September 2013
The Value of Attending Trade Shows this Fall
It’s September, and the tradeshow season has returned, and with it, the opportunity for travel agents to take advantage of the educational and networking opportunities these forums provide. While there are certainly less expensive options to become educated on various suppliers through webinars and virtual shows, nothing replaces the experience of being motivated by a great speaker or meeting suppliers. Not to mention the social events and opportunity to travel to and enjoy a fun destination. With some advance planning, you can minimize the expense and maximize the value you get from attending a show.
Plan Ahead or Pay More
Most tradeshows offer discounted room rates at or near the show’s venue. These discounts always have a cut-off date - usually a month or so before the show. Missing that date can cost you hundreds in extra expense, or you may have to opt for a lesser property at the same rate. Some shows offer early bird discounts on registration fees or special perks for booking early. Give thought now to which shows you will be attending, and book early for maximum savings. If you need to fly to attend a show, waiting for fares to go down is rarely successful (I am speaking from experience on this one). Again, decide which show(s) are best for you and book your air as soon as possible.
Making the Most of
the Show
Bring twice as many business cards as you think you will need. You will need cards for prize drawings, networking and to have suppliers send you their materials rather than drag around a big bag of brochures. Make a point to try to stop at every booth. Suppliers are paying a lot of money to talk to you and you may learn something you didn’t know. The more agents engage suppliers, the happier suppliers are with the show and the more likely it is that they will continue to exhibit, making for a better show experience for everyone. Often, the person in the booth is in a management position and could be a great resource for you in the future. At the end of each day, make a post-show action list. Too often all the great information you receive in the educational seminars is lost once you return to your office routine. A list will help remind and motivate you to implement the new strategies you learned. Support the suppliers who are show sponsors. These companies spend a lot to host you at lunches, parties, etc...show your appreciation by giving them your business.
On page 33 of this issue is our monthly Calendar of Industry Events. While not every tradeshow is listed here, it is a good starting point. Be sure to visit each show’s website to see which has the educational components and exhibitors that are best suited to your business.
JAX FAX will have a booth at many of the shows this fall. Be sure to stop by and say hello!
July/August 2013
The Future of Print Magazines - Changing
with the Times
Much like travel agents are used to answering the question of whether there is still a need for your services, as a magazine publisher, I am often asked if print publishing is dead. My emphatic answer is no, but it is changing. Just as travel agents have had to change the way they do business to survive and thrive, we too have to change with the times. And so, we are - as witnessed by the magazine you are now holding in your hands.
Inaugural Summer Issue
For the first time we are combining our July and August issues into a “Summer Issue.” It is packed full of helpful destination articles and supplier information for you to use when researching vacation options for your clients. As always, our articles are divided geographically and cover the globe with valuable information. In short, the format hasn’t changed - with one major exception.
Air Consolidator Quarterly
As most of you know, JAX FAX started out in 1972 as a newsletter/magazine promoting information on air charters worldwide, and later, consolidator airfares to the travel trade. It was not until the early to mid-90’s that the magazine evolved into more of a destination-marketing magazine, while also continuing to promote consolidator airfares. Over the years we have tried various methods to separate the two faces of the magazine including “flip upside down” magazines, to putting the consolidator listings in the back of the magazine to make it easier for our readers to find the information they are looking for.
Now, in the same spirit of simplifying our dual image, we are pleased to present our first Air Consolidator Quarterly Magazine. As its name implies, this new publication will be a quarterly publication, coming out in July, October, January and April each year, and will be composed entirely of consolidator air listings and advertising.
Again, it continues to be divided in geographic sections making short order of finding an Air Consolidator to just about any destination in the world. Air Consolidators continue to be one of the few ways left to make a commission on airline tickets, and we expect this new quarterly magazine to be well used and dog-eared by the time the October issue arrives.
So back to the question at hand, is print dead? Well, judging by the 75% of our readership that still prefers to receive their subscription in print format, I would have to say no. But, then again, I might be a little biased. Enjoy our new format and please feel free to send your thoughts to me at doug@jaxfax.com Oh, and by the way, we aren’t done changing yet. Wait until to see what we have in store for our September issue!
Enjoy your summer vacations. Don’t forget to take along your favorite
trade magazine.
June 2013
Who is promoting the Use of Travel Agents
to the Public?
Ok, time for me to jump back on this soapbox. I have written about this subject before, and I will continue to write about it until something changes. In my ongoing dialogue with travel agents, the same subject of the competition from OTA’s (online travel agencies) keeps coming up. Yes, travel professionals provide expert knowledge, can help their clients sift through the good, bad and the ugly, and are there when their clients need help. These are excellent reasons for the public to trust their travel plans to a travel professional. But, who is preaching this message to
the public?
They Spend How Much?
Guess how much the OTA’s spent in advertising in 2011, according to the latest research I could find? Is the figure in the millions? Chump change. Hundreds of millions? Maybe ten years ago. In fact, the OTA’s in 2011 spent over five billion dollars trying to convince your customers that the best way for them to book travel was on their own. And how much money was spent on consumer advertising extolling the virtues and benefits of booking with their local travel professional? As far as I can tell, nothing, nada, bupkis. Now that’s not to say that there aren’t industry spokespeople out there promoting the use of travel agents - there are. But the impact of those uncoordinated and haphazard mentions can’t be measured against five billion dollars.
So Whose Job is it?
Today’s industry organizations are largely involved with governmental, legislative and lobbying efforts. All very commendable, but is it driving consumers to use travel agents? Consortiums do an excellent job of training and providing their membership with increased earning opportunities. But, advocacy of the travel agent community is really not their primary focus. So the question remains, who should be promoting the use of a Travel Agent to the public?
In my mind there is the need for a travel industry organization whose only focus is the promotion of the use of travel agents by the general public. And this organization wouldn’t differentiate between homebased or brick and mortar agents. A travel agent is a travel agent, and where they choose to set up shop is irrelevant. Best industry estimates put the number of active travel agents at about 75,000. If just half of those spent $100 a year to support this type of organization, there would be almost $4,000,000 to spend on consumer marketing endeavors. Combine this with a well-coordinated public relations campaign and you have a very effective means of promoting the travel agency distribution system to the public.
So, who is going to step up and make this happen? After all, as the slogan ASTA coined says, “Without a Travel Agent, You are on Your Own.” It’s a story that needs to be told!
May 2013
Leading The Way Through Innovation
I write this page while on the newest cruise ship to hit the market - The Norwegian Breakaway. It is the two-day inaugural cruise, which seems hardly enough time to explore all that this ship has to offer. There certainly will not be enough time to try all of the 27 dining options, or the many bars.
Norwegian Cruise Line is an innovator, with a 46-year history of breaking the boundaries of traditional cruising, most notably with the introduction of Freestyle Cruising, giving guests more freedom and flexibility. Today, Norwegian invites guests to “Cruise Like a Norwegian” on one of 12 purpose-built Freestyle Cruising ships, providing the opportunity to enjoy a relaxed, resort style cruise vacation on some of the newest and most contemporary ships at sea.
Notable innovations on this ship include: a 1/4 mile open air promenade with restaurants and bars, the first Aqua Park at sea with five full-size water slides, a three-story sports complex including a ropes course, miniature golf, basketball, a rock climbing wall, and more. There is also a plethora of entertainment: 3 Broadway shows including “Rock of Ages,” the Second City comedy troupe, Cirque Dreams dinner theatre, Howl at the Moon Dueling Pianos, and the Fat Cats Blues Club with the Slam Allen band. The ship also features some of the unique accommodations first introduced on the award-wining Epic, like Solo Suites and The Haven suites.
When thinking about innovation in the travel industry, other brands like Sandals and Disney come to mind. Is it a coincidence that these companies are also some of the most successful? NCL recently had a public stock offering, which was buoyed by their 19 straight months of revenue and profit growth.
What do these companies and other successful brands in the travel industry have in common? A refusal to settle for the status quo, and forward thinking leadership that provides customers with what they want before they even know they want it.
If you are still doing business the way you were ten years ago - or even two years ago, you are probably falling behind. The industry is rapidly changing, and if you are not keeping up with the changes, you can be sure your competitors will be.
JAX FAX has several changes planned. We will be launching a new website and travel agent training program, as well as an entire redesign of the magazine and the way we present you, our travel agent readers,
with information.
Stay tuned!
April 2013
Top 3 business mistakes travel advisors make
This month we are presenting you with a guest editorial from Meredith Hill, ex-President of Hills of Africa Travel, founder of the Global Institute for Travel Entrepreneurs (GIFTE). Her mission is to empower frustrated and struggling travel consultants by helping them to connect with their passion again, attract ideal clients, and build a business that makes positive difference in people’s lives. Below is her list of the most commonly made mistakes travel advisors make and how they can be corrected.
Working on business that isn’t profitable. If you are still taking bookings where you make less than $500 commission, you are shooting yourself in the foot.
How to fix it: Establish a specialty and learn to say “no” to business. Picking a specialty is one of the most difficult steps forward in this business. On the one hand, your $200 commission bookings are better than nothing, right? Wrong. When you establish the correct specialty, you will own your gifts and talents and target travel clients who are spending more on their travel. It takes courage and trust to step into your unique specialty and market it, but the rewards are worth it.
Treating your business like a hobby. Treating your business like a hobby means failing to do the things necessary to take yourself seriously so that clients will too. Here are some signs you are treating your business like a hobby:
a) You have an email address that ends with @gmail.com, or @comcast.net, or @windstream.com (or any other free email service provider);
b) You have not incorporated, or at least created an LLC;
c) You do not have a separate bank account for your business;
d) You don’t pay yourself salary (if you’ve been in business for more than 2 years);
e) You don’t have a separate phone number for business;
f) You see your business as a part of your host agency, so you don’t have a separate website and have not established a different name;
g) You have no marketing activities you do on a regular, consistent basis.
