PUBLISHER'S PAGE: By Doug Cooke, Publisher
Home Based Travel Agent Registry
I have been very happy with the positive response from the “soft launch” of our new Home Based Travel Agent Registry (HBTAR) announced on this page last month. Both travel agents and travel suppliers have responded by signing up and sending us letters of encouragement and support for a service that has been needed and is long overdue.
Our idea of creating a Home Based Travel Agent Registry was born from the rapid evolution of this distribution channel, and the challenges that both home based agents and travel suppliers have encountered along the way. Ultimately, we are striving to enhance mutual awareness between home based agents and travel suppliers, giving both parties a platform with which to communicate with each other.
Our goal with HBTAR is twofold; we want to create the industry’s first comprehensive database of home based agents and at the same time create a database of suppliers who wish to embrace and communicate more effectively with this distribution channel.
For travel suppliers, the ongoing phenomena of brick and mortar agencies closing and agents taking their business “home” has lead to challenges in knowing who the agents are and how to support and communicate with them. Additionally, as a large percentage of home based agent bookings are filtered through host agencies, it is difficult for suppliers to know who the individual agents are, who are actually selling their products in order to support and recognize their efforts. Now with HBTAR suppliers will have a “go to” list of home based agents that will include their city and state, contact information, areas of expertise and annual sales information.
Home based travel agents on the other hand, don’t have the same direct relationships with suppliers as they did when working in a brick and mortar office where supplier BDM’s (regional sales representatives) would call on them with product information. Just as the suppliers don’t know who the agents are, quite often agents are unfamiliar with who their local BDM is, to whom they can turn for help or support. The HBTAR will include a list of suppliers who are anxious to work with home based agents and will give contact information for either the VP of Sales and/or local and regional BDM’s.
Inclusion in the HBTAR is free for both agents and suppliers. Please take a moment and register today at www.HBTAR.com
Musings from the Publisher’s Desk
Spirit Airlines Fees
Well, I hate to say I told you so but unfortunately, my predictions about ala carte airline pricing have now all come to fruition with Spirit Airlines’ announcement of their new carry-on bag fees. It was only a matter of time as airlines had to find a way to counteract the mess they created as more people sought to avoid checked bag fees by carrying on all their luggage. Although Spirit was the first to enact carry-on fees, I suspect they won’t be the last. I have to laugh at the CEO of Spirit’s justifications for implementing this policy. He claims it will speed up the boarding process, eliminate over-stuffed overhead bins and facilitate faster security lines. He claims that their fares are lower in many of the markets they serve so adding a fee for a carry-on will still result in a cheaper overall fare. Here’s a suggestion: raise your fares to the same as your competition on given routes and do away with checked bag fees. All of your problems will be eliminated, except of course the one that really matters, the bottom line, which is really what this new fee structure is all about.
Home Based Agents
I had the opportunity to sit in on several sessions this week, as a registered delegate, at the Home Based Agent Show now run by Travel Weekly. That is, before I was asked to leave or be “escorted out” by show management. Apparently, they were upset by the presence of the JAX FAX Publisher and Editor, who were there to attend sessions in order to keep our readers up to date on current trends, and to visit with our customers. Nonetheless, while we were there, one issue was brought to light during the sessions that was of concern to both Home Based Agents and suppliers alike. It became clear that Home Based Agents suffer from a lack of support from the Business Development Managers of major suppliers. There are several reasons for this, but largely it is due to the fact that the BDM’s don’t have any way of knowing who and where the Home Based Agents in their territories are. So, I believe we have come up with a way to assist both agents and suppliers with the creation of the:
Home Based Travel Agent Registry
JAX FAX is pleased to announce the Home Based Agent Registry. We are going to create a free registry for Home Based Agents. As the industry has evolved from brick and mortar to a Home Based model of business, the biggest challenge for suppliers has been identifying who and where this new breed of agent was. No longer could they rely on the ARC or IATA list to give them a comprehensive list of agents. Likewise, Home Based Agents suffer from a lack of support and recognition from suppliers.
We intend to put together the industry’s first comprehensive list of Home Based Travel Agents. It will be a free service for Home Based Travel Agents who want to be recognized by travel suppliers. Once the list is compiled we will share it with travel suppliers who are eager to work with this ever-growing distribution channel.
Please go to www.HBTAR.com to include your name in the registry.
JAX FAX Welcomes New Associate Editor
Last month I introduced our new team of Editorial Correspondents, each one bringing to JAX FAX a wealth of knowledge and expertise in their respective geographic territories. This month I am pleased to announce the addition of a new Associate Editor to our staff, Mr. Ryley Hartt. I am also very pleased to announce that Maria Lisella will continue to work with JAX FAX as our Southern/Eastern Europe Correspondent.
Ryley comes to JAX FAX with a very diverse background for his young age. He is a graduate from Elon University with a degree in English. He is well traveled and has worked at a variety of fascinating jobs.
Ryley brings to JAX FAX a youthful enthusiasm and a solid understanding of our position in the industry and what steps we need to take to bring JAX FAX headlong into the digital age of publishing, while maintaining and enhancing the strengths of our print publication. Look for JAX FAX to become much more active in social media and finding new and improved ways to bring our travel agents readers together with industry suppliers. The publishing industry, as well as the travel industry, is changing rapidly and it is vital that both find ways to cater to the next generation of travel professionals. As a speaker on a social media panel at the Seatrade Miami Shipping Conference put it recently “it is extremely important for companies to recruit talented young professionals and then stay the hell out of their way”.
