Arlington, Texas, is often referred to as a suburb of Dallas, but
with about 320,000 residents represented by some 60 travel
agencies, locals think of it as a city unto itself.
So what's the best way to stand out from the competition in this
thriving area? According to Jim Orr, co-president of Cooper Travel
and Cruises along with his wife Kay, it's a question of combining
forces.
The two are co-presidents of the Tarrant Travel Alliance, named
after their county, which brings competing agencies together to
pool resources and ideas.
The by-invitation-only association began with about 40 members,
Orr said, but has been whittled down to nine handpicked
members.
"We have meetings five or six times a year to talk about issues
and find ways we can cooperate with each other for the betterment
of all the members," he said.
One venture is an annual vacation and cruise show that typically
draws 900 to 1,000 people, he said.
This year, the event will include a bridal show, offered in
cooperation with a wedding and honeymoon group, Orr said.
The show will be held at the Arlington Convention Center and
will feature representatives from major cruise lines, tour
operators and hotels, said Orr.
In addition to regular meetings, the group convenes when a
particular issue arises, he said, such as the most recent round of
commission caps.
"Within a few weeks of the [institution of the] caps, Orr and
other group members contacted industry guru Robert Joselyn to
arrange a discussion on charging service fees.
Orr worked with ASTA and ARTA to get permission to broadcast
e-mail notification of the event, and the three-hour conference was
well attended.
The group charged about $10 per person to attend, which helped
cover expenses.
Other cooperative ventures include splitting the costs of ads in
local newspapers and special promotions offered in conjunction with
suppliers, Orr said.
Overall, the strategy is working, Orr said, noting that his
agency has cut its percentage of airline ticket sales from 70% to
30% of its overall business in recent years, while growing in
volume with the addition of group and tour business.
... Join them
Members of the Tarrant Travel Alliance, based in Arlington,
Texas, may be doing well by working together, but what is it doing
to stay one step ahead of the competition?
One of the strategies the group employs is to make sure members
are spread out geographically; at least 10 miles apart, according
to co-president Jim Orr.
"We won't pick [an agency] that is in someone else's backyard or
that is in direct competition with another agency," Orr said.
To keep the group focused, it is important that members have
similar markets -- in this case, leisure rather than corporate --
but each of the nine agencies has its own specialties.
One does church business, for example, while another sells
special vacation packages to airline employees, he said, adding
that an agency with a large cruise volume helps boost cruise line
participation at the annual show.
"One member may only get 10% from a particular supplier, so we
may book a package with a member that gets a higher commission," he
said.
"Our group has enough buying power that our cruise show is
cosponsored by the largest newspaper here, and a radio station
sponsors us with live broadcast," he said.
In each case, the goal is to play to the strengths of each
member, Orr said.
So what stops other agencies from trying this type of
cooperative venture?
"We know of other people who have tried this in other cities,
but there was no homogeneous spirit, and it didn't work," Orr
said.
"In our case, we are all friends and there is trust."
Security measures
This, as the waiter announcing the liver and onions special used
to say, isn't for everyone.
There is a niche that has not yet been filled. I have a feeling
that some day, someone will do it, so let's just call this an idea
to put on the back burner. Far on the back burner.
The world is becoming an increasingly dangerous place.
There are stories of pickpockets who can take your pants off
without you knowing it while you're walking down Rome's Via
Veneto.
The State
Department issues warnings that scare the heck out of travelers
without pointing out that the crime rate in our own hometown is 10
times worse then the place we're planning to visit.
Most consumers don't realize that statistically, the most
dangerous part of their trip is the ride to the airport.
So, I wonder, when will some operator announce that its tours
will be accompanied by security personnel?
I'd love to see some small operator try this, because I suspect
that there is a market for tours that provide more than the usual
security.
You could, of course, try this on a small scale by doing a
single departure and hiring a police official or former FBI agent
to accompany the group.
The bodyguard might simply walk behind the group on the alert
for pickpockets and thieves or accompany group members who venture
out at night in major cities abroad. The guard wouldn't carry a
weapon -- just add a certain presence.
There are legal implications, of course. Which is why, I
suspect, no one has done it.
But ask yourself: If one of your older clients is traveling to
the Holy Land and two tours were identical but one provided a U.S.
security guard, which tour do you think your client would
select?
Am I ever going to do this? Never. When it becomes necessary to
send a bodyguard on a trip, I will seriously think about another
line of work.
Richard Turen is an industry consultant and travel agency
president. Contact him at [email protected].