Become a Home Based Travel Agent

FOR CRUISE SALES PROFITIBILITY….
LESS IS MORE
By Mitchell J. Schlesinger
Director, Sales and Marketing
Voyages to Antiquity

The evolution of the modern day cruise industry presents travel agents with unprecedented opportunities to be more profitable than ever.

I’m sure plenty of you chuckled and said; REALLY?   Economic downturn, high unemployment, low prices throughout mainstream product sectors, NCFs significantly impacting commissions in low priced trades….and there are more opportunities to make money??

In short…YES, based on some very important factors:

1. The segment of the consumer target market who were impacted by the stock market drop to 6,500 are now the same group who are benefiting from the climb back over 10,000
2. Critically, the generation that fueled the early growth of the cruise industry in 1970s & 80s are now virtually all in the 55-75 age bracket.
3. It is forecasted that by the year 2020, 33% of the US population will be over 60 years old

So here is why less is more?   For the past 20 + years we have espoused the notion that clients, like annuities, that pay dividends as they age:

• Their interests (psychographics) change dramatically and many seek experiences that are personally fulfilling, enriching and educational.
• Baby boomers, now in their 60s, have more disposable income, more time, travel longer and are spending more on travel across the globe.
• This is the client base and travel opportunity that yields dramatically higher and profitable commissions. 
• This growing traveler base, has spurred the growth in small ship, up close and personal travel experiences over the past 15 years. 
• And for travel agents reading this, you ALL have clients like this in your  databases….but are you taking advantage of this important group.

Since 2000 we have seen the dramatic growth of the river cruise market.   With the arrival of impending new ships the small & medium sized-ship premium-ultra luxury cruise segments will double in size and big cruise brands like Princess and Holland America recognized this trend adding 600-700 passenger ships to cater to this market.  

We were at the forefront of this trend in 1994 at Orient Lines, as one of the industry’s preeminent destination companies, designing itineraries to all seven continents.   And that is what led to our introduction of Voyages to Antiquity, offering 14 day “Cruises to Classical Civilizations” in the Mediterranean, Adriatic, Aegean and Red Seas.  

Even as a new brand, we are having immeasurable success, working with travel partners across the country to attract a more mature, experienced travel audience.   They are clearly enticed by the combination of unique destination-intensive itineraries, extensive onboard guest lecture program and culinary approach further enhancing the destination experience with regional foods and wines.  And, like luxury brands, offering included shore excursions, gratuities, wine at dinner and air add-ons from FREE - $199, provides extraordinary value.   

Most importantly, selling products like Voyages to Antiquity and other small / medium-sized ship companies and specialty product brands, provides two significant opportunities:

• Sales per stateroom yield commissions anywhere from $800-to-$15,000, (depending on the brand and itinerary & category purchased).   I know a retailer who basically does an entire year’s business during January-April, selling 20-40 guests on full world cruises.  
• These clients will review the information you send them and make a decision to purchase based on their perceived value of the experience and price.   And compared to the shopaholic customers in the mainstream sector, these guests don’t call you to see if they can save $50 off of a trip costing $6,000 pp.

This is a wonderful way to supplement your overall business and enhance profitability.   Selling mainstream travel products is relatively inevitable, as it dominates the cruise industry product landscape. However, proactively focusing (as the agent I mention above does) your marketing efforts on the more mature travel market can help you be less reliant on lower commission programs.

Virtually all of you have clients in your database who fit these demographic and psychographic profiles.   It is up to YOU to take advantage of this significant commission opportunity.   Presuming your more mature clients are following the philosophy of “enjoy life, and spend now instead of leaving it for others to inherit”, it your responsibility to make sure that they are purchasing travel from you, because if you don’t, I promise, they absolutely will….from someone else!