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Home » Business And Finance Articles » Learning To Compete In A Very Competitive Industry Travel

Learning To Compete In A Very Competitive Industry: Travel

Over the years, many of us have heard about the opportunities available in wholesale travel. As a consumer, we can recognize that if these wholesale travel packages are legitimate, then we will have access to vacation packages that would make the average traveler drool over their possibilities in travel destinations. When we slide the shoe to the other foot and consider wholesale travel as a business opportunity, we question whether we have the knowledge or fortitude to succeed in this type of business.

Read on as we examine wholesale travel from the perspective of the consumer and the online businessperson seeking new opportunities in profit.

Beware of The Discount Travel Scams

While the wholesale travel industry is a legitimate industry offering legitimate travel packages, there are a few people out there offering deals that are less than favorable to consumers.

The most common travel scam is the kind used to sell timeshare packages in real estate. The real estate agent will give you a free three-day package to an attractive destination, IF your yearly salary meets certain minimums AND you agree to sit down and listen to a sales pitch for timeshare properties.

Now, there is nothing wrong with timeshares per se, but the methods that some unscrupulous agents employ to sell timeshares are shameful to say the least. Timeshare supported vacations are well known for their hard-sell approach to the sales process.

As a result, when most people speak of discount travel or wholesale travel, the first thought that comes to the mind of most consumers is the timeshare sales pitch. As a result, consumers generally have a poor opinion of discount travel or wholesale travel, based only on their fears of timeshare selling scams.

Be Aware Of Travel Restrictions With Some Packages

There are three types of restrictions that may accompany some discount travel packages:

* Expiration Dates: Many packages come with defined expiration dates that make them difficult-to-use by the stated due-date. Not all of us can gear up to take our vacation within the next 90 days. So, be certain to read the fine print of any offer that is made available to you.

* Blackout Dates: Blackout dates were made famous by David Spade's representation of Capital One Credit Cards. Some travel rewards carry blackout dates to limit the expense of those rewards. They don't want you using your travel rewards over the Thanksgiving weekend, since that is the busiest travel weekend of the year, and prices are generally higher for that peak period. Travel rewards aside, some travel packages employ blackout dates as well. Check the fine print to make sure that any blackout dates offered with a package do not interfere with how you want to use the travel package.

* Non-Transferable Vouchers: In theory, if you buy a hotel room and an airline ticket to Jamaica for the weekend and if something were to happen in your life that prevented you from using your purchased services, you could give the tickets and reservations to your best friend, so your money would not be wasted. Some travel vouchers may prevent you from transferring your vacation to another party. As always, read the fine print to know what restrictions might limit your vacation plans.

In a lot of cases, even if these restrictions exist, they will not interfere with your vacation plans. But, it is far better to be aware of a limitation before you buy your vacation, than it is to find out about those restrictions when you are ready to plan your trip.

How Do Service Providers Profit From Vacation Packages?

Where the value of discount travel or wholesale travel packages distracts many people, is this underlying question of how companies can offer these types of packages. The consumer is confused by the whole concept of free vacations, so we will look into the profit motive here.

When people are looking at an offer of a free vacation that consists of three days in a hotel room, many people are dumbfounded that such a thing could exist. If we use Las Vegas hotels and Orlando Florida hotels as examples, it is a much easier concept to understand.

When a Las Vegas hotel offers a free three-day stay, they do so with the expectation that you may spend several hundred or thousand dollars in their casino. If you did not take the free stay in their hotel room, you may have taken your vacation in Las Vegas anyhow, but stayed in one of their competitor's hotel rooms. If that were to happen, then their competitor would have won your money in their casino instead.

Hotels in vacation spots such as Orlando Florida may be receiving rewards from Walt Disney World to ensure that you spend your vacation at Walt Disney World, instead of Six Flags Over Texas. The hotel will receive money from Walt Disney World for your stay, and you will eat several meals and use several services at the hotel that gave you the hotel room for free.

Free services frequently provide the lubrication that helps a local economy soar, so many businesses will offer rewards to the hotel chains to offer free hotel rooms to visitors.

Do keep in mind that if you do get a free hotel room, there will still be a small cost to you in terms of the taxes excised on that hotel room stay. State laws mandate that all visitors pay taxes on their hotel rooms, and even though your stay might be free, you will still be required to pay the taxes on the room.

How The Airline Industry Profits From Discount Air Travel

When an airplane flies from New York City to Los Angeles, they always have a specific number of seats on that flight. Even if only twenty people paid for that flight, they airline would be required to make the journey, with all of its empty seats in tow.

So, airlines have constructed a very unique business model to make sure their empty seats are filled. When you buy a seat directly from the airline company, you will most always pay full price for the seat. If you buy your airline seat from a travel company, you can often find discounts on those seats.

Very literally, airline companies calculate how many seats they will sell on their own for each flight, and then they wholesale the remaining seats to travel agencies and other travel companies, to ensure that they will fill most or all of their seats.

The travel industry will buy seats on the airplane for as much as 90% off the retail cost of a flight. Then they will turn around and sell those flights to their customers at a markup. The actual discount rate will vary by the company making the offer, since only the biggest wholesale travel companies will get the deepest discounts, and the travel agencies usually buy seats from these airline seat wholesalers.

Can The Little Guy Compete In A Market Saturated by Big Players?

Simply put, yes. A friend of mine at Dreams By Vasrue has built his own little travel empire selling wholesale travel packages. In a recent month, he was able to generate $18,000 in profits â€" these were profits, not total sales.

