Travel Agent - September 24, 2007 - (Page 8)

Editor’s Letter Business Strategies o many mainstream issues affect your business directly. A few weeks ago, I wrote that the problem in the housing market could impact your bottom line if clients suddenly became strapped with adjustable rate mortgages they couldn’t pay. Well, last week the Federal Reserve cut interest rates by a healthy half a point, a move that was expected to alleviate some of the financial travails of those who are overextended on their home loans. That was good news for all of us, but within a day of the rate cut, the National Retail Federation (NRF) released a forecast predicting that the upcoming holiday sales season is expected to be at its slowest pace in five years—all thanks to the weak housing market and higher fuel and food costs. The NRF did note that luxury retailers would likely not see their customers’ spending habits wane; it’s more the mainstream department stores and discount shops that may see their customers bargain shopping in lower-cost retail outlets. Could these forecasts affect you as a retailer? If so, what should you do? First of all, focus on the luxury market once and for all. Track down the rich folks in your neighborhood and hang out where they hang out—just be sure you are blending in with them, so that they don’t feel that you are there simply to “sell” them; they don’t like that. Another tip: Hook up with luxury suppliers who may be able to direct you to pockets of affluent clientele they would like to serve. But first prove to the supplier that you’re acting and looking the part of a purveyor of luxury goods. Study the clientele that they are portraying in their sales literature and do everything you can do to get into their mind set. Suppliers will often go a long way to help those agents who have proven that they are willing to dedicate time to selling their product. What else can you do to navigate the downturn in S consumer spending? In the past, I’ve suggested honing in on honeymooners, senior citizens, bachelorette partiers and first-time cruisers. These are still good bets for a slow selling season, but don’t forego your existing clientele. Check out the deals that are available in the marketplace right now. Many Caribbean resorts are discounting for shoulder season, so why not offer your frugally minded client a value-packed island vacation? My guess is you’ll find some airfare deals on the new routes that area being launched. You’ve also got to act as your clients’ therapist by convincing them that they need this vacation, now. Just because they’re concerned about their finances doesn’t mean they are working any less; is anyone doing that these days? On a different note, I heard last week that the latest O.J. Simpson trial—which may start as late as next summer—could bring multitudes of millions of dollars into the local Las Vegas economy because of all the media that will be staged out there. That’s good news for the hotels and resorts—but it also dawned on me that it may be tougher to get a hotel room if the trial goes on for any length of time. That’s one more way the news impacts your business. Better tell your clients to start planning their trips to Sin City now. Ruthanne Terrero, CTC EDITORIAL DIRECTOR rterrero@questex.com Last week’s announcement by the Carnival Corporation of the elimination of commission payments for air on all Carnival family of cruise lines is very serious and has significant negative implications on our business. While cruise line air has seldom ever been competitive, it was a convenience, especially for non-ARC agencies like ours. If they believe they will increase their air bookings by eliminating commissions, they are wrong. Many of the old arguments for the advantages of booking cruise line air have evaporated over the past several years as evidenced by the number of passengers we have dealt with who have been left stranded or inconvenienced. We will endeavor to get the client the best price while still allowing us to produce revenue from the booking. The cruise lines will dream up every reason in the world why we should use theirs, but they are looking at onboard revenue, which is the bottom line. Over the past several years the travel industry has been in a state of turmoil. The air transportation system is irreparably broken and it is Letter to the Editor sheer arrogance that they believe travel agents should work for them for free. This is the fault of travel agents, because they accepted such a stupid system and decided to charge the customer a service fee instead. While the current trend indicates consumers are coming back to travel agents for more complicated bookings like cruises and tours, that does not mean we have to blindly accept the terms of vendors who do what is good for their business at the expense of our business. In the end, any business stays open because it is viable and profitable. When revenue cuts come, it obviously negatively affects our business. The cruise industry grew to where it is today on the backs of travel agents. They may ultimately kill the goose that laid the golden egg. Jerry Vaughn, President & CEO World Voyage Inc., Federal Way, WA 8 TravelAgent September 24, 2007

Table of Contents Feed for the Digital Edition of Travel Agent - September 24, 2007

Contents Editor's Letter News You Can Use Agenda: Fam Trips, Calendar of Events, Deal of the Week Cover Story - Down the Stretch: Ramping Up 2007 Sales Central & South America: Anthony’s Key Resort, Roatan, Honduras Florida: Hotel Packages for Cruise-Bound Travelers Cruises: A Tale of Two Lines Agent Exchange Classified Marketplace Luxury Travel Expo Update Advertisers’ Information People & Places

Travel Agent - September 24, 2007

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