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FIVE-STAR
SURVIVORS
The ‘Lehman effect’ and rising redundancies mean fewer big spenders, while
those who remain cash rich are wary of being seen as excessive or extravagant.
So, how can agents weather the storm? Samantha Mayling reports
as the bubble finally burst on luxury travel? Berkhamsted, says: “We are seeing more price-matching
H
The market is in now in uncharted territory: and discounts. But clients are also looking for added value
following years of unprecedented growth with such as free upgrades, lounges and transfers. Recently
the sector outgrowing GDP rates by a factor of we’ve seen Emirates offering two-for-one business-class
three, it’s now set to stall until 2011-12, according to flights, Virgin Atlantic offered discounted upgrades, Beach-
PricewaterhouseCoopers. comber had a 10% discount in January and Caribtours was
December was “diabolical” says Margaret May, Journeys offering free upgrades to World Traveller Plus.”
a la Carte owner, while ITC Classics admits the month was
“disastrous”. Now aware they are not immune to recession, INCENTIVES AND ADD-ONS
luxury agents are focusing more strongly on business that Andy Rowdon, director at Kitts Travel in Pinner, asks
generates cash, and are being ruthless about activities that operators for extras if he needs to clinch a deal – and 90%
don’t. But it is not all glum, with many companies reporting of the time he gets them. But he says clients are surprised
a busy January, as the cold snaps boost business, and a when there is little availability for peak dates so he has to
model shift as people increasingly book closer to departure. “temper any disappointment” by going the extra mile.
Steve Byrne, Travel Counsellors’ group managing Operators are keen to galvanise and incentivise with
director, reports that “over the past three months, we have offers and training. Qantas Holidays has been targeting key
had a 20% increase in business with people wanting to agents with special offers and incentives such as bonus
travel within three months”. nights, early booking discounts or value add-ons. Kuoni has
The Far East, Australia, South Africa and South America teamed up with Advantage Luxury Specialists to repeat an
are selling better than Eurozone and dollar destinations. affinity marketing deal with Waitrose’s magazine – last
Closer to home, Turkey, Egypt and Iceland are on the up. year’s promotion offered a £10,000 holiday to Sri Lanka
Cruising is also growing, as it’s seen as easier to budget and received 14,000 entries.
with all-inclusive products such as these. Shevaun Joy, Classic Collection Holidays has upped its budget for
manager at Specialist Travel in Leeds, says: “Clients want to training and increased educationals, and has targeted its
travel with British cruise lines so they know they can mainly top 100 hotel partners to offer more favourable concession
spend sterling, even on Far East itineraries.” rates to agents. It increased its budget for joint advertising
Consumer protection, trusted brands and face-to-face with agents and redistributed more of its marketing budget
contact are also growing considerations, as May says: towards joint advertising in local newspapers. Its agency
“People won’t risk budgets of £5,000 or £10,000 by sales managers are visiting agents every week.
booking online, they want their money protected.” ITC Classics meanwhile has many incentives for agents
Jacqueline Steadman, director of Travel Time World in throughout 2009 to mark the operator’s 35th anniversary,
IDEAS & INFLUENCES
Agents are teaming up with local firms or
■
Travel by Design is running invitation-only
upmarket suppliers to host exclusive events functions with Aito operators, focused on existing
clients rather than new business. They inform
■
Travel Time World has run a China evening clients about free experiences such as events and
in conjunction with Wendy Wu Tours, with a walks, and about ideas from imaginative hoteliers
presentation and dinner at a Chinese restaurant and concierges
for 50 VIP clients. It plans a midsummer dinner
with support from preferred operators. Between
■
Haslemere Travel has launched a luncheon club
March and October it will exhibit at wedding fairs with guest trade speakers such as Ted Wake
(Kirker), and an event at a museum with Explore
■
Specialist Travel hosted a strawberries and
champagne evening instore with Gold Medal
■
Meon Valley Travel is partnering with The Secret
Pure Luxury. Customers were offered a digital Vine, an exclusive wine merchant looking to
camera if they booked that evening expand in the UK
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