NORWALK, Conn. -- Now that Virgin Atlantic Ltd. has spun off Virgin
Vacations from the airline, the packaging unit will be going
head-to-head against a tier of formidable operators already
established in the most competitive domestic destinations,
beginning with Las Vegas, New York and Orlando.
Company executives said they are up for the fight.
Vice president of sales Mia Martin acknowledged that "it's
competitive out there, but we think we'll find our niche."
To locate such a niche, Virgin Vacations will "Virginize" the
product, according to the unit's president, Jeanne De Smedt.
"We're going to work with companies that embrace the
Virgin-brand value and style," she said.
De Smedt said she could not name hotel or supplier partners
because negotiations are in progress.
"[A supplier partner] may be a famous restaurant or a famous
theater," said Martin. "The sky's the limit."
De Smedt said the company intends to adapt some of its European
products to the U.S. market, such as the Spotlight on Family,
London & Beyond and A Touch of Class programs.
However, preserving a brand identity that relies heavily on the
service and flair of Virgin Atlantic Airways could be a challenge
for a company that will be using U.S. airlines, which are cutting
back services.
"Where we hope to 'Virginize' the product is on the land side,"
said De Smedt, "working with hotels that have the Virgin client
appeal."
Martin added that "smaller, boutique hotels" will be part of
that mix, as will bed-and-breakfasts where they are available.
"We'll have unique events, using our sister companies like the
Virgin Megastores, maybe including some cosmetics -- anything that
could make us stand out," she said.
"It's a matter of bringing to the ground here what was on board
with Virgin."
The company will use the supplier infrastructure established by
its U.K.-based sister company, Virgin Holidays, which sells U.S.
vacation packages to the European market.
"Virgin Holidays brings thousands [to the U.S.] -- to Miami,
Orlando, Los Angeles, New York and Las Vegas," Martin said.
On domestic, point-to-point flights, Virgin Vacations will use
airlines it already has established agreements with, including
Delta, Continental and United.
It also will seek partnerships with some smaller carriers, such
as JetBlue.
As with the company's Europe products, the domestic products
will be operated by Europe Express of Bothell, Wash. The Europe
product line will continue to be available as before.
The U.S. program is in its early stages, according to De Smedt,
with few of the specifics in place, including price or the specific
content of packages.
The domestic program will consist exclusively of independent
city packages, with the option of a meet-and-greet service
available.
The company said it hopes to add destinations one at a time over
the next six to 12 months, beginning with Las Vegas, and
establishing products in all of Virgin's U.S. gateways, including
Orlando, New York and Los Angeles.
A second wave will include Boston, Washington and San Francisco,
and De Smedt said the company is looking at Hawaii down the
road.
As for brochures, "it is not yet decided what kind of literature
there will be," De Smedt said.
"There will be some. And the information will be out on our Web
site [www.virginvacations.com]."
As with its international products, the domestic packages will
be commissionable and sold through travel agents.
The base commission on Virgin's Europe products is 10%, but De
Smedt said the company will have to see what its margins are before
it announces the rate on the domestic product.
"We will be competitive," she said.
The packages will not be available to book through the GDSs.
Agents can book via the Web site and receive their commissions (see
the agent entry button on the site).
Consumers also can book on the Web site but have the option of
transferring the booking to an agent.