Author Archives: Dan Chappelle

There are 40 articles by Dan Chappelle published on this site.

The Secret of the Wealthy Travel Agent

Since 2016, luxury cruise capacity increased by 45%. In two more years, it will have more than doubled. Brands in the luxury tour and hotel segments are also increasing their offerings at a record pace to meet a growing demand. Yet, according to a survey conducted by a leading travel industry weekly publication, agency focus on selling luxury sales is DOWN 5%! Traditional agencies, over $10 million in sales, are down a whopping 9%!

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What Are You Worth?

Our industry has become its own worst enemy. According to a survey by Pam Danziger in her book “Let Them Eat Cake”, she cites that the majority of consumers pay full price for luxury experiential goods – except travel.  64% of individuals surveyed said they got a discount or a deal.

It doesn’t matter if it’s a $299 Cancun package or a $100,000 World Cruise, over the years as an industry we have promised the customer, they always will get the lowest price available. Even if that happens after the sale has been completed.  Here are the cold, hard facts of this promise / guarantee:  The lower the price, the lower the commission.  Because you have set the expectation, you have to watch every promo, every one week & flash sale to keep your promise.  That’s a lot of work!

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Rant and Rave

In my local new paper, The Seattle Times, there is a popular daily column called “Rant & Rave” in which readers send in items such as this rant; “To the inconsiderate man at the Seahawks game who insisted on standing the entire time, my ten year old son wasn’t able to see any of the game thanks to you.” And this rave: “Bravo to the city bus driver who helps my elderly mother get safely cross the street.  Its people like you that restores my faith in mankind.” It’s the little, big things that make their way into this column each day.

As we approach US Thanksgiving, (Canadians celebrate it in October) let’s take time to reflect and celebrate all of the wonderful benefits the travel business provides us.

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My Time, Your Time

Time management is something of an oxymoron to me. I will not even attempt to create the illusion that I am good at it. In fact, I am probably one of the biggest procrastinators you will ever meet. No, time management and I don’t get along.

But let me ask you this: Are your customers consuming virtually all your time? Do you feel like you must be available to your customers 24 hours a day, seven days a week or they will find someone else who is? Are your relationships at home strained because you are always “on”?

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Spousal Support

As the writer of this column, I often get “love letters” from readers, usually arguing over my point of view. Keep them coming, there are as many opinions as there are business models – trust me there are a lot!

On one Sunday morning while getting ready to watch our beloved Seattle Seahawks, I received an email from a reader. It was how his spouse, after 2 years of starting his home-based travel business, is still not buying into his dream of doing what he loves more than his day job.

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Remember the Pied Piper

When everyone claims to be an expert, who should you trust? I have seen travel agents who barely know the difference between a hotel and a motel start social media groups, and suddenly have a following of thousands eagerly embracing their every word as it were the gospel.

Social media has given anyone with something to say a platform to share their opinion. Unfortunately while I can appreciate their passion, some of these forums are loaded with misinformation and unsubstantiated claims. It’s like the blind leading the blind.

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Don’t Be The Shrimp Lady

There was a pastor who once gave a sermon about how we should love and treat each other. Afterward, everyone in the congregation told the pastor how remarkable it was. However, the very next week, the pastor gave the same sermon. Folks in the congregation had a puzzled look on their faces as it had a ring of familiarity about it. The following week, the pastor gave the exact same sermon – word for word. Afterward the church deacons decided they had enough of this nonsense and confronted the pastor, “Reverend, you have preached the same sermon for the past three weeks, why?” to which the pastor replied, “And yes I will continue to do so until we stop talking  and actually do it.”

That’s how I feel whenever the subject of professionalism comes up.

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Reaching the Summit

I have just returned from a five day, solo backpacking adventure on a seventy-five-mile section of the Pacific Crest Trail in Washington’s Cascade mountains. You may remember the PCT, the west coast version of the Appalachian Trail, from the bestselling book and movie, Wild.

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Happy Anniversary

This week marks two full years since I launched The Wealthy Travel Agent.  Thanks to all of you who have helped make it a success.  What started out as a dream to pursue my passion helping others achieve the level of success they desired has become a thriving company – one that looks nothing like I had originally envisioned.  Everything, from my services to the website, have been a work in progress.

I had a dream, I had the passion, but the big question was, could I leverage my skills, knowledge and expertise into a business that would help me reach my personal goals?

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In case you missed it, the luxury and niche travel business has been exploding in growth. Tour operators are offering more upscale itineraries with custom built coaches and five-star hotels than ever before. Capacity in the luxury cruise segment increased by 45% in 2016 alone, and will double again by 2020. And of course, river cruising is still on a juggernaut, fueling the growth more than any other sector.

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The Real Secret to Sales Success

I attended the University of Georgia (Go Dawgs!) back in the mid-1980s, but as my Uncle Howard once told me – my real education was the summer of my freshman year I spent selling books door-to-door. In those short two and one-half months, I developed many of the life skills that have become an integral part of who I am today.

