Dave Patterson

I've made up a new name for this thread since the discussion
has turned to costs, and speaks of American operators as being
(perhaps) one of the reasons for expensive safaris.
There's some truth to that and I can offer a few points to explain it.

Americans generally won't take a self-directed trip to Africa.
They want a complete package. And, they want comfort guaranteed.
A significant number want a trip they can brag about at their
country club (or church, or you-fill-in-the-blank). If they do
any research at all, they consult with friends who have been and
tend to favor more expensive lodges, camps, hotels.

A few operators (and A&K is the best example) meet those needs.
A&K has built a solid reputation for delivering what it promises,
which is what we all strive to accomplish. No criticism of A&K
is warranted for the quality of their operations and staff.
But it is able to sell trips, then, with very high markups.

It has significant costs as well.
It pays higher commissions to agents who are productive selling its
trips.
It spends millions of dollars on brochures for its worldwide marketing.
And has its corporate offices in one of the most expensive
suburbs of Chicago.

Other operators then offer trips under those price points
and still make nice profits.

Remember that virtually no one in the US buys directly from the
tour operator - they buy from their local agent who will receive
10 to 15% of the retail price just for being the 'middle-man'
(or more commonly, the 'middle-woman'). So a $6000 trip
nets perhaps $5100 to $5400 to the American operator.

Small operators such as I have a different set of economics to
work with. We do not sell through agents, so our retail
prices are lower. But our marketing is very costly and thus limited.
A two-inch, 2 -column ad in my Sunday Travel section in
Phoenix costs $776. That's one ad, one time, only in metro Phoenix,
3 3/4" wide, 2" high. Place a few of those ads, print brochures,
do mass mailings, make videos (which I use in marketing), rent
public spaces for presentations, and soon you have spent some
serious money.

I have to sell not only the safari, but also our credibility.
I compete with the well-known operators (see above).
The reputation of an A&K or Wildlife Safari or Big 5 or
UTC or African Travel, etc., is well-known and highly credible.
A travel agent who sells one of their safari packages to a
wife & husband will earn (ha!) anywhere from $1000 to $2000
commission from the operator.

I have to emphasize the personal attention we give and
offer more service than any travel agent can. (And I do.)
So we have a place in the safari business and our clients
are quite pleased with the value and service they receive.
But the safaris are still expensive, and there is no way
I can reduce the prices for the trips I offer.

And, finally, since this thread originally started with the
discussion of the terrorism threat in Kenya, and reactions
to it - I can say that as of this moment on a Monday morning
in Phoenix - not one of our clients scheduled to leave this
month or next month has canceled. Only one has even
called to ask what we are saying about the Travel Warning.
Perhaps we have done a decent job creating credibility
with them.





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Pat Anderson

In message , Dave Patterson
writes
    >I've made up a new name for this thread since the discussion
    >has turned to costs, and speaks of American operators as being
    >(perhaps) one of the reasons for expensive safaris.
    >There's some truth to that and I can offer a few points to explain it.
    >Americans generally won't take a self-directed trip to Africa.
    >They want a complete package. And, they want comfort guaranteed.
    >A significant number want a trip they can brag about at their
    >country club (or church, or you-fill-in-the-blank). If they do
    >any research at all, they consult with friends who have been and
    >tend to favor more expensive lodges, camps, hotels.
    >A few operators (and A&K is the best example) meet those needs.
    >A&K has built a solid reputation for delivering what it promises,
    >which is what we all strive to accomplish. No criticism of A&K
    >is warranted for the quality of their operations and staff.
    >But it is able to sell trips, then, with very high markups.
    >It has significant costs as well.
    >It pays higher commissions to agents who are productive selling its
    >trips.
    >It spends millions of dollars on brochures for its worldwide marketing.
    >And has its corporate offices in one of the most expensive
    >suburbs of Chicago.
    >Other operators then offer trips under those price points
    >and still make nice profits.
    >Remember that virtually no one in the US buys directly from the
    >tour operator - they buy from their local agent who will receive
    >10 to 15% of the retail price just for being the 'middle-man'
    >(or more commonly, the 'middle-woman'). So a $6000 trip
    >nets perhaps $5100 to $5400 to the American operator.
    >Small operators such as I have a different set of economics to
    >work with. We do not sell through agents, so our retail
    >prices are lower. But our marketing is very costly and thus limited.
    >A two-inch, 2 -column ad in my Sunday Travel section in
    >Phoenix costs $776. That's one ad, one time, only in metro Phoenix,
    >3 3/4" wide, 2" high. Place a few of those ads, print brochures,
    >do mass mailings, make videos (which I use in marketing), rent
    >public spaces for presentations, and soon you have spent some
    >serious money.
    >I have to sell not only the safari, but also our credibility.
    >I compete with the well-known operators (see above).
    >The reputation of an A&K or Wildlife Safari or Big 5 or
    >UTC or African Travel, etc., is well-known and highly credible.
    >A travel agent who sells one of their safari packages to a
    >wife & husband will earn (ha!) anywhere from $1000 to $2000
    >commission from the operator.
    >I have to emphasize the personal attention we give and
    >offer more service than any travel agent can. (And I do.)
    >So we have a place in the safari business and our clients
    >are quite pleased with the value and service they receive.
    >But the safaris are still expensive, and there is no way
    >I can reduce the prices for the trips I offer.
    >And, finally, since this thread originally started with the
    >discussion of the terrorism threat in Kenya, and reactions
    >to it - I can say that as of this moment on a Monday morning
    >in Phoenix - not one of our clients scheduled to leave this
    >month or next month has canceled. Only one has even
    >called to ask what we are saying about the Travel Warning.
    >Perhaps we have done a decent job creating credibility
    >with them.
    >-----= Posted via Newsfeeds.Com, Uncensored Usenet News =-----
    >http://www.newsfeeds.com - The #1 Newsgroup Service in the World!
    >-----== Over 80,000 Newsgroups - 16 Different Servers! =-----
Thank you for all that Dave.
I used to have a friend who worked for A& K in London. We certainly
couldn`t afford to travel with them! Here we can book with Kuoni or
Somak, stay in the same hotels sometimes as the A&K clients, for a lot
less.
The safari holidays are always costly and I understand your point
about the American clients. I think I`m right in saying that they rarely
stay at the coast, perhaps because you have your own lovely coastline.
It`s good news that your clients haven`t cancelled their holidays to
Kenya as they need all the visitors they can get. They haven`t really
recovered from all the problems they`ve had since the Likoni riots in
1997.
Best wishes,
Pat
--
Pat Anderson