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REALITY CHECK

The $100 relationship bond

October 12, 2009

Richard TurenAn ad pitching the services of a typical travel agent would be huge and predictable. This is what it would say:

"I am one of about a quarter million travel agents. I will sell you anything you would like, from a car rental in Brooklyn to a suite at the Plaza Athenee. I am bonded by CLIA, and I match any discounts you can find on the Internet, at Costco, the 3 a.m. ads on TV or at the agency just down the street.

"No appointment necessary. Just walk right into our office and feel free to learn whatever you can from my accumulated years of experience. If you are shy about working with an actual human being, go to our website, where we will do research on command and get back to you with quotes so you can compare how much we have rebated based on how hungry we are at the time of your inquiry.

"We sell all the airlines that are losing money, but if you want to book one of the profitable ones, you might have to do it online. I am more expensive for a lot of the stuff I do because I have to add fees to make up for the airline commission cuts. And by the way, since I work on commission, make sure you never speak to anyone else in our office. I hope you like our service."

But there is a new agency down the street that is doing business in a way I can hardly believe.

This agency accepts new clients exclusively by personal referral from existing clients. It accepts no walk-ins. It will also accept clients from any of the magazines newspapers that recommend its services. Many apparently do.

It has no signage. It is discreet. Its clients come from all over the U.S. and several countries abroad.

When potential clients call, they are asked to fill out a new client application, which runs five pages and requests information like:

  • Your favorite wine, cocktail or beverage.
  • Your favorite author.
  • Your current travel agent and length of the relationship.
  • What are three things we need to know about you?
  • How can we exceed your expectations?
  • What is your favorite retail store?
  • How would you feel about an 800-euro-per-night hotel room?

But here is the part that is most unusual: Every potential client who makes first contact with this agency is asked to pay an application fee of $100. That is the fee for a family. It is a one-time charge. If the agency feels that, based on the responses, the fit is not right, the $100 is immediately returned.

So here is this agency turning all the advice about booking fees, etc., on its head. Its clients actually have to pay for the privilege of becoming clients.

Some people are, of course, turned off by this approach. They say they can call any other travel agent in town and work with them for nothing. In fact, chances are they already have.

But think about the 75% who willingly fill out the form and pay the $100. Think about what that means in terms of a business model.

The agency down the street is working entirely with clients who have provided helpful information about themselves while "committing" financially to the agency. They have actually sat down and thought about what it might mean to forge a relationship with a new agency. They have committed both their time and a little bit of money.

The money will not be applied to a trip. It is not a deposit. It is a measure of worth. The agency is saying to the potential new client, "You know what? I am good at what I do. I have worth, and I don't spend time with those who will not show me the same respect they might show their physician or their attorney for a consultation."

When I heard about this, I thought the agency would be out of business before this got to print. But it turns out it has a waiting list. It is thriving.

Then I remembered reading in Forbes magazine that Bill Fischer of Fischer Travel in New York now charges clients an initiation fee of $50,000 plus an annual retainer of $10,000. His phone number is unlisted, which of course makes everybody want it.

The agency down the street feels that Bill Fischer is not 500 times better than it is. Besides, the principle is the same. The concept of exclusivity has worked well for Fischer Travel, and it looks like this new agency has copied aspects of his approach.

It has arranged its business model around the notion that its agents have worth, and it has put a small price on that worth so its services are not open to any tire kicker or price shopper. In fact, it has none of that.

It works with dedicated, friendly clients who are appreciative of the fact that they are able to work with a firm that feels that becoming a client and providing high levels of expertise is a privilege, not a travel right.

I spoke to the owner the other day and asked him what he felt was the best long-term result of this strange way of doing business.

He replied, "When the phone rings, we know it is someone we will enjoy talking with. You have no idea how much that changes everything."

Contributing editor Richard Turen owns Churchill and Turen, a vacation-planning firm that has been named to Conde Nast Traveler's list of the World's Top Travel Specialists since the list began. Contact him at rturen@travelweekly.com.

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#10October 29, 2009
When I call my attorney to ask a simple question he charges me $100. It's time travel agents stopped giving our services away for free.
#9October 18, 2009
The articles fail to mention that dealing with people, no matter as a travel agent or as a 911 dispatcher is that people, no matter how much money they have can be pricks. Out and out awful. So I don't believe this agency will get around that. I do like the concept in principal.
#8October 17, 2009
We've been doing this for years, and it works great. Not every traveler is our client. There are only certain clients that get past the red velvet rope. If they want in, they'll pay to get there.
#7October 16, 2009
This is a brilliant marketing idea and it truly appeals to me since I have a destination niche (Hawaii) and a target market (people wanting an upscale vacation to Hawaii). A membership based online travel agency for upscale Hawaii vacations For me, it would be It shows up front that the agency is a good one and that it takes pride in knowing it is a cut above the rest. It establishes trust by being exclusive. That makes it a very interesting agency, working only with approved clients, who have invested time and money in the relationship before asking for services. It states its worth unequivocally, by accepting only referrals and applicants; accepting only pre-qualified clients is a terrific business model and I'm seriously considering a similar change in my business. Christine Lutley, www.AffordableLuxuryHawaiiTravel.com
#6October 16, 2009
This is a concept that is not only successful, but necessary for professional travel agents to separate themselves as true consultants. Great article, especially regarding the types of questions on the application. P. Bernasse, French Wine Explorers
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