North Dakota Department of Commerce Tourism Division Group Travel How Tos

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North Dakota Department of Commerce Tourism
DivisionGroup Travel How Tos

• Presented by
• Deanne Felchle

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North Dakotas Tourism Division
Sara Otte Coleman, State Tourism Director
Heather LeMoine, Marketing Director
Kim Schmidt PR Media Relations
Fred Walker International Marketing
Deanne Felchle Group Travel
Mark Zimmerman Outdoor Promotions Nature Tourism
Annette Schilling, Cultural Heritage Tourism
Scooter Pursley Information Specialist
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North Dakotas Tourism Division
Jessica Fretty Travel Counselor / Bulk Mailing
Tammy Backhaus Administrative Asst Project
Coordinator
Cheryl Purdy Administrative Staff Officer
Gloria Hedahl Travel Counselor
Tricia Miller Data Coordinator
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ND TOURISM DIVISION

• Mission To create new wealth for North Dakota
  through increased spending by out-of-state
  visitors.
• Tourism is one of NDs leading industries
• Contributes 3.4 billion 29 of economic base
• Fastest growing industry in the state

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What are the benefits of group tours?

• Economic Impact
• Repeat Business
• Advance Planning Opportunities

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Travel Industry Association of America (TIA)
reported

• More than 774 million people use motor coaches
  each year
• Has seen growth in the past 18 months

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Travel Industry Association of America (TIA) also
reported

• The majority of NTA tour operators offer escorted
  group tours 96
• More than 51 offer one-day sightseeing tours
• Independent packages are offered 49
• 73 offered event packages a 26 increase
• Learning based packages offered by 46
• Wine tasting, family, agriculture, gay/lesbian
  packages also increased

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TIA See America The Power of Travel 2006

• Motor Coaches Average 46 Passengers
• A day trip contributes an average of
• 2,500-5,000 to local economy by meals, lodging,
  shopping, admission fees souvenirs and local tax
• Overnight stays contribute an average of
• 5,000-11,000 per day to local economy by meals,
  lodging, shopping, admission fees souvenirs and
  local tax

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Who are the people behind the group tours?

• Tour Operators
• Travel Agents
• Receptive Operators
• Pre-Formed Groups (Group Leaders)

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Tour Operators

• How do they do business?
• Schedule Tours
• Offer a number of tour dates
• Sold to individuals nationwide
• Plan in advance (up to two years)
• Based on quality and value
• Custom Tours
• Design and arrange for a group client
• Based on personalization and value

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Travel Agents

• Have had to become more creative in marketing
  efforts
• Develop, market and sell tour packages
• Receptive Operators
• Are based in our area
• Specialize in promoting packaging your
  destination
• Provide a more interesting unique experience
• Pre-Formed Groups
• (Group Leaders)
• Members of organizations, clubs, churches,
  schools, etc.
• More are planning and arranging own tours
• Based on recognition and discounts

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• Accommodating Group Tour Business
• Ask These Questions

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Attractions

• Can a group adequately see the attraction in a
  short period of time?
• Is there a complimentary admission for site
  inspections?
• Is there a group sales window?
• Is there a group registration or entrance policy
  that is quick, efficient and welcoming?
• Is there a separate motorcoach parking area?
• Is there a large, clean washroom facility?
• Is the group rate significantly discounted?
• Is there someone to greet the motorcoach?
• Is there a comp policy?

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Accommodations

• What size of group can be accommodated?
• Is the accommodation the quality the group
  normally uses?
• Is staff knowledgeable of what else is in the
  general area of the hotel? i.e. how far are the
  nearest shopping facilities or attractions.
• Can complete information be offered on the
  facilities offered at the property?
• Is there non-smoking and smoking rooms available
  and can requests be honored when guests arrive?
• Is there motorcoach parking in a well lit parking
  area?
• Are there elevators?

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Accommodations cont.

• Is there a welcome reception offered?
• Is there someone to greet the motorcoach?
• Is there a complete rooming list provided upon
  arrival?
• Is there baggage handling?
• Are rooms offered at a substantial discount for
  groups?
• Are there additional incentives provided to tour
  planners who give volume business?
• Are the deposit and cancellation policies
  workable for both the hotel and tour planner?
• Is there a comp policy?

