It never ceases to amaze me at the level of discounting that goes on in our Industry, and the reasons for having to do so! It's Well documented about the level that goes on in the Cruise Industry, and I have to ask myself why if a Cruise Operator is offering a Brochure Launch or Headline Discount of 45%,50% or even this year 60%, why a Cruise Club or travel Agency should ever have to offer anything else above this. Surely a good sales person should secure a sale without having to discount any further! What's the Point of Giving away 14% out of your 15%Commission to gain the Sale and more Volume, but you won't have made any profit in the time taken by the Consultant in Searches, time spent etc on gaining the booking.
I'd Like to know to What levels Consultants are prepared to go to and what their Company Policies are with regards to discounting
It's time we all made a stand against discounting, so that the general public starts to realise the true value of any holiday.
We require a set margin, both min amount of revenue and percent depends on what is highest amount of money. So £30 or 4% which ever is higher, but only to match never offered.
The level of on-line discounting by certain tour operators baffles me. With one breath, they defend their actions by claiming that it is cheaper for them to gain the business direct from the customer and not pay a commission to an agent. However, they spend thousands on pay-per-click and on-line advertising and then go and discoount the holiday price online by more than they woul dpay in commission - I just do not see the business sense in doing that
New study out from Visa says a quarter of Brits will haggle travel agents over the price of their holiday, and only 11% will accept the first price quoted.
What's more, the study says the recession says customers are even more determind to get the best price.
How does this study tally with your experiences? In some ways I'm not sure it tells us much new - price-matching is common place.
UPDATE:
Just been chatting about this to Karen Moule, manager of Fred Olsen Travel in Norwich. She said:
“I am definitely noticing more haggling because of the current economic climate. When I am looking to close the sale, customers will ask if it is the best price I can offer – they are shopping around more.
My tips for dealing with haggling are:
Give great customer service
Provide excellent product knowledge
Win the customer around with reassurance – explain how you will be there for them if they have any problems.”