Travel Agent - December 8, 2008 - (Page 77)

NEWS IMPACT Celebrity Solstice Hosts Forum for Economic Discussion INDUSTRY EXPERTS ARE HOPING THIS YEAR’S PEAK WAVE SEASON—starting this month and extending into the first quarter of 2009—is more than just a ripple. In a frank discussion between senior executives and agents onboard the new Celebrity Solstice last month, Dwain Wall, senior vice president and general manager, CruiseOne and Cruises Inc., asked the question all agents wanted to know: “What are you projecting for the near term in terms of sales— increases or decreases—and what is your feel [about the industry’s market conditions]?” “I wish I knew,” replied Richard Fain, chairman and CEO, Royal Caribbean Cruises Ltd. “We’ve seen this before in our industry. Any cruise-business person knows there are going to be better times and worse times. But it’s clear that this is ‘more worse’ than most of us expected in general.” At this point, everyone is still assessing the way the market is adapting and any trends or patterns, Fain noted. “Past experience has shown us that we do find out difficulties. One agent told Travel Agent that his business was off 40 percent, and he anticipated another round of agency layoffs in early December, but that he was determined to keep promoting and selling. Separately, Don Gleason, vice president of travel, AAA Arizona, said his group was using this slower sales time for creating an aggressive three-year plan; AAA Arizona is thus hiring salespeople, reinvesting in training and doing a major CRM initiative. With 78 percent of his agency group’s revenue originating from cruises and tours, Gleason asked the executives what they saw in the crystal ball for commissions. Three years out is tough to predict, noted Dan Hanrahan, president and CEO, Celebrity and Azamara Cruises, “but I can tell you that our commitment to travel agencies and to paying strong commission isn’t changing. There’s nothing on our drawing board that says we’ll have a different go-to market strategy in 2011 or 2012.” He said more than 90 percent of Celebrity’s business comes from travel agents, and “I just can’t see ABOVE RIGHT: Dan Hanrahan, president and CEO, Celebrity and Azamara Cruises, is joined by Dondra Ritzenthaler, senior VP of sales, for a Q&A session THIS PHOTO: Celebrity Solstice hosted the conference of cruise industry experts CRUISES SUSAN J. YOUNG what the new pattern is, we adjust to the new pattern and we move forward,” he said, pointing to the cruising value proposition as a strong tool to help the industry weather the storm. He urged people not to point to a bad economic situation as an excuse for failure. “The real tough [people] will go out, beat the pavement, understand the pattern, understand what ‘more’ is or what ‘different’ is that people want and cater to that, and then we will come through on the other side better than ever,” Fain said. Agents present in the audience said they were determined to succeed, despite sizable market that changing.” Putting it another way, Fain emphasized that “it won’t help us if the ranks of the travel agency community are decimated. We need you today. You all know we need you more today than we did three months ago. But we still will need you to be there in prosperous [times].” Fain stressed: “But neither of us [cruise lines or agents] can look at the other one and say, ‘the other one is going to fix it for us.’ It’s not going to help us if our solution to our problem…is to take it out of the hide of the travel agents, because we need the travel agents to be there for our growth, for our future.” By the same token, Fain said agents shouldn’t say the solution is higher commission, as that could, in turn, harm the cruise lines. “We are both going to suffer,” Fain acknowledged. “What we need to do collectively is to find ways to mitigate that [on both ends through cooperation].” —SUSAN J. YOUNG CONNECTING YOU For the latest in news, events and improvements in the cruise industry, visit www.travelagentcentral.com/cruises December 8, 2008 TravelAgent | 77 http://www.travelagentcentral.com/cruises

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Travel Agent - December 8, 2008 Reality Check On the Web Contents Contributors From the Editor Europe: Scotland Begins a Yearlong Heritage Celebration Pacific/Asia: Singapore’s Hotel Scene is Vibrant, Inventive and Luxe Egypt: Building Tourism was the Key Topic at the ATS Fall Conference in Cairo Hawaii: Oahu’s North Shore has a Gentle, Laid-Back Ambiance Special Insert: US Airways Vacations—Universal Orlando Master Specialist Canada: The Hotel Le St-James Offers a Taste of Elegance Las Vegas: Sin City May Not See Deals this Good for a Long Time Florida: The Eden Roc Hotel Re-Emerges after a Major Overhaul Central & South America: Chile is an Emerging Hot Spot Caribbean, The Bahamas & Bermuda: Barbados Hotel Undergoes Major Renovation A Jamaica Tourism Official Shares the Island’s Plans Two Little-Known Caribbean Properties are Worth a Look Cruises: 10 Reasons to Love the Ruby Princess Cover Story: Religious Tourism - Faith-Based Vacations are a Growing Niche, and Are Taking Off in Surprising Ways Delta Takes Off: The Delta/Northwest Merger canReshape the Aviation Industry Tours: Traveling in Style with NWA WorldVacations Agent Profile: This Full-Service Agency Turns personalized Service into an Art New Web Trends: Services Aim to Increase Agent Sales Agenda: Fam Trips, Deals & Incentives, Calendar Celebrity Solstice Hosts Forum for Economic Discussion Cap Juluca to Reopen in Anguilla Hawaii Seeks New Tourism Angles IWV: Scam or Opportunity? In the Spotlight Agent Access Classified Marketplace Editorial Index Advertising Index Special Supplement: South Africa: Your Journey Begins Here

Travel Agent - December 8, 2008

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