How to fix it: Turn around and DO all the things in the list above. Go purchase a domain with your business name or your personal name and get a new email address with THAT domain. You can jump on to www.godaddy.com and purchase the your URL for $10 and add an email address to this domain for a few dollars more. Go do that.
By all means, please incorporate or set up an LLC so that you legally separate your business from your personal. You don’t need to spend hundreds of dollars on legal fees. Just go to www.legalzoom.com and they will simplify the process for you.
Once you have a separate legal identity for your business, you can then open a separate bank account.
Then, to follow IRS standards, pay yourself a regular salary - this is a frightening, yet profoundly empowering move. Once you do, you realize how it makes you act different - you make different decisions in your business because you are always thinking about how you will make payroll.
It’s also time to realize that your host agency is NOT your employer, if you are an independent contractor. And if so, you must act like a business owner - get a different name, market yourself and your business separately.
Finally, do yourself a favor and commit to doing 1 single marketing activity on a regular and consistent basis. My favorite is the electronic newsletter, but if you want to choose something else, that’s fine. Just commit to it and do it.
Ignoring Your Numbers. Even though we are in this business to make money, many people unconsciously sabotage their ability to do this. What does ignoring your numbers look like?
a) Having no financial goals
b) No budget
c) Not knowing and tracking your average commission per booking
d) Not tracking your financial performance on a monthly basis
How to fix it: Get in the habit of doing all 4 of these things listed above. Set a financial goal for this year. Create a budget. Start with last year’s numbers and guestimate what you will make and spend this year. Calculate your average commission per booking and start tracking this number monthly. Every time you make a new booking compare the commission to your average and make a point at trying to raise the average by beating the average each time. Look at your financial performance each and every month - no matter how much you don’t want to look.
Your assignment
Go through each and every one of these business mistakes and make a point of correcting your mistakes before this year is over.
Travel business entrepreneur Meredith Hill is founder of the Global Institute of Travel Entrepreneurs (GIFTE) and creator of the SAFARI Guide Home Study System(r), the proven step-by-step program that shows you how-to start attracting LUCRATIVE clients, making more money, saving yourself tons of time and finally traveling more often. To get your complimentary audio on the “3 Insider Secrets to Collecting Bigger Commission Checks, So You Can Work Less, Travel More, and Make a Difference in the Lives of Your Clients” visit www.TravelBusinessU.com
March 2013
EMBRACING CHANGE
One thing we can all count on in our day-to-day lives is change. The rate of change in the travel and publishing industries seems to be outpacing others. Change can be daunting. Everyone has a comfort zone, and change tends to force us outside of that zone. However, that is not always a bad thing. One of my favorite selling phrases is “if you always do what you’ve always done, you will always get what you always got.” Change forces us to open our minds to new ways of doing business.
So, what are the changes that are impacting travel agents and how can you address them?
Customers shopping online: One of the biggest impacts on travel agents has been the consumers’ use of the internet and OTA’s. But changes in consumer behavior may also mean an increased interest in what you offer; don’t forget to be prepared for this type of change. If you’re losing sales, it may not be because your customers no longer need or want what you offer; rather, they are perceiving that they are getting a better deal elsewhere. The number of new inquiries can also drop if leads can’t find you, or are more tempted by someone else’s offer.
What can you do? Use the knowledge and expertise you possess to improve your service and product offering. If you are the best, your customers will stay. Provide excellence in customer service and the knowledge your clients need. Every agent needs to have an answer to the question of why a client should use your services rather than go online.
Changes in Technology: Technology is changing rapidly and while this can be intimidating, ultimately it will improve your business and lead to better sales. For our long time agent readers, do you remember the days before CRS’s and automated ticketing? No one wants to go back to handwriting tickets, but learning to use the CRS was probably pretty daunting back then. Websites, social media and electronic communication are the way today’s successful agents are engaging their clients. If you are innovative with technology, you may just make a lot more money.
As hard as it may be to believe, changes in publishing have outpaced the travel industry. We are challenged with keeping our readership up to date with news and information in whatever medium you want to receive it. Most publishers have embraced this change and improved their business as a result. JAX FAX continues to launch programs to help educate you on industry suppliers and worldwide destinations. Look for the launch of our new website, a new destination specialist learning center, and other innovative products.
December 2012
HOME BASED TRAVEL AGENT REGISTRY - ONE YEAR LATER
A little more than a year ago we launched the Home Based Travel Agent Registry (www.hbtar.com) as a way to help home based travel agents and travel industry suppliers connect with each other. We have been happy with the response from the industry - with over 75 suppliers and 2,000 plus travel agents registering. We have also received letters of encouragement and support for a service that has been needed and was long overdue.
However, with an estimated 25,000 home based agents in the marketplace, we have a ways to go to make this service effective for both agents and suppliers.
Our idea of creating a Home Based Travel Agent Registry was born from the rapid evolution of this distribution channel and the challenges both home based agents and suppliers have encountered along the way. Ultimately, we are striving to enhance mutual awareness between home based agents and travel suppliers.
Our goal with HBTAR is two fold; 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 closings of brick and mortar agencies, and agents taking their business “home” has led to challenges in knowing who the agents are, and how to support and communicate with them. Additionally, a large percentage of home based agent bookings are filtered through host agencies, it is difficult for suppliers to identify the individual agents who are 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 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 the agents are unfamiliar with who their local BDM is, or who they can turn to for help or support. The HBTAR site includes a list of suppliers who are anxious to work with home based agents and gives contact information for either the VP of Sales and/or local and regional BDM.
Inclusion in the HBTAR is free for both agents and suppliers. I encourage both agents and suppliers to please take a moment and register today at www.HBTAR.com
On a personal note, I would like to thank our loyal travel agent readers and industry suppliers for celebrating our 40th year in business in 2012. We couldn’t have done it without you. From myself and the JAX FAX staff, we wish all of you a very joyous and happy holiday season.
November 2012
Small Busniess 101
At the Ensemble Annual Conference, travel industry business consultant Dr. Robert Joselyn presented an interview he did with the owner of an award winning hair salon. It was unclear at first why he was presenting this interview to a group of travel agency owners, but it soon became clear that the business practices she employs could be applied in any service business, including a travel agency.
Hiring
In a new employee, she looks for passion, drive and the desire to grow and learn new things. She prefers to hire people with no experience, so she can train them with the skill sets she uses. She has a five-interview process that includes an initial and final interview with her, and three interviews with managers and other staff. She also requires a personality test. Red flags during the interview process include a negative attitude, and blaming past failures on others. And this is for a hair stylist! How many of travel agency owners have this intensive a
hiring process?
Training
Since this salon owner prefers to hire recent beauty school grads with no experience, she has a structured six-month training program. During this period she personally takes two days per week to train her new hires with the skills they need to not only be a good stylist, but also in sales and customer service. The trainee must pass a series of skill tests before being offered a full time stylist position. All employees are required to take two career enhancement classes annually, paid for by the salon owner.
Since there is such a large investment in an employee training, each employee must sign an employment contract committing them to a minimum of a 2.5 years at the salon. If they leave prior to the 2.5-year commitment, they owe the salon a prorated amount of their training costs.
Employee Motivation
Each employee is given a 15-year growth plan detailing their compensation, and the steps required for an increase. Rather than annual performance reviews, she gives monthly reviews to all employees to evaluate their progress in achieving the goals necessary to reach the next compensation level. She works with employees to determine their strongest skills, and adjusts their responsibilities to maximize their success. She also places a premium on sharing each employee’s achievements with staff
and customers.
Client Retention
When asked her secret to success, it was surprising to learn that the quality of the haircut was not the primary factor. What really matters is the relationships the stylists create with their customers. Does this apply to the travel industry? Absolutely. At the end of the day, all travel agents are marketing the same set of products to their customers. It is the agent who provides the most sincere customer service that will create a client for life.
Dr. Robert Joselyn speaks at many travel agency conferences. For more information, he can be reached at rjose
lyn@JoselynTepper.com
October 2012
Creative Marketing
Today’s travel agent is a sales and marketing savvy entrepreneur who proactively pursues travel sales. Fortunately for them, new and innovative marketing products are being introduced by industry suppliers looking to help build their own sales by providing travel agents with the tools they need to reach their clients. These products can range from traditional tried and true tools with a tech twist, like customizable digital brochures, to totally new methods of distribution.
The Vacation Vault
One new method of travel distribution is the online auction concept. John Pzywara, a travel industry entrepreneur and Founder of DFW Tours, has introduced a new concept in the promotion and sale of travel products - The Vacation Vault. This online auction concept has been used in the sale of retail goods, and John has applied the same formula to the sale of travel. John has created a way for travel agents to use this technology to build their sales with the use of a simple referral policy. Agents register themselves and refer their clients to The Vacation Vault.
Once the client signs up; for any of the auctions won by the agent or one of their referrals, a commissionable sale is credited to the referring agent at the full retail value. Agents also earn 25% of the bids purchased by their referrals to use in the auction. In simple terms, users of The Vacation Vault buy blocks of bids that they can then use to bid on travel products. The bidding gets fast and furious as the bid end time draws near, because these travel products are actually being bought for pennies on the dollar. Recently a 3 day/ 2 night stay at Caesar’s Palace Las Vegas valued at $500 sold for $5.24 plus the cost of bids expended. The referring travel agent receives commission based on the full $500 value. Visit www.thevacationvault.com to register and receive 25 free bids to see for yourself how it works. When registering, put the promo code: JAX FAX in the “How did you hear about us” field.
