In with the old

There have been so many stories about travel agents working from virtual offices, but is the tide changing in favor of the traditional business model? Mike Putman, CEO of Putman Travel in Greenville, S.C., thinks so. In February, Putman acquired agencies in Hayesville, S.C., and Hiawassee, Ga. This summer, Putman opened five offices in South Carolina.

We have a big agency and enough volume that I can see shifts in the market, and, coupled with watching trade publications and attending conferences on e-commerce, I see consumers flocking back to brick-and-mortar agents, said Putman.

Putman said many consumers have become disenchanted with online travel companies. He said he saw it coming.

In 2001, Putman sold an online company he launched in 1995, 11thHour.com, to OneTravel. He decided to focus more on developing a high-service leisure business and less on corporate travel services. He encouraged agents to take on areas of expertise that could be developed into niches.

Because we had a large agency, we had the ability to define what each agents specialty was, Putman said. I dont just mean cruise agents, either, but agents who specialize in entry-level cruising while others focus on upscale cruising.

It was this level of expertise that Putman said consumers were missing in their quest to book their own vacations.

Conceding that the Internet is a pretty good tool for booking point-to-point airline tickets, Putman said vacations with multiple components are difficult for consumers to book themselves.

There is more to planning a vacation than booking airline tickets and hotel rooms, Putman said. Consumers want to know if the destination is safe, if they can drink the water, what they should wear and if they need a visa. And while that information is available in fragmented fashion online, there is no substitute for speaking to a real person with firsthand experience.

Consumers burned by inadequate customer support have discovered that its not an advantage to go it alone, Putman said, particularly when an airline cancels your flight and there are 200 people waiting in line with no one to call.

As to whether brick-and-mortar agents can offer the kind of flexibility online agencies can, Putman said, How many people are really planning their $6,000 vacation at 2 a.m.? The majority of brick-and-mortar agencies will set appointments for people who cant come in from 9 a.m. to 5 p.m.

Countering the argument that traditional agencies have to tack on service fees to cover overhead costs, he said, Brick-and-mortar agents deliver a higher-value vacation than the Internet, even when including service fees.

Putmans offices may be traditional, but that doesnt mean all of his agents work there. Eighteen of Putmans 45 agents work from home, enabling the company to more easily expand its geographic reach, he said.

Putmans Web site does have a booking engine for do-it-yourselfers.

The difference is that our online booking feature is backed by a human being who works in a brick-and-mortar agency, he said.

Putman said having a good Web site is key for any successful agency, and for some, its a hurdle they have to get over.

The trick, he said, is to move beyond a static site that is essentially nothing more than an electronic brochure.

But zeroing in on good service is most important.

I think there will be a lot of opportunities on the horizon for brick-and-mortar agencies. I think they should hold their head up, stay focused and not be afraid to charge to do the work, Putman said.

Think youre a good candidate for an upcoming Agent Life? Contact Felicity Long, Agent Life editor, at [email protected]. Include your agency name, agency location, telephone number and e-mail address in the message and put Agent Life in the subject line.

Perfect Itinerary

A private jet tour across Asia

Tony Poe, director of marketing for Poe Travel in Little Rock, Ark., is a fan of the Design Your Day feature built into Abercrombie & Kents private jet journeys. The feature enables clients to customize portions of their trip according to their interests, said Poe. He shares this five-day portion of a Nine World Wonders by Private Jet itinerary below.

Day 1

After their first day taking in the breathtaking temple ruins of Angkor in Cambodia, travelers take a helicopter safari over dense forests to Beng Mealea Temple, far off the beaten track. This magnificent temple is rarely visited by Westerners. The group returns in the evening for cocktails and dinner with Nhean Samban, a survivor of the bloody Khmer Rouge regime in Cambodia in the late 1970s. Dinner is poolside at Raffles Grand Hotel dAngkor or the Foreign Correspondents Club. Travelers stay at Raffles Grand Hotel dAngkor.

