Price vs. Value – Getting the Best “Deal”

“Can you get me the best deal?”

It’s a question we often get. The answer is yes, but the question itself is a bit deceiving.

We’re often asked for the “Best price” or “Best deal” from customers. Often, consumers believe that they want BOTH of those. But usually those two things are actually in conflict with each other.

Let’s take on price first — the simpler of the two parts of this equation.

Yes, we work on commission but most travel advisors want to get you the best price. Overcharging you now might pad that commission in the short-term, but you probably won’t be a long-term customer. There are also often add-ons available for any vacation and we work hard to explain these and make sure they’re a good fit for your trip, your family and your lifestyle. Much like clothes, not every package fits every person. With cruising, for example, some people like interior staterooms, while others must have a suite on every voyage. So as far as price is concerned, the “best” price for the interior customer is going to be different than the “best” price for the suite guest. It will likely be a fairly significant difference in price — but it’s the “best” in both cases.

Now let’s look at “deal” — something much more subjective. What exactly constitutes a “great deal” to you? I’d wager that if we asked 20 different people, we’d likely get 20 different answers. Sticking with the cruise analogy, for some a “great deal” might be free drinks. To someone like me, who does not drink regularly, that would not be a huge benefit. I recently booked a vacation that was a 14-night cruise with free drinks. The value of the drink package on paper was $900 per person, but since neither of those people drank any alcohol at all, the value to THEM was ZERO.

I think many people equate “deal” to low price or even (gasp) the word “cheap.” If you go to our “about us” page you’ll see the following quote:

“A cheap vacation can be an expensive mistake”

Do you seek out the cheapest doctor, real estate agent, dentist, financial advisor or home builder? In almost all cases, I’d suspect the answer is a firm “No.” Cheap connotes lack of quality and the lowest level of service. Is that what you want from your vacation, let alone a surgeon or someone building your house? We understand that you work hard for your money and we want you to get the most out of your purchase — but sometimes spending even a little bit more will increase the value of your vacation exponentially.

Now it’s a fair argument that the travel industry has shot itself in the foot when it comes to pricing. There are ads for “cheap” hotel rooms and companies that find the best “deal” throughout dozens of websites. But even those are a bit deceptive in many cases. The fact is that in most cases, we all have access to the same pricing from the same suppliers. But there is one major difference between a company like Premier Custom Travel and many other agencies: We weed out the “cheap” options to find you the “best” price, deal AND value at the same time.

Here’s an example: One of the cruise lines we sell has a room that is always the cheapest on the ship. If you look at any voyage and find the starting price, it will be for this particular room which is essentially bunk beds. We’ve sold hundreds of cruises on this line and rarely does a customer actually want this room type. Most customers upgrade to the next category, which is what would be considered a standard interior cruise cabin. So nine times out of ten, we don’t even price that bunk bed room for customers. It’s not a huge difference in price at all, but a quick glance might lead someone to think they are not getting the best deal or price. But when you consider the room itself, the slightly higher price is the better value, best price and best option in most cases.

Also thinking about “cheap” websites – what happens when you need to contact them? With my customers, they can call or text my cell phone any time. I’ve seen online travel websites where a phone number is hard to find or when you do, it’s a call center somewhere with people who probably have never been to any of the destinations they sell. Where else are they saving money? I bet their agents don’t constantly update their certifications or attend industry events. We do.

Something else to consider when looking for the best price or the best deal: Why is something priced the way it is?

We often get inquiries about “all-inclusive” resorts and I always say the same thing: Make sure you know exactly what IS included, as some are not truly “all” inclusive and charge for many services. If you compare two 7-night vacations to the same destination on the same flights and one is $2000 per person and the other is $500 per person, don’t you think there is a reason why? How are they cutting corners in order to bring you that lower price? Do you really want to know the answer? It might surprise or scare you.

Whether you spend $500 with us or tens of thousands of dollars, we want you to have an incredible experience. At Premier Custom Travel, we never make recommendations strictly on price or how much money a trip will make us. To be quite honest, I don’t even look at the commission numbers until I’ve booked a trip and enter it into my accounting system.

Another though on pricing: When you do see a discount or “special” that an agent or agency is offering, ask where it is coming from and how they are able to offer that “special” rate. There are certainly ways for agencies like ours to offer occasional sales or exclusive specials, but generally speaking we all have the same base price. Some agents and agencies engage in “rebating” – a policy that is highly unethical and forbidden by most major vacation suppliers. Basically they’re giving back part of their commission to earn your booking. But if they will break this rule willingly, what other shady practices are they engaging in and do you really want to trust your vacation to someone with no moral compass?

One last thing to consider – are you getting the full “experience” for the money?

I once sailed on a upstart cruise line that was offering $299 7-night cruises on Groupon. What a deal, right? Well yes, on the surface that’s an incredible price. But I was onboard and I’m here to tell you the experience wasn’t even worth $299 per person. But here’s the real downer: Many of those guests were first-time cruisers who now believe that they have had the “cruising experience” and might never come back because THAT is what they think all cruises are like. All they saw was a cheap opportunity and got a cheap product in return. For many, that will be their lasting impression of that type of vacation. That’s bad for everyone – agents, consumers and the cruise lines themselves.

How can you get the best value? I have a few tips:

• First and foremost, work with a professional. Our services cost you nothing but the value you get from our expertise and guidance is invaluable.
• Be as specific as possible. Helping us to understand what you expect from a vacation is key to finding the right fit. We’ll probably ask many questions – please answer with as many details as you can.
• Be careful “price shopping” online. I can’t tell you how often someone will come back to me thinking they found a better deal, only to find they didn’t include a key element of my quote or package. I visited a site once where the price literally changed from page to page…and it wasn’t going down. But if you glanced at that first page, it looked like a great deal. In the end, it was actually HIGHER that my price.
• Never go “cheap.” There’s a reason that word has a negative connotation. There’s also a very good reason the phrase “You get what you pay for” exists.
• Book early. Sure, you might find a last-minute deal now and then. But more often than not, prices only go up as vacations get closer. Plus, there’s the issue of availability. Can’t tell you how often I’ve had people wait for a better deal only to get shut out. It’s even worse when that happens to you and you’re supposed to be a groomsman at a destination wedding.
• Have an open mind. Sometimes stepping outside of your comfort zone or a “known” brand is the key to finding an even better experience.

So the next time you buy anything – vacation or otherwise – be sure to ask for the “best value” instead of the best price or best deal. You’ll probably wind up getting all three.