ARC has shuttered Helix, the controversial consortium-like program it started two years ago to attract smaller agencies and newcomers.
Helix's goal was to assist agencies in growing their businesses and boosting profits, said Edyta Satchell, ARC's director of product management. It ultimately enrolled 260 agencies representing 500 agents, Satchell said, plus a roster of 40 suppliers, including such major brands as Funjet, Travel Impressions and Norwegian Cruise Line.
Satchell said that ARC decided to shut down Helix due to market and economic conditions.
We got very nice sales numbers,"she said. "However, [building membership] was a different pace than we anticipated."
Satchell did not release sales figures.
Jack Mannix, principal of Jack Mannix & Associates, said that shuttering Helix illustrates how competitive the consortium space is.
"The economics of this are not what they once were," he said. "The bottom line is the business is more challenging, and the economics of the business are different from what they were even five or 10 years ago."
Robert Joselyn, president and CEO of Joselyn Tepper & Associates, said Helix had been competing with the likes of Signature, Ensemble Travel Group, American Express, Virtuoso and many other enterprises that excel at investing in back-end infrastructure to drive sales.
Satchell said ARC would continue to grow its supplier presence in the ARC Marketplace, which offers nearly 10,000 travel-related products, including destination activities, car rentals, visa processing and excursions.
"We have over 10,000 unique bookers and are seeing 50% growth, year over year, in terms of sales and bookings," she said. "It's been amazing."
When ARC notified agents and suppliers last week that it was shutting down Helix, Satchell said agents wanted to know what other ARC programs they could use.
"They like the very personal approach we take," she said. With programs like the ARC Marketplace, the Verified Travel Consultant program and Agent Choice credit card processing, Satchell said, ARC has much to offer agents.
She said ARC would continue to offer Helix training programs through the ARC Marketplace.
Helix was controversial when it launched, because ARC is airline-owned. ARTA said that Helix appeared to conflict with ARC's long-held mandate of airline reporting and accreditation.
"We have some real antitrust concerns here," said the late Bruce Bishins, then ARTA's managing director.