I am sure Ryley would welcome any suggestions from our readers or industry suppliers that would make JAX FAX a better publication. He can be reached by email at editor@jaxfax.com.
It is of course equally as important to have seasoned professionals on one’s team and JAX FAX is very lucky to have the continued services of Maria Lisella as our Southern/Eastern Europe Correspondent. Maria is a Europe expert, having been Travel Agent Magazines’s Europe Editor for 18 years prior to joining JAX FAX 4 years ago. Her knowledge of European destinations and its suppliers is unrivaled and look for her to continue providing JAX FAX with rich, informative articles such as this issue’s cover feature on Croatia.
Being in the travel or publishing industry today is like being a shark, if we stop moving we die. JAX FAX is working hard to find new and exciting ways to bring you, our readers, the information you need to plan profitable and successful travel arrangements for your clientele.
Two Industry Powerhouses Join Forces
I am thrilled to be bringing our Travel Agent and Travel Supplier readers some great news about JAX FAX to start off 2010. I am very pleased to announce that JAX FAX Travel Marketing Magazine and Travel Research Online (TRO) have formed a Joint Marketing Alliance. This alliance will allow JAX FAX and TRO to offer a complete travel marketing solution to travel industry suppliers, offering the best in both print and online distribution. By combining our 25,000 magazine subscribers with TRO’s 68,000 digital content subscribers, we are creating the industry’s most dynamic and comprehensive travel marketing solution.
According to Richard Earls, TRO Publisher, the combination is a terrific opportunity for both suppliers and travel agents. “What you have in the two companies is a very diverse group of travel agent readers. TRO brings the best electronic platform in the industry to the party and JAX FAX is a name travel agents have trusted for decades. Both companies focus on relationship marketing and both have a reputation for doing exactly what they say they will do for the trade, without a lot of hype. Both companies have always provided real value for their advertisers and readership. It’s a combination that makes sense.”
TRO provides travel agents with over 650 destination guides, travel videos, travel articles, epostcards and other marketing materials to use at no cost. TRO’s daily email “TravelGram” is more than just a collection of edited press releases. It highlights travel related articles appearing in consumer magazines, making agents aware of the press their clients are reading, as well as providing links to daily special travel offers. TRO hosts the largest online Community of travel agents in the industry and has created an editorial platform for the best writers in the travel industry today, including John Frenaye, Les-Lee Roland, Mike Marchev, Nolan Burris and many others. Combined with JAX FAX Magazine’s editorial team of well respected editors and regional correspondents, this new alliance now provides travel agents with the best, most current destination and supplier information.
JAX FAX’s New Listings and Editorial Format For our long time readers, this issue of JAX FAX will look familiar as we are going back to our roots and changing the layout of the magazine to one that better integrates our editorial and listings. The magazine will continue to be divided into 6 geographic sections, providing worldwide coverage in every issue. The big difference now is that the Consolidator Airfare and Tour Operator Package listings will become part of each editorial section. This will better link the feature articles with the destination listings, enabling travel agents to jump quickly between the destination articles and the listings for that destination.
JAX FAX has always been designed to be a reference tool for travel agents when researching and booking travel for their clients. By making the magazine easier to use and aligning ourselves with a leading online travel agent resource, JAX FAX continues to lead the way in helping travel agents secure more sales and compete with the consumer direct, online booking systems.
Selling Tour Packages to Increase Profits
By Doug Cooke, Publisher
As I look forward to the USTOA (United States Tour Operator Association) annual conference from Dec.8-10 in Banff, Alberta, I believe it is well worth reiterating the many advantages that selling packaged travel has for travel agents and their clients. In addition to the cruise industry, which is dependent on the travel agent distribution system for about 90% of their sales, the packaged tour industry is also heavily dependent on travel agents for about 69% of their overall sales. This makes travel agents very important to this group of suppliers who are still extremely loyal to this distribution channel. As the OTA’s (Orbitz, Expedia, etc...) continue to attempt to crack the “dynamic packaging” model, which they have with limited success, it is more important than ever that agents support those suppliers that are still loyal to them.
Advantages of Selling Packaged Tours for Travel Agents
First and foremost, money! Packaged tours represent one of the most profitable sales opportunities for agents. Why? Because you are making money on every aspect of your client’s vacation. From sightseeing to meals, anything that is included in your client’s itinerary is included in your commission check (except taxes, etc.)
In many cases, even the airfare is commissionable. When you compare the commission made in selling a package, compared to booking a hotel and air separately, the difference is obvious and substantial.
Another advantage of selling a package tour is the time you will save in researching your client’s vacation. Tour operators are experts in the destinations they serve and have bundled what they know from years of experience are the most desirable hotels, sightseeing and dining options into one, easy to sell package.
