These days, it is said over and over that a
travel agency, especially a small one, must have a niche to
survive.
But that just isn't
true. Travel Headquarters in Dubuque, Iowa, is proof. And it is far
from the only agency in this category.
Listen to the
agency's president and sales director, Ellen Lau. Her traditional,
full-service business "is fairly typical of this area," she said,
because of the size of the communities around her in northeast
Iowa. Her agency serves the Dubuque area (population: 240,000), a
radius of about 40 miles measured from the city center.
"The clients here
are in need of all types of travel service, so that's what we
provide," said Lau.
In these times, of
course, no agency has to be tethered to one place. Fully aware of
that, Lau nevertheless stayed with the traditional agency
model.
"If we were to
become a niche specialist, we would need to market to a very broad
area," she said. "That idea didn't appeal to me after having been
the victim of credit card fraud. In the end, it comes down to
knowing your customers."
Lau has made
important changes, though, to adjust to industry circumstances. No
matter her inclinations or the needs of a community, Lau needed
sufficient income and customers to support a business.
On the income side,
she was not unusual in introducing service fees with the first
airline commission caps over 10 years ago, then raising and adding
fees as airline pay dropped. Her clients acclimated.
As for bringing in
or keeping clients, Lau turned to group travel because she wanted
"to offer something unique."
She bought out a
competitor when the owner was retiring. The competitor had a group
department and a database worth paying for. Lau hired the group
tour specialist.
The hitch: She
concluded the purchase in October 2001. "People thought I was
crazy," Lau said.
Nevertheless, she
persevered, and groups rose from 3% of sales in 2000 to 30%
today.
She does not
specialize by destination or group type. Most often, her groups go
to the Caribbean or Mexico, but some go to Alaska, Europe or on a
cruise. Buyers are generally members of large organizations and
large extended families. Lau also works with the owner of a local
restaurant and bar who acts as a pied piper for groups.
What is hardest
about being a traditional agency is keeping up with technology and
the latest products offered by a variety of suppliers, she said.
But the easiest part is having all those products to offer
clients.
"We have something
for everyone," Lau said.
Travel Headquarters
employs four full-timers plus a part-time receptionist, and it
works with one independent contractor. The business mix is 30%
groups, 55% leisure and 15% corporate.
Lau took some
credit for success, but she shared it with others, especially her
sales team. For her part, Lau said she is not afraid to take risks,
bring in the experts when necessary and stay visible as a speaker
at local clubs. It helps to be managing and paying for only one
location, too, she said.
Lau said trade
affiliations and conferences have been very helpful, citing
membership in ASTA and the MAST Travel Network, a consortium of
agencies in the Midwest.
Lau was a member of
Travel Agency Management Solutions. Membership involved quarterly
meetings of groups of similar but noncompeting agencies. It
provided benchmarking opportunities and the chance to discuss
delicate business matters with confidentiality, she
said.
But Lau said she
dropped out after buying out a partner, finding herself more
pressed for time than ever. She compared the TAMS experience with
reporting to a board of directors. "It was a good experience, a way
to check up on oneself."
The good news: Less
time for other things means that business is good.
"Our way of doing
business works for us, and in today's environment I feel that
survival is success," Lau said. "It's a little like golf: You might
have an unorthodox swing, but if you get a good score, that's all
that matters."
Think you're a
good candidate for an upcoming Agent Life? Contact Nadine Godwin,
Agent Life editor, at [email protected], and please 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 New Year's
celebration in Austria
Ellen Lau of Travel Headquarters in
Dubuque, Iowa, created the following itinerary for clients
traveling to Austria for Vienna's New Year's
celebration.
Dec.
27
After arriving in
Salzburg, clients enjoy the genteel grandeur of the Hotel Goldner
Hirsch, which is across from Festival Hall. They stroll the narrow
streets of the old part of town and get a sense of
Salzburg.
Dec.
28
A guided walking
tour of Salzburg includes visits to Festival Hall, Hohensalzburg
Fortress, Mozart's birthplace, Mirabell Palace and other points of
interest. In the afternoon, clients enjoy a horse-drawn sleigh ride
in the mountains near Salzburg, stopping to visit the chapel in
Oberndorf where "Silent Night" was composed.
Dec. 29
A morning excursion
takes clients to the Salzhammergut area, where much of "The Sound
of Music" was filmed. After a three-and-a-half-hour train ride to
Vienna, clients check in at the Hotel Imperial, which is adjacent
to the Musikverein concert hall.
Dec.
30
Clients visit
Schonbrunn Palace, the enormous, 18th century summer home of the
Hapsburgs. In the afternoon, they go to Hofburg Palace for two
highlights: a performance by the Vienna Boys Choir and a visit to
the hall where the white Lipizzaner stallions of the famous Spanish
riding school are kept.
Dec.
31
In the morning,
clients walk the city center, taking in the magnificent St.
Stephen's Cathedral, the shops and, of course, pastry and coffee at
a cafe. In the afternoon, they get ready for the Imperial Ball in
the Great Hall of the Hofburg Palace, changing into formal attire
for an evening of champagne, dinner and waltzing.
Jan.
1
The piece de
resistance of the trip: the Vienna Philharmonic's New Year's Day
Concert in the Golden Hall of the Musikverein. This Strauss-fest
tradition began in 1939 and remains phenomenally popular today. The
concert, with its numerous waltzes and polkas, concludes with the
audience-pleasing "Radetzky March." Rivaling the music is the sheer
beauty of the Musikverein itself with its gold, crystal, frescoes
and flowers.
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 you've customized, e-mail to [email protected] with "Perfect Itinerary" in
the subject line.