Tenn. agent proves timing isn’t everything

Tenn. agent proves timing isn’t everything

By Laura Del Rosso
InsightMuffett Grubb is one travel agent who made lemonade from a load of lemons, as the saying goes, when the economy plummeted along with the stock market five years ago. It was 2008 when Grubb decided to follow her dream and open a Cruise Holidays franchise agency from her home in Knoxville, Tenn. The following months were a test of her commitment to the business.

“I bought my franchise two weeks before the market crashed and I looked it at this way: There was nowhere for things to go but up at that point,” she said. “I took the attitude that the slow time was a good time to get my feet wet and gradually learn the business.”

LauraDelRossoSince then, business has been all up for Grubb, who previously worked in purchasing and marketing for a national retail chain. She recently received Cruise Holiday’s “Best Customer Service Award” based on an incident that took place in Alaska last summer when a cruise ship was idled by propulsion problems. Unable to leave port for four days, Grubb’s 20 clients were left with nothing to do, along with 2,000 other passengers who scrambled to book excursions.

Using industry connections and Cruise Holidays programs, Grubb booked her clients on shore excursions to make the most of their four days in Alaska. She also rebooked their future cruise, which was fully paid for by the cruise line as part of a compensation package.

It’s part of the services that Grubb says she provides that she hopes set her apart from direct, online bookings. “I often have to explain to people how a travel agent works, that it doesn’t cost them more money to use a travel agent. This is the value I provide. These are the things I do for my clients. Once I have a client they generally are my client forever.”

Grubb credits her success with networking. Shortly after opening the franchise, she joined a local business group in Knoxville and spread the word among a wide circle of family and friends that she was open for business. Many people already knew she loved to plan travel, long before she opened the agency.

“I used to plan trips for friends or friends of friends just because I had a passion for it. A few times I planned cruises and just put the word out and got as many as 16 people signed up for a cruise. That’s when I started thinking of making it a second career.”

Grubb looked at different types of business models for her travel agency and settled on Cruise Holidays because it matched her cruise expertise. Also, she said, the franchise system offers the technology and back-office systems that enable her to concentrate on sales and not administration. Now her business has grown to the point that she is considering expanding and hiring staff. And office space may also be in the picture at some point.

“The beauty of starting a home-based agency is that there was a low initial outlay because I’m not paying rent. It afforded me time to build my business. Now I’m at the point that I realize I can’t do it all myself.”

In the last couple of years, Grubb has evolved her social media marketing and has gained new customers, mostly on Facebook. However, she doesn’t promote herself with a “hard sell,” she says.

“I do a lot on Facebook, but it’s mainly posting about my trips and sharing what my clients have done on their trips. It’s not an aggressive marketing technique but a casual way of saying ‘here’s where I’ve gone’ to generate a conversation. Then people will call and tell me they saw I went somewhere that interests them, and I’ve got a sale.”

Optimism in the cruise market

Optimism in the cruise market

By Tom Stieghorst

*InsightIs the cruise business in the process of turning a corner?

 

There’s no objective proof that it is, but as with improvements in the general economy, turning points are often discernable only in retrospect.

 

Subjectively, it feels like something is happening. Business feels like it is getting better. People feel primed to spend again, and travel is one of the areas they want to spend more money on.

 

Some travel executives have been saying this for awhile. “I do feel like travel is back,” said Michelle Fee, CEO of Cruise Planners, who noted her company is having a record year for both franchise and travel sales.*TomStieghorst

 

The legs for a turnaround are in place.  The stock market is consistently hitting new highs. Equally important, home prices have been resurgent for some time now. Unemployment remains a drag, but the jobless rate is several points below its peak of a couple years ago. Driven by a potential easing of tensions with Iran, oil prices have fallen for the past four months, which should give cruise lines leeway to offer better fares without destroying the bottom line.

 

The prevalence of fare sales and promotions suggest that the bedrock seven-night domestic cruise market is still in recovery. But cruise lines continue to make impressive gains in cost reduction, leaving room to fill ships profitably at somewhat lower prices.

 

Individual agents who are having good years are not hard to find. “Personally, my business has been fabulous,” said Muffett Grubb, a Cruise Holidays franchisee in Knoxville, Tenn., who said travelers are loosening their wallets to take cruises in Europe rather than the five-to-seven-day Caribbean trips of 2011-12.

 

Likewise, Rose Stevenson, who owns a Cruise Holidays franchise in Charles Town, W. Va., said she’s doing well and that clients have a comfort level with Alaska and Hawaii cruises they didn’t have before.

 

Kevin Weisner, president of Cruise Holidays, said that in the big picture, success depends on market segment. Once you take the first-time cruiser out of the equation, “business is very, very healthy,” he said.

 

Those consumers that have never been on a cruise became tougher to persuade after the Carnival Triumph incident in February. But memories of that incident are fading, and barring some sort of lightning strike for the third year in a row, the cruise industry could finally be on its way to the smooth sailing it used to enjoy routinely during a good economy.

 

If November turns out to be a tipping point, that’s something everyone in the cruise industry could be thankful for.

Lines roll out incentives for National Cruise Vacation Week

Lines roll out incentives for National Cruise Vacation Week

By Tom Stieghorst

Travel agents have a flood of special cruise offers to entice customers this week, the third annual National Cruise Vacation Week.

Organized by CLIA, the week generated some $55 million in cruise sales and $7 million in commissions for agents when it was launched two years ago.

This year’s National Cruise Vacation Week may benefit from a marketing tailwind created by Carnival Cruise Lines’ unusual $25 million fall advertising campaign that should raise awareness of cruising generally.

Cruise lines have minted scores of promotions for the week, offering reduced deposits, coupon books for onboard spending, free cabin upgrades and extra-low prices on select sailings.

Agent groups have jumped aboard with additional offers exclusive to their networks.

Cruise Planners, for example, has a $50 onboard credit for select Norwegian Cruise Line sailings, in addition to the cruise line’s more broadly available offers, such as a $250 credit and reduced deposit for summer 2014 cruises.

Many agents offer the specials by putting together a mini-website with the National Cruise Vacation template, which provides space for up to four cruise line promotions.

Or they can organize special events that draw people into their agency or other locations for more personal networking.

Rich Skinner, a Seattle-area Cruise Holidays franchisee, is holding an open house on Oct. 23 from 6 p.m. to 8 p.m. that will also serve as a wine tasting. Four or five wines will each carry the name of a different cruise line.

“Because we’re sitting out here in the middle of Washington wine country, it makes sense to do that,” Skinner said.

During the business part of the get-together, Skinner will highlight trends for 2014, including river cruise growth, new ocean-going ships and new itineraries. Skinner said he does eight to 10 in-store events a year at his agency, Cruise Holidays of Woodinville.

“That’s one of my most effective marketing tools,” he said.

The fall CLIA event has grown from a single night to a week in the past few years, and some agents and cruise lines extend their specials beyond that. Cruise Planners is taking the whole month of October to promote various specials.

The network expects to take in nearly $20 million in revenue for October, up 69% from two years ago, spokeswoman Caitlin Murphy said.

“We encourage our 800-plus franchise travel advisers to host ‘cruise nights’ or virtual, online events during this campaign, and we support our agents with digital, Web and traditional marketing tools with this year’s ‘Taste of Travel’ theme,” Murphy said.

This year, Cruise Planners is also offering something extra to pull customers into National Cruise Vacation Week. They can enter a drawing to win $1,000 for each cruise they book in October. Murphy said the incentive has no cost to the travel agent.

“Many of our travel advisers appreciate this perk, as the value doesn’t take away from their commissions,” she said.