With the internet increasingly accounting for sales of traditional packages, travel agents are increasingly breaking into specialist markets and making them their own.
However, for many agents the move can appear to be rather a challenge, as new markets can present new problems, as well as a need to develop new customers.
But before agents can even begin developing a niche market, they must first choose a sector to focus on.
This is made easier if they think of where their own enthusiasms lie, according to destination-specialist operator InsideJapan Tours director Simon King.
He said: “As a single destination tour operator, we are naturally going to be very enthusiastic about our market, and we can easily get that across to agents, which is an advantage for us.”
However, King said agents’ enthusiasm was worthless without the knowledge to back it up, and this is where a specialist tour operator can help with training.
He added: “If a travel agent wanted to specialise in Japan, we would visit them for an hour, and show them all the possibilities.
“Japan is seen as an expensive destination with lots of bright lights, but there is a lot more to it than that, and it is our job to get this message across to agents.”
Gay specialist tour operator managing director Andrew Roberts agrees that good quality training is core for travel agents wanting to crack a new market.
While Roberts’ own hour-long agent-training programme will explain which destinations and holidays are popular with the gay market, he also relies on role plays to help agents deal with any possible awkwardness in serving gay customers.
He added: “It doesn’t matter if your staff are gay or not, you need to establish a relationship with someone and find out what they’re really after, and that’s what any good travel agent should be able to do.”
Although customers will initially want to have their basic queries answered by an agent, King said in-depth knowledge of a destination wasn’t always necessary.
He added: “You want the agents to know the basics of what activities are on offer, what plans the customers might have, and what budgets are available – then we back them up with the answers to the most detailed questions.”
King said while agents might need to let their customers work closely with the tour operator to make their perfect holiday, agents should not worry about good operators stealing their clients.
He added: “The prime difficulty for single-country operators like us is that you very rarely get repeat business.
“However, agents have a whole new list of customers that they really know and who may be interested in visiting the destination.
“We’re not interested in stealing customers. We’ve had clients come direct to us and say they’ve picked up a brochure from an agent but we will then contact that agent, and make sure they get their commission.
“We see it as a partnership, and a long-term partnership at that. Hopefully travel agents will respect us for that.”
King said the easiest way to identify potential customers was for agents to consider their clients’ interests and preferences, and any possible crossover with the specialist breaks they are offering.
Yacht flotilla operator sailingholidays.com managing director Barrie Neilson agreed. He said: “Agents need some idea of what to say to potential customers, such as: ‘Have you any sort of related experience? Have you been dinghy sailing, windsurfing, diving or had any sort of experience on water?’
“If you like the water, and are comfortable on the water in England in any capacity, then you will be very comfortable in Greece. There are no tides out there, and the water’s warm and it is sunny.”
Roberts believes by entering into a new market, such as the gay sector, agents will find a potentially new client base right on their doorstep.
He said: “The gay community accounts for up to 6% of the UK’s population, and it is about trying to get them into the shop and then working with them.
“A high-street travel agency needs to make it clear through window displays or signage that the gay community is welcome to come inside and talk about a holiday.”
Whichever sector agents try to break in to, both King and Roberts agree that niche markets offer agents additional revenue streams.
King said InsideJapan Tours had seen single-digit revenue growth this year, while Roberts said although the gay long-haul market had suffered this year, short haul is performing well, particularly after the recent introduction of gay hot spot Gran Canaria to the programme.
Roberts said: “Retail travel agents are ready to involve themselves in these markets much more than they were two or three years ago. They are more aware of the opportunities and have had to raise their game.
“Agents are much more prepared to engage with people and do searches on their behalf, whereas in the old days if you went in to a shop wanting a different kind of holiday, travel agents would just say they didn’t have a brochure available.”
Case study: Cresswell Travel
Agents can make moving into specialist markets far easier by choosing something they already have an interest in.
Medway Travel leisure group and events manager Stephen Cresswell said the agency, which provides mainly business travel, decided to kick-start its leisure travel sales with the launch of a nature holidays division in 2006.
Wildlife holidays accounted for 60% of the £750,000 in leisure revenues generated last year, while the operator is targeted to top £1 million this year.
Cresswell said part of the success was thanks to his own enthusiasm for wildlife holidays, and added: “If you’ve got an interest in something, then you’re more excited about pushing it and promoting it.
“I didn’t have a huge amount of knowledge about wildlife, but if you’re excited about something you will read up about it, and find out what you can.”
Cresswell said he was able to find the specialist tour operators he needed largely by joining the Association of Independent Tour Operator’s (AITO) Specialist Travel Agents division.
He added: “AITO has a lot of specialist tour operator members, and I now know most of their managing directors, so if I have a problem or need something special, I can ring them up, and it is sorted out within half an hour.”
Cresswell said the average booking per customer was £2,000, and while not all operators he works with will offer 10% or greater commissions initially, he has managed to renegotiate contracts once operators have seen the amount of business he gives them.
He added that the agency’s website had been the most effective way of marketing its wildlife holidays – good quality photographs are better for driving customer enquiries than large amounts of text.
However, he said anyone wanting to specialise should keep an eye on the television as that often proves to be the most effective marketing tool of all.
Cresswell said: “TV is still one of the biggest advertisers for holidays in the niche markets.”
Tips for succeeding in a niche market
Pick something you are enthusiastic about: Your enthusiasm shines through when you are selling the product, and you’ll probably know more than you think on the subject.
Learn even more: You won’t need to be a mastermind in your chosen niche, but answering customer’s initial questions straight away will impress.
Be sensitive to your potential clients’ needs: If you’re targeting gay or disabled markets, there will be additional considerations not encountered in the mainstream market – you will need to recognise them and be able to deal with them.
Find a good tour operator to work with: You have the customers, and they have the expertise; if you can meet in the middle you should both benefit.
Don’t let specialist tour operators force you into bad commercial deals: While some smaller tour operators might not be able to offer much commission initially, you can always prove you are worth more. However, those offering only introductory payments aren’t worth doing business with.