Insights into Sales Strategies in the Cruise Industry
Explore the unique characteristics and nature of personal selling in the cruise industry, along with sales force objectives and goals such as upselling and market share. Discover the importance of building buyer preference and maintaining strategic relationships in hospitality sales.
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Presentation Transcript
TRAVEL SALES Cruise Industry
PromotionTools Advertising Direct marketing Personal selling Consistent, clear, and compelling company and brand images Sales promotion Public relations
Unique Characteristics of Personal Selling Most effective in building buyer preference, conviction, and purchase Gives voice and face to an otherwise impersonal company Personal and adaptable interaction with consumers Buyer is the most involved in listening and participating compared to other mediums
Characteristics of Personal Selling Requires a long-term commitment by company Can t just turn it on or off like media ads Most expensive Not a Short term strategy to sell sell sell Long-term market orientation, customer-focus Balancing volume with quality service
Nature of Hospitality Sales Prospecting: finding new customers Targeting: decide who to give their time to Communication: give information about product / service Selling: make consumer want it, purchase it Servicing: do more than just take money Information gathering: market research and intelligence Allocating: which customers get product in times of scarcity Maintaining Strategic Relationships: provide planning assistance to clients
SALES FORCE OBJECTIVES
SalesGoal: Volume Cabins, pax All mean the same thing: bring in as many customers as possible By Segment By Price / Margin Mix Individual level: Carnival - number of rooms sold
SalesGoal: Upselling To higher price point category: room to suite Additional amenities: airport pickup service, beverage package, insurance Second-chance selling Contacting guests who are already booked
SalesGoal: Market Share or Market Penetration Most important to airlines, cruise lines, rental car companies, major fast-food chains Not so important for most restaurants and hotel companies At the corporate level, the big players are concerned, but at business unit level or functional level, occupancy, average room rate, yield are more important
SalesGoal: Product-Specific Objectives Asked to bolster specific product lines Need to sell more Suites Honeymoon packages Alcohol packages Holiday dates Specific sailing dates / ships TA Specific brands, insurance, tours, airport transfers
SALES FORCE STRUCTURE AND SIZE
Combination-Structured Sales Force Organized by product, market segment, market channel, and customer Carnival sales departments FIT - Group Domestic - international Inbound - Outbound Casino TA Key accounts
Travel Agencies Traditional TAs Similarto directcompany Sales team salaried and some commission Host Agencies Host provides websites, back-end accounting services, preferred supplier relationships, marketing Agents act as Independent Contractors utilizing their own book of business Part time or full time or evenhave their ownsmall agency Negotiable commission structure
Determining Sales Force Size 1. Group customers into size classes according to annual sales volume 2. determine call frequency neededper class 3. multiply number of accounts by frequency to get total workload 4. determine average number of calls sales rep can make in one year 5. divide total annual calls by average calls made by rep
Sales force size Company estimates national market consists of 1000 A accounts and 2000 B accounts. A accounts require 9 calls per year, and B accounts need 6 calls per year. The average salesperson can make 1000 calls in one year. How many sales reps do you need? Workload ((1000 x 9) + (2000 x 6)) = 21,000 calls per year Number of reps needed Workload / yearly call total of 1 rep 21,000 / 1,000 21 reps needed
Hiring Trends Previously, only older, experienced travelers decided to become TAs, almost as a retirement hobby Now, the bigger agencies and the cruiselines themselves recruit at Universities looking for fresh, energetic young people Don t say Salesperson anymore Counselor, planner, advisor, expert
Required Training 1. Product/Service Training Must be an expert on the product Always changing with new technology in hospitality 2. Policies, Procedures, and Planning Training Attention to detail Avoid mistakes 3. Sales techniques
Two Most Important Qualities of a Salesperson Ego, drive / motivation Empathy
Pre-Sale: Prospecting Finding customers Usually done by the company Website registration Inbound calls looking for information Kiosks Trade associations Travel shows Past guests 3rd party marketers Inbound vs Outbound
Proven Sales Process Introduction Qualifying Presentation Closing Handling objections
Sales Process: PreApproach Get as much info as possible about guests beforehand Demographics: Age and gender Purchase history: new or repeat Frequency and seasonality Travel with
Sales Process: Introduction Positive, welcoming, friendly Include your name and company Pose a question: how can I help you today / how can I help you plan a vacation today Feel you smiling
First Contact Minimum Goal Best contact information If unwilling to give it, probably a waste of time Phone: In case we get disconnected, what is the best number to reach you at? Direct / phone: sign up for our e-newsletter with special offers, prize giveaway Email? Post call survey
Sales Process: Qualifying Gather as much information as possible Find the hot buttons Food, adventure, comfort, kids enjoyment, new experiences, relaxing, romance Ask the right questions Listen: let them do most of the talking
Qualifying a Cruise Have you travelled with us before? Yes: Welcome back! No: Well this may be your first time with us, but it won t be your last What was your last vacation like? When are you looking to travel? Celebrating any special occasion? Who are you traveling with? Which destination appeals to you? What would you like to do on your vacation? What did you not like about last vacation? How many days/nights do you want to vacation for?
Presentation Features and benefits Tells story to the buyer based on their answers Emotional appeals Help paint the picture Utilize creativity, imaginative words and description, create visuals in their mind Emphasis product benefits, not features How does that sound?
Closing Assumptive Close What credit card do you want to use? Do you want to put down the deposit or the whole payment? What email should I send the confirmation to?
ClosingStrategies Ownership Close Use language that indicates the customer already owns the product Your vacation, your room, your view, Take Away close We have something specific chosen for you, so you don t lose it, shall I take it out of inventory for you? Without deposit, you will lose this room
ClosingStrategies Rule of 2 Narrow everything down to a choice between one thing or another Conditional Close If I can do this for you, will you put the money down? Minor points close You wanted the room facing the sea? Close to the elevator? On the top floor? With a balcony? Queen bed? Shower? Get used to saying YES Testimonial close I know many guests / my own friends or family / myself who loved this Adds credibility Trial close throughout How does that sound?
Handling Objections I have to talk with my wife , or I am not ready CreateURGENCY I don t want you to lose the room, lose the price by waiting Price is too high Start high, drop low Seasickness Minimum goal: to set follow up appointment If not now, when I haveto checkmy kids school schedule
Post - Sale Objectives Referrals, traveling with anyone else Servicing Continuing relationship management Welcome back Call every few months or when there are special opportunities
Evaluating Sales Force: Quotas andCompensation Carnival outbound sales 100 calls a day 3 hours talking 3 reservations Fixedcompensation Variable: commission basedon what Number of reservations, dollaramountof reservations Slidingor fixedscale