Build it and they will come - Travel Agent Websites
Recently a new travel agent came by our booth at a tradeshow and introduced himself. He was in his late 20’s and very enthusiastic about his new career. I later took a look at his website and was impressed. His home page was not a collection of travel specials and articles, but rather it was an introduction of himself and how his passion for travel led him to establish his agency. His message was personal and compelling. Once a consumer reads his story, they become a customer. There are many companies that build custom, cookie cutter websites for travel agents and they all provide great content. However, it is important to let your customers, and more importantly prospective customers, know about you and the passion you have for making sure they have the best possible vacation experience.
September 2012
Tips for successful selling“Nothing happens until somebody sells something,” is one of the great sales managers’ rah-rah cliches. But that doesn’t make it invalid.
Its obviousness contains a critical truth that a business won’t survive for long if it relies on the other version of the saying, “nothing happens until somebody buys something.”
Selling is something under your control, waiting for customers to buy isn’t. It’s that pro-activity which makes selling potentially the most dynamic function in your business, the one that deserves the most attention and resources. Unfortunately, for many organizations selling is still viewed as an amateur, rather than professional calling.
Selling should be professionalized, from forecasting new business through to retaining your best customers. When salespeople work at being consciously competent within a structured process, and deliver on the promises they make, they are usually very successful.
Sales are the lifeblood of business. With four months of the calendar year left, there are travel professionals worldwide wondering how they are going to close more business this year than last. Below are a few pointers that any business owner or travel professional should practice to keep pace with annual sales expectations:
1. Prospecting:
Years ago I asked a respected and successful sales professional the secret to his success. His quick reply was, “Prospect early in the day, prospect early in the week and prospect early in the month. Then, let the year take care of itself.” We never have enough leads, and filling the pipeline with qualified prospects is paramount to reaching monthly, quarterly or annual sales goals. So, prospect every day.
2. Ask for Referrals:
Each and every client is a gold mine of new leads. There is simply no better way to build a pipeline of warm leads than by asking a happy client for a referral. Testimonials and referrals are the natural by-product of a satisfied customer.
3. Set Goals:
Setting daily, monthly and annual sales goals and reviewing them regularly is a must for every sales professional. Rarely have I met a successful sales professional that doesn’t have a written list of goals that they refer to every day. Here is quote by Brian Tracy, a noted author and public speaker: “In my conversations with hundreds of top salespeople over the years, I have found that they all have one thing in common. They have taken the time to sit down and create a clear blueprint for themselves and their future lives.”
July 2012
To host or not to host...
that is the question!
As the number of brick and mortar agencies continues to decline, and the latest ARC statistics reporting less than 15,000 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, whether it be 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 their members need, other agents are still looking for a host that best meets
their needs.
Fourth Annual Guide to Host Agencies, Co-op’s and Consortia
With this issue, JAX FAX is taking a role in educating both agents and agency owners of the benefits of working with a host agency or consortium. Our fourth 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 on the benefits of working with a host agency. Additionally, the guide provides a directory of Host Agencies and Consortiums, 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 training and technology tools provided by the host. This guide is designed to provide you with starting point for researching host agencies and consortiums. The past 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.
June 2012
Mainstream media touts the
use of travel agents
What do the New York Times, Forbes and Time Magazine all have in common? They have each recently run articles supporting the value of using a travel agent. Unlike a decade ago when the OTAs dominated the headlines, today’s travel agents are enjoying a resurgence in popularity.
Mainstream articles are extremely beneficial in raising the general public’s awareness of travel agents, but it is the responsibility of each agency owner to educate your local marketplace about the value you bring to the table. With that in mind, here are JAX FAX Magazine’s Top Ten Reasons To Use a Professional Travel Agent
Please feel free to incorporate this list into a mailing/email that you can send to your clients.
1. Convenient,One-Stop Shopping-Travel agents can handle every aspect of your trip; from airline tickets to lodging, transfers, activities, tours, etc.
2. Consumer Advocate - If a problem occurs during a trip, travel agents can act on your behalf to see that proper restitutions are made.
3. Expert Guidance - Travel agents are experts in helping travelers get where they need to go and in presenting ideas most people would never have dreamed were possible.
4. Save Time - Let the travel agents call around and do all the time-consuming work of planning a complex itinerary.
5. Updated Information - Travel agents are constantly communicating with the travel community, giving you the most up to date info on airlines, hotels, car rental agencies, travel visas, and other travel services to consider.
6. Customer Service - Travel agents offer that “personal touch” to your travel planning experience, offering help and advice that a website cannot provide.
7. Travel Documentation - Travel agents can help prepare and organize any documents you may need to travel outside of the country. They can direct you to your local passport office, and they know where you need a visa, as well as any other documentation.
8. Travel Expertise - Many travel agents are considered experts in the area you are traveling to, and have probably already been to your chosen destination.
9. Industry Access - Travel agents have access to tour operators, air consolidators and other suppliers who won’t work directly with consumers.
10. Best Value for Your Money - Travel agents can help you make your dollars go further while you are away. They have access to finding all sorts of deals, ranging from flights to hotels to dinner recommendations.
MAY 2012
Jax Fax Email Rewards
As a travel professional I am sure you
view emails as a double-edged sword.
On one hand, email is a great communication
tool, allowing you to communicate
quickly and effectively with your
clients. Likewise, it is also an effective
way for industry suppliers to communicate
with you. On the other hand, we
are all inundated with emails on a daily
basis. Sorting through them and deciding
what to read and what to delete is a
time consuming task. Shouldn’t you be
rewarded for taking your valuable time
to sift through these promotional emails
that are sent to you daily? Wouldn’t it
be nice if someone would compensate
you for the time and energy it takes to
manage the emails you receive? That is
the idea behind the new JAX FAX Email
Rewards program.
GET PAID FOR READING EMAILS
We here at JAX FAX are very aware of
the time and energy it takes to review
the daily onslaught of emails. After all,
we are responsible for some of the
emails you receive. We also understand
that you need the information that
suppliers are providing to you in those
emails. Usually they are offering you a
way to increase your agency’s revenue.
The thing about email messages is,
unlike traditional marketing messages
that you need to take action to see, e.g.
open a magazine, emails are “pushed”
into your email box and you are obliged
to act on them when they arrive. Well,
we think you should be rewarded/compensated
for your time. Therefore, we
are proud to be the first company to offer
agents the chance to make money
by opening and clicking on the emails
you receive from us.
Here is how our new Email Rewards
program will work: Every day we send
out promotional email offers from travel
suppliers. Every agent that opens and
clicks on these emails is entered into a
daily drawing. At the end of each day we
will select one lucky agent to win $50
cash. The more emails you click on, the
better your chance of winning. It’s that
simple. We will be giving away $50 every
weekday, every month, all year long.
Winners will be contacted weekly and
also will be announced in our Weekly
Tour Operator and Air Consolidator eNewsletter
each Wednesday.
From now on, all the JAX FAX emails
you receive will show JAX FAX Email
Rewards as the sender. These are
the emails you need to click on to be
eligible to win. If you are not currently
receiving our emails, you can sign up
on our website. Look for the email rewards
button in the top right corner at
www.jaxfaxmagazine.com and sign
up today.
March 2012
The Oktoberfest Experience
What started out as a bucket list trip may very well turn into an annual event. At least that was what I told my friend Pete as we flew home from our first visit to the beer drinkers pilgrimage known as Oktoberfest. For years my buddies and I have had talked about a trip to Munich for this annual celebration and last September five of us made the journey. What we discovered was beyond our expectations and just what we had hoped for, an experience of a lifetime. And while a lot of beer was drunk that week to be sure, a visit to Munich for Oktoberfest offers so much more than the non-stop consumption of that golden nectar of the gods.
Oktoberfest began 200 years ago as a celebration of the wedding of Germany’s King Ludwig I. Since then, it has been celebrated every year for two weeks beginning in late September. For 2012, the dates of Oktoberfest are September 22 to October 7.
Each year the mayor of Munich gets the festivities started with the official tapping of the keg in the Schottenhamel tent. For the next 15 days, over 6 million people from around the globe will come here to drink 7 million gallons of beer, eat 177 oxen, 59 calves and other traditional German food, all while singing along to bands in Oktoberfest’s famous Bier tents. Five breweries are responsible for producing all the beer that is consumed in each of the 14 large and 20 smaller Bier tents. And what great beer it is! Since it is brewed especially for this event, it is brewed without any additives or preservatives, resulting in a crisp delicious brew and no hangover, really! I can tell you with pride (and much to the mortification of my wife) that each day we drank on average about 8 liters of beer over the course of the day and, much to my amazement, not one morning did I wake up hung over, a tribute to the quality and freshness of Munich’s Oktoberfest beers.
The Oktoberfest Tents
Not really tents at all but rather now permanent structures made to look like tents, these 14 Bier halls are the center of Oktoberfest action. Aligned one after the other in the center of Theresienwiese Park, each has its own personality and reputation. From the traditional sophisticated German ambiance of the Weinzelt (wine tent) to the raucousness of the Lowenbrau or Hofbrau tents, there is something here for everyone. That is not to say that patrons of even the most highbrow of the tents don’t get into the spirit of the party. They do! The following is a link to the official Oktoberfest site that provides a good description of each of the tents and the clientele they cater to www.oktoberfest.de
Book Early
One word of caution; it is necessary for your clients to make reservations for a table at each of the tents well in advance. Booking now for this September isn’t too soon. The tents are incredibly crowded, especially the first and last weekends of Oktoberfest and you will not be served unless you are sitting at a table. There is no additional cost to make a reservation but they do require you give a deposit, about 35 euros on average, that serves as your minimum and is applied toward your food and beverage purchases. Reservations are usually for either lunch, afternoon or evening in increments of 3 hours so, if your clients plan on spending the day, they will need to make multiple reservations. My advice would be to mix it up and spend the afternoon in one tent and the evening in another. It should also be noted that each tent has an outdoor Bier garden with open seating and with a little patience and perseverance a seat can usually be found. Though many tents do have some unreserved seating, people without reservations start lining up early in the morning when the tents open, at 10am weekdays and 9am weekends, to claim a table for the day.
