TravelWorm turns to 'flexible pricing' to expand its agent base: Travel Weekly

TravelWorm turns to 'flexible pricing' to expand its agent base

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After 15 years as an online wholesaler, TravelWorm may still not be a household name, but the Las Vegas-based company is out to more actively expand the reach of its Hawaii product.

"We can service agents anywhere, and we'd like to see our agent base grow, and to encourage bookings from agents we've developed what we call flexible pricing," said TravelWorm CEO Ben Rafter, who refers to the company an "online distributor" rather than a wholesaler. 

TravelWorm offers agents either net-plus pricing or set commissions.

"We think it allows them to determine how they want to go to maximize their commissions," he said. "The flexible-pricing option assures agents they can maximize their commission possibilities. But just as important is our ability to provide agents with an experience to sell."

Having initially established a following in the western U.S. with Vegas packages, TravelWorm has developed Hawaii as another key destination. Rafter identified typical TravelWorm customers as younger, more adventurous travelers typically in their 30s.

Rafter attributed success in that niche to the familiarity of thirtysomethings with Web bookings as well as the company's aim of "introducing people to the other side of Hawaii."

"We offer all the packages the hotels are offering, but we also go one step further by customizing itineraries from scratch to create a unique vacation experience," he said. "Hawaii is the perfect place for that type of vacation, which is our focus. We want agents to sell the whole experience; we can customize family gatherings or what we call Celebrity Packages."

The company's toll-free reservations phone lines provide a specific prompt that connects retailers to agent-dedicated staff. There is also separate log-in for agents at TravelWorm.com and an emergency telephone number.

"We work with several hundred travel agents, and they're a fairly significant part of our business," said Rafter.

"Many people, even if they're familiar with the Internet, prefer to use an agent to put a package together. We'd like to expand on that base, particularly with agents outside our core market in the West, which is a mature market for us."

Better times ahead

Thanks to the many deals on offer for 2008, Rafter said he expected next year to surpass 2007.

"I think Hawaii reached a ceiling as far as room rates are concerned," he said. "The discounts we're seeing are a sign ... and I think there's still some flex in the market, particularly at the upper end."

A typical TravelWorm booking is priced at $150 to $225 per night. Quality properties are available in that range, once free-night programs are considered. For example, TravelWorm sells a five-night itinerary priced at $1,200 for two, with air from Los Angeles.

Rafter said there is increased interest in Waikiki among the thirtysomething set.

"People are starting to realize that it's a new Waikiki," he said. "Value-oriented travelers will still find good deals in Waikiki, with free nights, free parking and other value-added incentives.

"The value message plays well with Waikiki. All the talk and the promotions that have been offered during this period of transformation and the quality of the upgrades have brought it a lot of new attention."

Maui is TravelWorm's second-best-selling destination. Most of the company's customized packages are booked for the island, which Rafter said has "star appeal." It lends itself to themed Celebrity Packages, in which visitors pattern vacations on celebrities who have vacationed there.

The Big Island and Kauai remain harder sells, according to Rafter.

"Hawaii has evolved into a very sophisticated and diverse destination," he said. "The accommodations options are great, with activities and food-and-beverage options that are world-class."

For more information on TravelWorm's products, call (888) 700-8342 or visit www.travelworm.com.

To contact reporter Allan Seiden, send e-mail to [email protected].

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