Day 2 

The group stops in Yangon, the capital of Myanmar, for a visit to the dazzling, gold-covered Swedagon Pagoda. After lunch at the Strand, a luxury hotel, the group flies to Jodhpur, India, to check in at the Taj Umaid Bhawan Palace. Travelers enjoy cocktails with conservationist and author Divyabhanusinh Chavda. Travelers spend the night at the Taj Umaid Bhawan Palace.

Day 3

Travelers take a morning Jeep safari through Bishnoi villages for an up-close look at Bishnoi culture, which is based upon conservation. They eat lunch with the local ruling family at Rohat, which was once a fort but is now a hotel. Back at Jodhpur, the group takes a drive in one of the maharajahs vintage cars before dinner on the ramparts of Mehrangahr Fort. Travelers stay at the Taj Umaid Bhawan Palace.

Day 4

Travelers start the day with a short flight to Agra for a visit to the Taj Mahal. That afternoon, the group flies to Dubai and checks into the Dubai Park Hyatt. They eat dinner at ARukn at the Madinat Jumeirah. 

Day 5

Travelers visit one of Dubais premier stables for thoroughbred race horses. Then they embark on an A&K private dinner cruise on Dubai Creek. They spend the night at the Dubai Park Hyatt.

The Perfect Itinerary is an example of an itinerary an agent crafted his or herself, not available anywhere else, but can be duplicated by other agents to sell to their clients. To send an example of an itinerary youve customized, e-mail to [email protected] with Perfect Itinerary in the subject line.

Hand In Hand

Spain looks to Virtuoso to draw upscale travelers

What better way to draw more upscale visitors to a destination than to sell Virtuoso travel agents on the concept? With that in mind, the Tourist Office of Spain has teamed up with Virtuoso to create a training program designed to promote Spain as one of Virtuosos preferred destinations.

Last year we welcomed over 53 million visitors, with the majority coming from the U.K. and Germany, said Javier Pinanes, director of the Tourist Office of Spain in New York. We are committed to increasing the number of American visitors, and now with Virtuoso and its upscale clientele, we will have a highly qualified team of travel professionals equipped with the knowledge and tools to sell Spain effectively.

The Destination Local Business Development program will include customized marketing plans for each agent specialist, dedicated e-marketing campaigns, online destination-training seminars and educational trips to Spain.

Other features are the certification of Virtuoso agents as Spain specialists, exclusive travel offers in Spain for Virtuoso clients, Web sites and brochures dedicated to Spain and an ad campaign in Virtuosos publications.

I am thrilled to be a part of this, said Jessica Griscavage, a leisure travel consultant at McCabe Bremer Travel in McLean, Va. Already a Spain enthusiast, Griscavage said the Virtuoso program will give her a better framework through which to share her love of the destination.

With our Virtuoso partners we are able to provide customized FIT travel as well as pre- and post- cruise opportunities, Griscavage said. I just came back from Seville with a deeper passion and better appreciation for travel opportunities there.

The Tourist Office of Spain will take part in Virtuoso meetings and events. Virtuosos preferred suppliers in Spain -- including hotels, resorts, tour operators, cruise lines, transportation companies and ground operators -- are eligible to participate in promotions.

Hand in Hand highlights successful examples of agents and suppliers working together. Send suggestions to [email protected] with Hand in Hand in the subject line.

Daltons Corner

Agencies should be sick of losing by now

By John Dalton

This has been quite a year for the travel agency community.  Sales are up in almost every category. Suppliers are relying heavily on agents, and they are coming through with outstanding results. Travel agencies are once again proving that they are the most effective sales group in the travel industry. Nowhere is this more apparent than with the airlines.

For the first half of this year, ARC numbers reveal one of the most successful stories in aviation history. Total year-to-date sales are $41.6 billion. Thats 13% ahead of last year, and it is on an all-time record pace.

What makes it more impressive is that during June, the total agency locations were down 5%, yet agencies produced 22% more sales than June 2005. 

