From the Publisher's Desk — Douglas Cooke, CTC

May 2009 Issue

JAX FAX Presents Enhanced: Cruise News You Can Use
Having recently returned from CLIA’s annual cruise3sixty conference there is no doubt in my mind that cruising continues to be one of the hottest sectors in the travel industry today, particularly for travel agents. Despite the growth of direct and internet bookings, sales in the cruising sector are driven primarily by the travel agent distribution system. An amazing 90% of all cruises continue to be booked by travel agents. In fact, the one or two cruise lines that have attempted to bypass agents to sell directly to consumers, quickly went out of business. A clear sign to the remaining cruise lines as to where their bread is buttered. If the same thing had happened among airlines in the 90’s, today’s travel industry would be a dramatically different landscape.
Despite the economic downturn, cruise ships are still leaving their berths with full capacity, but with much lower yields than in previous years. Yet, cruise line executives are optimistic about the future as evidenced by the 35 new ships due to come on line between 2009 and 2012, including some of the biggest ships afloat. With only 20% of Americans having gone on a cruise vacation, the potential for new customers is plentiful.
Cruise News You Can Use
With cruising playing an ever-increasing role in the profitability of travel agencies, we have decided that JAX FAX needs to provide more cruise information agents will need to remain current and competitive with regard to the cruise industry. Of course, we already have a monthly cruise section and have for years. However, the enhanced cruise section will provide much more information than in the past including: ship inspection reports, cruise port updates, special cruise offers, cruise destination updates, interviews with cruise line executives, cruise listings, informative cruising sales guides and much more. After all, few travel professionals have the time to read through every magazine that comes across their desks when JAX FAX can provide them with the complete world of travel products and suppliers in each monthly issue.
In other JAX FAX Magazine news, I am very pleased to be expanding our sales staff at a time when most companies are cutting staff. I would like to welcome the newest member of the JAX FAX team, Jeff Posner as Associate Publishing Manager/Contributing Editor.
Jeff brings to JAX FAX many years of sales experience within the travel industry, most recently having represented Travel Trade Magazine. Jeff’s industry relationships and experience will help JAX FAX in our quest to continue to be the “Travel Agents Path to Profits.”

April 2009 Issue by Douglas Cooke, CTC, Publisher

The Sandals Foundation... Making a Real Difference in the Caribbean

In today’s current economic climate most companies have gone into survival mode: Staff cuts, mandatory furloughs and other cost- cutting measures. Most companies have “circled the wagons” to wait out these difficult economic times. It was, therefore, very refreshing for me to have the opportunity to attend the recent launch of the Sandals Foundation.
For the past three decades, Sandals has been quietly giving back to the communities in which its resorts operate. The company understands that working to enhance the quality of life in the communities in which they exist is mutually beneficial. And one that brings rewards that far exceed monetary gains as Adam Stewart, CEO of Sandals and the Sandals Foundation explained during the launch of the foundation on March 18th in Jamaica. “As the CEO of Sandals Resorts International I am afforded the opportunity to travel the Caribbean and the world. I see opportunities every day of life, I see a chance to make differences in people’s lives and help play a major part in global sustainability through our region, the Caribbean.”
The impetus for the public coming-out party for the Sandals Foundation was born out of the success of its current programs. According to Stewart, “We receive countless requests pleading for help everyday and we help wherever possible. But it is so frustrating to know that we can’t do it all.” Thus the Sandals Foundation was created to enhance awareness of these needs among Sandals corporate partners and resort guests.
Information about the Foundation is displayed prominently in all of the resorts’ lobbies with information about the charity and its local projects. Every Thursday is Foundation Day at the resorts. At all revenue areas of the resort (gift shops, spa, front desk) guests are asked to make a donation to the Foundation.
Corporate sponsors are playing an active role in the success of the Foundation’s programs. I saw first hand how one sponsor, Sesame Street is working to make a difference. I am sure most agents are aware that Beaches resorts feature Sesame Street characters at their resorts, but what you probably don’t know is that these characters also go out into the community’s schools to promote education. I went with the Foundation to a preschool in the Whitehouse area of Jamaica for a surprise visit from Grover. As you can see here in the picture the kids were delighted with his visit. During Grover’s time with the kids, a volunteer Sandals staff member entertained and educated the children on the environment around them. Additionally, all the kids were given a book and crayons and a coloring book at the end of his visit.
This is just one example of the many ways that the Sandals Foundation is giving back to the communities. Other projects include: working with small town of Beaston Springs to develop a 100% organic farming community, creating marine sanctuaries in front of all its resorts, supporting animal shelters, building schools, Christmas toy drives and the list goes on. It is important to note that most of these efforts are made possible by the 100’s of Sandals employees who volunteer their time to work in the communities.
We can all take a lesson from the efforts of the Sandals Foundation. Even if we don’t have the resources to start our own charitable organization, we can support the ones that others have established that will have a direct benefit to your clients.
For more information visit www.sandalsfoundation.org or Email coordinator, Heidi Clark at heidi.clarke@grp.sandals.com

