The "Ethnic" Market
Here's an excerpt from a recent email: "Here is my problem. Let's say, all the members of the community I live in and my target customers are international air travelers. These people travel from USA to Asian countries each year to visit their relatives and loved ones. For the last 13-14 years I didn't hear anyone show a desire to travel on a cruise."
The writer is referring to something known in the travel trade as "the ethnic market." The good news is that it is a large market. The bad news is that the competition is fierce. Aaso, as the writer says, most of the business is in international airline tickets and people are looking for the absoute lowest price. Travel agencies that serve this market operate on wafer thin margins, often just a few dollars per ticket.
There are a number of strategies I can suggest, none of which is guaranteed to produce tremendous results or bring you a substantial income.
First, find out where these "target customers" are buying now. If they are buying from a local source, perhaps you can enter into a business arrangement with that source, as outlined in Chapter 4 of Home-Based Travel Agent.
While you're at it, do a little "market research." Ask people if they would be willing to do business with you. If they already have a favorite source for tickets, ask, "What would I have to do to win your business?" It could be as simple as hand delivering tickets (in the ethnic market, paper tickets are still prevalent).
If they are buying directly from an airline, then make contact with that airline's sales department and see if you can enter into some sort of arrangement. If it's a foreign airline, you will have a better chance than if it's one of the major domestic carriers. But in any case, it will be a "hard sell," especially if you don't have any experience.
Network within your community and try to get introductions to consular officials or prominent businesspeople from your home country. It's a long shot, but they may be able to introduce you to someone who can open doors at the national airline.
Investigate consolidators who serve the market you're interested in. You'll find leads in Chapter 12 and the Desk Reference. You may have to do some negotiating to be able to compete on price, but if you can work something out you may find that your per ticket income will be decent.
Like I say, I can't offer you a great deal of hope that any of these will provide you with a terrific income, although I'd be happy to have you prove me wrong!
But I would like to encourage you to think outside the ethnic box.
As ethnic enclaves mature and prosper, people begin to have different priorities. The ties to the "home country" inevitably weaken and as immigrants prosper they have more and more disposable income. Sure they might want to go back to the home country once a year, but there's nothing to prevent them from taking a second vacation somewhere else. You have an opportunity to be something of a "success ambassador" to the community, offering people a chance to reward themselves and their families.
Why not promote the idea of having family in India or Vietnam or Taiwan, meet their American relatives in Australia, or New Zealand, or Hawaii for a cruise or a resort vacation? What a great way to show off how well you're doing in your adopted home.
Remember, too, that the "home country" has a lot more to offer visiting immigrants than grandparents and cousins. On a trip to Greece some years back, I was struck by how many Greek-Americans I met who were touring their homeland, a luxury they couldn't enjoy when they lived there. These people are excellent candidates for escorted tours or a fly-drive vacation.
Another possibility is to suggest that folks extend their trip "back home" to take in nearby sights. Family in India? Why not visit the Taj Mahal, Jaipur, or even Nepal? Family in Vietnam? Why not visit Angkor Wat in neighboring Cambodia? Family in the Philippines? Why not visit Taiwan or Hong Kong or Hawaii? You can sell a lot more than an airline ticket.
Target members of the second-generation and their families. Their memories of "home" may not be as powerful as those of their parents; and they may have kids who are completely "Americanized." For what it would cost that second-generation family to visit grandmom, they could take the kids to Disney World.
And who says you can only sell to your own ethnic group? If you know your home country well, you should be able to establish yourself as the "go-to guy" for anyone, regardless of their ethnic or cultural heritage, who wants first-rate guidance on tours to your homeland.
So I would encourage anyone who finds themselves in my correspondent's situation to spread their wings. Remember that one of the secrets to success as a home-based travel agent is not to do exactly what the storefront agencies are doing. Maybe the reason my correspondent never heard anyone express an interest in a cruise is that no one is offering it to them. You might be surprised at how much "pent up demand" there is in your community for travel opportunities above and beyond a cheap ticket to the "Old Country."