Advantages of Tour Packages for your Clients
First and foremost, value. Tour operators purchase in bulk at substantial savings and are able to pass those savings on to your clients. Equally as important is the peace of mind that both you and your client have when purchasing from a tour operator. You know that your client is in good hands and your client knows that if something does go wrong, there is someone (usually locally) to turn to for help and answers. One other benefit for your client is in knowing exactly what the trip is going to cost, since a majority of their trip is prepaid. Additionally, tour operators are able to leverage their buying power to enable their customers to get special perks not available to the general public. Whether it be avoiding lines at tourist attractions or getting reservations at popular restaurants, tour operators give their customers the insider’s edge. Some of your clients may be wary of buying a tour package because they perceive that is might be too restrictive and regimented. The truth is that tour packages are as varied as the companies that offer them. By knowing your clients needs, you can look for a tour operator that offers the right package for every situation. Goodbye 2009 and Good Riddance! As hard as it is to believe that this is our December issue, I know that I, like most of the travel industry, will not be sad to ring out this year and ring in the New Year with a sense of renewed hope and optimism.
From the staff of JAX FAX to all of you, our Best Wishes for a Very Safe and Healthy Holiday Season!
Is There a Light at the End of the Tunnel?
By Doug Cooke, Publisher
This is the question on everyone’s mind these days, no matter what industry you happen to work in. After a year and a half of hunkering down and trying to survive the latest economic threat to our respective businesses, is there a light at the end of the tunnel?
After many conversations with travel agents and suppliers at TheTradeShow in Las Vegas, the answer to this question still is eluding us. While the economy is showing signs of improvement, the optimism this may generate is tempered somewhat by fears of another H1N1 outbreak that is currently being playing out in the media. So what can you do now as a travel agent to ensure that you will outlast this current recession and be here for the inevitable rebound that has traditionally followed difficult times?
Education
Now is the time to increase your industry expertise. It is no secret that the agents who are most successful, and have been best able to ride out the current economic storm, are those that specialize in a specific destination or travel niche. In our upcoming November issue JAX FAX is compiling a first ever Comprehensive Guide to Travel Agent Specialist Programs. In researching this guide we were surprised to learn that there are well over 100 different destinations and supplier companies offering a specialist program. For the most part, these programs are free and offer great perks such as consumer referral programs and FAM trips.
Speaking of FAM trips, if things are slow in your office this is a great time to take an educational FAM trip. This is the time of year that many resorts, cruises, etc. have excess inventory and are working with tour operators and tourist boards to create educational trips to help enhance travel agents’ knowledge of their products. Every issue of
JAX FAX has a page of FAM trip offerings – see this month’s on page 79. Product knowledge and expertise is the way in which travel agents can compete against the large, impersonal travel websites.
Marketing
Now is the time to increase your agency’s marketing efforts. If you don’t already have a database of your clients’ addresses and emails, start working on creating one. If you do already have one, step up your marketing efforts. There truly are “deals of a lifetime” to be had right now, and your clients will hear about these from someone. Shouldn’t it be you! Many suppliers and consortia offer cooperative email and direct mail programs, or at very least they have ad slicks that you can personalize with your agency’s information and send to your clients. If sending emails, middle of the week and middle of the day tend to be most well received. Be sure to add an opt out message at the bottom of your email to prevent spamming issues.
If you are not familiar with Social Media sites like Facebook, MySpace and Twitter, you must take the time to set up an account and use it. If you don’t know how, ask your kids or grandkids - I assure you that they do. Once set up, use these social media tools to promote your agency and specialist status. Use twitter to “tweet” special offers to your followers. There are many more ways to use these sites to promote your business and build sales but it won’t happen until you have a page and become familiar with how these sites work.
The bottom line is: this is not the time to sit back and wait for better days ahead. Use your time productively to increase your personal knowledge and build awareness of your agency, so when that light does start shining at the end of this dark economic tunnel, you will be the first one to reach it.
Publisher with the October 2009 Issue
Selling Vacations to America’s National Parks
To quote Dorothy, “there is no place like home”. As I sit here in the early morning watching the sunrise over a Wyoming plain on the last day of a 12-day, RV trip to South Dakota and Wyoming, I reflect on how true these words are. There are great historical, cultural reasons for traveling internationally but, for sheer natural and awe-inspiring beauty, it is hard to beat America’s National Parks. A few years ago we made a conscious decision as a family to take a vacation each year to get to know the natural wonders and diversity that our own country has to offer. As we are just completing the aforementioned vacation, it occurs to me that this trip would be one that could be very profitable for travel agents to sell.
There are several ways to visit our National Parks, some more suited for sale by travel agents than others. The people who load up the family mini-van or SUV with camping equipment and head out on a road trip are not your clients, at least for this kind of trip. However, many other people opt to rent RV’s (as we do) and others participate on organized tours.
There are several RV rental companies that offer commission to travel agents. Two of the largest with an extensive network of locations are Cruise America and El Monte. Weekly rentals during peak season run from about $1,500 - $2,200 depending on the model. In addition to this cost is the nightly expense of staying in a National Park campground or private RV park. This can cost anywhere from $15 to $70 nightly depending on the location and amenities. You can also pre-sell to your clients attractions and activities along the way that are also commissionable. We enjoyed a chuckwagon dinner and Snake River whitewater rafting. Commissions on these can add up quickly. If you do decide to sell these types of trips, I would suggest doing some research (hopefully by doing a trip of your own) and pre-bundling various itineraries that can easily be modified to suit your clients needs. My family has two major trips now, one to the National Parks of Utah and this trip to Wyoming and South Dakota. I did extensive research in building our itineraries and would be happy to share these with anyone interested.
