Anatomy of a package
A res agent at MLT Vacations' call center guides Travel Weekly's Mexico editor through the planning process for a four-night getaway for two on the Riviera Maya.
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The common bond linking Mainline Travel in 1969 and MLT Vacations in 2011 is Minnesota.
MLT's roots trace back 42 years to its beginnings as Mainline Travel, a retail agency in Minnetonka, eight miles west of Minneapolis.
Back then, the agency did a lot of business in air charters, especially to Las Vegas. MLT, which was launched as a wholesale division of Mainline Travel in 1974, was later sold to Northwest Airlines in 1985 and acquired by Delta when Delta and Northwest began merger talks in 2008.
Instead of dropping MLT, Delta turned over management of its own packaged vacations to the firm in 2009.
Although the business model has shifted radically, MLT Vacations now is in Edina, a bedroom community of Minneapolis, which serves as headquarters for half of its 600-plus employees. The other half are based out of the firm's call center in Minot, N.D., 500 miles to the northwest.
Today, MLT Vacations has a wide reach, encompassing more than 3,000 properties in 250 worldwide destinations (including 70 added in the past 18 months to support the route networks of its airline partners). It manages, markets and operates Delta Vacations, Continental Airlines Vacations, United Vacations and its own Worry-Free Vacations brand, which offers charter packages to Mexico and Jamaica.
Add to that specialty products, including group products, luxury, romance and destination weddings.
Today, its Mexico hotel product totals more than 250 properties, and its Caribbean inventory tops 330 among the three airline brands.
"We don't have any immediate plans to add more brands, but we continue to add value in so many ways," said Ken Pomerantz, MLT's president and chief marketing officer since 2006.
Pomerantz oversees marketing, product development, sales, distribution, e-commerce, human resources and creative services. He also shares the responsibility of running the company with CEO Larry Chestler.
Thus far on Pomerantz's watch, MLT added Continental Airlines Vacations in November 2008, Delta Vacations in July 2009 and United Vacations last January.
"The addition of United Vacations allows us the opportunity to grow in places like Chicago, Washington, Denver, San Francisco and Hawaii, where historically we have not had a very strong presence," he said.

Pomerantz expects dramatic growth in the United Vacations brand. "We're thrilled that MLT will play a key role in the new United-Continental to help optimize their package vacation revenue," he said. "It's great for our employees, our destination and hotel partners and our travel agent customers."
MLT's core destinations include Mexico, the Caribbean, the U.S., Canada, Europe and Latin America, according to Pomerantz.
"We sell air and hotel packages, air and car packages, hotel-only packages; we do not sell air-only," he said. "People are looking to stretch their vacation dollars. Vacation packages are really the best deal in the market."
New for MLT in Latin America are programs and hotel partners in Panama, Honduras, Guatemala, Belize, Costa Rica, Argentina and Brazil.
Europe, too, is expanding. "MLT is a player in Western Europe, especially with our city-stay programs," Pomerantz said.
Topping the best-seller list within MLT's global family on this side of the pond are Canada, Hawaii, Orlando, Las Vegas, Jamaica, the Dominican Republic and Mexico's resort areas.
"We've seen some softness in the Mexico market this year due to security concerns, although there have been no issues regarding security for our customers," Pomerantz said. "And we work hard to let our travel agents know this, in addition to offering some super promotions."
The Caribbean and Hawaii are showing a lot of strength, he said.
"MLT's expansion in the Caribbean in the past two years has been the largest in our history," he said. "We offer packages to more than 30 destinations with a very competitive hotel lineup, and our air access will allow us to continue a rapid growth trend in that region."
In fact, in 2010 MLT's Caribbean business grew by more than 50% in a year, a figure Pomerantz expects will increase as a result of adding United Vacations in January.
He acknowledged logistical problems within the Caribbean, however.
"Many of the islands have limited air service, which results in extended travel times or unwelcome travel schedules," Pomerantz said. "It's also inconvenient to get from island to island for those who want a multi-island experience."
Within the Delta Vacations and Continental Vacations brands are the specialized luxury and romance sub-brands, as well as destination wedding products in specific locations, all of which "broaden the appeal of our product line," Pomerantz said.
MLT works with more than 30,000 agents in the U.S. and Canada, who account for 80% of all its business. Agents book clients on MLT's agent-only booking website, WorldAgent Direct.
Agents attend MLT University, an annual three-day trade show and educational conference; participate in fam trips; and have access to sales tools, webinars, videos and 24 business development managers across the U.S.
"These sales teams call on agents all over the country, in storefronts and skyscrapers," Pomerantz said. "Hands-on, personalized service is critical, both for our agents and our customers."
He described the role played by agents as "critical."
"Business today is so complicated, and the agent has to qualify customers, determine their interests, encourage them to go to our website to view the packages and products and make it easy for them to decide on an itinerary, which agents help them build," he said.
MLT pays 5% commission on every airfare sold, offers a Travel Protection Plan and a TPP Plus plan, which guarantees that if an identical vacation package drops in price, the client gets the lower price.
Last December, MLT relaxed its payment and cancellation policies. Final payment now is due 31 days before departure instead of the previous 45, and a vacation purchase is nonrefundable three days prior to departure, instead of 10 days under the former policy.