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Restaurants

• Is there a separate group menu or
• one menu for all patrons?
• Are group meals available?
• Can a group of at least 40 be easily accommodated
  and have them in an out within one hour?
• Will the quality of food meet their expectations?
• Is there large, clean washrooms?
• Are meals offered at a substantial discount for
  groups?
• Do meals include tax and gratuity?
• Is there a comp policy?

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Events Festivals

• Are the dates set at least one year in advance?
• Does the community have enough hotel
  accommodations for overnight stays?
• Is there pre-ticketing offered or is there a
  will-call area?
• Is there a large, clean washroom facility?
• Is there a separate motorcoach parking area?
• Is the group rate significantly discounted?
• Is there someone to greet the motorcoach?
• Is there a comp policy?

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Product Development

• The Price Is Right
• Packaging Strategies
• Quality Service
• Uniqueness/Newness
• Location

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Rates

• Rack rate A regular published rate of a hotel
  or other tourism service.
• Retail rate The actual price a person would
  pay.
• Wholesale The sale of travel products through an
  intermediary in exchange for a commission or fee
  generally reduced.
• Net rate A rate usually slightly lower than the
  wholesale rate, applicable to groups of
  individuals when a hotel is specifically
  mentioned in a tour brochure. The rate is marked
  up by wholesale sellers of the tour to cover
  distribution, promotion, etc.

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Travel Trends

• Demand for packages continues to grow
• More competition, more choices
• Desire for more unique attractions, events,
  destinations, or experiences
• Tour guests want to Go Be not just Go and
  See
• Vacations are shorter and more frequent
• Consumers want the ease of Package Shopping

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What is a package?
Packaging is providing a comprehensive experience
for customers by presenting several products
and/or services at a single price.

• A package is the combination of 3 of the
  following
• Accommodation
• Transportation
• Food or Meals
• Attraction admittance
• Activity
• Must be able to purchase from one site!! Central
  reservation/ information number/e-mail address is
  a must!!

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Creating the Package

• Step One Get Started Find Your Target
• Find partners willing to cross-sell
• Create package that matches the demand
• Make it easy, hassle free
• Make it fun
• Price is right!
• Be there for your customers!! Flexibility!
• Work with their needs and schedules
• Train staff to understand package and customers
• Get your message out to the market (customers)
• Continue to work on package
• Always look for ways to keep package fresh

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Remember

• Packaging doesnt mean discounting! Many people
  will pay for convenience
• MOST OF THE TIME - The more you add to a package
  the better. People may not do all of the
  activities or go to all of the attractions, all
  of the time, but they will purchase the admission
  ticket, if it is part of the package!!

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Setting Your Prices

• Do not increase your rack (brochure) rates by
  20-30 and offer that as your commissionable
  rate. To be able to add cost to this general
  package you must add value!
• Commission requests may differ among the various
  tour companies, so keep an open-mind and listen
  to the tour operators needs. They will tell you
  what their commission requirements are and
  indicate if negotiations are possible.
• It is acceptable to have black-out dates where
  you cant offer the full commission or lowest net
  rate, but be honest and up-front about it with
  the operator.
• Think about offering better commissions during
  shoulder seasons or slow periods when you really
  need the business.
• The rate you are quoting the operator should
  include taxes, gratuities, etc.
• You must be prepared to honor the rates you have
  quoted, even those quoted over one year. European
  operators are obligated to provide the rates
  printed in their brochures, as outlined by the
  European Consumer Protection Laws.

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Fargo Example

• Find Partners
• Accommodation
• Plains Art Museum
• Cooking Demonstration at Plains Art Museum
• Stop at West Acres Mall visit Creative Kitchen
  Roger Maris Museum
• Step-on-Guide Service Convention and Visitors
  Bureau
• Price the Products (40 people on tour, 1 driver,
  1 tour guide)
• Step-on-Guide 25 hr x 3 75
• Group admittance to Plains Art Museum 80 2
  pp
• Activity Package
• Cooking demonstration, recipe, sampling product
  (80 2 pp)
• Free stop at West Acres Mall Museum
• Motel/Hotel 1 night _at_ 22 rooms x 79 1738
• TOTAL COST 1973 (98.65 pp 2 fee comped)

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Now that youve started

• Ask yourself Who, Why, Where, How Many
• Who are you targeting?
• Why do you think they will buy it?
• Where do they live, work or play How do you
  reach them?
• How many dates are available? Are there black-out
  dates?
• Delivery of message
• How is each one of the partners going to promote
  this package?
• Will you collectively market or individually
  market the package?