Another option for your clients is to take a pre-packaged trip with a tour operator. Obviously these packages are commissionable and leave the itinerary planning to the operator. These trips are not for everyone due to the regimented schedule and group travel nature of this type of trip but we encountered several of these groups along our way and everyone we spoke to was very pleased.
No matter which option your clients choose I can assure you that they will thank you when they come back with a deeper appreciation of the history and beauty of our own backyard.
Publisher with the September 2009 Issue
Travel Agents Must Unite NOW or Face Dire Consequences
By now I am sure most travel agents are aware of United Airlines new proposed policy of forcing certain travel agencies to process credit cards for tickets purchased on United Airlines. ASTA President Chris Russo has come out with a strongly worded letter against this policy and rightfully so. It is ludicrous to expect a travel agent to process a credit card and incur a merchant fee for an airline ticket that they are not making any money on. It isn’t bad enough that travel agents no longer make commissions on airline tickets but, now United (and who knows who to follow) want agents to absorb their cost of doing business in the form of credit card merchant fees. This act adds insult to injury and CAN NOT BE TOLERATED. This action will force many agencies out of the airline ticket business, and many out of business altogether.
This new policy has two direct effects on agents. As mentioned above, agents will now have to process the credit card and absorb the merchant fee, the cost of which will ultimately be passed onto the consumer. Secondly, it will make the travel agent the merchant of record in case of charge backs due to an airline failure, ultimately making them responsible for the delivery of a commodity they have no control over. Obviously, this is an unacceptable practice and once which travel agents must unite against and vehemently object to.
Because of antitrust laws, associations like ASTA and Consortiums are limited as to how they can advise their membership to respond to these types of threats. And while they had no choice, this very inaction was what resulted in the elimination of airline commissions. Had travel agents risen up as one and stopped booking Delta in 1995 when commission cuts were first announced, it is very likely that the 12,000 plus agencies that have closed their doors in the past decade would still be in business. You can be sure that many other airlines will be watching this scenario play out and will be anxious to enact similar policies should United be successful.
Travel agents must take a stand on this issue and let United Airlines know in no uncertain terms that they will not sit idly by and watch what is left of the travel agent community be devastated by one airline’s disregard and disrespect for the value travel agents bring to the table. Only in doing so can we all be assured of the continued survival of travel agents in the airline ticket distribution system. Douglas Cooke, CTC, Publisher
Publisher with the August 2009 Issue
To Host or Not to Host….That is the question!
As the number of Brick and Mortar agencies continues to decline, with the latest ARC statistics reporting 16,700 locations, more and more travel agents find themselves in need of a “home” for their business. Most industry suppliers require some sort of proof of an agent’s professionalism such as an ARC, CLIA or TRUE number. As more agents take their businesses home, they find themselves in need of a host agency to place their bookings through. Likewise, those remaining independent brick and mortar agencies may find value in joining a Consortium for the benefits these types of organizations provide. In a recent readership survey of JAX FAX subscribers, we found that 62% of agents were “very satisfied” with their host agency, and 30% said they would consider changing their host. It seems that while many hosts are doing a good job of serving the needs of their members, other agents are still looking for a perfect host.
First Annual Guide to Host Agencies, Co-op’s and Consortia
With this issue, JAX FAX is taking a leading role in educating both agents and agency owners about the benefits of working with a host agency or consortium. Our first annual Guide to Host Agencies and Consortia is being distributed in this issue of JAX FAX. This guide is unique in that it is designed to educate travel agents about the benefits of working with a host agency through guest editorials from industry experts, Joanie Ogg and Scott Koepf. Additionally, the guide provides a directory of Host Agencies and Consortia, giving you the information you need to make an informed decision on which organization is right for you.
Without a Host, You’re on your own
There are many factors that go into an agent’s decision to work with a host agency, not the least of which is a need for an industry identification number as outlined above. However, many other factors need to be investigated such as: cost, a host agency’s industry reputation and economic strength, preferred supplier agreements with increased commission levels, and the training and technology tools provided by the host. This guide is designed to provide you with a starting point for researching host agents or consortia. The recent failures and lawsuits involving traditional and MLM style hosts has highlighted the need for agents to be diligent and fully investigate their prospective partners. After all, you will be placing your business through them and in many cases they will be the ones collecting and distributing your hard earned commissions.
Publisher with the July 2009 Issue
Travel Agents Win Again
Over the past decade, more and more consumers are turning to the internet when searching for the best airfares. But are they in fact finding the best deals?
A recent survey by Topaz International suggests not. For the past 8 years, Topaz has been comparing bookings of fares on the internet vs. traditional travel agencies. The results have not varied much over that time and show that in 2008, agent booked fares were equal or lower than internet booked fares 91 percent of the time, with an average agent fare of $497, compared to an average Internet fare of $558, a difference of $61. When you factor in the amount of time it takes a consumer to search, find and book an online fare and what that time is worth to them monetarily, the savings are even greater and certainly justify the $25-$50 service fee most agents are charging these days.
