With the news last week that Gogo Vacations is launching a consortia-style, fee-based membership program, Gogo Travel Partner Solutions (TPS), Senior Editor Michelle Baran touched base with the program's new director, Jim Tedesco, to discuss why the company feels it's worthwhile for agents to dole out a few hundred dollars a year for access to Gogo TPS marketing materials, training and support.
Q: How does Gogo TPS differ from the fee-based agent support models that consortia and host agencies employ?
A: There are a number of facets of the TPS program that differentiate us. The most significant is that there are no commission changes for TPS members. Members will continue to receive the commission tier set forth by their production level with Gogo or through their consortia contract. In essence, this is an all-inclusive co-op program; membership enables agents to get a value-added set of benefits instead of purchasing one-off opportunities throughout the course of the year. One of the added benefits is the additional training opportunities that we know our agents are looking for.
Q: Did you get feedback from consortia partners about the program? How did they respond?
A: We spoke to each of our preferred consortia partners to gather feedback. We implemented a number of the suggestions and adapted the program throughout the development phases before we brought TPS to completion and announced its launch. ... It was very important for us to consult with our consortia partners; they remain an integral part of our business model, and we are steadfast in supporting these relationships. TPS is a complement to the great support that many agencies receive from consortia partners; it provides supplemental training and marketing programs to dovetail with what they are already receiving.
Q: Why does Gogo think that agents will pay these fees in addition to many of their other existing business expenses?
A: The agents who are looking for more training, looking for enhanced ways and strategies to market themselves, will see the value in the TPS program. The annual fee will be more than covered by the growth in their business if they implement the tools and take advantage of all of the educational benefits and training that are designed to help them increase revenue. For agencies who were investing in our co-op programs, this is actually bringing them savings and added benefits; they are spending less and getting more. When looking at the investment vs. the overall value, TPS members are receiving a greater co-op percentage with this program.
Q: Will nonmember agents be able to still effectively sell Gogo in comparison with their member counterparts?
A: Absolutely. No program is designed to be one-size-fits-all; there are some agents who do an amazing job with their own marketing and keeping up with the industry who may not need to join. We will still offer co-op on a number of marketing opportunities that an agency wants to partner with us on.
Q: What is the advantage for Gogo in launching this program? Greater agent loyalty? Greater revenue?
A: We built this program with strengthening our travel agent relationships in mind, coupled with helping to increase their customer loyalty and, in turn, grow revenue.
Follow Michelle Baran on Twitter @mbtravelweekly.