Tauck is increasingly gaining traction in the Australian market for its luxury touring and cruise programs as more advisors become aware of the brand and its positioning, says David Clark, Managing Director, Australia.

Clark says paramount to Tauck’s success has been bedding down agreements, working closely with key agency partners and fostering relationships.

Four years in the role (including the difficult COVID years), Tauck’s regional head says Tauck has had a strong start to 2024.

“Businesswise, we are very, very pleased with the progress we’ve made in the last six months,” Clark told LATTE during a recent visit to Chatswood, NSW.

“It feels like the foundations we have laid in recent years are finally starting to get traction.”

Clark has set himself an ambitious three-year growth plan through to 2027 which will require a greater percentage of first-time guests booking with Tauck than the current mark – which sits around 50/50 with the local repeat rate.

“A higher first-time rate over the next two or three years is what will grow the business here,” he says, saying travel advisors will fuel that growth.

“The feedback I’m receiving is for those that have either personally experienced Tauck firsthand, or their clients, come away advocates for the brand,” Clark said.

Most of Tauck’s bookings from this market are for European river cruises and land touring, while North American land touring “is starting to return” after a few softer years due to the exchange rate. US National Parks are seeing revitalised interest from the AU/NZ market, including Canyon Lands and Yellowstone, alongside fresh demand for Canada and Alaska and the Inside Passage where Tauck has allocations on a Silversea ship.

He says European pricing has, as to be expected, increased fractionally as hotel allocations become more expensive driven by demand, which in some cases has required a change of accommodation, still in the luxury space.

“In Italy, prices have risen but there is a variety of accommodation available to choose from. Japan pricing has also increased due to demand,” Clark said.

The brand loyalty Clark refers to among clients and trade partners – one Australian client has travelled with Tauck on 47 occasions! – is enormous in the North American market, and sees guests booking far in advance to secure their preferred departures.

“Most guests book very early because they know which tour they want to secure and the US market has been trained to book early or they miss out,” he said.

Travel advisors in the US, and Tauck’s reservations team, run a highly successful program in the US called ‘OFSWOP’ (or ‘open for sale without price’) for future years’ itineraries. The program enables a client a guaranteed space on a tour or cruise, right down to the cabin number, with a refundable deposit. When prices are released the guest has two weeks to either commit to the trip and its new pricing or cancel and receive their full deposit back with no fee.On the sales front, Clark admits Tauck needs to be a bit more belligerent in its approach to get greater cut-through in the crowded touring market.

“I think we have to be a bit more aggressive in our sales approach, defining what’s included. It’s not about leveling up against competitors but being more matter-of-fact in explaining this is what Tauck gives you.

“For example, sailing on the same-sized river vessel in Europe but only having 110 guests onboard with Tauck, versus 150. And price-wise, having everything included – no matter what – so the client’s hand never dips in their own pocket.”

Clark used an example of how Tauck’s tour directors are like a “well oiled machine” about every element of a trip.

“After a cold morning in Regensburg and all the guests are coming back to the coach for the drive to Prague, the tour director has bought the baker out of hot pretzels which she hands out to the guests as they board.”

Or other examples of delicate pastries or local schnapps to sip while on the coach.

And for advisors, a Tauck booking nets a tidy commission, with the average booking for two people out of Australia around $28,500.

Expanding on the significance of partnerships, Clark said he was particularly chuffed to be working alongside Flight Centre Travel Group’s Luxury Travel Collection this coming weekend for their travel show on the Gold Coast.

Tauck is the naming sponsor for a special travel advisor event on Friday – A Night at the Gallery – and will also be involved in the events throughout the weekend with trade and consumers.

“We’re so excited and extremely humbled,” Clark said of the Friday night event which will offer behind-the-scenes, exclusive access to a collection of art in the ballroom of The Langham, Gold Coast, reminiscent of the experience Tauck offers its guests.

“Tauck isn’t the most well-known travel brand in Australia, so to have FCTG showing their own network that they are investing in the relationship to bring new product to their frontline sellers is huge,” he concluded.

Lead image: David Clark in Sydney’s Northshore metroplex, Chatswood Interchange