So why do consumers continue to waste their time and money booking airfares online when travel agents will do the job for less? I believe the answer comes down to two things: perception and empowerment. There is a perception on the part of the consumer (largely a result of online agency ad campaigns) that they will get the “best deal” online. Also, the ease of booking a ticket online gives the consumer a sense of empowerment and control over their purchase. However, armed with the information above, a savvy travel agent should be able to convince their client that they, not the internet, are able to provide the best flights at the lowest cost. Case in point – online sites do not advise consumers which airlines charge fees for checking bags. These fees could cost a family of four traveling on vacation hundreds of dollars in additional fees. This is information that you should have at your fingertips as a professional travel counselor and is part of the value proposition you offer your clients.
Now, I realize that many agents don’t want to be bothered with selling just an airline ticket. It is time consuming and offers little reward. However, by allowing/encouraging your client to book their air only trip online, you are opening Pandora’s box. With the advances in dynamic tour packaging and cruise reservations online, it won’t be long before these clients are booking those products online as well.
More information on the research quoted above as well as additional studies can be found on Topaz International’s website: www.etopaz.com.
Publisher with the June 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.”
Publisher with the May 2009 Issue
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.saThe 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
Publisher with the April 2009 Issue
Selling Airline Tickets Profitably with Air Consolidators
Included with this issue of JAX FAX is our 7th Annual Guide to Working with Air Consolidators. This resource tool has become extremely popular because it provides you the travel agent with an insiders viewpoint of what you need to know to book airline tickets, and make money doing so, by working with Air Consolidators. The articles in this guide are written by Air Consolidators and the profile pages give you information such as: airlines represented and destinations sold by the participating companies.
If you are not booking your clients international air with an Air Consolidator, you are leaving good money on the table. While not all routes offer exceptional savings over published fares, long haul flights and particularly Business and First Class tickets offer you the opportunity to make hundreds of dollars on a single ticket. And even if there is not a big savings on a certain routing between the consolidators price and the published price, be sure to ask your favorite consolidator about commissions on published fares.
Cruise Agents and Air Consolidators
Since most cruise lines no longer offer commissions on air/cruise packages, Cruise Agents should always check with a consolidator for their clients who have cruises leaving out of international ports, including the Caribbean. Many Cruise Agents will book the air offered by the cruise lines because it is convenient, but doing so can be costing them hundreds of dollars in lost earnings.
Homebased Agents and Air Consolidators
For Homebased Agents booking air with Consolidators should be as routine to you as checking your email. Even if the particular routing is not one that allows a markup on the consolidator’s net fare, at least you are booking with a company that will work with you if your clients encounter a problem on their trip. Consolidators work very closely with their airline partners and know their airline rep’s phone number by heart. Try getting that kind of service from an online travel agency or GDS.
JAX FAX will be moderating a panel discussion on Air Consolidation on March 10th during the Homebased Agent Show in Chicago. I would encourage you to attend to meet several leading Air Consolidators and learn more about how to once again sell airline tickets profitably. For more information on this show visit www.homebasedagentshow.com.
If your Annual Guide to Working with Air Consolidators is missing, please go to www.jaxfaxmagazine.com where you will find a digital version on our home page.
Publisher with the March 2009 Issue
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.
Publisher with the February 2009 Issue
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.
Publisher with the January 2009 Issue
PUBLISHER'S PAGE
Two Industry Powerhouses Join Forces
By Doug Cooke, Publisher
I am thrilled to be bringing our Travel Agent and Travel Supplier readers some great news about JAX FAX to start off 2010. I am very pleased to announce that JAX FAX Travel Marketing Magazine and Travel Research Online (TRO) have formed a Joint Marketing Alliance. This alliance will allow JAX FAX and TRO to offer a complete travel marketing solution to travel industry suppliers, offering the best in both print and online distribution. By combining our 25,000 magazine subscribers with TRO’s 68,000 digital content subscribers, we are creating the industry’s most dynamic and comprehensive travel marketing solution.
According to Richard Earls, TRO Publisher, the combination is a terrific opportunity for both suppliers and travel agents. “What you have in the two companies is a very diverse group of travel agent readers. TRO brings the best electronic platform in the industry to the party and JAX FAX is a name travel agents have trusted for decades. Both companies focus on relationship marketing and both have a reputation for doing exactly what they say they will do for the trade, without a lot of hype. Both companies have always provided real value for their advertisers and readership. It’s a combination that makes sense.”
TRO provides travel agents with over 650 destination guides, travel videos, travel articles, epostcards and other marketing materials to use at no cost. TRO’s daily email “TravelGram” is more than just a collection of edited press releases. It highlights travel related articles appearing in consumer magazines, making agents aware of the press their clients are reading, as well as providing links to daily special travel offers. TRO hosts the largest online Community of travel agents in the industry and has created an editorial platform for the best writers in the travel industry today, including John Frenaye, Les-Lee Roland, Mike Marchev, Nolan Burris and many others. Combined with JAX FAX Magazine’s editorial team of well respected editors and regional correspondents, this new alliance now provides travel agents with the best, most current destination and supplier information.
JAX FAX’s New Listings and Editorial Format For our long time readers, this issue of JAX FAX will look familiar as we are going back to our roots and changing the layout of the magazine to one that better integrates our editorial and listings. The magazine will continue to be divided into 6 geographic sections, providing worldwide coverage in every issue. The big difference now is that the Consolidator Airfare and Tour Operator Package listings will become part of each editorial section. This will better link the feature articles with the destination listings, enabling travel agents to jump quickly between the destination articles and the listings for that destination.
