The internet has made it possible to cut out middlemen in many industries as the public shops directly for goods and services. Travel agents have been especially hard hit. It’s easy to book hotels and airfare online, as well as sightseeing tours. But travel agents (also called travel advisors) can still add a lot of value, especially for travelers with unique needs and interests. This can include wealth management families traveling with multiple generations.
This can come across as a tough sell for your retired clients who have the time and good health to travel but don’t consider themselves wealthy. They might see themselves as DIY (do it yourself) travelers, making their own arrangements. They get great joy talking about the deals they have found. Faced with these headwinds, how can you make the case they will benefit from working with a travel agent?
Here is a good starting point. Your clients might not consider themselves wealthy, but they identify with the luxury lifestyle enjoyed by HNW individuals. Need proof? Car companies have perfected “aspirational marketing.” The Mercedes S class is a great car, but it can cost $117,000. The Mercedes C class costs about $48,000. The buyer gets the bragging rights at about 41% of the S class price. Tiffany sells silver jewelry in addition to gold and diamonds.
Wealthy people often draw upon specialized expertise. HNW individuals work with financial advisors. So does your client. Wealthy people have accountants. Your client likely has a complicated tax situation and a long-term CPA relationship. Working with a travel advisor is often associated with the wealthy. If your client reads Town and Country magazine or Travel and Leisure magazine, they are aware of that.
Your clients still travel. They book hotels, airlines, restaurants, cruises and resort vacations online. Research shows baby boomers see no need to work with a travel agent when they can deal directly. What possible value can a travel agent deliver?
Research shows 68% of people believe this is true. It also shows 50% of people are more likely to work with a travel agent today than previously. Do your clients really want to spend your spare time figuring this out?
Do Younger People Know Something You Don’t?
You might think younger people lead the DIY brigade. You would be wrong, because 38% of Gen Z are fine working with a travel agent. What about baby boomers? Surprisingly, only 2% get professional help for their travel plans.
Who Are You Gonna Call?
Yes, that’s a line from the 1984 film Ghostbusters. When everything is going smoothly, you might not need a travel agent. When the stock market marches upward, your client’s friends might say, “I don’t need an advisor. I simply buy an index tracker fund.” What happens when you are relaxing in Venice and a volcano erupts in Iceland, grounding all transatlantic flights? What happens if you are sitting in a sidewalk café in Paris and the Eurostar (channel tunnel) people go on strike? You can call your airline and sit on hold. Or you can call your travel agent and ask, “How are you going to get me back home?”
Cruises Cost the Same, More or Less
Cruises are usually priced the same regardless of if you buy through the cruise line’s website or through a travel agent. Travel agents make about 10% when booking a cruise for a client. Sometimes travel agents get deals they can pass along to clients. You can get the travel agent’s expertise without paying an additional fee.
Some Travel Agents Specialize
Some specialize in cruises; others might specialize in safaris. Your local travel agent might be a generalist, which may be similar to your practice as a financial advisor. You both know a little about everything. Others are specialists, like the advisor in your office who only trades commodities. Your client can get specialized knowledge if they need it.
Your Travel Agent Knows Venue Personalities
Cruise lines and resorts have target markets. If your client has many grandchildren, a Disney Cruise might be for them. If they prefer an adult-only environment, Viking Ocean Cruises or Virgin Voyages might be the right company. If they want a cruise line specifically for older seniors, Saga Cruises in the UK offers cruises for people age 50+. Working with a travel agent reduces the likelihood of finding yourself booked on the wrong ship or at the wrong hotel.
Your Travel Agent Knows You
They know your likes and dislikes. They know your mobility situation. They can tell you about getting health insurance once you leave the U.S., what visas you will need for the countries you visit, and what you will need in ship-to-airport transfers. They can help book your airfare to get to the ship, sometimes at better rates than you can find on your own. Like a financial advisor, your travel agent can get to know you on a personal level, not as a series of answers filled in on a new account form.
Travel Agents Sometimes Get Deals
Do you have an American Express card? If so, you know Amex is in the travel business too. You might find if you book a four-night stay at a certain hotel through them, the fifth night might be free. You might learn you get bumped up a cabin category or two if you book your cruise through them. The cruise line may offer other deals directly to the travel agent, who can pass them along to you.
Your client is retired. They have no demands on their time. They get a call from the travel agent. “I have a great deal on a cruise if you can leave next Friday.” They can jump on the deal. As their advisor, you have good investment opportunities that come across your desk but need an immediate decision. Travel agents might offer them too.
There is value in personalized service. You have demonstrated this as their financial advisor. A good travel agent can do the same.
Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, “Captivating the Wealthy Investor,” is available on Amazon.
