Less is more

"I knew from day one that making money on an airline ticket was not the way to go," said Millicent Kaufman, president and owner of a boutique travel agency called KL Travel Inc. in Scarsdale, N.Y.

This insight was particularly notable considering that Kaufman -- as she cheerfully admits herself -- knew next to nothing about being an agent when she decided to take the plunge into the business.

"I didn't even know how to do an ARC report," she said, when she started out 10 years ago.

So how did this self-described "one of the last" small, independently owned agencies in New York thrive when others fell by the wayside?

In a word -- downsizing. And we're not just talking about company size, either, Kaufman was quick to point out, although trimming her roster of outside agents was one step she took some years ago in the wake of the first airline commission cuts.

To Kaufman, downsizing was appropriate to every aspect of her business as she made a conscious decision to stay small and focused.

Her first goal was to find one perfect employee -- in her case, a part-timer with children whose occasional family-related absences Kaufman gladly overlooks in return for high-quality work.

Her second was to examine her client base.

"I have always felt that diversity is very important and that you can't rely on one corporate client or one product," Kaufman said.

With that in mind, she now keeps her business at a 50-50 leisure/corporate split, she charges fees and she is selective about her suppliers.

Her consultation fees help her weed out the serious clients from the shoppers, but, surprisingly, she doesn't turn away clients with frequent flyer miles.

"I say 'great' to people who have [free tickets] because I know they will spend more money on land arrangements," she said.

Kaufman said that thinking small has been a lifesaver in this tumultuous business climate.

"Being a small-business owner allows me to be creative and flexible and indulge my interests -- something I could never do in a large corporation," she said.

While discussions in the industry center around the proper application of service fees, another initial fee concept is becoming popular among retailers: the PTT, or "plan to travel" fee.

Here's how it works. Agencies that specialize in personalized travel planning charge the PTT, which is paid up front before substantive discussion of a trip begins.

The agent explains that this is not an additional charge but a deposit that will be credited toward the final cost of the trip. Agents have the leeway to waive the charge in cases where it might thwart a high-quality new prospect.

The most common charge seems to be $50 per couple. But the amount seems less important than the commitment implied by an up-front financial agreement.

In effect, the trained agent is saying, "Your doctor, lawyer and accountant do not let you waste their time -- and neither will I."

Clients who were already booked with another agency, shoppers who explain that "the other five agencies I talked to didn't charge me anything" or folks who are really interested in "traveling in 2006" are all dissuaded by the specter of a PTT. Good riddance.

Richard Turen is an industry consultant and travel agency president.

Contact him at[email protected].