One would think the airlines would be elated with travel agency performance, thanking them for their support by telling the public that agencies are the driving force behind their return to profitability.

Carriers should be participating in joint agency-airline strategies to reach additional passengers. 

But how did they reward the agency community? By telling them they are too expensive as a distribution network. How can agents be considered too expensive after the airlines dictated that agents would no longer be paid commissions? How many retailers, in any industry, sell competing companies products for no compensation?

The airlines eliminated commissions, and agencies accepted it. The airlines knew agencies would continue to sell them even if they were not paid commissions.  With sales on a record pace, it proves that they were right.

This time, the reward for agency support is to inform them they will have to pay the airlines to sell seats if they use nonpreferred GDS programs. If agencies obey, they will be given all fares to sell. If they dont, airlines will put them at a competitive disadvantage.

The airlines pressured the GDSs to the extent that the GDSs, too, betrayed their best-performing group. Does anyone in their wildest dreams believe that airlines provide the majority of segments that drive GDS revenue?  Agents are the backbone of the GDSs, and the GDSs know it. Yet they turned their backs on agencies and threw their support to the airlines. GDSs have reduced agencies compensation after the airlines pressured them. Nice guys.

Its the same old story. Airlines win. Travel agencies lose. Over the years, the scoreboard always seems to show the same results.

The initiatives and strategies are always generated by airlines. Can you recall when agents presented a strategy to the airlines, and they had no choice but to accept it?

Add the GDSs to the list, and perhaps it is time for the agency community to think about winning for once.

Agencies deserve a hell of a lot more respect for their performance. Agency leadership has produced better financial results than airline executives have. And when it comes to customer service, sales and marketing, airlines have a lot to learn from agencies. Yet agencies allow the airlines to call the shots.

Its time for agencies, franchises, consortia, host agencies and associations to plan and execute what is best for their customers and themselves. There is a lot more than commissions and technology that is required for the agency community to get the recognition and cooperation they need to unite the industry.

The airlines have proven they are not interested in uniting the industry. Their basic strategy is to divide the agency community.

Upon signing the Declaration of Independence, Benjamin Franklin said, We must, indeed, all hang together or most assuredly we shall all hang separately.

Sounds like a winning travel agency strategy to me.    

John Dalton is an industry consultant, trainer and speaker. He can be reached at (336) 431-1596 or by e-mail at [email protected].

Five Things

Making the most of the slow summer season

1. Encourage your employees to regard summer as the best time to prospect, said Steve Johnson, author of Selling Is Everyones Business: What It Takes to Create a Great Salesperson. He also is co-author of the Amazon.com and Los Angeles Times bestseller If Youre Not Out Selling, Youre Being Out Sold. The people who are in the office when everyone else is out tend to be the ones who have to make things happen, Johnson said. Summertime can be an ideal time to cut through bureaucracy and deal directly with the decision-maker at the company youre interested in working with.

2. Urge staff to work smarter so they can take advantage of the summer weather. Let agents take off early one afternoon, and have them come in early to make up the time. Its amazing how much gets accomplished when people really focus on their work, and those quiet, early-morning hours are usually highly productive ones, Johnson said.

3. Give your employees days off when theyve earned them. Even if you do this only on rare occasions, its a gesture that packs a big wallop, Johnson said. Unexpected time off can be a highly effective motivational tool as well as a thank you for a job well done, Johnson said.

4. For short bursts of motivation, create summer promotions. Contests are tried-and-true motivational tools, but they seem to be especially effective in the summer when people are naturally focused on having fun, said Johnson. Encourage staff to meet a particular goal in return for a three-day weekend, a cash incentive or a family cruise.

5. Remember that creating true motivation is a long-term process. Work all year to instill good sales habits in your people, Johnson said, and ensure that your staff are developing and perfecting the right sales habits. For example, regular goal-setting meetings serve to review performance and commit to a game plan, he said. If you are doing your job right, your people wont slack off during the summer in the first place. Theyll have an innate sense of motivation that knows no season, said Johnson.