SAN JOSE, Calif. -- As consumer demand has moved toward more
upscale products and independent choice, Classic Custom Vacations
here has found itself in the right place at the right time.
Offering high-end packages for those willing to pay for quality,
Classic is where the market is headed, having positioned itself as
a cut above the mass market since its founding in 1978.
In Hawaii, Classic's original destination, the company has
continued to thrive even when the market suffered setbacks.
"Those who sell Hawaii on the low end are not doing well," said
Ron Letterman, president and chief executive officer. "But those
who are selling it in the way that is appropriate -- as a high-end
destination -- are doing well."
Consumers who want the cheapest price have alternatives closer
to home, like Mexico or the Caribbean, he said.
"Hawaii is more expensive, but still more popular," said
Letterman. "Hawaii is evolving into a high-end destination. It's
not mass market anymore."
Classic's formula of offering high-end, component-based and
custom-built vacation packages has adapted well to every new
destination it has been applied to.
"We discovered that our product was not the destination," said
Letterman, "it was our way of doing business. It's built around
what the consumer wants, not what's convenient for us."
After many years of seeing rock-bottom vacation deals advertised
in the Sunday newspapers, many consumers have learned that the
cheapest price often leaves them feeling stranded in an unpleasant
environment. Those who are looking beyond the lead price are
Classic's clients.
"We offer the best price for the experience you want, not the
cheapest price for the experience you won't put up with," said
Letterman.
Classic's customers are independent travelers who are
comfortable going to a destination and renting a car but don't want
to mold their schedules to that of a group.
Classic uses its volume buying power to package components at
better prices than clients can get directly. Classic also brings
its research on quality hotels to the table.
"We are the destination experts," said Letterman. "The agents
are the experts on their clients. That's the partnership."
Classic gives its customers control over every component, and
the prices are listed separately, not bundled, so the customer can
see the price of each component.
"And we never sell run-of-house rooms," said Letterman. "There's
a huge differentiation from one room to another."
After serving as president of the Carlson Travel Network and
working with American Express in Hawaii, Letterman became president
of Classic in 1992 and set it on an upward trajectory that
continues today.
Classic America was introduced in early 1995, Classic Europe in
late 1996, and Classic Caribbean and Classic Mexico both started in
1999.
"The Caribbean product has been a real surprise," said
Letterman. "We surpassed our budget projections for the year in
February."
The Mexico product has again proven the viability of Classic's
business model. "There is a lot of mass market product to Mexico,
but not much high end," he said. "Hoteliers are delighted to have
the high-end market."
With the demand for high-end products increasing, Classic has
found itself a roomy niche.
Fast Facts:
Classic Custom Vacations
One North First Street, Suite 300
San Jose, Calif. 95113
Reservations: (800) 221-3949
Phone: (408) 287-4550
Fax: (408) 993-8547
Web site:www.classiccustomvacations.com
Product: High-end, component-based and
custom-built vacation packages
Sub-brands:
Classic Hawaii
Classic America
Classic Europe (Greece, Turkey, Italy, Spain, Portugal, London,
France and Monaco.)
Classic Mexico
Volume: $300 million and 200,000 passengers per
year
President and chief executive officer: Ron
Letterman
Executive vice president: Larry Flinders
Executive vice president, chief financial officer:
Debbie Lundquist
Vice president of marketing: Lois Shore
Vice president of sales: Rosa Buettner
Vice president of information systems: Travis
Shook
Industry affiliations: ASTA Tour Operator Program,
U.S. Tour Operator Association, National Tour Association, Hawaii
Visitors Bureau, Pacific Asia Travel Association.
Parent company: Global Vacation Group,
Washington