JAX FAX has always been designed to be a reference tool for travel agents when researching and booking travel for their clients. By making the magazine easier to use and aligning ourselves with a leading online travel agent resource, JAX FAX continues to lead the way in helping travel agents secure more sales and compete with the consumer direct, online booking systems.
Selling Tour Packages to Increase Profits
By Doug Cooke, Publisher
As I look forward to the USTOA (United States Tour Operator Association) annual conference from Dec.8-10 in Banff, Alberta, I believe it is well worth reiterating the many advantages that selling packaged travel has for travel agents and their clients. In addition to the cruise industry, which is dependent on the travel agent distribution system for about 90% of their sales, the packaged tour industry is also heavily dependent on travel agents for about 69% of their overall sales. This makes travel agents very important to this group of suppliers who are still extremely loyal to this distribution channel. As the OTA’s (Orbitz, Expedia, etc...) continue to attempt to crack the “dynamic packaging” model, which they have with limited success, it is more important than ever that agents support those suppliers that are still loyal to them.
Advantages of Selling Packaged Tours for Travel Agents
First and foremost, money! Packaged tours represent one of the most profitable sales opportunities for agents. Why? Because you are making money on every aspect of your client’s vacation. From sightseeing to meals, anything that is included in your client’s itinerary is included in your commission check (except taxes, etc.)
In many cases, even the airfare is commissionable. When you compare the commission made in selling a package, compared to booking a hotel and air separately, the difference is obvious and substantial.
Another advantage of selling a package tour is the time you will save in researching your client’s vacation. Tour operators are experts in the destinations they serve and have bundled what they know from years of experience are the most desirable hotels, sightseeing and dining options into one, easy to sell package.
Advantages of Tour Packages for your Clients
First and foremost, value. Tour operators purchase in bulk at substantial savings and are able to pass those savings on to your clients. Equally as important is the peace of mind that both you and your client have when purchasing from a tour operator. You know that your client is in good hands and your client knows that if something does go wrong, there is someone (usually locally) to turn to for help and answers. One other benefit for your client is in knowing exactly what the trip is going to cost, since a majority of their trip is prepaid. Additionally, tour operators are able to leverage their buying power to enable their customers to get special perks not available to the general public. Whether it be avoiding lines at tourist attractions or getting reservations at popular restaurants, tour operators give their customers the insider’s edge. Some of your clients may be wary of buying a tour package because they perceive that is might be too restrictive and regimented. The truth is that tour packages are as varied as the companies that offer them. By knowing your clients needs, you can look for a tour operator that offers the right package for every situation. Goodbye 2009 and Good Riddance! As hard as it is to believe that this is our December issue, I know that I, like most of the travel industry, will not be sad to ring out this year and ring in the New Year with a sense of renewed hope and optimism.
From the staff of JAX FAX to all of you, our Best Wishes for a Very Safe and Healthy Holiday Season!
Is There a Light at the End of the Tunnel?
By Doug Cooke, Publisher
This is the question on everyone’s mind these days, no matter what industry you happen to work in. After a year and a half of hunkering down and trying to survive the latest economic threat to our respective businesses, is there a light at the end of the tunnel?
After many conversations with travel agents and suppliers at TheTradeShow in Las Vegas, the answer to this question still is eluding us. While the economy is showing signs of improvement, the optimism this may generate is tempered somewhat by fears of another H1N1 outbreak that is currently being playing out in the media. So what can you do now as a travel agent to ensure that you will outlast this current recession and be here for the inevitable rebound that has traditionally followed difficult times?
Education
Now is the time to increase your industry expertise. It is no secret that the agents who are most successful, and have been best able to ride out the current economic storm, are those that specialize in a specific destination or travel niche. In our upcoming November issue JAX FAX is compiling a first ever Comprehensive Guide to Travel Agent Specialist Programs. In researching this guide we were surprised to learn that there are well over 100 different destinations and supplier companies offering a specialist program. For the most part, these programs are free and offer great perks such as consumer referral programs and FAM trips.
Speaking of FAM trips, if things are slow in your office this is a great time to take an educational FAM trip. This is the time of year that many resorts, cruises, etc. have excess inventory and are working with tour operators and tourist boards to create educational trips to help enhance travel agents’ knowledge of their products. Every issue of
JAX FAX has a page of FAM trip offerings – see this month’s on page 79. Product knowledge and expertise is the way in which travel agents can compete against the large, impersonal travel websites.
Marketing
Now is the time to increase your agency’s marketing efforts. If you don’t already have a database of your clients’ addresses and emails, start working on creating one. If you do already have one, step up your marketing efforts. There truly are “deals of a lifetime” to be had right now, and your clients will hear about these from someone. Shouldn’t it be you! Many suppliers and consortia offer cooperative email and direct mail programs, or at very least they have ad slicks that you can personalize with your agency’s information and send to your clients. If sending emails, middle of the week and middle of the day tend to be most well received. Be sure to add an opt out message at the bottom of your email to prevent spamming issues.
