversary, special birthday or milestone in life. People want celebrate the happy events of life and make them into real celebrations. Travel is a great way to mark these events." This also applies to the economic slump and its effect on travel. All travelers, even those in the luxury market, generally booked closer in during 2002. What agents did not expect was that this trend would linger, possibly into 2003. Most agents attribute the trend to uncertainty about the economic and political environment. But Karen Pickrum, office manager for Betty Maclean Travel, says she is starting to see that trend reverse. "We are starting to get some bookings now for December 2003," says Pickrum. "It's coming back, but it's coming back slowly." Sell travel insurance and know supplier policies. In light of the recent acts of terrorism being committer throughout the world, Mary Jean Tully, Chairman and CEO of The Cruise Professionals in Mississauga, Ontario suggests that all agents should be selling insurance to protect their clients' interests. Agents need to know what insurance companies cover what circumstances, from trip cancellation to emergency medical assistance. Tully also urges to be aware of suppliers' cancellation policies, particularly on the airline side. "Many peoples think they will get a better deal on airfare over the Internet, but the agent's job is to remind them that the Internet will not be able to bail them out in the event of a sudden change in their itinerary," says Tully. Agents must be cognizant of airport, cruise and rail procedures and policies more than ever before, adds Herff. "The consumer press is flooded with horror stories about what a hassle it is to travel in light of new security procedures, when in reality traveling it often no hassle at all," she says. Know what destinations are selling. People are not going on Nile cruises in Egypt or visiting Israel, says Tully, pointing out that agents need to know where the next hot spot it, while making clients feel safe. "Destinations where people feel secure, such as Hawaii and Alaska, are where the market is right now, although the Mediterranean is doing better than initially expected," says Tully. Stay abreast of changing demographics. The demographics of luxury have changed, suggests Rand. "You have a lot of baby boomers and other people who survived the dot com debacle, and they want a soft adventure and name brand accommodations, such as Four Seasons," she contends. On the other hand, Rand says, the old money travelers are not as impressed as they once were. "Their standards have not changed, but they have shifted their interests and are now willing to try a boutique property on the Left Bank in Paris," says Rand. She further points out that more families are entering the high-end market and the luxury travel is not as exclusive as it once was. "There are a lot of people with a lot of money now, so the gap is closing," says Rand. Expand your client base. Until recently Steve Shulem, president of Santa Barbara, Calif.- based Strictly Vacations, built his business on the principle that agents, especially those serving the luxury market should choose their clientele as carefully as they do their friends, creating a modest-size bank of high-end repeat clients. Now says Shulem: "I don't think agents should be so quick to say no." My biggest complaint is that my daring clients who stuck through the aftermath of Sept. 11 and would spend $30,000 or more on a trip are now not traveling for other reasons." Consequently, Shulem says, "I won't be so fast to say no to the $5,000 ticket items." Provide excellent service. Betsy Patton, CTC, DS, an agent with Betty MacLean Travel, notes that "the rich are still traveling, and service is paramount." Patton says her clients are looking for "excellent value that goes hand-in-hand with superb, over-the-top service." Whether it's very knowledgeable, professional tour managers who know and handle all the ins and outs of a tour, or onsites who arrange for guides and transfers or a luxury cruise ship, Patton says everyone must know about "hot tables," such as museums with new exhibits or a zoo with baby lions just born. "This gives our clients the travel experience that they want and have heard about from friends," she says. Be prepared to work harder. Shulem notes that agents will need to work harder for the same money, since more people are cost-conscious these days. "You may have to sell three or four vacations to earn what you would have with one transaction a couple of years ago," says Shulem. He adds that it does not help that most of the suppliers tho put out specials to spur travel in in the 2002 season are again flooding the market with such promotions for 2003. "That tactic was laudable to get us past the lingering reaction to the terrorist attacks, but now it seems like it may be this way for a while," says Shulem. Clients get excited. Herff says agents need to deliver trips differently from what they have in the past to overcome clients' hesitancy. "Every booking is a challenge because you need to answer so many more questions now to reassure people," he says. At the same time, Herff says, the luxury traveler "still wants the sun, moon and stars and that ultimate, unique experience, but many places that once were exotic are now deemed off-limits. The important thing to remember is to match people with the right product so they feel safe and excited about their trip."   Back         Top of Page

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