Agents on the Couch

Having endured two major pay cuts in three years and the uncertainty of waiting for another one, travel retailers are angry, unhappy and nervous right now -- just ripe for some time on the therapist's couch.

In the name of agents everywhere, we made an appointment with Manhattan-based psychologist Jerry Croghan, Ph.D. Here's his prescription for the collective agent psyche:

Relax, No Pretzels

Learning to relax and put your work behind you at the end of the day is a key factor in psychological health, according to Travel Weekly's checkup with therapist Dr. Croghan.

The book "Relax and Renew" can help you achieve this goal. It's billed as a guidebook to "restful yoga poses," but don't let the word yoga, with its images of pretzeled limbs, scare you off. The poses are mostly as simple as lying down on the floor, supported by pillows. "When practiced regularly, they will help you to heal the effects of chronic stress in as little as five minutes a day," writes author Judith Lasater. "Think of them as taking a short holiday right in your bedroom or living room." The book is published by Romdell Press and costs $21.95.

Group Therapy

One of the best ways for agents to gain a sense of control these days is to network with their peers. That's what 10 Massachusetts-based agents do each month, calling their meetings "group therapy," according to Ginny Nissenbaum, president of Boston-based Touraine Travel and Cruises. "We meet for support rather than political action," she said.

Members of the group first connected when they were all agents with the consortium Valu Travel Marketing, "and we really hit it off," said Nissenbaum. When Valu was bought by Empress Travel, most of the group left the consortium but kept in touch.

Members share industry gossip as well as tips -- for example, a good article to reprint in their respective client newsletters. Lately they've been making field trips to each other's agencies to compare office procedures. Members of the group are not close enough to one another geographically to be direct competitors, except for two, who have learned to work it out between themselves.

Swapping ideas has helped them replace a sense of passivity with one of purpose. "We're more interested in pursuing ways to change our businesses than in waiting for [the airlines] to do something else to us," said Nissenbaum. "It's nice to talk to somebody in the same position who's not going to lie to you. When you ask [a group member] 'are you slow this week?' they'll feel comfortable enough to say 'yes.' We're all in it together."

Take Control, Use Consolidators

Want to cut down on your dependence on the major carriers and make a decent profit while selling air? Work with consolidators.

If you've been avoiding these companies because you're afraid of their fly-by-night reputation, it's time to relax, said Gary Schmidt, author and publisher of the "Index to Air Travel Consolidators," now available in its eighth edition. "Consolidators appear to be more financially stable than many may expect," he said. Seventy-two percent of the 180 firms listed in the book have been in business 10 or more years, and nearly half of the consolidators profiled reported annual sales of over $10 million. The book is priced at $43.25 and is available by calling (800) 241-9299.

It pays to do some homework before trying to develop a relationship with a consolidator. Schmidt's book provides a useful first reference on any firm you're considering, since it includes travel agent ratings on each consolidator, including information on which companies have received many travel agent complaints. The book also cross-references companies by destination so you can broaden your base by working with some consolidators that handle domestic as well as international bookings.

Also, ask the consolidator for the names of several of its best clients who are retail agents and call them for a reference, suggested Susan Tanzman, owner of Los Angeles-based Martin's Travel & Tours. She'd also check with ASTA to see if there have been any complaints filed against the company. A change of ownership in the past three years is another red flag, she noted.

Tanzman would also see whether the company is an operator or an agent. "I'd feel better if it was a tour operator, since as a retail agent it wouldn't have the same insurance or protection as would be required of a tour operator," she noted.

There is lots of speculation about what's happening next on the airline commission front. In a survey on Crossroads nearly 90% of more than 400 agents responding expected another pay cut.

Doris Davidoff, vice president of Belair Travel in Bowie, Md., for one, predicted a more variable structure, where "if you sell well below market share, you're going to get 4%. If you sell more, the airlines are going to work with you [and pay more]."

After commission cuts come net fares, the end of all commissions -- which some agents said they'd welcome. Lucy Hirleman, owner of Berkshire Travel, Newfoundland, N.J., thinks that net fares would mean some agencies would be given discounted deals they could mark up.

Others believe leisure net fares would work but only for large agencies that could buy in bulk. "I think airlines wouldn't be interested in doing it unless they had fairly large transactions," said Roger Block, executive vice president of the associate program at Carlson Wagonlit. "We've had offers of bulk purchases that involved net fares for a number of years off and on," said John Noble, chairman of Minneapolis-based Northwestern Travel Management."The trend is going that way, and I think you'll see more of it. How far it filters down [to smaller agencies], I don't know."

Both Block and Noble cited the recent reports of an upcoming Amexco-Continental bulk fare deal as evidence of this trend. But Noble doesn't think leisure net fares are coming soon. "There are too many things going on in Washington with the airlines, and the worst move they could make right now would be to fool around with compensation," he said.

The Net Net

Though agents disagree about whether net fares are coming or not, there is one area where net deals are alive and well: airline consolidators. Many consolidators sell discounted tickets to agents on a net basis; agents mark the price up to consumers. This is a fact that some agents seem blissfully unaware of, judging by several who recently complained about not getting commissions from consolidators.

"Don't assume everyone pays commission," said Doris Davidoff, industry educator and vice president of Belair Travel in Bowie, Md. So although most consolidators may not think to mention how they pay agents, that's one of the most important questions to ask during a preliminary phone call, Davidoff said. Payment methods for different consolidators also are listed in the book "Index to Air Travel Consolidators." Call (800) 241-9299.