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Communicate frequently with suppliers to find best deals, then market those
messages by regularly communicating with clients. Diamond Advertising’s
Piers Bracher says: “If you don’t talk to your customer, someone else will.”
■
Keep marketing: Travel Counsellors’ Steve Byrne says: “For every 10 bookings
coming from a marketing message, half don’t relate to that message, it’s just
the fact you’re in touch.”
TOP TIPS TO
■
Monitor trends and react quickly. International travel marketing alliance
BOOST YOUR
Pangaea predicts luxury trends for 2009 such as authentic experiences in
BUSINESS lesser-travelled regions.
■
Avoid discounts – they devalue your product and service. Instead offer
incentives such as upgrades, spa treatments and extra nights.
■
Make loyal clients feel special. Cadogan Travel gives customers a
personalised ‘Bon Voyage Box’ with a selection of treats; Designer Travel
sends clients Space NK goodies.
■
Offer more options and upsell. Jet Republic chief executive Jonathan Breeze
says agents can buy a Jet card for €130,000 and slice it for use by customers
– earning themselves €5,000 commission into the bargain.
including an open house at its headquarters welcoming again and longer before the market returns to 2007 levels.
agents to visit, private dinners for agents and three It also takes months or years for the impact of cuts in
long-haul educationals. areas such as training to show, warns Richard English,
Travel Counsellors’ luxury tour operation Suitcase is owner of Retraining. “More than ever, suppliers of luxury
arranging special deals with suppliers, and is offering 20 holidays must make sure the front end of their operations
spaces on an educational to Australia as a sales incentive. are 100% competent,” says the training expert. “Luxury
There are so many deals generally appearing each day that buyers expect to spend more time discussing their needs
it’s vital agents talk frequently to suppliers to make sure than midmarket clients. That characteristic is likely to be
they can be marketed in the right way. more apparent in times of financial uncertainty.”
Jo Johnson of travel marketing firm BGB recommends Jonathan Breeze, founder of WhiteConcierge and Jet
online marketing – being quick, cheap and easy to track Republic, points out that “ultra high net worth individuals”
– plus PR, with customers placing great store by articles. are still able to afford luxury at the top end, even if their
She says agents could also arrange partnerships with portfolios have shrunk from, for example, £20 million to
tourist boards and tour operators to share the costs of £15 million. And a new report recently commissioned by
events and marketing. WhiteConcierge shows that for those who weather the
Advantage Luxury Specialists are supplementing their storm, there will be a “significant increase in the number of
activities with head office marketing, according to the mass affluent people in the UK over the next few years, as
consortium’s sales and marketing director, Colin O’Neill. up to 365,000 new demi-millionaires are created by 2016”.
“Luxury agents are doing better than they thought. We A report in efinancialnews.com reveals ‘absolute luxury
aren’t complacent and expect a tough year, but we’re brands’ such as Rolls Royce and Bentley grew 8% last year
reasonably optimistic,” he says. and are in much better shape than ‘aspirational’ brands like
Being a part of its Luxury programme means agents Gucci and Louis Vuitton and ‘accessible’ brands such as
receive enhanced commissions, staff incentives and Ralph Lauren.
training. “A lot of small specialist operators don’t have Piers Bracher, clients director for Diamond Advertising,
big sales teams, so we can help,” says O’Neill. sees another silver lining in the downturn: “Luxury will be
redefined – oversupply has meant that luxury is very
FOCUSING ON THE FUTURE broad. A contraction of the market will make sure that the
Now is also the time for agents to re-evaluate business experience right at the top will be better.”
plans, even if they feel relatively unscathed so far. As Bracher says, those who can take the pain will find
Andrew Burnham, head of travel and leisure at a stronger, more focused market in the long term.
accountants MacIntyre Hudson, urges agents to identify
big-spending clients. “Plan to get more business from
them – now is the time to act more like a key account
manager. If you reach out to them there’s evidence you will
be well placed to ride out the recession. It is harder to find
new clients than get business from existing ones.”
Up close
Guy Gillon, head of travel and tourism mergers and
Jacqueline Steadman,
acquisitions at PricewaterhouseCoopers, says: “Focus on
what you do best – agents link customers to the product.
director, Travel Time World
Be the master of a few preferred suppliers, rather than “We send monthly e-newsletters featuring special offers personally recommended by staff, and we hold events with
‘Jack of all trades’. operators. We have competitions with prizes such as theatre breaks, and offers with local suppliers such as ‘get fit for
“You also have to be ruthless about staff, as you can’t ski-ing’ with a gym, and spray tans with a salon. We also utilise Advantage’s Kudos magazine with our personal message
carry baggage. Agents have the on the front. High spenders with busy schedules still ask the agent to book everything: time is money.
ability to shrink in terms of staff “We have excellent relationships with our main suppliers. We hold regular training evenings, marketing support and
more easily than operators.” fam trips. We see training as important and ongoing. Well-travelled and experienced staff are the ones who can best
Agencies should plan for a recommend hotels that suit the clients.
tough 24 months – Gillon “We have occasional mini-facelifts in the shop. We moved desks around between Christmas and New Year to create
predicts it will be two years more space and changed pictures – simple things that don’t need much money.”
54
before luxury travel grows
how to...
spring 09
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