Communicating change is a daunting task, especially when you
have to inform customers of price increases or changes in the way
you do business. If you impose fees, you know customers could take
their business elsewhere, but experience has shown they will be
loyal if the fees are introduced intelligently.
Each of you must determine, first, whether or not to shift your
business to nonair activity or introduce fees for retail and
corporate customers. For this discussion, let's assume you choose
fees and want to stay with your current client base.
The following includes major points to remember when preparing
to introduce fees to your customers. Let's assume that you have
done the analysis, set your fees and have prepared employees.
The Nuts & Bolts
Assemble your customer database for the address and phone
number for every customer. Most commercial accounts have a central
contact point, but you may also wish to be in touch with individual
travelers at most accounts. Check all contact information to ensure
accuracy.Letters, postcards, brochures and even display ads may be
required. Have all of materials in order before you roll out fees.
Given this is a major change in your business, you will want to
appear organized and committed with both customers and
employees.If you have major commercial clients, prepare a presentation
for a meeting if there is a travel committee or executive review
team. Use charts and presentation slides when appropriate.Print the fee schedule in bulk for distribution in ticket
envelopes, as well as with letters to customers. Prepare to include
the fee schedule in your agency newsletter, the sales kit and your
Internet site. Be certain your Yellow Pages ad no longer includes
the old line "never a service fee charged" or similar.Be sure your agency's invoice/itinerary form contains
information on your fees appropriate to each transaction.Background Preparation
Prepare background materials which explain the valuable
services provided by your agency. If your agency handles both
corporate and retail, segment each service explanation so that
members of each group understand exactly what they get when buying
from you.Explain the traditional full-service approach, where sales
commissions covered all costs of your service package, and be
prepared to talk about the costs of those services. The personal
connection between customer and agent is hard to quantify, but,
along with an agent's unbiased information on fares and schedules,
it is a vital part of the equation.Be ready to explain how the airline industry's actions have
changed the economics of the agency system. Always link fees to
airline actions that are clearly intended to change the way
customers buy. The airlines shifted a cost to agencies which have
no choice but to shift it to clients.Avoid jargon. Talk about the reduced revenues instead of capped
commissions, and maintain a focus on basic business issues that all
clients can understand. Keep all written communications in a
friendly but concerned tone. Avoid angry language or
accusations.Be concerned about customer reaction, but be firm. If you place
customer comment cards in your tickets, gather responses and tally
the results. Compare customer satisfaction before and after fees to
assess your progress. The use of fees demands that clients always
receive good service, and measuring their attitudes is a key to
finding areas for improvement.Making Contact
Personally contact major clients to explain the planned
introduction, and view this as a follow-up sales call with a goal
for achieving a "close" by the end of the meeting. Send a letter
afterward to recap the points of your fee program and to answer any
questions or concerns raised in the meeting with the customer.You must develop a communications strategy to reach all
customers, and please be sure it arrives before you introduce
fees.Let your suppliers know what you are doing. This is especially
true of the airlines, and this is another reason to keep all
written materials calm and clear of unproven accusations.Be clear in setting out the fees. Keep the plan simple and
friendly, but cover all of the legal points needed.Be certain every customer knows his or her business is valued,
even the customer buying two tickets a year.Your competitors are watching you, so watch them too, but do
not let them dictate your business decisions.Some customers will ask for fees to be waived, and there will
be times where that can make sense. Be sure to analyze the numbers
to see if each specific request is in that category. When it is
not, tell the client that your costs would not be covered if there
were no fee.Last of all, be prepared to see some customers go away
disgruntled, but you should also be equipped to greet new customers
who will appreciate strong service levels and clear
communications.Wade Nichols is president of Travel Marketing Services, a
marketing and communications firm based in Mount Airy,
N.C.