Emerging Destinations How to Sell Emerging Destinations in

Emerging Destinations How to Sell Emerging Destinations in Dollars and Cents Fred Gebhart – author, DS East Asia Contributing Editor, Travel Professional Contents copyright 2007 by Fred Gebhart All rights reserved 1

The Reporter’s View §Who §What §Why §Where §When §How 2

The Travel Retailer’s View §What is an emerging destination §Where are emerging destinations §Why sell emerging destinations §When sell emerging destinations §Who buys emerging destinations §How to sell emerging destinations 3

To Sell or Not To Sell? 4

What is an Emerging Destination? 5

What is an Emerging Destination? 6

What is an Emerging Destination? 7

What is an Emerging Destination? 8

What is an Emerging Destination? 9

You’ll Know an Emerging Destination When you See It! 10

An Emerging Destination Is: § unknown to your clients § exotic to your clients § adventurous to your clients § on the edge to your clients § an experience, not a trip § something to boast about 11

An Emerging Destination Is Not: § mass market § easy to uncover § easy to package § easy to get to § easy to move around § easy to forget 12

Where are Emerging Destinations? § Beyond your client’s comfort zone § Familiar to some § Eastern Europe, Africa, Middle East, Latin America, Asia. Pacific 13

Focus on Southeast Asia § Cambodia § Laos § Myanmar § Northern Thailand 14

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The Nonstop Myth § Bangkok § Singapore 16

Getting There Direct § Japan § Korea § Taiwan § Bangkok § Singapore § Kuala Lumpur 17

Getting Around § Air § Ground § Water 18

Getting Information § Tour operators § Wholesalers § Trade shows 19

Tour Operators § Pro • Preconfigured product • Add pre & post modules • May offer exclusive access • Name recognition • Familiarity 20

Tour Operators § Con • Preconfigured product • Pricing limits profit potential • Image • Name recognition 21

Wholesalers § Pro • More flexibility • Brand your own product • Easier to add pre & post • Better margins • Special handling 22

Wholesalers § Con • Need more product knowledge • Time investment • No brand support • Your name on the line 23

US Contacts Can Help • Exotissimo • Indochina Services 24

US Contacts Can Help • Exotissimo North America • Lee Marona, President • Tel: 877 -396 -8687 • http: //www. exotissimo. com 25

US Contacts Can Help • Indochina Services • Paul Tomash, Managing Director • Tel: 415 -434 -4015 • http: //www. indochinaservices. com 26

Trade Shows • Leisure vs. MICE 27

Trade Shows • IT&CMA—October • http: //www. itcma. com. sg • ATF—Jan/Feb • http: //www. atf 2007. travel • PATA Travel Mart—Sept • http: //www. pata. org • ITB—March • http: //www. itb-berlin. com • ITB Asia—Fall, 2008 28

Combo Sales are Key • On the edge + luxury • Adventure + civilization • Emerging destination + mature destination • New + familiar 29

Why Sell Emerging Destinations? 30

A Tough Sell § Clients don’t know the area § You don’t know the area § Information gap § Long, drawn out travel § Poor infrastructure 31

Fear of the Unknown 32

Is it Healthy? Photo copyright Christine Potter 33

Is it Healthy? Centers for Disease Control and Prevention (CDC) http: //www. cdc. gov/travel/destin at. htm World Health Organization (WHO) http: //www. who. int/ith/en/ 34

Is it Healthy? International Society of Travel Medicine (ISTM) http: //istm. org The Traveler’s Medical Guide Gary Fujimoto, MD http: //www. prairiesmokepress. com/ medguide. html 35

A Money Machine 36

A Profitable Sell § Higher dollar value per sale § Higher commission rate § Higher yield § Higher visibility to clients § More loyal customers § More repeat business 37

When to Sell Emerging Destinations? Anytime! 38

Seasons § Winter cooler, drier Nov—Feb § Summer hotter, wetter Apr-Sep 39

Holiday Crowds § § Christmas/New Year Chinese New Year Buddhist New Year Golden Week Japan • May § Golden Week China • Jan/Feb, May, Sept/Oct—maybe! 40

