Thursday, July 11, 2013

Battling for Market Share

Sometimes, I think I come across as a bit too passive these days.

People will ask about vacations or cruises, and I do my best to inform them about what they want with the latest information and best pricing based on live inventory.  This frequently comes with explanations of why one category of balcony, for example, is superior to another, and why it may be worth the marginally insignificant price difference.  I include all the taxes, and frequently I will include a few other items like transfers and insurance that would make the client's overall experience best.  I do take time to break all of this down, but I have to guess that sometimes people just write down one figure, and that is usually the bottom line without considering what is included.

Princess outdoor movies
A few weeks ago, a client who had asked about a South America cruise told me a few weeks later that he had booked elsewhere, because it had saved him several hundred dollars. I was somewhat shocked, because if I had zeroed out my entire commission, and even the additional slice taken by Cruise Planners American Express, I could not have gone to that price, and I knew for a fact that no way had the price ever been low enough for that to be possible.  A few weeks before the cruise as a last minute deal, maybe, but not for a Princess cruise booked months in advance.  And, by the way, the commissions are paid by the cruise line and do not effect the prices.  The cruise line never undercuts us.  I don't like people uncomfortable, so I just let it pass as far as the client is concerned, but it tears me up inside.

Pride of America pool deck.
Last night, I had a similar situation hit, this time on NCL Pride of America, when the client told me he would like an obstructed ocean view for November 30 at about $1200 per person if it was "still available."  It was about 10 at night, so I did a quick search.  Not only did I not see that price for an obstructed ocean view, I didn't see it for an inside, and my kneejerk reaction was to reply with that news.

I woke up in the middle of the night wondering if I had missed something.  I had no doubt about my client's honesty.  I checked again, and I did find that we had an interior in a group that would be priced lower than his target price, but still nothing in the category and at the price that he wanted.  I shot off an email asking where he received the quote. 

I went back to bed, and the next morning called Norwegian Cruise Lines to ask about that price, and the rep said it looked like it was most likely the price without NCF (non-commissionable fares) of $260 per person.  $1199 pp was the "price," as long as we added the NCF plus another $145 per person for taxes.  I sent this information to my client.

Wildflower in Hawaiian jungle
I assumed his quote had been through some fly-by-night company with deceptive advertising that would fall apart upon scrutiny, but he sent me a link to Expedia, which specifically had obstructed ocean view OK for $1169 per person as an "Expedia Exclusive Price."  I was about to register a complaint with American Express and Norwegian, because this violates the policies regarding online advertising, but instead I decided to call the toll free number in the margin.

When I had a live person on the line, she said, "I don't see $1169 for even an interior room," or essentially exactly what my initial response had been.  She looked further and said $1219. 

"What about $1169?" I inquired. 

Hilo Waterfall
"That's not live pricing," she replied.  I know how these things work, and I doubt that price was ever available on that date, but at least that was theoretically true, as Norwegian does run a lot of 3 day specials.  I still had the big question on my mind.

"Are taxes additional?" I asked naively.  She replied they were, and broke them down essentially the same as I received directly from Norwegian, making Expedia's price actually $20 per person higher than mine.  That didn't surprise me, because I had used a California resident rate, whereas Expedia had never asked for my home state.  That is where extra discounts come, from searching out promotions for seniors, past guests, military, residents, Travlzoo, etc.  I am happy to do every search possible for you, and I will even cut prices later or upgrade categories after deposit, as I did the day before yesterday for some clients a Princess cruise, when I found an applicable promotion while getting ready to submit final payment.
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Napali Coast
Actually, I probably spend more time cutting my own commissions by finding promotions than I do talking people out of going to some false discounter.  I keep believing they will find the truth for themselves and return

If my clients had just gone back to Expedia and booked their Hawaii cruise online, they would have filled out a bunch of information, signing up for this and that, and finally the price would have come through with all the additional NCF and taxes, plus possibly some other fees, insurance and other add-ons.  When they looked at the final price, they probably would have just swallowed it, having invested so much time and energy into getting that far.

That's how I lose a lot of business.

Place of Refuge near Kona
The same happens on land trips.  One close friend recently booked a vacation online because she thought the price was lower than what I quoted.  It turned out she thought she had booked all-inclusive just as I had held for her, and that she was on an inferior flight itinerary, but she did save a few dollars up front (which I could have matched apples to apples) that turned out to cost her a lot more by the end of the trip.  In that case, her daughter, who was the group leader, would have also received cash if her mom had booked into the group.  And if enough people who booked independently for this event had booked into that group, the daughter could have received free air and other substantial savings.

Ka'anapali Beach on Maui
Ironically, the group was set up with Pleasant Holidays, which will price match any legitimate offer.   So, all any of the people who booked independently would have needed to do was get their best price and then ask me to match it.  While the exact itinerary, including air schedule, may not be what I would advise, I don't mind matching a trip.  It's easier than doing the research myself and trying to choose what's best.  Her family and best friends probably had no clue that they had cheated their friend out of hundreds of dollars.

If you want to do your own research online, knock yourself out, but be sure you're not comparing apples to surfboards. It's a lot easier, less frustrating and less time consuming to just let me do it. 

Better service leads to better trips!