Though the Bier tents are the biggest draw at the Fest, there is much more to see and do. There are dozens of carnival style rides as well as food and shopping stalls. Tip: For a birds eye view of the fair grounds advise your clients to climb the bell tower of the St. Paul’s Cathedral located at the Northern end of Theresienwiese Park. The view is amazing.
Where to Stay
The Hotel Carat (www.carat-hotel-muenchen.de) located at Lindwurmstr 13, just a 15- minute walk to the fair grounds was where JAX FAX stayed on this trip. This 48 room, 3 star hotel has very clean, comfortable rooms and served a complimentary buffet breakfast in their courtyard each morning. The hotel provides underground parking, free wifi, some rooms with kitchen units and a very central location. Rates during Oktoberfest are about 299 euros/night for a double.
Other Munich Attractions
While the Theresienwiese Park is the center of attention during Oktoberfest, there are many other sites to be seen while in Munich. A trip to Munich wouldn’t be complete without an excursion to Marienplatz to see the Glockenspiel clock and St. Peter’s Church. And just around the corner from there is the world famous Hofbrauehaus, the second busiest spot in Munich during Oktoberfest. Advise your clients to arrive early. Tables are full by noon. The Bier Garden in the English Gardens is another popular spot away from the crowds.
Day Trips From Munich
We decided to give our livers a break from the beer tents for a day and took a train from the central Munich Hauptbahnhof to the town of Fuessen, about a 2-hour train ride. From here you can take a taxi or bus for a 15-minute drive to see the “Cinderella Castle” Neuschwanstein. While the castle is an incredible site in a fairytale setting on the rocky cliffs, we opted to take a cable car ride up to Tegelberg. Once at the top you can hike along the mountain ridge enjoying magnificent views of the Alps and Lake Forggensee or watch the paragliders and hang gliders launching off the death-defying platform located next to the tram station. Of course, there is also a café offering more of that wonderful beer we had come across the ocean to enjoy as well as a wide variety of culinary options.
Many tour operators offer customized packages for Oktoberfest, though with some research and advance planning, travel agents can arrange and market their own FIT packages for clients. For more information on Oktoberfest visit www.germany.travel
Fly Lufthansa to Oktoberfest
When setting out for an international vacation your client’s journey starts at the airport, so why not choose an airline that sets the proper mood. JAX FAX did just that and flew Lufthansa non-stop from Boston to Munich on our recent Oktoberfest adventure. On all long-haul Lufthansa flights to and from Munich during the Oktoberfest, “white and blue” – the traditional Bavarian colors – are also the color theme. Passengers traveling in First Class are offered a traditional Oktoberfest menu including Munich white sausage terrine and other Bavarian specialities. To accompany their meal, passengers can request a glass of the renowned Oktoberfest beer. Traditional Bavarian delicacies are also served in Business and Economy Class. Meanwhile, on the audio channel, a special program is devoted to Bavarian music to get passengers into the swing of what is known in Bavaria as the “fifth” season of the year.
During Oktoberfest, Lufthansa ground staff wears their own traditional Bavarian dress to work. Furthermore, in cooperation with Loden-Frey and the specialist outfitters, Trachtenhaus Jager, tailor-made dirndls in blue and white and traditional men’s suits are provided for Lufthansa’s ground staff at Munich.
Lucky guests flying to and from Munich on select international flights have had the opportunity to experience a special Lufthansa crew dressed in the traditional Bavarian style. “Year after year, the response from our customers has been overwhelming,” said Peter Ulmer, Regional Director Sales, Western USA. “That alone is incentive enough for us to continue the Oktoberfest on board.” It is now more than 50 years since Lufthansa flight attendants first exchanged their uniforms for traditional Bavarian costumes. In 1957, the airline reported: “During the Oktoberfest, Lufthansa stewardesses dressed in dirndls will be attending to the needs of passengers on flights from New York to Hamburg and on flights from London to Munich. On those routes, blonde flight attendants wore pale-blue dirndls, while their dark-haired colleagues were dressed in pink.
About Lufthansa
One of the world’s largest and most prestigious airlines, Lufthansa currently flies to 211 destinations in 84 countries, with hubs in Frankfurt, Munich, and with its recent acquisition of Austrian Airlines and SWISS –Vienna and Zurich. From its 22 North American gateways, Lufthansa and its partners serve over 450 destinations in more than 120 countries. Its long-haul fleet to and from North America includes the Boeing 747-400, as well as the Airbus A300 sub fleet. Currently, Lufthansa has over 150 new aircraft worth about $18 billion on order and will be the largest European operator of the A380 and is also the launch customer for the new Boeing 747-8, the industries’ two most fuel-efficient passenger aircraft.
Known for its premium services, Lufthansa continues its $150 million program earmarked for building new or upgrading existing lounge facilities across its worldwide network and will spend more than $1.4 billion in new onboard products and services by 2015. In 2010, Lufthansa re-launched its broadband wireless Internet service onboard, FlyNet. For more information or reservations, visit www.lufthansa.com
FEBRUARY 2012
Crisis Management in Travel
T he recent sinking of the Costa Concordia brought home to travel consultants the need for effective crisis management. I am sure that many of our readers who have clients booked on an upcoming cruise have had to address their concerns about cruise safety. The industry has certainly had its fair share of crises over the past couple of years including natural disasters, social unrest, health scares and accidents on the sea and in the air.
How you address your client’s concerns is of paramount importance. A vague comment about safety statistics will not go far towards alleviating your client’s concerns. Rather, you should have a well thought out response that both acknowledges the crisis and helps them to assess their concerns in an honest, rational, levelheaded manner. Remember, no one wants to cancel a vacation they have planned, saved for and look forward to. They are looking to you for guidance in how to cope with their immediate concerns. Most industry suppliers have a crisis management plan and it is imperative that travel consultants do as well.
Let’s take the sinking of the Costa Concordia as an example. As soon as something like this happens, it is up to the crisis manager (agency owner) to familiarize themselves with the details of the incident. In this case, the accident was caused by human error and created a concern about cruise safety amongst booked and prospective cruisers. As quickly as possible the crisis manager should formulate and distribute a statement to their staff that should be used to address client’s concerns. The statement should acknowledge the incident, express concern for those involved and then address the specifics of cruise safety. Giving your clients detailed information about cruise industry safety procedures and staff training will help alleviate their worries.
Be proactive. Don’t wait for a client to call before you start researching possible vacation alternatives. Understand that some clients will not be reassured by your previously mentioned statement and will want to cancel or change their plans. Have several different options thought out and ready to present to these clients. In this scenario, the client was specifically interested in seeing the Med. Region. If they are adamant about not taking an ocean cruise, perhaps suggesting an escorted tour or fly/drive to the same region would be appropriate. Another option would be a European River Cruise, which may not evoke the same fear level as that of a larger vessel in open water.
Preparation and honesty are your two biggest assets when dealing with a crisis. Your role is to empathize with, and educate your customer. Also bear in mind that people have very short memories. As soon as pictures of the submerged ship and vivid descriptions of the incident have faded from the headlines, so too will they fade from the mind of your customers.
JANUARY 2012
Reflections and Perceptions
A s 2011 comes to a close, it presents us with an opportunity to reflect on the year behind us and look forward to opportunities in the year to come.
Overall, I think most people will look back at 2011 as a year of unrealized expectations. 2009 was obviously a terrible year for the travel industry, but 2010 saw a modest recovery. Most travel industry business owners anticipated building on these modest gains and looked onto 2011 with a good deal of optimism. And while 2011 wasn’t by any means a bad year, I don’t believe it lived up to expectations.
Several factors contributed to this year’s less than stellar growth. The unemployment rate and economy showed little improvement, which affected consumer confidence, while natural disasters, civil unrest and continued safety concerns took some very popular tourism destinations off your client’s radar. These factors also kept pricing down in an effort to drive traffic, further impacting already thin margins.
Yet, despite these concerns there was good news as well. Most tourism destinations are reporting positive growth in terms of overall visitors. Job growth in the travel industry outpaced most other industries by a large margin. In fact, a recent survey taken of USTOA active members revealed that 50% of these tour operators had increased staff in 2011 and 43% planned to increase staffing in 2012.
The Year Ahead
In this publisher’s humble opinion, the year ahead will not be without its challenges. Presidential election years are not usually known for strong economic growth, as politicians tend to fly under the radar policy-wise, and focus on their re-election strategies. Europe still faces economic challenges and stability in the Middle East is still a fragile thing.
However, there are reasons for optimism as well. There continues to be a pent up demand for travel and any type of good economic trend will lead to significant increases. Regarding the aforementioned USTOA survey, 76% of the tour operator members anticipate growth in 2012 and expect to raise their ADR (average daily rates) by 5-10%, which is good news for operators and agents alike. And speaking of good news for agents, 25% of USTOA tour operators report that over 90% of their business still comes from travel agents!
So what can you do to insure your piece of the travel pie in 2012? First and foremost, develop a plan of action for the year ahead. Take some time during the holiday lull to assess what products you can sell most effectively and profitably in the year ahead and develop a marketing plan to reach out and engage your customers. Here is a hint: over 65% of baby boomers (your largest market) are seeking experiential travel. When presenting vacation options to your clients, focus on the experience rather than the standard destination details. If you haven’t yet delved into the world of social media, now is a great time to get started. Make sure your website is current and relevant to the audience you want to serve. The bottom line is to know your products and market them to your customers, based on a well thought out and consistent plan.
