One-on-One with Trafalgar's Gavin Tollman
by Cheryl Rosen /If Trafalgar CEO Gavin Tollman learned anything in his whirlwind tour of travel agents last week, it’s that the malaise of the stock markets doesn’t seem to be hurting the travel business—or the professionals who are selling it. It’s all about getting customers off the fence, though. And to that end, he has a couple of ideas, from mini-fams and travel-agency promotions to programs targeting intergenerational groups.
Here’s a little of the conversation he had this week with TMR’s editor Cheryl Rosen at the Waldorf-Astoria in Manhattan.
CR: How’s business? What are you seeing out there?
GT: We’re seeing a whole new world. Destinations that used to be good sellers—Scandinavia, Spain and Portugal, Ireland, Japan—are up to degrees we’ve never seen before. But Italy, France, Central Europe are a challenge.
There’s no doubt we’re in a moment of uncertainty, and the reasons are many. (For some insights into the challenges, see yesterday’s story in TMR on MMGY’s new traveler survey.) Any travel agent will tell you consumers want to travel, but the environment is making them sit on the fence and not make the buying decision.
CR: What exactly are consumers looking for?
GT: They want to eat what the locals eat, do what the locals do. It’s all about how we can take travelers into a destination as though we were the locals, taking them below the surface, showing them the must-see sites.
At Trafalgar we look at every country as though it’s a fabric made up of a lot of threads of different textures and colors. When you combine them they make the unique and distinctive quality of the place you are going to.
We have a platform that allows those who travel with us to publish reviews of their experiences; we have 20,000 reviews up online. When people are fearful they want to hear from others who have done it whom they can trust. One agent in Phoenix told me on Tuesday that the reviews have been transformational in her being able to close sales; she said she never doesn’t use it. Even if a customer is ready to buy she says, “Let’s have a look at what people are saying,” because that instills confidence.
CR: What does it all mean for travel professionals?
GT: Good travel agents are back for the same reason; there’s a trepidation in making the buy decision. When people travel it’s important to get it right the first time. They want to ensure they’re going to an expert who can guide them correctly. When people tell me they can go on the web and book what they want, I say, “Is that really the right way to go about it? If you have a sore elbow, do you Google it and then walk into the doctor and say ‘This is what’s wrong with me,’ and he just prescribes medicine without examining you? It’s the same thing when you buy travel online.”
I’ve been asked over and over by agent partners and the media for my view of the long-term sustainability of travel agents, and my answer is, I’ve never seen it be such a huge opportunity, not only for continued relevance, but for greater success than ever before. In a difficult trading environment, the agents I’ve met with are doing incredibly well. Those who are adapting and coming up with action plans, those who actually work to ensure they are delivering the right travel experience, based on the needs of their customers, are thriving.
But there’s a need for an impetus to get consumers off the fence to make a buy decision, and for that they have to be inspired. They are looking for a deal—and so we want to run a campaign around our agent partners to help inspire them and turn them from fence-sitters into buyers.
So we are planning a fully integrated campaign. We started with Valentine’s Day last weekend, using a theme of being inspired by a love of travel, falling in love again, and going to Paris or Vienna for the romantic places to see and things to do. That will be the first of four prongs. Next we’re looking at the Queen’s 90th birthday, which will take place this year, and all the pageantry that will surround it. So there will be a certain urgency to visit Britain in 2016.
Two weeks ago we also rolled out a series of “mini-fams” for travel professionals who may not have time for full trips. We’ve created two- and three-night itineraries around the country. I highly encourage agents who have never experienced a guided vacation to take advantage and get a true understanding of the experience.
CR: How is the business of guided vacations doing? Are you seeing younger travelers?
GT: Our average age is falling, but guided vacations today have nothing to do with age demographics; they are about like-minded people. We live such frenetic and fast-paced lives. Our customers want us to do everything so they can just discover new countries in an easy way and make new friends from all around the world.
CR: What trends do you see in the travel business for 2016?
GT: The most prevalent trend is D.I.F.M.—Do It For Me. I hear it all the time when I speak with our guests. We live in a society where everyone wants ease, from the booking all the way to getting home. People just don’t want hassles. We all are time-deprived. When we travel it’s all about that break from everyday life. You just want everything to be just the way you’d like it to be.
Another developing trend is in why people are actually traveling: It’s to have a great time. In an environment of complete transparency, travelers no longer want to see the iconic sites. It’s about bragging rights—they want you to do it for them, and they want to brag about it and share everything they are doing all the time. They don’t want to take a picture standing in front of the Eiffel Tower. It’s all about doing something. So we’ve trained our travel directors to be cognizant of that. When we do the sexy stuff that no one has done, we tell them that’s what this is, so they can showcase to all their friends at home and see all those thumbs-up blow up on social media.
CR: What destinations are hot for 2016?
GT: Iceland is very hot; Japan is off the charts; Eastern Europe, Scandinavia, Spain and Portugal. The cruises help that. A cruise is like an appetizer, you get a sample and then you want to come back for the full meal. The national parks are very hot.
The United States is definitely strong. It’s the destination of the year, especially the West Coast, particularly the Northwest. Hawaii is still our number-one destination, but travelers don’t want to just sit on the beach. They want to see the culture and the traditions.
CR: What’s coming up next at Trafalgar?
GT: Another thing I heard a lot of this week is the complete resurgence of family vacations. That’s also reflective of times of uncertainty. So in about two weeks we’ll be doing a promotion geared toward families. People want to be together, to create those moments and memories to remember forever. In times of uncertainty that family bond becomes important.
CR: What’s your greatest concern?
GT: My greatest concern is being nimble enough to respond to the opportunities that change brings, being able to work as a brand and with our travel-agency partners to capitalize on the changes in our business. The unexpected actually is the norm, and to prosper in that kind of environment requires great flexibilty.
We’re a low-volume, high-margin product—and that’s where the opportunity for travel agents lies. The return on investment comes from selling a product with a high repeat factor where you can earn a good commission. In every given year, more than 50% of our travelers are repeat guests. For our agent partners, selling us is selling an annuity. Our most exciting statistic remains the exponential increase in single-year repeat travelers—and we are seeing that number grow exponentially.
CR: What do you think makes a successful travel professional?
GT: One common thread across all those who are prospering is a genuine love for travel; they are passionate about their product and love what they do.