SAN FRANCISCO -- The Leisure Company, which recently announced an
extra 1% commission for electronic bookings, plans to expand
electronic distribution of its America West Vacations brand through
the CRSs in 1999.
The product line has been available through Worldspan/ Amadeus
Tour Source for some time. Due to limits of the Leisure Company's
in-house reservations system, travel agents have not been able to
modify reservations with date or hotel changes for America West
Vacations made through Tour Source.
But with the implementation of an enhanced reservations system
at the Leisure Company, change capability will be available on Tour
Source in the third quarter of the year, said Wendy Schoppert, vice
president of marketing and sales.
America West Vacations' Las Vegas product was scheduled to be
available on Sabre's TourGuide by June 1, with the rest of its
destination products available by the fourth quarter. The Las Vegas
product also is expected to be available on Apollo's LeisureShopper
by the end of the third quarter, with more products on
LeisureShopper at a later date, said Schoppert.
Another priority for 1999 is the growth of America West
Vacations offerings to Las Vegas, already the company's No. 1
destination. The emphasis this year will be on high-end properties,
increased air capacity and expanded marketing efforts, Schoppert
said.
To that end, the Mandalay Bay, the Venetian and the Paris hotels
have been added and published air fares are now available with
packages. "As Las Vegas becomes more upscale, it becomes a more
lucrative sale because the average package price goes up," she
said.
Eighty percent of the company's business is in Las Vegas, the
majority from long-haul origination points on the East Coast, she
said. In 1998, the Leisure Company, which also includes the
Destination Leisure and World Ski Travel Service brands, handled
400,000 passengers and generated $200 million in gross revenue.
Eighty percent of sales came through travel agencies.
As reported, the firm recently announced a commission structure
designed to reward agents selling any combination of the Leisure
Company's brands. Top-producing agencies meeting volume
requirements can earn up to 15% commissions when booking
electronically through the CRS and up to 14% when calling America
West Vacations directly to book its air-inclusive vacation
packages. Both levels will be available in 2000, based on 1999
total performance.
New tiers include a 13% commission when annual sales top
$100,000 and a 14% commission when sales exceed $250,000, with the
extra 1% for electronic bookings. Current tiers of 12% for sales of
$25,000 and up and 10% when sales are less than $25,000 remain in
place.
Tony Goodmann, director of sales, said the company wants to
reward agencies that "give us volume." He said the firm also will
focus on national travel agency accounts and consortia through
override agreements, enhanced sales and marketing relationships,
and product training initiatives this year.
Its current partners include Travelsavers, Space, Aura, Crown,
First Discount, Uniglobe and Empress. America West Holdings formed
the Leisure Company in January 1998, spinning off America West
Vacations into the new subsidiary.
Within a year, it developed an in-house sales force, expanded
its Mexico product line, took over the operation of World Ski
Travel Service, launched the Destination Leisure brand, added
Hawaii as a destination and joined the U.S. Tour Operators
Association.
The Leisure Company also began "vertical integration" -- the
expansion of the company into the retail arena. Last year, the
Leisure Company started FareBusters, an air-only consolidator that
does not pay agent commission.
It later acquired two retail agencies, the Vacation Store, a
direct-marketing agency specializing in cruises, and more recently
the National Leisure Group, which operates travel brands for bank
cards and Filene's department stores, among other ventures.