From the staff of JAX FAX Magazine, our most sincere thanks for your readership and trust in our magazine and Best Wishes for a Healthy and Prosperous 2012.
DECEMBER 2011
Don’t Miss ASTA’s 2012 IDE in Peru
Having just returned from an ASTA/Prom Peru sponsored trip to Peru, I can assure our readers that this is one event you will not want to miss. Over a year of planning has gone into next year’s IDE and travel industry suppliers in Peru are excited and anxious to welcome travel agents to their beautiful country. The educational portion of the IDE will take place at the new Westin Lima Hotel, located in a commercial area with many shopping and restaurant options. Three full days of educational sessions, complimentary sightseeing and evening extravaganzas await registered attendees. However, as appealing as that may sound, it would be a shame to not take advantage of the pre/post tour options. These well-priced, two to eight night tours provide agents with a perfect opportunity to see and experience first hand the diverse natural, historic and cultural attractions that have put Peru on the top of many of your clients’ “bucket lists.”
Experience a Peruvian Rainforest
JAX FAX had the opportunity to visit several of the locations available to agents in the pre/post offerings. Our first excursion was to the Peruvian Rainforest. A short flight from Lima to Puerto Maldonado brought us to the kicking off point for this adventure – a 60-minute boat ride up the Madre de Dios River to Inkaterra’s Reserva Amazonia Lodge. This lodge, which consists of 35 luxurious cabins, a main lodge, small spa and Eco-Center, was our base for the next two nights and launch point for multiple adventures in the rainforest. During our stay, we did a nighttime wildlife boat trip and a separate nocturnal wildlife walk, a canoe trip on Lake Sandoval to see endangered Giant River Otters and Caymans and a canopy walk on swinging bridges 90 ft. above the forest floor. This option is perfect for wildlife and adventure enthusiasts.
The Colonial City of Cusco and Machu Picchu
In my mind, a trip to Peru wouldn’t be complete without a trip to the iconic “lost city” of Machu Picchu. The colonial city of Cusco is a starting point for a trip to the Sacred Valley and Machu Picchu. Be advised that Cusco sits at an elevation of 11,000 ft. and altitude sickness is quite common. It is suggested that travelers spend at least a day in Cusco acclimating to the altitude before traveling into the Sacred Valley. Coca tea is offered upon check in at most hotels and does help, but a prescription medicine like Diamox is also recommended. JAX FAX stayed at both the Orient Express Monestario Hotel and the Aranwa Boutique Hotel. Both of these properties are located in the center of Cusco, within a block of the main Plaza de Armas. Each hotel offer rooms with oxygen pumped in which helps with altitude sickness. There are numerous opportunities for sightseeing in the Cusco region with highlights being the ancient archeological sites in and around the city. Cusco also offers excellent shopping and dining venues.
From Cusco it is a couple of hours drive into the Sacred Valley. Along the way, there is the opportunity to stop at a Llama farm and the market in Pisca. JAX FAX stayed in, and highly recommends, the Libertador Tampo del Inka Hotel, a member of the Sheraton Luxury Collection. From here it is about an hours drive to the town of Ollantaytambo where the trains leaves for a 1-½ hour scenic ride to Machu Picchu. Once the train arrives it is a quick 20-minute bus ride to the Sacred City of Machu. An entire article could be written on Machu Picchu, so suffice it to say, it lives up to and exceeds expectations. One note: do take a guided tour of the Sacred City to fully appreciate what you are seeing.
A highlight of a trip to Machu Picchu would be to return to Cusco on the Orient Express Hiram Bingham train. This luxury trip takes about 3 hours and your time will be spent drinking pisco sours, eating a gourmet meal and listening to music in the club car.
If you have clientele that are interested in a trip to Peru or if you, like me, have had Peru on your “bucket list,” I strongly urge you to take advantage of the educational and sightseeing opportunities that this year’s IDE in Peru afford you. For more information or to register go to www.asta.org and click on the events tab. See you in Peru next March!
Please visit our facebook page (JAX FAX Travel Marketing Magazine) for pictures from Peru.
NOVEMBER 2011
Introducing our New Editorial Team
Change in any business is inevitable, but when it comes to replacing a key employee it is always a challenge. Such was the case for JAX FAX when our editor, Ryley Hartt, was faced with the choice of continuing his position as JAX FAX Editor or following his girlfriend who was offered a great job on the West Coast. He chose the latter, and this will be his final issue as editor. Fortunately, he will be staying on as an Editor-at-Large.
New Managing Editor
We are fortunate to have a great stable of regional correspondents who cover the globe for us each month in the pages of JAX FAX, as well as on our website and Facebook page. I am equally fortunate to have a great member of our staff to promote to the position of Managing Editor. Katie Hultgren has been with JAX FAX for five years and has done just about every job in our organization, including copyediting and proof reading. Katie has a great eye for detail and has developed a comprehensive understanding of what you, our readers, need from us in terms of information to help you sell travel more efficiently and profitably. Please join me in welcoming Katie to her new position.
Those of you who read my column each month might recall the piece I wrote on the benefits of working with interns. I wrote of the excellent experience we had this summer with an intern we hired to work in our editorial department. I am very pleased to also announce that we have now hired that intern, Arielle Feger, to be our editorial assistant. Arielle proved herself to be a dependable, bright and hard working member of our team during her internship, and I am thrilled to welcome her to a staff position here at JAX FAX.
Looking Ahead to 2012
As we plan our editorial calendar for 2012, we are excited to be including new up and coming destinations as well as the tried and true tourism spots worldwide. We have added new writers to our editorial team to bring fresh perspectives to these destinations. As always, our editorial mission remains to educate travel agents on tourism destinations worldwide as well as to familiarize you with suppliers who sell and service these destinations. We will continue to seek out new ways to bring you this information in a very concise and easy to use format.
We welcome your comments, kudos and even criticisms in our continuing effort to make JAX FAX an indispensable tool for travel agents. Feel free to email me at doug@jaxfax.com or Katie at editor@jaxfax.com.
OCTOBER 2011
They’re Back – Use of Travel Agents Back in Vogue
When consumers are planning a vacation, there is no denying that they are going online to do their research. However, when it comes to booking, “ who they gonna call”? The answer more and more often is their local neighborhood travel agent. Frustrated with the hours of time required to research and book travel online, consumers are once again turning to travel agents (read: travel consultants) to help them sort through the hype and find them the vacation they seek.
A study by Forrester Research found that in the first three months of 2011, 28% of leisure travelers in the U.S. who booked their trips online said they'd be interested in going to a travel agent to plan their next vacation. That's up from 23% in 2008. Forrester also finds that the number of leisure travelers who enjoyed using the Web to plan and book their vacations dropped to 46% last year, down from 53% in 2007.
These facts are encouraging but, to climb back up on a favorite soapbox of mine, there is no one (aside from individual agents) presenting a consistent, unified message about why the public should be using a professional travel agent. With that in mind here are:
JAX FAX Magazine’s Top Ten Reasons To Use a Professional Travel Agents
1.Convenient One-Stop Shopping-Travel agents can handle every aspect of your trip from airline tickets to lodging, ground transportation, activities, tours, etc.
2. Consumer Advocate - If a problem occurs during a trip, travel agents can act on your behalf to see that proper restitutions are made.
3. Expert Guidance - Travel agents are experts in helping travelers get where they need to go and in presenting ideas most people never would have dreamed were possible.
4. Save Time - Avoid the headaches and let the travel agents call around and do all the time consuming work of planning a complex itinerary.
5. Updated Information - Travel agents are constantly communicating with the travel community, giving you the most up to date info on airlines, hotels, car rental agencies, travel visas, and other travel services to consider as you plan your trip.
6. Customer Service - Travel agents offer that “personal touch” to your travel planning experience- Offering help and advice that a website cannot provide.
7.Travel Documentation - Travel agents can help you to prepare and organize any necessary documents that you may need in order to travel outside of the country. They can direct you to your local passport office, and they know where you need a visa, as well as any other documentation that you might need along the way.
8. Travel Expertise - Many travel agents are considered experts in the area you are traveling to and have probably already been to your chosen destination.
9. Industry Access - Travel agents have access to tour operators, air consolidators and other suppliers who won’t work directly with consumers.
10. Best Value for Your Money Spent
Travel agents can help you to make your dollars go farther while you are away. They have access to finding all sorts of deals ranging from flights to hotels to dinner recommendations.
SEPTEMBER 2011
The Growing Trend of Adventure Travel
I am writing this Publisher’s Page from our rental home in Grand Teton National Park. We have just finished a day of hiking and whitewater rafting and are planning a day of fishing and horseback riding tomorrow. Our vacation has also included a wide variety of other activities including: wildlife viewing, mountain biking and boating. In other words, we are living the adventure travel lifestyle. And we are not alone. The trend of experiential travel is expanding as baby boomers continue to grow in importance to the travel industry. Baby boomers are more active than their parent’s generation and seek out vacations that allow them to experience a destination, enjoy the outdoors and push their limits. Best yet, this is the generation most likely to use the services of a travel agent.
This issue is focused on Adventure Travel. Our writers share with you adventure travel options around the world. Included are articles on such activities as trekking in Latin and South America, diving in the Caribbean, whitewater rafting in Colorado, experiencing a safari in Tanzania and active adventures in Israel. We have also compiled a Directory of Adventure Travel Vacation Packages on page 60. This directory, along with the articles, will provide you with a multitude of adventure travel options for your clients.
