The Wealthy Travel Agent

Photo courtesy of Thinkstock.

In her best-selling book “Let Them Eat Cake,” Pamela Danziger cites a survey by her company, Unity Marketing, which indicates most consumers expect to pay full price for luxury goods. For everything, that is, except travel!

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So while the luxury buyer proudly pays full price for a Louis Vuitton bag, 64 percent of those surveyed said they got a “discount or a deal” on travel. That’s two-thirds of the respondents. Not only were they given a discount, they expected it!

Travelers Are Fixed On Price
It’s our own fault. We have conditioned buyers to shop for price. We have rarely sold on value and, in my humble opinion, the travel industry never will. It is far easier to feed the beast than it is to change decades of conditioned behavior.

This goes for travel agents as well. We deserve a good chunk of the blame for perpetuating the discount-driven vacation market. As the evidence shows, it’s not just the contemporary or premium customers who expect a discount — it’s luxury travelers as well!

I would bet a $50 shipboard credit that this is how the typical travel sale transaction plays out. From my experience, most buyers raise their hand requesting a luxury product. It is not sold to them.

Then the conversation goes something like this: Customer: So how much is the trip? Travel agent: Well, um, uh, it’s $25,000, but I can give you a discount, and if the price drops I will make sure you get it, and…

This takes about 30 seconds. During the first 20 seconds the agent gets up the courage to state the price, and then uses the last 10 seconds to babble about discounts. I would also bet that the customer had to offer his or her credit card because the agent was too afraid to ask for it. This may offend some of you, but it is reality.

Folks, there is a term for what happened in this scenario. It’s called “negotiating with yourself,” and travel agents are some of the best in the business at doing it!

So why does this happen more often than not? The answer is pretty simple. Your relationship with money is based on your own life experiences. How you feel about money will have a tremendous effect on your ability to earn it.

The “Pucker Effect”
One trick that worked for me early in my career is what I called the “Pucker Effect.” Start at $100 and add zeros until it becomes a number that makes you squirm.

For me, that number was $10,000. I worked through it by selling until the number became $100,000. I got through that one because the most expensive vacation I sold was more than $400,000 to a retired couple.

If you want your customers to spend five or six figures on a vacation, not on a house or a car, but a vacation, you had better feel pretty good about asking for and earning the money! Buyers already have a pretty good idea of the trip price before they pick up the phone to call you. Will you sweat it out? Of course, but it’s just like anything else: the more you practice, the easier it gets.

Don’t Offer A Discount
Do you deserve the commission for the sale of this magnitude? Damn right you do! I don’t care if it is $100, $1,000 or $10,000 — you’ve earned it! The supplier would not be paying you this much if the supplier did not value your services. Please don’t offer a discount upfront or say that you will beat someone else’s price.

Agents tend to do this not to be competitive, but because they either do not believe in the value of the trip or the value of their service — most likely both! If customers ask for a discount, and they will because we have conditioned them to do so, it then becomes a negotiation. If you offer a discount upfront, you’ve made it about the price and you’ve lost before you even begin.

Next time you are selling any trip, I want you to try this: “Jane, this is a going to be a great trip, its $XX,XXX per person. Which credit card would you like to put that on?” Then shut up and wait! Let the customer mumble, talk to herself or whatever.

No matter what, do not say a word until they either: A) ask a legitimate question or objection or B) hand over the credit card. Try it — it works! Every second you keep your mouth shut is money in your pocket.