Selling Groups: It’s All About Referrals

Over the years, the classic technique for building group business was contacting various social, civic, and religious groups and suggesting a tour or cruise as a group activity. But given all the changes in the marketplace, has that basic technique evolved? Travel Market Report asked an expert: Joan McCarty, Specialty Travel Inc., St. Petersburg, Florida; she’s successfully specialized in groups for more than 25 years.

“Groups have changed in the past two years more so than the other 24 years I’ve been in the business combined,” she responded bluntly. “Now it’s all off of my referrals, and you talk with any group agent nowadays, referrals is what it’s all about. Even the referrals are off referrals.”

McCarty provided an example of this domino effect: “Four years ago, I did a 10-minute sales pitch for a fundraiser with a health agency. The prize for doing the walk was a seven-day vacation.”

Two years later, McCarty got a call: “’Joan, I know you remember me,’ said the caller. ‘You did the fundraiser for such and such association. I was there with my son. My company wants to do an employee benefit program. I told them I would handle the travel. I want you for our travel agent, because you’re fun and I know you will treat our employees well.’”

Specialty Travel took 300 of the caller’s employees on a cruise a year ago. This week, the group is back. “It’s like drawing a circle,” said McCarty. “From doing a 10-minute presentation for XYZ Health agency, there also came a telemarketing company. From that employee benefit program, there also came a human resources group. All those rays of sunshine from one contact.”

First, Sell Yourself

In that ten-minute presentation, she sold herself first and then the vacation. “That basic fundamental of selling me hasn’t changed with the economy; the basic fundamental is I’m selling me,” said McCarty. “I’m not speaking egotistically–it’s a business necessity. How you bond with your clients initially is key to your group business down the line.”

For example, the telecommunications company of 300 she helped last March led to repeats both on group business and even FITs. “I was on Facebook last night talking with one of the girls that did the cruise last year and is doing it again this week,” said McCarty. “’Did I tell you about this incredible itinerary?’  We then went into the private part of Facebook. I told her all about this itinerary. She said: ‘This is so hot my parents want to do it as well.’ I just sold six people. The mother is leery, so I said, ‘Have her call me. Here’s my personal cell phone. We’ll just gab; tell her she’s under no obligation.’”

Make Yourself Available

McCarthy says she hates that her clients have her cell phone number, but in this economy there is no choice. “Do you realize the economy we’re in?” she queried.

That’s why when the clients call on the cell phone, I don’t rush them. I listen to questions and give them answers. Since referrals is what it’s about nowadays, once you get them, you better treat them well.”

And that includes the lousy clients. “In this economy, you need to deal with the PITAs–pain in the asses–because if you don’t, it can spoil a whole group. We all need to get our egos in check and remember who really signs the paycheck. You need people to tell other people, he or she did this and did an outstanding job. Their money is green. We are not in an economy where you can afford to turn any client away. In short, suck it up.”

Service, Service, Service

McCarty’s point is once you’ve sold to them, service them: “If you’re escorting a group, leave the bathing suit home. Your job is to work. If they have a good time, you’re selling them their next trip. When they are on vacation, you are developing relationships.”

Another thing that’s changed is everyone views pricing differently now. “Do everything you can to help people out economically, because most people are in tough economic times now,” she noted. “It’s things like, ‘Do you want an invoice every month or every six months? How does it work best for you? What day of the month does it work for you? I can run your credit card any day you want.’ Volume is up, but we’re still hurting commission wise, so, nowadays, when doing a group, agents more than ever need to realize who really signs the paycheck.”