One good way to acquaint yourself with the wide variety of adventure travel options and operators is by attending one of the Adventure Travel Shows this fall or winter. These shows include educational seminars on how to sell adventure travel and destination updates, as well as a trade show featuring adventure travel destinations, operators and onsite activities. These shows are coming to Atlanta, Dallas, LA, New York, Chicago, San Francisco and Washington DC. Check their website HYPERLINK "http://www.adventureexpo.com" www.adventureexpo.com for dates and details.
Adventure travel is a growing trend and one that can be very lucrative for travel agents. By taking the time to learn about the wide variety of options available for your clients, you can maximize your earning opportunities and hopefully have the chance to enjoy some of these fantastic travel options for yourself.
AUGUST 2011
Taking Advantage of the Summer Lull
Summer is traditionally a slower time of year for most businesses. People take holidays and family vacations. They are focused on anything except business. What should you do during the summer months to keep your business running smoothly? Here are 10 easy ways to get the maximum use out of your summer slow time.
1. Take a holiday and get away. Small business owners traditionally find it hard to take a break. This is the one time of the year when it’s considered “okay” to take a vacation and your customers don’t stress if your business is closed for a short time (a few days). So plan accordingly and take a quick break to recharge your batteries.
2. Make a business-planning day. Take this time to map our your strategy in terms of business direction, marketing plans and business goals for the remainder of the year. Use this time to reflect on what has worked, what needs to be improved and what you are going to do next.
3. Put time into social media. One of the biggest obstacles to making good use of social media is finding the time to use it. Now is the time to develop a social media strategy and implement it.
4. Make updates to your website. With so much to do on a daily basis, most business sites tend to become outdated. Make sure that the information and offers on your website are still current.
5. Refresh your marketing material. Look at your business cards, brochures, profiles, signage and newsletters. Work out what needs to be updated for maximum impact.
6. Clear the clutter. Unfortunately clutter does creep into every business over time and can sap energy. Archive material and files you no longer need, review your filing system, delete old emails, etc. Doing this now means you are more likely to be able to quickly find things when business picks up again saving you both time and stress.
7. Write articles. Articles and posts are a terrific way to help boost your business credibility. Share your ideas with customers and potential clients. Develop a cache of articles you can match to your marketing calendar throughout the year.
8. Maintain your computers. All computers need maintenance. Take time to check your computers, make full back-ups of everything and generally run a system tune up.
9. Update any emergency procedures. No one likes to think of the “worst,” but it does happen. Make certain you have back-ups that work. Update your insurance and store key documents in a safe place. How would you be able to function and how long would it take to get up and running if the “worst” did happen?
10. Touch base with your best contacts. It’s so easy to fall out of touch with key clients, colleagues and partners. Use summer to reconnect. Working with trusted colleagues is a great way to gain ideas, share resources and grow your business.
Summer’s slow down is a great time take stock of your business and tackle tasks that often get overlooked due to time constraints. Use your time wisely and these simple summer actions can help your business stay on track.
JULY 2011
Using Summer Interns is a Win-Win
I have to admit that I have always been hesitant to use interns. My fear was that I would spend as much time thinking of things for them to do, as it would have taken me to just do it myself. Well, I was wrong.
About a month ago a friend approached me and asked if I ever took on interns. Her daughter was about to graduate and still needed internship hours. She is a creative writing major so interning for a travel magazine made a lot of sense. Because it was a friend who was asking, I put my fears on the back burner and gave her daughter the position. What a godsend she has been. All of us have little projects that we know we need to get done, but never have time to do. In steps the intern. She took to these menial (and not so menial) projects like a duck to water and thoroughly enjoyed doing them. In fact, she was able to help out in every department, from editorial to circulation to sales. She has even asked if she can stay on after she has completed her required hours. Now, realize this is an unpaid internship. We pay for her gas to come to the office - but that is it. What more could an employer ask for than a young, enthusiastic person who is willing to give their time to help your business, and asks very little in return.
In this tough job market, interning can be an inroad to getting a full time job. There are many ambitious recent college graduates that are willing to work for little or nothing to get job experience and also get their foot in the door of a company. Take advantage of this opportunity. For a travel agency, interns can: organize/update brochure files, design email or direct mail promotions, prepare/deliver client documents, update your client database and a whole host of other tasks. You can even let them sit in on presentations by industry supplier sales reps. All they ask in return is the chance to learn on the job.
If you can afford to pay your intern something that’s great, but again, it’s not always necessary. Often covering their commuting costs will be more than sufficient. Whatever you are able to do to make them feel welcome and appreciated will go a long way.
The economy and job market are still lagging and this offers both employers and interns the opportunity to work together for their mutual benefit. Based on my experience, I would strongly suggest that both travel agency owners and suppliers alike avail themselves of this pool of young talent.
JUNE 2011
Voluntourism – Giving Back Feels Good
Friday, May 6 was an unusual workday for me. Rather than sit at my desk sending and answering emails all day, I spent the day 20 feet up on a ladder with a paintbrush in my hand. I have to tell you that painting is one of my least favorite things to do, but the view and the company were great and it was for a good cause. I was participating in the Tourism Cares Volunteer project at Mystic Seaport, right here in my home state of CT.
Over 400 travel industry volunteers, from small business owners and front line employees to corporate executive and industry leaders, worked side-by-side to fulfill a common goal – to preserve the travel experience for future generations. And we made a significant impact, saving more than $60,000 in labor costs, or the equivalent of one year’s worth of facilities and grounds maintenance at Mystic Seaport.”
According to the Mystic Seaport staff, the Tourism Cares volunteers completed more than 1 mile of fence painting, using approximately 135 gallons of paint, plus an additional 30 paint projects on the historic buildings and sailing vessels, including the entire hull of the Joseph Conrad, Mystic Seaport’s renowned 111-foot, full-rigged ship. Also completed were major landscaping projects utilizing 50 cubic yards of mulch, as well as spreading hundreds of pounds of crushed oyster shells throughout the property. In addition, Tourism Cares presented a $10,000 Special Grant to help the museum maintain its grounds and infrastructure.
To date, Tourism Cares has awarded grants to more than 150 organizations in 42 U.S. states and 29 countries. These grants, when combined with matching funds, total more than $2 million.
The project at Mystic Seaport joins a long list of Tourism Cares for America destinations including: New York/New Jersey’s Ellis Island; New Orleans, before and after Katrina; the Mississippi Gulf Coast, post Katrina; Gettysburg; and, most recently, Angel Island in San Francisco Bay.
These events are a great way for travel agents and suppliers to give back to the industry we all have the privilege to work in. It is also an opportunity to meet new industry friends and see some of our country’s best tourism sites. Tourism Cares’ next volunteer initiative will be held at the Valley Forge National Historical Park on Friday, September 9. Hope I’ll see you there. For more information, go to www.tourismcares.org.
MAY 2011
Mexico Tourism Reaches out to Travel Agents
Last year over 22 million international tourists visited Mexico. Of that number, the United States represents the single largest source of visitors to Mexico with over 3 million Americans visiting each year, a large percentage of whom booked through a travel agent. Yet when I told friends I was visiting Cancun and the Riviera Maya last week their first question was, “Is it safe”? This perception of Mexico being an unsafe place to travel was the very reason for my trip. Funjet Vacations, along with the Mexico Tourist Board, invited over 200 of their top producing agents and several travel writers to come experience the destination as well as meet with top tourism officials, hoteliers and ground operators.
The message we received was loud and clear; Mexico needs travel agents spreading the word that, not only is it a safe destination, but also one that offers tremendous value for your customers. I can assure you every travel agent on this trip will be relaying that message to his or her clients. Over the course of four days, the agents experienced many of the different tours, day trips and attractions this region has to offer and every agent I spoke to would have no problem recommending a vacation here to their clients.
Consumer news outlets have generated a high degree of fear among potential travelers to Mexico with their ongoing coverage of the drug violence that has taken place. What they fail to convey is the vast majority of this violence is taking place in the border towns that are thousands of miles from Mexico’s tourism areas like Cancun or Puerto Vallarta. It is the equivalent of saying you wouldn’t visit New York because of something bad happening in Texas. Of all tourists to Mexico, 99.9 % will never encounter the horrific scenes that play out on their TV’s, nor will they even feel unsafe when practicing common sense travel behavior.
Mexico is looking to travel agents to be their “goodwill ambassadors” by letting their clients know they will have a safe, affordable and enjoyable vacation experience. In order to do this, agents must familiarize themselves with Mexico’s geography, be knowledgeable about the current struggles Mexico faces and be able to communicate to their clients why they should choose Mexico over other tourism destinations. Funjet has put together a number of tools you can use to sell the destination, including travel agent and consumer testimonials. These can be found at www.funjet.com\sellingmexico
The tourism industry in Mexico is comprised of hard-working men and women who put their heart and soul into the product they are delivering to your clients. The food I experienced on my recent trip (at all-inclusives) was as good as I have had in the finest restaurants anywhere. The service is warm and solicitous and the value of a vacation to Mexico right now is unbeatable.
I would strongly encourage our readers to educate yourselves about all this great destination has to offer and pass the word along to your clients. You will both be glad you did.
APRIL 2011
Cruising Your Way to Profits
It is no secret that cruise vacations offer a great earning opportunity for travel agents. As the economy continues to improve, so does the demand for cruising. At the recent annual Cruise Shipping Conference in Miami, cruise line executives were bullish about cruising in 2011 and beyond. With people forced to work harder and longer during the downturn, they have come to value their vacations more, Celebrity Cruises Chief Executive Officer, Daniel Hanrahan, told the audience at the Cruise Shipping Miami conference. “Vacations or holidays became an inalienable right,” Hanrahan said.
