Recent policy changes to a Sandals Resorts program that protects agent commissions when clients book a return trip during a vacation stay prompted an outcry of protest from a number of agents. Kevin Froemming, president of Unique Vacations, worldwide representative of Sandals and Beaches Resorts, discussed the program, the changes and the reasoning behind the new rules with Caribbean editor Gay Nagle Myers.
Q: Describe the program and the events leading up to the changes that took effect March 1.
A: The Soon Come Back (SCB) program was created five years ago when we realized that some of our guests wanted to rebook their next trip while still at the resort. We then set up a process so that the original booking agent would receive a commission on the future booking, even though it was made directly by the guest while at the resort. It is actually a very small percentage of our guests who make the booking while on property. Over the years, the operational and administrative details, costs and staff time associated with transferring bookings back to agents became real challenges. There also was a privacy issue involved, as well, because we had get permission from the guest before we could inform the agent. Sandals, like everyone else, is watching costs in these difficult economic times.
Q: How did the program change?
A: We're asking agents to preregister their original bookings on the Sandals travel agent portal (www.sandals.com/tas). SCB bookings can no longer be transferred to any other tour operator, and the commission is a straight 10% across the board for all SCB bookings.
Q: What's the uproar about?
A: Although the commission structure did not change for 98% of our 16,000-plus agent partners, it does affect the 80 members of the Chairman's Royal Club, our top producers, who could earn up to 16% on an SCB booking. That and the fact that agents must work with Unique Vacations on the SCB bookings and not other operators. Also, some agents apparently aren't happy that they have to contact their client and ask them to instruct Unique to transfer the booking to the agent. Any good agent will follow up with their client after a vacation anyway.
Q: Are you surprised by the reaction?
A: Yes, I am shocked. Everything we have done over the years has been to benefit and protect our agents and their commissions. Our two goals always have been and still remain to offer the best vacation product on the market and to protect it by investing in our travel agent partners through marketing support, educational and specialist programs, collateral materials and our Call to Action program. We are the only company offering the SCB program, and we are not cutting the program, nor are we cutting out our agents who support it. They continue to earn a commission, and they are critical partners in our distribution network.
Q: What is the next step?
A: Keeping our lines of communication open like we always have. We are flying down many of our top producers this week to Sandals Emerald Bay in Exuma, where we will sit down with them, walk them through the program and the changes and explain what we have done and why. We'll be there to listen to them, as well. We are not taking this lightly, and we want to be sure that everyone understands what we have done and why. We have no plans to further tweak this program, and we are counting on the support of our partners.
Follow Gay Nagle Myers on Twitter @gnmtravelweekly.