The writer is referring to something known in the travel trade as "the ethnic market." The good news is that it is a large market. The bad news is that the competition is fierce. Aaso, as the writer says, most of the business is in international airline tickets and people are looking for the absoute lowest price. Travel agencies that serve this market operate on wafer thin margins, often just a few dollars per ticket.
There are a number of strategies I can suggest, none of which is guaranteed to produce tremendous results or bring you a substantial income.
First, find out where these "target customers" are buying now. If they are buying from a local source, perhaps you can enter into a business arrangement with that source, as outlined in Chapter 4 of Home-Based Travel Agent.
While you're at it, do a little "market research." Ask people if they would be willing to do business with you. If they already have a favorite source for tickets, ask, "What would I have to do to win your business?" It could be as simple as hand delivering tickets (in the ethnic market, paper tickets are still prevalent).
If they are buying directly from an airline, then make contact with that airline's sales department and see if you can enter into some sort of arrangement. If it's a foreign airline, you will have a better chance than if it's one of the major domestic carriers. But in any case, it will be a "hard sell," especially if you don't have any experience.
Network within your community and try to get introductions to consular officials or prominent businesspeople from your home country. It's a long shot, but they may be able to introduce you to someone who can open doors at the national airline.
Investigate consolidators who serve the market you're interested in. You'll find leads in Chapter 12 and the Desk Reference. You may have to do some negotiating to be able to compete on price, but if you can work something out you may find that your per ticket income will be decent.
Like I say, I can't offer you a great deal of hope that any of these will provide you with a terrific income, although I'd be happy to have you prove me wrong!
But I would like to encourage you to think outside the ethnic box.
As ethnic enclaves mature and prosper, people begin to have different priorities. The ties to the "home country" inevitably weaken and as immigrants prosper they have more and more disposable income. Sure they might want to go back to the home country once a year, but there's nothing to prevent them from taking a second vacation somewhere else. You have an opportunity to be something of a "success ambassador" to the community, offering people a chance to reward themselves and their families.
Why not promote the idea of having family in India or Vietnam or Taiwan, meet their American relatives in Australia, or New Zealand, or Hawaii for a cruise or a resort vacation? What a great way to show off how well you're doing in your adopted home.
Remember, too, that the "home country" has a lot more to offer visiting immigrants than grandparents and cousins. On a trip to Greece some years back, I was struck by how many Greek-Americans I met who were touring their homeland, a luxury they couldn't enjoy when they lived there. These people are excellent candidates for escorted tours or a fly-drive vacation.
Another possibility is to suggest that folks extend their trip "back home" to take in nearby sights. Family in India? Why not visit the Taj Mahal, Jaipur, or even Nepal? Family in Vietnam? Why not visit Angkor Wat in neighboring Cambodia? Family in the Philippines? Why not visit Taiwan or Hong Kong or Hawaii? You can sell a lot more than an airline ticket.
Target members of the second-generation and their families. Their memories of "home" may not be as powerful as those of their parents; and they may have kids who are completely "Americanized." For what it would cost that second-generation family to visit grandmom, they could take the kids to Disney World.
And who says you can only sell to your own ethnic group? If you know your home country well, you should be able to establish yourself as the "go-to guy" for anyone, regardless of their ethnic or cultural heritage, who wants first-rate guidance on tours to your homeland.
So I would encourage anyone who finds themselves in my correspondent's situation to spread their wings. Remember that one of the secrets to success as a home-based travel agent is not to do exactly what the storefront agencies are doing. Maybe the reason my correspondent never heard anyone express an interest in a cruise is that no one is offering it to them. You might be surprised at how much "pent up demand" there is in your community for travel opportunities above and beyond a cheap ticket to the "Old Country."
Labels: ethnic market, home-based travel agents, selling travel
posted by Kelly Monaghan at 2:24 PM
1 Comments:
I like your article. You are right about how important is the market research... but unfortunately this is the most difficult part, even more if you are just starting. It is difficult to know where to consult according to the cases.
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