Over 11 million Americans cruised in 2010 and that number is expected to grow to over 12 million for 2011. Since over 90% of all cruises are still booked by travel agents, this is a market which can’t be ignored. An abundance of new ships over the past 2 years, combined with the down economy led cruise lines to discount heavily to keep their berths filled. However, this also opened the world of cruising up to new markets of customers who might not have chosen a cruise vacation. According to CLIA, over 50% of first time cruisers will cruise again, so the entrance of these new cruisers into the marketplace will continue to benefit the cruise lines and travel agents for years to come. The discounts these customers got last year are rapidly disappearing so agents will have to sell their clients on the value and experience cruising offers. Of course higher prices mean higher commissions.
The launch of three new mega ships, Royal Caribbean’s Oasis of the Seas and Allure of the Seas and NCL’s Epic over the past 18 months created a cruising media storm, which stimulated public awareness of big ship cruising. And while blue water cruising continues to lead the way in terms of number of passengers, river cruising is the fastest growing niche in the cruise marketplace. Several river cruise operators are launching new or refurbished ships to keep up with demand. Not just limited to standard Europe and China itineraries, river cruising options span the globe with places like the Mekong River and the Amazon. Growing in popularity too are yacht and barge charters, which give their customers the flexibility to plan their own itineraries and a more intimate cruise experience. These types of cruises appeal especially to the growing baby boomer demographic, who are increasingly looking for “experiential travel” and have the money to spend.
As with any other type of travel product, today’s travel agent needs to have intimate knowledge of the cruise product they are selling. Asking the right questions, combined with your knowledge of the variety of cruise options available, will lead you to selling the right cruise, to the right client, at the right price. If you are serious about selling cruises, CLIA offers excellent training opportunities throughout the year. Crusie3sixty, CLIA’s annual cruise conference takes place April 14-17 in Ft. Lauderdale and combines 4 days of seminars, ship inspections and a tradeshow. Visit www.cruise3sixty.com
MARCH 2011
Selling Airline Tickets Profitably with Air Consolidators
As the ad campaign of the United States Air Consolidator Association proclaims, “There is Money in the Air!” This is true for those travel agents willing to reach out and grab it.
It is amazing to me that after 35 years of selling airline tickets to travel agents for their clients, air consolidation is still a mystery to many agents. I guess it was more understandable prior to 1995 when airlines still paid a commission, and travel agents were less reliant on air consolidators. However, since 1995, virtually the only way to sell an international airline ticket profitably (sometimes very profitably) is by working with an air consolidator. I believe it is due to a lack of knowledge about this distribution channel that more agents aren’t availing themselves to this money-making opportunity.
Included with this issue of JAX FAX is our 9th Annual Guide to Working with Air Consolidators. This resource tool has become extremely popular because it provides you, the travel agent, with an insider’s view of what you need to know to book airline tickets, and make money doing so, by working with Air Consolidators. Most of 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 client’s 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 consolidator’s 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.
Home Based Agents and Air Consolidators
For Home Based 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.
If your Annual Guide to Working with Air Consolidators is missing, please go to jaxfaxmagazine.com where you will find a digital version on our home page.
FEBRUARY 2011
Join us on Facebook and Experience the World ª FEBRUARY 2011 ISSUE
The use of Social Media for business is all the buzz these days. Business owners are trying to determine how best to use it to interact with their customers effectively, yet in a non-obtrusive way. If you haven’t seen the movie, The Social Network I would highly recommend it. Not only does it chronicle the creation of Facebook, but it also proves that there is always room for a better mousetrap.
Well, here at JAX FAX we are always seeking that better mousetrap. In this case, a way to use common technology to our advantage without duplicating what our competitors are doing. And that is exactly what we have done with our new Facebook page. We set out to make our Facebook page a place where our travel agent readers can find information they need to sell travel more effectively and profitably. So how are we doing this? Here are some of the features of our new page:
On Site Reports from our editorial staff and correspondents – we are fortunate to have excellent travel writers covering the world of tourism for us. These writers will be updating our Facebook page while on the road with destination news, photos and videos.
Daily Travel Specials – We will be posting handpicked travel specials you can use to motivate your clients to book a trip now. Unlike daily news emails that you receive from other trade sources, we will sort through the multitude of offers we receive on a daily basis and post only those that we determine are truly great deals.
Agent Incentives – As with the Travel Specials, we will post supplier incentives that offer agents the opportunity to significantly bolster their earnings.
Educational Articles – We will be posting links to articles that can help you do your job more efficiently, covering topics like sales techniques, business planning, social media skills and more.
Link to Travel Supplier Facebook pages, And more to come…
Rather than rush into the social media marketplace, we decided to take our time and evaluate what others were doing right and wrong and build the most useful Facebook business page possible. I believe we are on the right track.
Got to JAX FAX Travel Marketing Magazine’s Facebook page and “like” it to join our ever-growing network of travel professionals.
JANUARY 2011 ISSUE
How to Prosper in 2011
For most businesses involved in the travel industry, 2010 has been a decent year. Not great - but definitely a year of recovery. And while the number of consumers traveling showed moderate gains of about 8-10%, yields were up and that’s good news for suppliers and travel agents. While there was still pressure on the hotel and tour industry to keep pricing at 2009 levels and/or maintain their added value incentive programs, the cruise, and most notably, the airline industry were able to increase their rates. Airlines in particular were able to increase their sales by 18% even with an average rate hike of between 14%-24%.
So what does this tell us about the year to come? Simply, that consumers are ready to travel and are willing to pay to do so. The total number of travelers increased by about 7% last year and indications are that this trend will continue into 2011.
What does it mean for Travel Agents?
In a recent Forrester Research Report that focused on consumer travel trends, it was noted that compared to 2008, 22% more of the respondents indicated that they would use a travel agent for their vacation planning. While consumers continue to research travel online, there is a growing trend of frustration over the time it takes and a growing realization that what you see is not always what you get. There have been numerous articles in consumer media this year heralding the return of the travel agent. When you look at the ARC sales numbers this trend is confirmed. In 2008 and 2009 the average daily sales for an ARC agency were at about $7,000. In 2010, the average sales for an ARC agency were $11,300, a whopping 60% increase. Clearly the use of travel agents is on the rise.
Who has the money?
Baby boomers and seniors account for 51% of all leisure travel spending and this is the demographic that is most likely to use the services of a travel agent. More importantly, they have the money to spend, which is good news because the aforementioned research report found that 38% of travelers want to put less on their credit cards. As opposed to the conspicuous spending in the 90’s, saving money is now a point of pride for Americans and travel is their reward for their frugality.
Getting your piece of the pie
Know your clients. Keep precise and accurate records of their travel patterns and anticipate their needs. Create a marketing plan and implement it. Reach out to your clients with relevant products at the time they are most likely to buy. Know when their kid’s school vacations are, what types of vacations they enjoy, when their anniversary is and send them specific product offerings for these events with the appropriate lead-time. Most of all, they should feel like they are your only client. Service and personalization will lead to more and better sales for your agency.
Here’s hoping for a prosperous 2011 for the travel industry!
2010 Publisher's Page
A Necessary Evil ª DECEMBER 2010 ISSUE
Anyone who has been through an airport in the last several months will know what I am referring to; those wonderful new (and controversial) full body scanners that are coming soon to an airport near you. Apparently the TSA is ignoring the public outcry against these overly invasive screening machines and is installing them in local and regional airports throughout the US.
So, what’s the big fuss about?
These full body scanners are annoying travelers for a variety of reasons. First and foremost, they give the TSA screeners an essentially nude view of the body. This is an invasion of privacy at best, and a violation of our constitutional rights at worst. But adding insult to injury, the full body scan is immediately followed by an overly zealous pat down, during which no body part, male or female, is exempt from a curious screener’s hand. So why is it, that when going through a “normal” airport metal detector, a pat down isn’t required unless the detector goes off, yet after a full body scan, a full body pat down is required – even though they have just seen you naked? To further exacerbate the public’s discomfort with the use of these scanners, reports have surfaced of body scan images finding their way onto the internet, though the TSA denies this is possible. Even more frightening are the recent reports of the potential health hazards that these machines might be subjecting the public to, namely radiation exposure, which can lead to an increased risk of cancer. The Allied Pilot’s Union has even called on their pilot members to boycott the machines.
What is a traveler to do?
Well, what you can’t do is choose which type of scanner you will be put through. The TSA claims this would defeat the purpose of these new scanners and insists that passengers who are selected are chosen on a random, but mandatory, basis. In other words, don’t even try to get out of line once you have been selected. This could subject you/your clients to an even more invasive search and possible arrest.
It appears that these machines are here to stay, and as I stated earlier, their use is on the rise throughout the US. Will the prevalent use of these machines deter your clients from traveling? Probably not, however it is going mean longer security lines and an even more frustrated traveling public.
The best advice you can give your clients is to leave their modesty at home, put their arms up and keep their mouths closed. Either that, or take a private jet and avoid these hassles altogether.
On a happier note, the holiday season is upon us, and I want to take this opportunity on behalf of myself and the JAX FAX staff to thank our readers for their loyalty, our supplier partners for their support, and to wish everyone a very joyous and healthy Holiday Season!
Are you in the Travel Business or the Business of Travel? • NOVEMBER 2010 ISSUE
By Doug Cooke, Publisher
I am currently in Orlando at Ensemble’s Annual Conference, and their Exec. VP, Lindsay Pearlman, asked this question of the travel agents in the audience. His point was that too many agents are focused too much on the travel side of the business and not the business side of the business. I personally feel that this is less likely now than in the past. Bad economic times tend to have a greater impact on those that are not in tune with the business side of things, and the past 18 months have seen an unfortunate number of business failures in the travel industry. However, it is always a good idea to review the basics of good business planning.