With a saturated market filled by big names such as Travelocity, Expedia, Orbitz and many others, you would think it impossible to compete in such a crowded marketplace. But, you must remember that these big travel websites are operating as the travel agency, buying travel services at wholesale and marking up their prices to make a significant profit.

This leaves the little guys lots of opportunity to reach the buying public in ways that the big websites cannot do themselves. The big websites are not in the business of offering true wholesale travel, because they are like travel agencies selling retail travel to consumers.

The Lesson In This Story

The lesson in this story is that the Internet is offering lots of entrepreneurs a way to stand up and compete with the largest corporations on the planet in a multitude of industries.

As an online businessperson, you should always be looking for that new opportunity that could make you very wealthy. When you take the time to learn the internal workings of any industry, you will uncover opportunities to compete successfully and prosperously with the biggest names in your own industries.

And here is another random article you might be interested in...

Sales Therapy 101: Breaking Your Fear of Cold Calling

Almost every day, visitors to my Unlock The Gameâ„¢ website click on my live instant-messenger chat button, which invites them to "Ask Ari a selling question."

And do you know what their most common question is?

Yes, you guessed it: "Is there any way I can break through or overcome my fear of cold calling?"

Most of us have at least some resistance to cold calling, and some people I talk with have such a paralyzing visceral and emotional fear of cold calling that they can't even consider doing it.

In some ways, the fear of cold calling is practically an epidemic -- but not the kind of epidemic that gets publicized on TV or in newspapers. It's a silent and personal one, a psychological struggle that happens in our own hearts and minds.

The fear of cold calling is a painful, daily struggle for many entrepreneurs and salespeople who have been trained in traditional selling techniques.

Traditional sales trainers answer questions about cold calling this way:

"All you have to do is make more phone calls."

"All you have to do is think more positive thoughts."

"Just learn to accept rejection as a normal part of selling."

In other words, "It's your fault that you aren't succeeding in sales."

This is like telling someone who's terrified of jumping off a diving board, "Don't be a wimp! Just jump!"

In my experience, very few people are able to overcome their fears that way, because the underlying message is that, if you force yourself to do something uncomfortable, "just doing it" will magically solve the problem.

But this is a response that shows no understanding at all of the psychological barriers that underlie the fear of cold calling. So, how do you overcome your fear of cold calling?

In my opinion, the solution actually is simple, and is based on understanding three simple concepts:

1. It's Not Your Fault

We can't help thinking there's something wrong with us if other people keep telling us that something shouldn't be a problem, but our own inner feelings tell us that we aren't comfortable doing it.

There's a sort of "old boys' club" sales-conditioning mentality prevalent in English-speaking countries, including the US, Canada, the UK, Australia, and New Zealand, that says, "I had to suffer to succeed in sales success, so you need to, too!"

This thinking comes from traditional sales programs that continue to be the accepted approach to selling.

What you need to understand, though, is that you may fear cold calling because you have probably been exposed only to traditional selling approaches, which triggers rejection.

These approaches teach us to make cold calls this way: introduce yourself, explain what you do, suggest a benefit to the potential client...and then close your eyes and pray that they won't reply with "Sorry, not interested" or "Sorry, I'm busy."

If you're still using this traditional approach, you probably hear responses like these the moment you stop talking.

They're rejections, and what they do us make you feel rejected -- and that's reason enough to make you dislike, fear, and avoid cold calling.

How can cold calling be a positive experience if rejection is the most common response you get?

2. Are Your Self-Perceptions Passive or Aggressive?

Whenever I chat with people about the fear of cold calling, they almost always tell me that they're afraid to make cold calls because they don't want to be perceived as "aggressive."

This is another part of the internal battle -- they beat themselves up for being too passive and lacking the confidence to make the next call, but they don't want to call for fear of being seen as aggressive.

Here's the good news: there is a middle ground between "aggressive" and passive."

It's a place where you can be who you are while still being extremely effective with cold calling, without ever experiencing rejection again.

Unlock The Gameâ„¢ shows you how you can be incredibly effective in cold calling without triggering rejection from potential clients. Imagine the possibilities (and the income potential).

3. Learn to Let Your Language Match Your Thinking

If you can center yourself into a place where you can let go of feeling that you have to go on using traditional cold calling "scripts" and behaviors, you'll find yourself spontaneously using language that you would use in a natural conversation.

Using natural words and phrases -- speaking exactly the way you would with someone you know, can transform cold calling into a refreshing and productive experience.

And, as you let go of the old-school cold calling model, in which your product or service is your only way of generating a phone conversation with a prospect, you'll make the most crucial transition of all: you'll begin thinking of approaching potential prospects not from your perspective, but from theirs.

What do I mean by that?

Imagine what it would be like if you could hear your prospect's thoughts about the problems they are having -- and that your solution can solve.

Even more importantly, suppose you could also make note of the words and phrases they're using as they think about their problems, and that you could take that language and embed it in your cold calling approach.

"Yes, but how would I do that?" you might ask.

It's simple. Just ask your current clients what three core problems your product or service has solved for them.

When you change your thinking, you can't help changing the language that you use, which lets you connect in a whole new positive way with the other person you are calling.

If you can let go of your old-school belief system and open up to the possibility that there is a more natural, comfortable way to cold call -- one that doesn't trigger rejection -- you'll be surprised by how easily you'll break through and overcome your fear of cold calling.