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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