ARC this month rolled out a Web-based
system, ARC MarketPlace, that enables ARC agencies to book and earn
commissions on nonair products not generally found in GDSs. ARC
also plans to create an accreditation program for agencies that
don't sell air. Nadine Godwin, Travel Weekly's editor at large,
discussed these moves with Lauri Reishus, ARC's general manager,
industry products and services.
Q:
Why would an agent want ARC MarketPlace?
A:
From research, we know consumers rate what they did on vacation as
more important than the car, hotel or airline they used. Also, we
found the trend of shorter vacations. [As a result,] consumers
don't want to spend their [time] determining what to do, so
planning ahead is more important.
With MarketPlace,
agents can help with the planning, offer more value and get paid.
This got a lot of excitement from agents. It's also one-stop
shopping.
Q:
Why from ARC?
A:
Agents can earn more through the ARC-negotiated commissions, and
the fact commission payments will come through IAR [ARC's reporting
system] is unique.
Q:
What is the value of MarketPlace to the suppliers?
A:
This is especially important to sellers of destination activities.
They are dying for agents to distribute their products. There was a
period when they thought they could direct agents to their Web
sites, but they found it expensive to get the attention of the
agency community.
So, they like being
at the site where they can be in front of agents' eyes even when
the agents come to the site to book something else.
Q:
One of your colleagues said this program is expected to drive
home-based agents to ARC's door. How is that?
A:
We have a commitment to launch a secondary accreditation program
for agencies that don't sell air, [tentatively] called travel
service provider.
Q:
What criteria are you considering for the new category?
A:
Perhaps a background check; a financial instrument; productivity
requirements because suppliers don't want to pay for one-off sales.
They want to see some level of collective volume.
We have had success
on the air side in ensuring that agencies are trustworthy and
viable, and we want to do this for nonair sellers.
Q:
Agencies with the IATA-issued travel services intermediary number
have satisfied some standards. Can TSI agents use
MarketPlace?
A:
No. ARC MarketPlace is an ARC product exclusive to the
ARC-accredited travel professional.
Q:
Some agents are unhappy that IATA issues numeric codes and ID cards
to agents who do not sell air. Critics say an airline-owned group should not set standards for
those who don't sell air. Do you expect similar
criticism?
A:
I don't anticipate criticism. I am confident it will be
well-received. A good, vibrant travel agency community is good for
the airlines, so we want to offer agents other goods and services
to help them grow.
Q:
What about ARC's involvement in accrediting nonair
sellers?
A:
Agents have been asking for a level of accreditation to allow them
to keep an ARC number even if they decide not to sell air. It is
the gold standard [among agent identifiers], and they can be easily
identified by nonair suppliers. Having more agents in the ARC
family is good for ARC and the community at large.
To
contact the reporter who wrote this article, send e-mail to Nadine
Godwin at [email protected].