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The Classic Argument

The classic argument of who came first, the chicken or the egg, is most evident when discussing marketing and sales.

The marketing folks will say that without them the salesperson would not have any customers. The salespeople will say without them no one, including the marketing people, would have jobs. As a lifelong salesperson, I subscribe to the later theory.

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It’s Your Choice

Remember when you first decided to become an independent travel professional.  You were so excited to be embarking on a new career, one that could take you all over the world, live a lifestyle others only dream about, and heck -you were even going to get paid for it! The thought of associating yourself with a trusted brand, or finding a business model that worked for you made the decision that much easier.  Regardless of the reason–you jumped in with both feet.

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The Fee Question

I had just finished presenting my Selling to the Affluent Traveler seminar at a recent industry conference, when one of the attendees asked the question, “Dan, how do you feel about fees?” This is a loaded question and, while it was outside of the scope of the program, everyone in the room was waiting for my response.

“I love fees!” I replied, to which you could almost hear a collective sigh of relief. “Especially service fees, but in my opinion,” I continued, “you should only charge planning fees if you are adding value to the purchase!”

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Direct Channel

I have been fortunate to have spent most of my career as an agent, agency owner, and in consortia management. But as a former cruise line sales executive, I also have the luxury of the supplier perspective on many subjects that affects travel professionals every day.

Some years ago, while the owner of a successful cruise agency, I was interviewed by a major travel industry trade publication for my opinion, on what was and is still a very sensitive subject. The question put forth was “Do you believe that cruise lines should continue to grow their direct business channel?” My answer might surprise you. I responded, “Yes, absolutely.”

The reason, while not a popular one, remains as valid today as it did then. Cruise lines (and other suppliers) are not charitable organizations. They are for profit corporations – just like yours and mine. In most cases, they are part of very large public companies which demand ever increasing shareholder value.

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Be Better

Last month, while speaking at the Travel Agent Forum in Las Vegas, I asked the audience of over 400 agents a simple question.  “What makes each of you a better choice for the customer?”  Followed by, “Why should a prospect buy their vacation from you versus the person sitting next to you?”  In that room, there were over 400 choices that I as a consumer could make.  So why should a prospect choose you?

The answers were, in my opinion, very pedestrian. Such as “I give the best service” – says who I ask. and “I am passionate about selling travel.”  Well, so is everyone else in the room and so on.

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Local Star Power

Last week, my in-laws decided we should all go to the casino for an afternoon of fun. I am not a big gambler, but for a few hours—I was game. One of the players at our poker table repeated these words with every hand: “Go big or go home.”

This reminded me of a big gamble I made with my travel agency. Outwardly, we were very successful, and from a sales perspective, we were. We did a fairly high volume of contemporary product. Because of this, we were often treated like VIPs—flown first class to inaugural events, served lavish dinners with industry executives, and so on. However, we were in real danger of going out of business due to low margins and high cost of sale, so we made the biggest gamble since starting the company. We turned our business model 180 degrees and began focusing on attracting affluent customers as a large part of the overall sales strategy. Go big or go home!

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Become a Better Choice

Last week, an interesting post on one of the newer travel agent Facebook groups caught my attention.

A person made a very public declaration that she was leaving the group because she only wanted to associate and share ideas with what she considered to be “real and legitimate” travel agents.

What I found interesting is virtually all agents in this group (around 1000) are home based and many are cruise focused. This agent had particularly strong feelings about who was “real and legitimate,” and those in the group who didn’t make the cut.
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What makes you special?

Torstein Hagen founder and Chairman or Viking (River) Cruises, said in a recent interview. “We are focused clearly on what we are and the number of things we are not.”
In a world where everyone and every business from Costco to Sea Ray Boats seems to be selling travel, how can you not only survive but thrive to build the business and lifestyle of your dreams?

If you want to stand out among the plethora of options – get clear on who you are and who you are not. Ask yourself these two simple questions. “What makes me special?” and “What do I want to be known for?”
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Leap of Faith

A couple of years after we started the cruise agency, we were growing a fan club of loyal clientele. We focused on fundamentals of sales and did what we knew best “providing the same high level of service our customers expect on their cruise vacation.”

One of our early customers was the Vice President of Sales at Dell Computers at the time. He was so pleased with the way we handled his personal vacation, he asked if I would be interested in bidding on Dells next sales incentive trip which happened to be two cruises- one seven day and the other a 4 day. Read the rest of this entry »

Stop Negotiating with Yourself

Over the years, the travel industry has conditioned the buying public to shop for price. These days, it is far easier to feed the beast than to change decades of conditioned behavior. As a distribution channel, we too deserve a good chunk of the credit for perpetuating the discount-driven vacation market. Research shows it’s not just contemporary and premium customers who expect a discount – its affluent buyers as well!

One of the services I provide my corporate clients is to “mystery shop” their businesses. Recent experiences confirmed what I often observed as a supplier sales executive. Many travel professionals do not adequately qualify their prospects and will often do the prospect an injustice by “underselling” the experience.

What do I mean by this? Read the rest of this entry »