If you are not familiar with Social Media sites like Facebook, MySpace and Twitter, you must take the time to set up an account and use it. If you don’t know how, ask your kids or grandkids - I assure you that they do. Once set up, use these social media tools to promote your agency and specialist status. Use twitter to “tweet” special offers to your followers. There are many more ways to use these sites to promote your business and build sales but it won’t happen until you have a page and become familiar with how these sites work.
The bottom line is: this is not the time to sit back and wait for better days ahead. Use your time productively to increase your personal knowledge and build awareness of your agency, so when that light does start shining at the end of this dark economic tunnel, you will be the first one to reach it.
Publisher with the October 2009 Issue
Selling Vacations to America’s National Parks
To quote Dorothy, “there is no place like home”. As I sit here in the early morning watching the sunrise over a Wyoming plain on the last day of a 12-day, RV trip to South Dakota and Wyoming, I reflect on how true these words are. There are great historical, cultural reasons for traveling internationally but, for sheer natural and awe-inspiring beauty, it is hard to beat America’s National Parks. A few years ago we made a conscious decision as a family to take a vacation each year to get to know the natural wonders and diversity that our own country has to offer. As we are just completing the aforementioned vacation, it occurs to me that this trip would be one that could be very profitable for travel agents to sell.
There are several ways to visit our National Parks, some more suited for sale by travel agents than others. The people who load up the family mini-van or SUV with camping equipment and head out on a road trip are not your clients, at least for this kind of trip. However, many other people opt to rent RV’s (as we do) and others participate on organized tours.
There are several RV rental companies that offer commission to travel agents. Two of the largest with an extensive network of locations are Cruise America and El Monte. Weekly rentals during peak season run from about $1,500 - $2,200 depending on the model. In addition to this cost is the nightly expense of staying in a National Park campground or private RV park. This can cost anywhere from $15 to $70 nightly depending on the location and amenities. You can also pre-sell to your clients attractions and activities along the way that are also commissionable. We enjoyed a chuckwagon dinner and Snake River whitewater rafting. Commissions on these can add up quickly. If you do decide to sell these types of trips, I would suggest doing some research (hopefully by doing a trip of your own) and pre-bundling various itineraries that can easily be modified to suit your clients needs. My family has two major trips now, one to the National Parks of Utah and this trip to Wyoming and South Dakota. I did extensive research in building our itineraries and would be happy to share these with anyone interested.
Another option for your clients is to take a pre-packaged trip with a tour operator. Obviously these packages are commissionable and leave the itinerary planning to the operator. These trips are not for everyone due to the regimented schedule and group travel nature of this type of trip but we encountered several of these groups along our way and everyone we spoke to was very pleased.
No matter which option your clients choose I can assure you that they will thank you when they come back with a deeper appreciation of the history and beauty of our own backyard.
Publisher with the September 2009 Issue
Travel Agents Must Unite NOW or Face Dire Consequences
By now I am sure most travel agents are aware of United Airlines new proposed policy of forcing certain travel agencies to process credit cards for tickets purchased on United Airlines. ASTA President Chris Russo has come out with a strongly worded letter against this policy and rightfully so. It is ludicrous to expect a travel agent to process a credit card and incur a merchant fee for an airline ticket that they are not making any money on. It isn’t bad enough that travel agents no longer make commissions on airline tickets but, now United (and who knows who to follow) want agents to absorb their cost of doing business in the form of credit card merchant fees. This act adds insult to injury and CAN NOT BE TOLERATED. This action will force many agencies out of the airline ticket business, and many out of business altogether.
This new policy has two direct effects on agents. As mentioned above, agents will now have to process the credit card and absorb the merchant fee, the cost of which will ultimately be passed onto the consumer. Secondly, it will make the travel agent the merchant of record in case of charge backs due to an airline failure, ultimately making them responsible for the delivery of a commodity they have no control over. Obviously, this is an unacceptable practice and once which travel agents must unite against and vehemently object to.
Because of antitrust laws, associations like ASTA and Consortiums are limited as to how they can advise their membership to respond to these types of threats. And while they had no choice, this very inaction was what resulted in the elimination of airline commissions. Had travel agents risen up as one and stopped booking Delta in 1995 when commission cuts were first announced, it is very likely that the 12,000 plus agencies that have closed their doors in the past decade would still be in business. You can be sure that many other airlines will be watching this scenario play out and will be anxious to enact similar policies should United be successful.
Travel agents must take a stand on this issue and let United Airlines know in no uncertain terms that they will not sit idly by and watch what is left of the travel agent community be devastated by one airline’s disregard and disrespect for the value travel agents bring to the table. Only in doing so can we all be assured of the continued survival of travel agents in the airline ticket distribution system. Douglas Cooke, CTC, Publisher
Publisher with the August 2009 Issue
To Host or Not to Host….That is the question!
As the number of Brick and Mortar agencies continues to decline, with the latest ARC statistics reporting 16,700 locations, more and more travel agents find themselves in need of a “home” for their business. Most industry suppliers require some sort of proof of an agent’s professionalism such as an ARC, CLIA or TRUE number. As more agents take their businesses home, they find themselves in need of a host agency to place their bookings through. Likewise, those remaining independent brick and mortar agencies may find value in joining a Consortium for the benefits these types of organizations provide. In a recent readership survey of JAX FAX subscribers, we found that 62% of agents were “very satisfied” with their host agency, and 30% said they would consider changing their host. It seems that while many hosts are doing a good job of serving the needs of their members, other agents are still looking for a perfect host.
