By Scott Ahlsmith,
President & CEO, Magellan360

Has a client ever asked, “What is your price for this Cancun package?” or “I found this price on a Web site, will you match it?” Most likely, you have heard these questionsm many times.

Why Consumers Ask for Discounts And Rebates
Consumers often seek discounts or rebates because they do not know what travel professionals do or how you work. That you still exist shocks many consumers. At The Travel Institute’s National Forum last September, a participant on a consumer panel looked out over the packed ballroom and remarked, “I’m amazed to see so many of you still in business. I thought online travel Web sites and cutting out airline commissions put you out of business!”
Another panelist noted, “OK, I know who you are and how to contact you, but I don’t have a clue what you can do for me.”
When consumers do not know what a travel professional does or how you earn a living, they automatically shift the conversation to familiar territory — price. Consumers know how to negotiate. Car dealers and Turkish rug merchants educated them. So rather than appear ignorant, consumers who do not know what you do, start the conversation with a question about price. They feel safe negotiating prices. How do you prevent your sales conversations with these prospects from decaying into discounting and rebating tractor-pulling contests?
First, you admit that when your Web sites, newsletters, and advertisements promote travel products, bargains, deals, and lowest prices, consumers will ask for discounts and rebates. If you lead with product and price, consumers will assume their job is to negotiate the lowest price.
Next, you become confident that consumers want your knowledge, expertise, recommendations and customization skills. You create extraordinary travel experiences that satisfy consumers who want to travel an economic rung or two higher than their day-to-day life. You recognize the emotional ingredient of travel which, in turn, helps move price to a lower priority.
Consider the difference between presenting a 4-day cruise and describing a couple relaxing in an orchid blossom scented hot tub at sunset after a horseback ride along the beach. The cruise cabin is a price-sensitive commodity while the hot tub experience transcends price and appeals to our prospects’ emotions.
Your choices are clear: promote travel products and “deals” and prepare to discount and rebate, or promote your knowledge, expertise and ability to create extraordinary travel experiences and tap into your clients’ emotional wants. (See HBT May 2006 for part II of this article.)

In addition to volunteering as chairman of The Travel Institute, Scott Ahlsmith, CTC, is the president & CEO of Host agency Magellan360, as well as the president & CEO of eSMART Communications, creators of YOU! the Brand, which delivers brand management services for individual travel professionals. Scott welcomes your comments and feedback and can be reached at scott@you-the-brand.com