Cracking the Group Cruise Market, Step by Step

Creating groups for cruises is a way to expand your sales into a profitable niche, one whose sources of business lie no further away than your current client base.

Phil Swartz, owner of Holiday Cruises & Tours in Tallahassee, Fla., shared tips from his own experiences in the group cruise market during Signature’s Sales Meeting and Trade Show in Las Vegas.

Benefits of group cruises
Why should agents get into group cruise travel? In part, because it’s a specialty in which you can “somewhat control your business, timing-wise, instead of waiting for someone to simply walk in and book business,” Swartz said. “It’s an avenue in which you can be very proactive.

“It also makes good financial sense and will increase your value to your vendors.”

Two types of groups
There are two categories of groups, and each must be sold to differently, he said.

The first type – promotional and affinity groups – are cruising for fun and need to be approached from an emotional standpoint. The second – corporate meetings and incentives – are cruising for business reasons and have to be sold on the benefits of cruising to their business.

Potential groups for cruise vacations are quite diverse, ranging from the obvious family reunions and alumni groups to Harley Davison clubs and sports teams.

Business groups include everything from corporate retreats and board meetings to sales incentives and employee appreciation trips. Professionals like orthodontists and lawyers may take their staffs on a trip when they’ve had a very good year, and why not a cruise?

Begin with client base
Opportunities for group cruises can be found in your own client base, so start there, Swartz advised. “Ask clients, ‘What do you guys like to do in your spare time?’

“What you really want to know, however, is what organizations they belong to,” he said.

If they mention they belong to the Elks Club, for example, ask if any members travel together. It doesn’t matter what the response is. In fact it might be better if it’s no, because then you can create new business.

Then ask, “If I were to talk to someone about the possibility of travel, whom should I talk to?”

Make the call
The next step is to call that person and set up a meeting using the name of the mutual acquaintance.

“Say, ‘I was talking to Bob the other day and he was telling me about belonging to the Elks Club, and I wondered if you might want to travel together? I don’t know if your group could benefit from this or not, but it’ll take only 15 minutes of your time. I’ll give you some information about the option of meeting at sea,’” Swartz said.

Swartz brings a sample written proposal to the initial meeting along with a list of questions he might want to ask the potential clients. He tells them, “‘Today I’d like to ask you some questions and see if it might fit, and then I’ll come back to you with a proposal.’”

Find the hot buttons
Ask questions and listen to the answers. You’ll find out what the hot buttons are for that particular group.

When Swartz shows potential clients his sample proposal, he includes sample flyers and a group photo book – a souvenir he always creates for his cruise groups – from a past trip. Ask the potential client how they could promote a cruise to their group. Do they have a newsletter? A website?

“If you have the right meeting, you’ll know which cruise line and ship would be appropriate for the group when you’re walking out the door,” Swartz said.

You can secure the sale by being first to offer a cruise to a particular group, because then you have no competition. When the pitch is handled well, price goes out the window as a consideration, because you have convinced them of the added value of a cruise created just for their group.

Negotiate with cruise lines
On occasion you can negotiate cruise line pricing for groups.

“Take the DSM out to lunch,” Swartz recommended. “You’d be surprised at what you can get out of them if you do. Talk about how you can work together to get the group on the ship.”

Presenting the proposal
The next step is the presentation to the group’s leader. Swartz creates a written proposal and begins by summarizing the initial meeting and what they discussed. He then introduces the cruise and presents the proposal step-by-step.

For example, “The first night we’ve set up a cocktail party for your group, so you can get to know each other better. Do you like that idea?”

Swartz qualifies the client every step of the way by asking similar questions, in what he calls mini-closes.

Enhancing the product
Once the deal is sealed, start planning the extras you can add to create a unique product. You may want to produce T-shirts and door magnets with the name of the group, or provide pillow gifts. Shore excursions, pre- and post-trips and special group activities will make the trip more memorable.

For groups whose members may not already know each other, Swartz makes a little photo directory of the group, with pictures of each person or couple, and gives it out at the beginning of the trip.

To prepare participants, he creates a group website that includes an itinerary, information about the ports of call and an overview of the ship. He sends an escort along with groups of 40 or more.

In short, Swartz does whatever he can to make sure group members have a good time, tell their friends about it and become repeat clients.