How to Promote and Sell Cruises
For those looking to jump-start their sales in cruise travel, TravelPulse had the opportunity to ask Bob Burke several questions about his new book—“How to Promote and Sell Cruises”—available on Amazon.
TravelPulse: What is your background as a travel professional? How long have you been in the cruise industry?
Bob Burke: I have owned travel and cruise businesses; taught cruise sales for a travel school; organized a cruise co-op; published cruise newsletter for 700 subscribers; authored 2 books on cruise sales; conducted extensive cruise research focused on building cruise business. I’ve conducted profit building program for hundreds of agents across the USA.
I have worked in travel or have been an observer for most of my lifetime.
I served as a management consultant to corporations including General Motors, State Farm Insurance and Loyola University. My consulting experience exposed me to certain axioms or “rules” that apply to all businesses. For example, in the book, we remind readers that focus should be on profitability and not volume. The axiom is “Volume is vanity. Profit is sanity.”
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TP: How would you describe your book, and what is its unique perspective?
BB: The book builds a case for concentrating on one travel segment: Cruises. The text describes how to maximize profits while maintaining quality service and stresses that readers must sell all segments of cruise vacations, not just the cruise itself.
For example, readers are counseled to sell insurance, pre/post arrangements, shore tours, and their service fee.
TP: Does it apply to all market segments from mainstream to luxury and even oceans to rivers?
BB: Yes, the basic concepts in the book apply to all market segments.
The text does not attempt to describe and categorize various lines and ships. This information is well conveyed in “specialist courses” offered by the various cruise lines.
Additionally, this is covered by books such as Berlitz, Frommer Fodor. The various travel trade publications also provide current detailed information on lines, ships and itineraries.
TP: Can you give us one key tip or suggestion on selling cruises as a teaser to your book?
BB: The book could be called “How to Make a Good Living Counseling What You Enjoy.”
A key to making money selling cruises is to recognize not just the revenue from selling a cruise, but understanding that cruise passengers often travel as part of a group or with children, creating a much larger commission. The book provides an appreciation of the lifetime value of a cruiser—most take 4-5 cruises in a lifetime.
In short, counseling cruises is an ideal repeat and referral business.
The book features a number of tips and insights such as a quick calculation of the profit involved in selling preferred vendors. Readers are encouraged to sell preferred vendors when they realize that an extra 2% commission literally doubles their profit on a sale.
The proper calculation is: 10% standard commission, less 8% cost of handling yields a 2% profit. A 12% preferred vendor commission, less 8% cost of handling yields a 4% profit.
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TP: How have you seen the industry evolve during your time selling cruises?
BB: Of course there are new lines, new ships, new ports and cruising grounds. Also, it is now possible to cruise from over a dozen ports in the US—saving expensive airfares incurred reaching just a few departure ports. Most lines have also added a large number of onboard activities and placed greater emphasis on quality food. Balcony cabins have become most popular.
The luxury segment has moved toward being all-inclusive, while the popular lines now receive 25% of their revenue from onboard spending. The internet and social networks have changed how travel is sold and purchased.
TP: What is your take on the present balance of cruising millennials versus boomers?
BB: The popular belief is that millennials prefer experiences while boomers tend to enjoy things. But it may be dangerous to stereotype individuals when both millennials and boomers have much in common. People travel when they have two of three characteristics: The time, money and cultural inclination to travel.
Both millennials and boomers have at least two of three.
By adding onboard activities, entertainment that appeals to millennials and more adventurous shore excursions, the lines have literally tripled the number of millennials they carry—from 5% to 15% just in the last 5 years.
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TP: What would you say is the current and future market outlook on sales?
BB: The outlook is unquestionably bright. The best evidence is that the lines are spending $500 million to $1 billion on each new ship every year. Travel professionals have universally said that cruises are booming and can be expected to continue to grow.
Finally, the public is inclined to cruise, and the number of passengers increases each year.
TP: Is there anything else you’d like to tell us about your book?
BB: The book is a how-to manual dealing with four elements. First, cruises are enormously profitable. Second, quality service is a given requirement. Third, there are many promotions that are proven effective. Finally, a disciplined approach to counseling is presented. Specifics, examples and tips accompany the text.
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