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Travel Trade Academy: Dickinson on Successful Selling
Published on: April 2, 2007
(Travel Trade is introducing a new feature, Travel Trade Academy, designed to provide our agent readers with more training opportunities. The column complements our Academy at traveltrade.com, which contains Travel Trade Special Supplements featuring supplier products and services and the seminars at Travel Trade Conferences.)
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| Bob Dickinson |
Being the gatekeepers of people's vacations is a very fulfilling and worthwhile vocation, Carnival Cruise Lines president and CEO Bob Dickinson told the 1,000 agents participating in the recent online Travel Executive Forum produced by the Host agency America's Vacation Center and sponsored by American Express.
In his seminar on sales, Dickinson said that agents are in a growth business when it comes to selling cruise vacations, because only 3.5% of the total vacation market for hotels, resorts and cruises has taken a cruise.
High Satisfaction Rating
"The irony of this is that when people take a cruise and contrast it with resort vacations, on balance cruise vacations score satisfaction ratings in the mid- to high 90s, whereas vacations at land-based resorts score on average in the mid-80s," said Dickinson.
"So the cruise vacation has the higher satisfaction rate and yet it is only 3.5% of market. The reason for that is we only have so many ships and those ships are priced to sell — we will price to fill every berth. We are capacity constrained."
That means the cruise industry has to double its capacity in order to double its share of the vacation market.
"So we'll always be small players in terms of market penetration. But we are champs in guest satisfaction and that is why astute agents recommend cruises and do so knowing that their customers will have a great time."
In selling cruises and other vacations, Dickinson advised agents not to respond to a prospective customer's request for a package at a specific, and probably advertised, price but rather to qualify the prospect so that you can sell him what he needs.
Ask for Names, Addresses
The first step in that process is to ask for the prospect's basic information.
"I recommend that you tell that prospect, 'Yes, we have that and a number of other great packages,' and ask for their names and addresses or phone number. Don't be afraid that they will hang up on you. Be glad if they do because they're not interested.
"Successful agents treat themselves with respect by insisting they get that information — tell customers that you want to provide the very best service and to do that you need to know who you are serving."
Dickinson advised agents to build a database on their prospects and customers by continually adding all the information they gather about their customers to their PNRs.
A key part of the sales process is asking questions — about what customers want, where they have been, what they have done on past vacations.
"When you ask the questions, you are in control of the sales process. And the prospect is glad that the agent is showing interest in him by asking the questions. It shows that you are listening to them and what that customer wants on their vacation."
But, Dickinson said, don't ask how much they want to spend.
"That's a horrible question."
The better qualification, he added, is to ask how much they have spent on previous vacations.
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| The Travel Executive Forum's next event, on April 24, features Royal Caribbean president Adam Goldstein and senior vice president of sales Lisa Bauer. |
"That will speak to their budget — ask where they went, where they stayed, where they dined. This will help you to put the client in the right bucket and that is all you want to do because you can make a recommendation by identifying their spending patterns."
Dickinson recommends that the agent do a "soft close," especially if the prospect is the decision maker and not, for example, the husband who has to check with his wife.
Successful agents should be qualifiers, listening for the prospect's needs and then coming up with a recipe for those needs — where they'll stay, what they'll do, where they'll eat, said Dickinson.
"The recipe for their vacation really flows from the needs the prospect tells you about it."
Then proceed to the actual close.
"Don't give an option because that is an opportunity for the customer to shop your price," Dickinson said.
"When the customer takes an option with no deposit, there is no commitment. Once you get the deposit, the probability of them shopping is greatly reduced. In our company, when people deposit, it sticks 95% of the time. Options stick 35% of the time."
Key to building a repeat clientele is following up with customers after they return from their vacation, according to Dickinson.
"Most agents are afraid that when people return they will not have had a good time and thus are reluctant to get screamed at. But you want them to call and yell if they have had bad time."
He added, "Statistically, in the case of cruises 95% of the time people had a great time. So 95 times out of 100, you'll hear praise and you get these people in the afterglow of their vacation."
Dickinson advised that agents ask their customers what they liked or didn't and whether you gave them a good recommendation.
When you call, he noted, "You are reminding them that you gave them what they wanted and that reinforces the personal relationship."
Agents should ask where their customers would like to go next and whether they have friends and relatives who would want to go on this cruise.
"Ask for referrals. Bask in that reflected glory and they'll give you repeat and referral business, which is the backbone of a successful business."
Agents Q&A With Dickinson
Agents participating in the online Forum asked Dickinson questions, some of which follow.
How can agents be competitive in cruise sales?
Dickinson: Agents can work with suppliers that meet you halfway. In our case, we have a level pricing field. All agents have to advertise the same pricing So if you're small and dealing out of your home, you don't have to worry about a competitor advertising rates lower than yours.
Also, the advantage that any agent has is that in your geographical market or sphere of influence, you are known in their community and can continually remind people that you are there and that you provide them with what they want — a great vacation.
What is best response to a customer who says I got a better offer?
Dickinson: Your response should be, "I don't sell on price but on the right product." Those people are obviously shopping. Never give the prospect what he wants — give them what he needs.
Is it important to join a Host agency?
Dickinson: For 80%-85% of the agents, I think it is very, very important because the Host agency has the clout with suppliers. There are some exceptions — primarily these would be agents who have been in business for a long time and are specialists.
But the vast majority of Home Based agents will benefit from the Host's programs and levels of support because the Host has the scale that you don't have on your own.
I would look for one that is not too large or too small — one that can provide a high level of service and has clout with suppliers. Look for one that provides a lot of value.
Where do you see cruises in five to 10 years?
Dickinson: In five years, [the cruise industry] realistically should be carrying 40% more people than we are today — 15 to 16 million. Most of that growth should benefit travel agents because you sell the largest share and there is no reason why that would not continue.
The only dark cloud that I see is that since September 11, 2001 a certain number of travel schools have closed. And it is important that the industry attract young people to travel careers.
We have to replenish the agent community. It seems to me that smaller numbers of young people are getting involved in the business and that seems kind of dangerous.
What can agents can do to convert Internet bookers to agent customers?
Dickinson: If you can build a relationship with people, that relationship coupled with the fact that you ask for the business, should make the difference. Why would someone call a faceless call center when they could deal with someone in their community? Your personal service and professional relationships position you as the travel expert.
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