Why Emerging Destinations are Profitable § Dreams Sell 41

Why Emerging Destinations are Profitable § Clients don’t know the product § Most travel agents don’t know the product § Suppliers lack infrastructure to sell direct § Websites offfer basic products 42

Showcase Your Expertise Long haul travelers are nearly three times more likely to buy from a physical agency than the typical leisure traveler. Henry Harteveldt, VP Travel Research, Forester Research 43

Showcase Your Expertise “I can sit down with one client and sell a $20, 000 booking or I can sit down with a hundred clients for a $2, 000 cruise. I can sell as much in half the time, a quarter of the effort, and less guff from clients over expectations the mass market products can never meet. The profitability is there and you can almost name your own price. ” Don Kiselewski, Palm Beach Gardens Carlson Wagonlit Travel Professional April/May 2006 pg. 22 44

Who Buys Emerging Destinations? § Upper and lower market segments § Don’t write of backpackers § Don’t write off the rich § Don’t count on the rich § Aspirations rule 45

Emerging Destination Travelers § Want to sightdo, not sightsee § Prefer education to entertainment § Collect more experiences than souvenirs 46

Emerging Destination Travelers § Want unique experiences § Want authentic experiences 47

Emerging Destination Travelers § Are affluent, not rich § Wealth = net worth, income § Affluence = spending habits 48

Pick Your Client § Boomer couple, $5 million income, hate to waste money on transient pleasures § Boomer couple, $50 K income, happy to run up credit card bills to have fun, impress the neighbors 49

Finding Potential Clients § Beach & resort lovers § Active & adventure travelers § Eco-travelers & nature lovers § Culture collectors § Sybarites & backpackers § Divers, snorkelers & sailors § Honeymooners 50

Niche Markets by Passion Beaches Ecotourism Wildlife Luxury Food & drink Honeymoon Rural Hideaways Trains Self-drive Cruising Adventure Culture Volcanoes Mountain climbing Big Cities History Nightlife Ethnic & Religious Hiking 51 Casinos

Niche Markets by Culture § § § Chinese Thai Indian Khmer Western influences: Spanish, Dutch, French, British, American § Buddhist, Confucian, Islamic, Animist 52

How to Sell Emerging Destinations § Sell the dream 53

How to Sell Emerging Destinations § Not the reality 54

Identify Potential Clients § Think dreams, not plans § Think affluence, not income § Segment current client base • Upscale hotels • More adventurous travel • More international travel 55

Look for Affluence Locally § Business owners § Self-employed professionals § Rising corporate execs § Recently retired 56

Become the Local Expert § Search out local media coverage § Pitch your travel expertise § Host a radio show § Speak § Donate a trip or consultation 57

Build Third Party Endorsements § Friend, family member § Business associate § Guide book § Travel agent § Media reports § Website § Brochure Source: CLIA 58 84% 66% 54% 51% 44% 32% 30%

Identify Client Dreams § The Great Explorer § Exotica § Explore cultures § Bragging rights § Lap of luxury § Roughing it 59

Identify Client Needs § Newbie or old hand? § Crowds or solitude? § Urban or rural? § Pampered or independent? § Exotic or familiar? 60

Recommend Products 61

Recommend Products § You cannot match client and product unless you know both § You must articulate benefits based on the client's dreams and needs 62

Objections § Questions about climate, crowds, culture, language, etc can seal the sale § Distance and travel time § Value, not price § If you've sold into the dreams and met the needs, there may not be any objections 63

CTSS: Close the Sale, Stupid § Assume “Which credit card would you like to use for the deposit? " § Choice “Is it better to leave in the morning or the evening? " § Summarize "This destination has everything you're looking for: it's off the beaten track but relatively easy to get to, exotic, great food, plenty of places to explore, and none of your neighbors have been there. " 64

Build Relationships and Sales § Track client preferences, likes, dislikes, and “I wish I could haves” § Send regular updates by email, postcard, newsletter and phone with personal recommendations § Destination seminars § Help clients enjoy favorite experiences in a new destination 65

Let Me Know How I Can Help Fred Gebhart Author, Destination Specialist: East Asia Contributing Editor, Travel Professional Tel: 415 -681 -3018 http: //ww. fredgebhart. com http: //ww. thetravelinstitute. com 66