• Who will be your contact person? Number? E-mail
  address?
• How will you each be paid?
• How will the reservations be handled?

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Determine Who The Prospects Are

• Determine which type of group tour best suits
  your locale
• Mature Market
• Student Youth Market
• Clubs and Affinity Groups
• International Market

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Determine Who The Prospects Are cont.

• Utilize directories and manuals provided by
  national tourism associations
• Travel Industry Association of America (TIA)
  www.tia.org
• National Tour Association (NTA)
  www.ntaonline.com
• American Bus Association (ABA) www.buses.org
• United States Tour Operator Association (USTOA)
  www.ustoa.com
• American Society of Travel Agents (ASTA)
  www.astanet.com
• Association of Retail Travel Agents (ARTA)
  www.artaonline.com
• Group Leaders of America (GLAMERS)
  www.glamer.com
• Bank Travel www.banktravel.com

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Work With

• DMOs or other suppliers to build relationships
• Let them know youre interested in group tours
• Ask for suggestions and advice
• Invite them to your site for a tour
• Share information on upgrades, new features,
  unique flare

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Contact Prospects through

• Printed Collateral
• Direct Mail
• Telemarketing Follow-up
• Tradeshows Marketplaces
• Sales Calls
• Familiarization (FAM) Tours
• E-Marketing

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Contact Prospects through cont.

• Printed Collateral
• Fact of Profile Sheet, Group Tour Manual,
  Website
• Contact Information
• Map
• Description of Product
• Applicable Dates
• Options
• Policies
• Logistics

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Contact Prospects through cont.

• Direct Mail
• Cover Letter
• Brochure or Flyer
• Spelling, Grammar and Appearance
• Interesting Packaging

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Contact Prospects through cont.

• Telemarketing Follow-up
• -7-10 days after mailing
• -Written script or call guide
• -Keep brief
• -Schedule next call
• -Send any requested
• information

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Contact Prospects through cont.

• Tradeshows and Marketplaces
• Research
• Assemble Portfolio
• Copy of brochure
• Attractive pictures
• Letters
• Brief Mission Statement
• Ask Questions
• Follow-Up

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Contact Prospects through cont.

• Sales Calls/Blitzes
• Personal office visits
• Reception and/or meal
• Mini-Travel Show

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Contact Prospects through cont.

• Familiarization (FAM) Tours
• Work with DMOs
• Makes tour planners more comfortable with your
  area
• Important When
• Adding new services or facilities
• Attracting new markets
• Launching a new campaign
• To maintain and develop relationships

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Contact Prospects through cont.

• E-Marketing
• Internet or E-mail
• Obtain lists from industry associations,
  marketing companies, or self-solicited
• Cost Effective
• Direct to Website
• Keep information and pricing current

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Tips of the Travel Trade

• Know the difference between a wholesaler, tour
  operator, and travel agent
• Have prices ready 1 year to 1 1/2 years in
  advance
• Make provisions for the unexpected
• Recognize that tour operators and receptive
  operators are your sales
• force and give complimentary admissions to
  drivers and escorts
• Set reasonable group minimums
• If youre dealing with a tour operator that
  promises volume, provide a good rate and do
  something special with names on signs, marquees,
  etc.
• Listen to your visitors
• Be sure to always have your contact information
  on your rate cards, cost sheets and/or brochures

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Nine Other Ways to Find More Group Business

• Groups that have visited your site in the past
• Phone inquiries
• Lobby cards, group tour flyers
• Your association group, board, staff and
  volunteers
• Your newsletter
• Group tour page on your Website
• Website links
• Lists from your local CVB/Chamber or ND Tourism
• Press releases

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Tracking

• Will influence your work and show economic impact
  
• Effectiveness
• Successes
• Improvements
• Follow-up
• Strengthen Community

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Summary

• Learn to understand the market
• Identify what you have to offer
• Decide how to sell your product
• Develop a qualified list of prospects
• Prepare your marketing materials
• Start selling your product
• Keep them coming back!

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• For More Information Contact
• Deanne Felchle
• Group Tour Marketing Director
• North Dakota Tourism
• [phone]
• dfelchle_at_nd.gov