First Annual Guide to Host Agencies, Co-op’s and Consortia
With this issue, JAX FAX is taking a leading role in educating both agents and agency owners about the benefits of working with a host agency or consortium. Our first annual Guide to Host Agencies and Consortia is being distributed in this issue of JAX FAX. This guide is unique in that it is designed to educate travel agents about the benefits of working with a host agency through guest editorials from industry experts, Joanie Ogg and Scott Koepf. Additionally, the guide provides a directory of Host Agencies and Consortia, giving you the information you need to make an informed decision on which organization is right for you.
Without a Host, You’re on your own
There are many factors that go into an agent’s decision to work with a host agency, not the least of which is a need for an industry identification number as outlined above. However, many other factors need to be investigated such as: cost, a host agency’s industry reputation and economic strength, preferred supplier agreements with increased commission levels, and the training and technology tools provided by the host. This guide is designed to provide you with a starting point for researching host agents or consortia. The recent failures and lawsuits involving traditional and MLM style hosts has highlighted the need for agents to be diligent and fully investigate their prospective partners. After all, you will be placing your business through them and in many cases they will be the ones collecting and distributing your hard earned commissions.
Publisher with the July 2009 Issue
Travel Agents Win Again
Over the past decade, more and more consumers are turning to the internet when searching for the best airfares. But are they in fact finding the best deals?
A recent survey by Topaz International suggests not. For the past 8 years, Topaz has been comparing bookings of fares on the internet vs. traditional travel agencies. The results have not varied much over that time and show that in 2008, agent booked fares were equal or lower than internet booked fares 91 percent of the time, with an average agent fare of $497, compared to an average Internet fare of $558, a difference of $61. When you factor in the amount of time it takes a consumer to search, find and book an online fare and what that time is worth to them monetarily, the savings are even greater and certainly justify the $25-$50 service fee most agents are charging these days.
So why do consumers continue to waste their time and money booking airfares online when travel agents will do the job for less? I believe the answer comes down to two things: perception and empowerment. There is a perception on the part of the consumer (largely a result of online agency ad campaigns) that they will get the “best deal” online. Also, the ease of booking a ticket online gives the consumer a sense of empowerment and control over their purchase. However, armed with the information above, a savvy travel agent should be able to convince their client that they, not the internet, are able to provide the best flights at the lowest cost. Case in point – online sites do not advise consumers which airlines charge fees for checking bags. These fees could cost a family of four traveling on vacation hundreds of dollars in additional fees. This is information that you should have at your fingertips as a professional travel counselor and is part of the value proposition you offer your clients.
Now, I realize that many agents don’t want to be bothered with selling just an airline ticket. It is time consuming and offers little reward. However, by allowing/encouraging your client to book their air only trip online, you are opening Pandora’s box. With the advances in dynamic tour packaging and cruise reservations online, it won’t be long before these clients are booking those products online as well.
More information on the research quoted above as well as additional studies can be found on Topaz International’s website: www.etopaz.com.
Publisher with the June 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.”
Publisher with the May 2009 Issue
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.saThe 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
Publisher with the April 2009 Issue
Selling Airline Tickets Profitably with Air Consolidators
Included with this issue of JAX FAX is our 7th Annual Guide to Working with Air Consolidators. This resource tool has become extremely popular because it provides you the travel agent with an insiders viewpoint of what you need to know to book airline tickets, and make money doing so, by working with Air Consolidators. The articles in this guide are written by Air Consolidators and the profile pages give you information such as: airlines represented and destinations sold by the participating companies.
If you are not booking your clients international air with an Air Consolidator, you are leaving good money on the table. While not all routes offer exceptional savings over published fares, long haul flights and particularly Business and First Class tickets offer you the opportunity to make hundreds of dollars on a single ticket. And even if there is not a big savings on a certain routing between the consolidators price and the published price, be sure to ask your favorite consolidator about commissions on published fares.
Cruise Agents and Air Consolidators
Since most cruise lines no longer offer commissions on air/cruise packages, Cruise Agents should always check with a consolidator for their clients who have cruises leaving out of international ports, including the Caribbean. Many Cruise Agents will book the air offered by the cruise lines because it is convenient, but doing so can be costing them hundreds of dollars in lost earnings.
Homebased Agents and Air Consolidators
For Homebased Agents booking air with Consolidators should be as routine to you as checking your email. Even if the particular routing is not one that allows a markup on the consolidator’s net fare, at least you are booking with a company that will work with you if your clients encounter a problem on their trip. Consolidators work very closely with their airline partners and know their airline rep’s phone number by heart. Try getting that kind of service from an online travel agency or GDS.
JAX FAX will be moderating a panel discussion on Air Consolidation on March 10th during the Homebased Agent Show in Chicago. I would encourage you to attend to meet several leading Air Consolidators and learn more about how to once again sell airline tickets profitably. For more information on this show visit www.homebasedagentshow.com.
If your Annual Guide to Working with Air Consolidators is missing, please go to www.jaxfaxmagazine.com where you will find a digital version on our home page.
Publisher with the March 2009 Issue
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.
Publisher with the February 2009 Issue
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.
Publisher with the January 2009 Issue