Unprecedented Impulse Demand for Last Minute Trips

(Dive Travel Business News - November 2, 2010) -- The 2010 Portrait of American Travelers - a recent study by Ypartnership/Harrison Group - indicates that irresistible travel offers are driving impulse demand, encouraging more Americans than ever before to take “last minute” vacations.  

One of the market forces accelerating the trend toward more impulsive vacation behavior on such short notice is the growing use of ‘flash sales’ by travel service suppliers. These impulsive offers, delivered through unsolicited Emails, have become more commonplace during the past 12 months as suppliers have tried to liquidate what would otherwise be unsold inventory. The study found that fully one out of seven recipients of these unsolicited Emails reported purchasing a travel service as a result.

“While you might expect the recipients of these offers to book a weekend flight or hotel room on a whim, the booking of a complete vacation package (38 percent) or a cruise (21 percent) is unprecedented,” remarked the study. Another of the report’s findings: one out of four leisure travelers took a vacation in their local area as an alternative to more extensive travel destinations.

The growing travel segment, now being defined as the "impulse getaway market" poses some challenges to dive travel sales. With a growing segment of their client base more inclined to a last minute deal, it becomes much more of a challenge to get clients to commit to booking a dive package or group trip months in advance.

Dive travel professionals who choose to service the impulse market must work within significantly shortened trip planning timelines for their clients -- typically just six days prior to departure. Travel consultants must be knowledgeable of the many last minute deals available, be prepared to hustle for every sale, and work for lower commissions considering many deals are 30-50% lower than typical packages. 

Travel pros who pursue this market may place themselves in direct competition with the big online travel outlets for the impulse client.  Due to the nature of impulse buying, it becomes difficult for any business to count on the loyalty of an impulse client's to turn into future sales.  The impulse client is unpredictable,  therefore forecasting sales becomes less predictable. 

Is it a good idea to serve the impulse market?  It depends on your particular business.  There are upsides to offering last minute deals. Many dive travel pros are using last minute deals as a door opener to contact clients and make travel suggestions to otherwise dormant dive travelers.  When a client responds to a dive specialist's last minute offer, it's an opportunity to book a client, or to point out alternative travel packages that are much better suited to the client. Travel pros who are dealing with impulse buyers can also gently educate their clients on the downsides of last minute travel.  Unintended consequences are many in the impulse market, including inconvenient travel times and dates,  a hotel unsuitable for the traveling party, a poor on-island location for diving, or package contents that don't meet the needs of the client.  Many last minute deals don't include diving, and the tour operator doesn't have a solution for the dive traveler.  It becomes clear that not all packages are created equal, especially in the last minute market: A bonified dive travel specialist will steer their clients in the right direction, providing their clients with package value, expert advice in customizing their vacation and insider knowledge of the dive destination so the client gets the most out of their trip with relative ease. 

In the long run, the clients you choose to work with may come down to a matter of loyalty. For a  loyal client, the travel "deal" is a dive vacation that is well-priced AND is tailored specifically to their wants and needs.  They don't waste money because they get what they want. An impulse client is primarily interested in the package deal: Your abilities to tailor the offering are secondary.  Remember: Your loyal clients are your bread and butter because they trust your advice, appreciate what you do, bring referrals and come back to you when booking future trips.  Ultimately, the lifetime value of your client is more important to you than fast sales. The more loyal clients you have, the more viable a travel business you have over the long-term. 

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