Secrets of Winning Over the Luxury Market
by Maria Lenhart /In retail travel, many of the most profitable travel agents cater to the luxury market. But while the rewards of servicing luxury travelers are high, doing so successfully isn’t always easy.
In particular, getting the information and supplier support needed to serve the complex demands of upscale consumers can be a challenge, say two veteran agents successful in the luxury arena. That’s especially true when working with the growing number of clients who sweeten the deal by traveling in groups of family or friends.
Jennifer Leventhal, president of Chicago-based Sentinel Travel, and Nadia Giudice, president of Montreal-based Voyages Groupe Ideal, shared their advice and observations about luxury travelers with Travel Market Report. Both agents are members of Ensemble Travel Group.
What type of travel is hot among luxury consumers these days?
Leventhal: More and more people want something out of the ordinary that involves a little activity. They want off-the-beaten track places, but still with deluxe camping or wonderful small lodges.
People want deeper experiences, including a volunteer aspect where you can do something for the environment or for the local community. Or they want things like cooking classes or chances to learn about the local culture. But they still want service and comfort.
Giudice: There’s a trend for a more active vacation – with bike trips and skiing in Europe very big right now. And people are traveling more in groups of families or friends.
How willing are people to spend on a luxury trip?
Giudice: There are a lot of customers who want to spend the money, but they do not want to feel they are being nickeled and dimed. They may pay $1,000 for a room night, but don’t tell them they have to pay for water, the Internet, an extra cup of coffee.
Multigenerational travel is a growing trend among upscale consumers. Why is this so?
Giudice: Multigenerational vacations are happening more because everyone is short of time and on different schedules. The grandparents find the only way they can lock in time with grandchildren is to take them on vacations.
What are the challenges involved in multigenerational cruise?
Leventhal: There’s a lot to address. The hard part is the people aspect – the product is easy – who gets what cabin, who wants to be near whom, coordinating the activities and dining.
It involves asking a lot of questions, making adjustments after you’ve talked to them, convincing people to make compromises, to pick a different activity. I usually deal with one person in the planning process, but they have to get the consensus.
I recently had a group of 19 family members on a Regent cruise in Alaska. You have to learn about the family relationships. Because their shore excursions were included but were limited, it was challenging to get everybody what they wanted.
What other challenges are there in multigenerational travel?
Giudice: The challenge for agents is that many suppliers, especially hotels, are difficult to deal with on the arrangements needed for family groups.
Many [resort] hotels now are so large and spread out that they’re like cities. It’s hard to get connecting rooms or to get across to the sales managers that the group needs to be in the same building.
The cruise ships are better about this, but there is usually a shortage of connecting cabins.
The challenge is also in getting all the information you need.
How do you get around these issues?
Giudice: A good sales contact is always crucial, especially for the luxury market. Once you find one, stay on top of that relationship.
We send our staff on fam trips, or we do our own trips internally. They can go and meet with the salespeople at hotels, so we have a name and contact.
What are effective ways to upsell to luxury?
Leventhal: You can always try and show clients the value of the higher-category product. The advantages are both tangible and intangible. The higher end cruise may cost more, but more is included.
The intangible part is that you can relax more, knowing that you can just order a Coke or glass of wine without adding up the little tally in your head. It makes it more relaxing and enjoyable.
Giudice: We explain to the clients about the value – the added benefits of paying more in advance. We’ve trained ourselves to focus and pull the customers’ attention to the difference.
For example, if they want to go to Hotel A and spend $1,000, we would show them the advantages of the hotel that costs $1,250. For the extra $250, more is included. You will spend the difference anyway. When you make them focus on what the difference [in price] gets them, upselling becomes easier.
How important is the service aspect in luxury travel?
Giudice: Service and attention to detail are very important. Luxury clients are used to having a personal assistant, a butler, a housekeeper – they have service at home, and so they expect it when they travel.
Leventhal: The level of service really does make a difference in the experience. To have the wonderful beach chairs with nice fitted towels, servers who come with cold water and snacks – this all costs more, but some clients will go for it.
I emphasize the service aspect in destinations where it really counts.
I sent a family to Ecuador and Peru for a winter vacation. Unlike in Europe, where they [travelers] might drive or take trains, South America is all about private escorted tours.
People need a guide to explain the culture and the history, to interpret the ruins. There are real advantages to having a private guide, not having to worry about getting from place to place. People are getting this. Their time is valuable.
How has the luxury market changed over the years?
Leventhal: The Internet has made people more educated and savvy, including in the luxury market. You don’t have to educate them as much about the choices. You are helping to guide them.