If you fail to plan, you are planning to fail.
A business plan and a mission statement are the backbone of any business. These are the tools that guide how you run your business. The mission statement should guide the actions of the organization, spell out its overall goal, provide a sense of direction, and guide decision-making. Taking this one step further, your business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. Included in your business plan is a marketing plan. The marketing plan dictates who your intended customers are, and how you will communicate with and sell to them. A travel agent’s marketing plan could also contain details of the types of products you intend to sell.
If you don’t know where you are going, how will you know when you get there?
Setting goals is another important aspect of your business plan. You should set measurable and realistic goals for yourself and your staff. These goals should take into account what your fixed and variable expenses are and what level of sales you need to achieve to, at the very least, meet these expenses.
No one wins a race to the bottom.
Since 9/11 and this past recession, consumers and agents alike have been conditioned to look for the best (i.e. cheapest) deal when planning a vacation. If you fall into this trap, you are doomed to fail because someone will always be willing to sell a product to your client just a little cheaper than you will. It is a race to the bottom, and no one wins that race. Instead, focus on the value that your expertise brings to the table. Not only that, but talk to your clients about the value that they are receiving for their money. Perfect example: I am writing this article from the Regency Club at the Hyatt Regency Grand Cypress in Orlando. Most agents wouldn’t think about offering their budget conscious family customers access to the Regency Club during their vacation. However, for $50 a day, consider what your client receives: a great buffet breakfast, daylong access to coffee and soft drinks, afternoon snacks, heavy hors d'oeuvres in the evening and cordials and desserts later. Not to mention the private atmosphere and 12th floor outdoor deck with Zen garden and flat screen TV. A family of four would easily get their money’s worth from this “add-on” and you just earned more commission. Win-win.
In the coming year, JAX FAX is going to be providing our readers with more “business of travel” articles to help you hone and fine tune your business to a lean, mean, money making machine.
New “Find a Consolidator” Search Engine from JAX FAX • OCTOBER 2010 ISSUE
For 38 years JAX FAX Travel Marketing Magazine has been the travel agents’ go-to resource for air consolidator information. JAX FAX Magazine was founded in 1972 expressly to bring travel agents information on charter flights and air consolidators. We continue to seek out new and innovative ways to get this information into the hands of travel agents. Today, more than ever, agents need to work with consolidators in order to make money on their client’s airline tickets.
From Consolifares to “Find a Consolidator” Search Engine
Many of you may be aware that JAX FAX has had a booking engine for consolidator airfares for the past 10 years. It was widely used and a great resource for agents. However, our technology provider failed to keep this software up with the times. Therefore, we have decided to create a search engine of our own, based on feedback from our travel agent users. The Consolifares booking engine is no longer active.
This month we are proud to announce the launch of “Find a Consolidator” located on www.jaxfaxmagazine.com. This search engine will allow travel agents to quickly search for an air consolidator by city pair and/or airline and/or class of service. It is open to all consolidators and travel agents and will contain the largest database of consolidator flight options in the world. “Find a Consolidator” will launch with over one million city pairs from multiple consolidators. We anticipate that it will grow to include 40-50 Air consolidators and many millions of city pairs.
The consolidator search can be launched from www.jaxfaxmagazine.com homepage by clicking on the “Find a Consolidator” button. After filling in the desired city pairs and optional airline and class of service fields, a list of those consolidators matching your criteria will be displayed. Once you have found the consolidator your client is looking for, one click of the mouse will bring you to that consolidator’s website to complete the booking. For those agents who would rather speak to a live person, the consolidator’s phone number will also be listed.
In these time of zero commissions on from most airlines, air consolidators can provide travel agents with a lucrative income stream selling airline tickets and JAX FAX will continue to lead the way in bringing agents and consolidators together.
Find a Consolidator will launch with over one million city pairs from multiple Air Consolidators
2010 to Date: The Good and the Scary
Now that we are well into the 3rd quarter of what is supposed to be a year of recovery, how is the travel industry really doing? Are we skipping up Easy Street or are we plodding down Recovery Avenue? Or does it depend on what sector of the industry you are in? Industry research leader Phocuswright held a webinar this past week to discuss Q2 sales and expectations for the rest of 2010. This information combined with the latest ARC report tells a tale of slow and steady growth for 2010. However, there were also some scary revelations for travel agents, as shown below.
The Good
There is no question that the airline industry is in a state of recovery and renewed profitability. According to July ARC reporting, total airline transactions are up almost 8% year to date, while total sales are up 20%. Airfares, as we all know, are on the rise and were up over 15% in Q2 compared to last year. Airlines are enjoying near record high load factors due largely to the fact that capacity has been reduced by 15% over the past couple of years.
Hotel and resort sales are also up a healthy 9% year to date.
The Phocuswight research also revealed some good news for travel agents. While the OTA’s (Priceline, Orbitz, etc.) are still outpacing offline sales (travel agents) the growth of bookings on the OTA’s is slowing and in fact the sale of air is shifting back to more traditional channels and suppliers. Their research further revealed that OTA’s have had very limited success in their attempts to break into the “packaging of travel services,” i.e. the online sales of tour packages. This lucrative business is still bought primarily through travel agents.
The Scary
Phocuswright research indicates that OTA marketing/advertising spending was down in Q2 of 2010. What’s so scary about that? The fact that they still spent over $400 million combined in their ongoing efforts to convince your clients to book direct. And how much was spent so far this year by anyone to convince consumers to book with a travel agent? None that I am aware of, and therein lies the problem. The travel agent distribution system needs an organization that will champion its cause and launch a massive and ongoing advertising/public relations effort to compete with the OTAs. In my mind ASTA is the natural choice and I trust that whoever they hire as the new CEO will look to steer the organization in this direction.
And what does the outlook for the rest of 2010/2011 look like? Most research indicates a slow yet steady recovery through the rest of 2010 and an even better year ahead in 2011.
The "E" in EPIC is for Entertainment
T his past Fourth of July weekend I had the pleasure of sailing on the new NCL EPIC on its two-day inaugural sailing out of New York City. While this new ship has a plethora of firsts for an NCL ship, it is the variety and caliber of the entertainment on board that really sets this ship apart. Considering the focus on entertainment on this ship, it is only appropriate that the ship’s Godmother is Reba McIntyre, a well-known country singer/actress and also a fan of NCL.
Let the Show Begin
It is quite apparent that from the ship’s design stage, entertainment was to be a primary focus for this ship. Special venues were built for some of the entertainment and name-brand entertainers were contracted. The Blue Man group performs in the Epic Theatre with a show that rivals any of their land-based venues. Cirque Dreams is a dinner theatre show performed in a custom built theatre in the round. It has a center stage on and around which the part vaudeville, part circus act performances take place. The Second City Comedy Troupe is onboard with an Improv All-Stars act. Howl at the Moon performs their lively “Rock and Roll Dueling Piano Show” 4 nights per cruise and the Fat Cat’s Blues Bar features live Blues music nightly. Legends Unplugged features performances by Madonna, Elvis, Tina Turner and other musical look-a-likes. For kids, Nickelodeon has a partnership with NCL and character breakfasts are scheduled for 3 mornings during each cruise.
And what will your clients pay for this top rate entertainment? The Cirque Dreams Dinner Theatre carries a $15 or $20 cover charge depending on seating and the Nickelodeon Breakfast is $10-$15 depending on age. That’s it! All the other entertainment is free, although reservations are required for some shows and can be booked online up to 45 days in advance.
A Focus on Suites
While the Epic does boast 100% balconies with all of its outside staterooms, it is the Suite complex that steals the show in terms of shipboard accommodations. The elevated decks on the bow of the ship house 60 suites surrounding a private courtyard area. This suite complex is reached only by private elevator and is an oasis from the rest of the ship, which will carry upwards of 4,300 passengers at max. capacity. Suite guests will enjoy the private courtyard pool area with upgraded furnishings, extensive sun deck space, private bars, lounges and even a private dining venue for all meals. A private gym, sauna and beach club is also part of the suite complex. I would strongly recommend up selling your clients to this level of the ship. They can still enjoy all the pool deck activities (like 3 water slides, climbing and repelling walls and “ice skating”) but can then return to the relative quiet of the courtyard area.
This ship is indeed Epic in its entertainment options, and will no doubt be in high demand by your clients. Book early for the best rates and cabin choices. The Epic will be sailing out of Miami this fall/winter on alternating Eastern/Western itineraries and then will move to Europe for summer 2011.
Selecting the Right Host Agency or Consortia
By Doug Cooke, Publisher
A s the number of brick and mortar agencies continues to decline, with the latest ARC statistics reporting 15,457 locations (down 8% from July 2009), 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 whether it be 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 their member’s needs, other agents are still looking for a host that best meets their needs.
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 of the benefits of working with a host agency or consortium. Our 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 on the benefits of working with a host agency and what to look for when selecting a host or consortium. Additionally, the guide provides a directory of Host Agencies and Consortiums, 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, the host agency’s industry reputation and economic strength, preferred supplier agreements with increased commission levels, and training and technology tools provided by the host. This guide is designed to provide you with a starting point for researching host agencies or consortiums. Well publicized failures and lawsuits involving traditional and MLM style hosts have 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.
Our guide is designed to be a starting point for your search for a host or consortium. Before making a final decision, I would suggest attending a Home Based Travel Agent event in order to meet with your prospective hosts in person. OSSN’s recent Home Based Travel Agent Forum was an excellent opportunity for agents to attend general sessions featuring Host Agencies and also visit many of them at the tradeshow. The next Home Based Agent Forum will be in Miami, Sept. 27 - 29. Visit www.homebasedtravelagentforum.com.
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