Have you thought about starting a vacation or frequent-user club
for some of your favorite clients?
Michael Thiel, founder of Hideaways International in Portsmouth,
N.H., is a poster boy for membership clubs.
Thiel, a former management consultant in the oil and gas
business, created a club as a central marketplace to store data on
vacation home rentals in 1979, then added an agency in 1990 to
handle travel to the properties.
Thiel shared some tips for creating vacation clubs on a smaller
scale:
Provide unique positioning in the marketplace."These days, anyone can jump on the Web and book travel, so your
value comes from giving guidance and advice that is difficult to
get elsewhere," he said.
Offer a high level of service.
"There is a certain part of the
market that is never going to be interested in the do-it-yourself
approach," he said, suggesting that agents target this group.
Offer discounts."It takes a certain amount of purchasing power to do this," he
said. Discounts "keep people more loyal," Thiel added.
Create a newsletter."Keep clients informed about what may be of interest to them,"
such as affinity tours and member-only promotions, he said.
Get a niche.Everyone talks about this, but Thiel stressed the importance of
staying on top of your area of expertise. "We inspect the
properties we work with, and we report on them in our newsletter,"
he said. Niches around which clubs can be created range from pet
travel to gambling, Thiel said.
Publicize the niche."If your niche is garden tours, include gardening tips in the
newsletter along with information about upcoming tours, for
example," he said.
Survey members.Ask for feedback on properties you've sent clients to, he
suggested, and also ask them how they rate your service. Print the
results in the newsletter.
Think twice about charging dues.The downside of getting involved in dues and yearly enrollments
is the membership maintenance, accounting and communication with
lapsed members, Thiel said.
"We have massive investments in customized software [to manage]
our member lists, but agents certainly could begin with their own
database," he said.
Going with the flow
Hideaways International in Portsmouth, N.H., is an example of
how a company can succeed by changing with the times.
"We have always been market-responsive," said company founder
Michael Thiel.
Originally designed as a matchmaking service for people looking
for vacation home rentals, Hideaways has evolved during the
years.
The way the firm works is that members pay a fee to join and in
return receive information, tips and discounts on selected villas,
homes and hotels around the world.
In addition to
creating a travel agency over time, Thiel, at the request of
clients, also started a publication listing participating
properties.
Gradually, he began to add other types of accommodations, again
in response to market demand.
"People wanted to know about intimate resorts in the Caribbean
and boutique hotels in London and Paris, so one thing led to
another," he said.
Thiel also created a Web site about five years ago, which, he
said, in Internet years, was ahead of the pack.
As to charging fees, Thiel said, "we meet some resistance on the
front end, but members who have used us for a while find the
insider information and discounts to offer good value," he
said.
But while Thiel has let the market guide the evolution of his
company, he said one thing never changes when selling travel: "It's
all about marketing."
Redemption for Renaissance?
The word renaissance, from the Latin renasci, means
rebirth or revival.
Renaissance Cruises is now urging agents to be open to the
possibility that the line will be reborn as a business entity that
engages rather than antagonizes the distribution system.
It is not asking us to market its products on faith. Renaissance
is not even asking us to take it at its word. It knows we won't --
the anger is too deep. The line is asking us to make judgment based
on its actions.
I am
comfortable judging Renaissance by what it does -- not by what it
says.
But there are a few aspects to this evolving story that have not
been given sufficient exposure.
How does Renaissance plan to communicate its change of heart to
the hundreds of thousands of past clients who believe that they
received favorable pricing by booking direct with Renaissance after
being subjected to a party line of anti-agent bile?
In a recent industry ad, Renaissance said it would disable its
direct-booking engine and then went on to point out that its new
Web site, to be launched Sept. 1, "will enable agents and consumers
to research, book and confirm on line."
In other words, the direct-booking mechanism only has been
temporarily dismantled. Renaissance fully intends to go after
direct bookings again.
Remember, Renaissance, you invited us to watch what you do --
not what you say.
While it is intriguing to see the cruise line's chief executive
officers use the Nuremberg defense when explaining past policies
toward agents, one wonders if the people now fronting Renaissance's
"rebirth" were really just following orders.
The jury is still out on this one. And I think that the folks at
Renaissance fully understand why.
Richard Turen is an industry consultant and travel agency
president. Contact him at[email protected].