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Agents advised to tighten belts and attack

December 18, 2008

Michael Batt didn't mince words at Travel Weekly's Preview 2009 Virtual Summit. When demand slows, there's only one way to grow -- steal business from your competitors.

Hotels will go after competitors' customers in response to declining occupancy, and travel agencies need to apply the same principle, said Batt, chairman of Travel Acquisitions Group, parent of the Travel Leaders travel agency franchise (formerly Carlson Wagonlit Travel Associates).

Batt was a panelist at a Virtual Summit session titled "Industry CEOs Predict 2009 Trends."

"You should be planning to find ways to grow, even if it's very difficult," advised Batt. "There will be winners and losers created by this environment. The business is out there. You're going to have to steal it."

Even if travel agents do a good job getting new business in 2009, they should still count on a 20% decrease in revenue -- at minimum -- in 2009. Agencies need to cut costs accordingly, if they haven't done so already.

He suggested that agencies should cut pay instead of eliminating jobs wherever possible, saying that this is "a time to protect jobs rather than salary levels." Batt also encouraged agency owners to promise a restoration of cuts if revenue exceeds the forecasted figure.

Regarding supplier dealings, Batt advised agents to "be aware of the power you have to direct business to the suppliers who support you." Demand is precious during difficult times, explained Batt, and agents "must understand the power of having that demand and distributing that demand."

If agents apply that advice to supplier relations, their "business will be a lot better for it" when the recession ends, he said.

 

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