FORT LAUDERDALE, Fla. -- Certified Vacations, one of the nation's
largest tour operators, laid off 10 sales managers in the field as
part of a restructuring, company executives said.
"There have been a few layoffs, but nothing that can be
considered major," said Michael Egan, Certified's president. Egan
called the restructuring a "new tack in sales. The people in the
field are being replaced with inside telephone sales
operators."
Chris Dane, senior vice president of Delta Vacations (one of
Certified's brands), said that in addition to the 10 sales
managers, 40 reservations agents that handled Delta as well as
other Certified brands -- AAA Vacations, Continental Vacations and
American Express Vacations -- were laid off. The company employs
800 people. Dane called the reservations department layoffs
"seasonal adjustments" made at the end of high booking season.
Sources close to Certified said the restructuring was due to the
company's new emphasis on the Internet, particularly in generating
direct bookings for its tour brands.
Egan said the downsizing of the sales staff does not represent a
de-emphasis on sales through travel agencies. "As a matter of fact,
part of of the plan is to increase advertising more heavily to
agents. We've already increased commissions," Egan said.
Egan, the former owner and current chairman of Alamo, has a
controlling interest in InteleTravel, an outside-agent network that
claims 90,000 members; The Globe, a Web-based on-line service, and
New River Technologies, a technology developer, through his Dancing
Bear Investments holding company. Those interests, he said, are
separate from Certified Vacations.
Egan said Certified's restructuring creates a "services company"
within the company, into which such functions as telemarketing,
information systems and accounting for the brands will be
merged.
Dane said the restructuring "represents a major change, a good
change -- if you look at all the things we've done with the
distribution channel. We've increased commissions on electronic
bookings by [one percentage point]" and initiated agent incentives.
He said the new sales structure will mean "more frequent contacts
with travel agencies" and offers Certified more flexibility in
focusing sales efforts where Delta's routes are strong.
Jim Smith, president of the GEM consortium, which counts
Certified Vacations as a preferred supplier, said he was not
disturbed by the cuts in sales staff. "Companies today are
continually reinventing themselves to achieve bottom line results,"
he said.
More changes might be in store for Certified as its contract
with AAA for a private-label tour brand expires at the end of 1998.
An AAA spokesman said the company does not plan to renew with
Certified because it wants to pursue another strategy, which he
would not divulge.
It was not clear what the acquisition of Travel Impressions by
American Express means for Certified's contract to handle American
Express' private-label tours.
Ernest Blum contributed to this report.