Hope – The Beginning of The Road to Recovery

It was with great anticipation that I joined fellow journalists during the recent CHA Marketplace in St. Lucia to watch President Obama’s inaugural speech. Like most everyone else in the room, I was overwhelmed by his passion and conviction. At the conclusion of his speech, when he quoted George Washington as he and his troops prepared to leave Valley Forge to cross the Potomac, it gave me goose bumps.
Admittedly, in recent years I have been disgusted with politics and politicians, but President Obama’s words have given me hope that our nation is back on the right track. He is the right person at the right time to inspire and reassure not just Americans, but the entire world that our country now has a leader that can restore our place as a strong and diplomatic “Superpower.”
So what does Obama’s election mean to our industry? Many of the issues he will tackle immediately will either directly or indirectly impact small business. The economic stimulus package he has pledged to push through should make credit and loans available for small businesses. As a result of a recent Travel and Tourism Economic Summit ASTA participated in, several key proposals were presented to the new administration’s transition team.
Among ASTA’s stimulus proposals are the restoration of a 2001 program of direct low-interest rate loans to small businesses administered through the Small Business Administration and the creation of an investment tax credit program for small business investments in information-related technologies, which will be critical for travel agencies to compete effectively in the years ahead. Additionally, ASTA has been encouraged by early indications that President Obama will work to remove the obstacles of travel to Cuba. ASTA will continue to advocate for full liberalization of travel, and travel-related financial restraints.
There is no question our economy and our industry will continue to face a rough patch. Even as President Obama took the oath of office, the stock market continued its steady decline. Unemployment rates continue to rise; some businesses will close. Of course, a vast majority of Americans are still employed and now, more than ever, need the stress-relief that only a vacation can provide. This, combined with a recent drop in airfares, unprecedented bargains on cruises and resorts, and a renewed belief in our political leadership, should result in travel and tourism leading the way to more confident buying, spending, selling and choosing time for vacations.

Industry Mood is Cautiously Cautious for 2009

As we move into 2009 we are also moving into uncharted waters. Never before has our industry (and most others) faced the challenges that await us next year. Having just returned from USTOA’s annual conference, the mood in the industry is “cautiously cautious” for 2009. Most travel suppliers are planning for the worst and hoping for the best. Although most were concerned about what the first six months (at least) of 2009 will bring in terms of new bookings, there was some optimism expressed by some of the speakers.
Dr. Stanley Plog, a long time travel industry researcher believes that by March or April there should be a noticeable increase in consumer vacation inquiries followed by an increase in bookings. He noted that it took longer for the travel industry to feel the pinch of the economy than other industries and it should start recovering up to six months before economists start expressing optimism about the economy. He noted that, as was stated in this column last month, discounting of 25-30% would help drive this resurgence in consumer bookings.
Another interesting indication in his survey was that within 3-4 years, international bookings would exceed domestic bookings for travel agents. Several factors account for this including: American traveler’s desire to explore unique places, a dramatic increase in the number of US passport holders (16 million in just this year alone), travel agents up-selling international destinations and pent up demand generated by trips that were postponed due to the low value of the dollar and the economy.
It was also pointed out that “exotic” destinations, for example: Africa, Central and South America, Egypt, Israel would continue to sell well during an economic downturn while more mainstream destinations would suffer more of a setback. Travel agents would be well advised to focus their marketing efforts on these destinations.
ASTA recently held a webinar for its members regarding the current economic outlook. Of those agencies attending the webinar, 87.5% either have or plan to take steps to curtail salary-related expenses, be it a reduction in hours, positions and/or salaries while 56 percent foresee a decrease in revenue in 2009. Some suggestions for addressing these concerns included: looking into a Work Share program, you may be able to avoid lay-offs by reducing the work week and using unemployment insurance funds to pay workers short-time compensation, expanding your business by acquiring another agency, spending downtime updating or building your customer database and by focusing your marketing efforts on strong selling destinations as noted above.
One thing is clear. Extraordinary times call for extraordinary measures. This is not the time for business as usual. Sticking your head in the sand and ignoring the problems we face is a sure recipe for disaster. Keep your eye out for those “once in a lifetime” promotions and aggressively market them to your clients. Watch every penny your agency spends and cut out any unnecessary expenses. Take advantage of the assistance and advice your industry associations’ offer. But most importantly, keep a positive face on when dealing with your clients.
Travel is the best industry to make our livings in. We have faced difficult times before and know that better days are ahead.