In the spotlight
What is all that noise about specialisation?
Is differentiation or specialisation the panacea everyone is talking about, and can it really turbo boost your business?
You no longer sell tickets - you are the expert
As we all know, deregulation has bitten hard into airline commissions, and travel agents can no longer sell a commodity, they must become the specialists to whom their customers turn and deliver a new buying-travel experience.
We've talked to our customers around the world and thought it would be a great idea to share some of our findings with you. The purpose of our research was to find out how travel agents were adapting to this changing business environment.
Be flexible and fleet-footed
We interviewed customers in Western Europe. While some seemed to be looking at their options in a daze, wondering what they could do differently to make up for that lack of income, others (for example their peers in Canada) had, to varying degrees, successfully adapted to the new circumstance.
One of our travel agents in Canada expanded the business by throwing very special skills and expertise into the balance: starting by focusing on the Eastern European markets and expanding their offer into package and spa holidays in Canada, they soon added plastic surgery packages to the portfolio. We talked to another travel agent who had identified a particular key target customer group that was most likely to buy high-value products.
In other words: finding a unique niche and combining that with a bit of strategic thinking can make your agency one that survives and thrives.
Be creative
Take the baby boomers generation - they are beginning to retire (generally with a good level of disposable income). Some agents specialise in honeymoons, family travels or investigating destinations where kids can have fun and the parents can relax. There are buckets full of ideas to create successful businesses.
Just as people hire consultants to organise their weddings, so are they increasingly willing to pay a premium to a travel agent for organising their so long awaited vacation each year. If you're good, and they have a wonderful time, they may send you a postcard, but they certainly will come back and tell their friends!
One of the best-kept secrets
Since more and more holiday makers seem to opt for the floating hotel, we've investigated cruise specialists. Not only are cruise packages becoming increasingly popular, cruise also pays an above average commission - up to 16%! But that's not all:
Each year, more than 14 million passengers take a cruise vacation and somehow have to get to the port of embarkation. Since around 75% of those passengers opt for air travel, there is a serious possibility of adding quite a few extra air bookings!
According to Travel Weekly (2006), 27% of travel agents' revenue in the US is already coming from cruise and, with the market booming, cruise sales are expected to soar over the coming years!
Every time we talk to travel agents it becomes more and more evident that specialising is a must. However, you also need to have the right mix of technology to support your business and promote its growth. Cruise appears to be leading the way with its attractive commissions and growing market, offering high rewards to those who grab the opportunity.
We'd love to hear from you! Please share your experience with our readers. Tell us your story and we'll feature it in the next edition of The Amadeus Independent!