WASHINGTON -- In an unusual move, ASTA acquired the assets of the
National Association of Commissioned Travel Agents (Nacta), a
14-year-old San Diego-based group representing outside agents.
The agreement -- the first of its kind for ASTA -- effectively
places the Society in the role of an association management firm,
allowing it to take advantage of economies of scale while expanding
its reach.
"We feel the new relationship will make ASTA more productive
with its resources for billing and administration, which we will
share," said ASTA president Joe Galloway. "And on Capitol Hill,
ASTA will now represent a larger, more diverse work group."
ASTA said it plans to run Nacta as a separate subsidiary, much
like ASTA Marketing Services Inc. (AMSI), ASTA's for-profit
marketing company. Nacta president Joanie Ogg will continue to head
the association.
"This is a win-win situation for ASTA and Nacta and the travel
industry at large," said Ogg. "I am really looking forward to
learning a lot from an association that has been around for many,
many years."
Ogg said Nacta's membership includes cruise, independent,
home-based and outside sales agents who sometimes work with host
travel agencies. Nacta has more than 1,000 members, Ogg said, and
its ranks are steadily increasing following the waves of airline
commission cuts, as more agents move from traditional
brick-and-mortar agencies to outside sales.
Membership requirements differ between ASTA and Nacta. For
instance, ASTA members are required to have $1 million in errors
and omissions insurance. The dues structure also is different.
ASTA's basic annual membership is $365, while Nacta's is $95.
Generally, Nacta members have between six and 10 years experience
as travel agents, Ogg said, with about 75% working from home and
25% working at any agency.
"Most ASTA members already use independent contractors. I know I
do. I have two of them," said Galloway. "And we think [Nacta] fits
nicely with what we are doing. "Retail sellers take many different
forms," Galloway noted.
Financial terms of the agreement were not disclosed but ASTA
officials said Nacta would benefit from the Society's resources,
such as administrative support and Washington lobbyists. The
Society, meanwhile, will gain access to Nacta's membership.
"What it means to existing ASTA members is it should strengthen
us as an institution because it enlarges our reach," Galloway said.
"It brings Nacta members into the ASTA family and it is a good way
to develop future ASTA members. Some [Nacta members] will go on to
build full agencies on their own."
William Maloney, ASTA staff executive vice president, said the
Society is in discussions with other associations, possibly
representing cruise-only or Internet-based agencies, with an eye
toward acquisition or affiliation.
In light of the changes taking place within the travel agent
community, with some agencies closing, others merging and still
more using various technologies to market their services, ASTA may
be forging new ground with its acquisition of Nacta, according to
George Constantine, staff council for the American Society of
Association Executives, a group that represents the managers of
some 12,000 trade and philanthropic organizations.
"This sounds rather progressive," Constantine said. "It
identifies the realities of their market and acts on those
realities." Constantine said that by acquiring like-mind
associations, ASTA remains flexible to address a changing
marketplace.
"It's interesting because associations often battle with two
objects. [One is] wanting to be the largest [and yet] inclusive.
The other is to address specialization that happens within an
industry or profession. If that is the route ASTA is taking, it
seems to be a pretty progressive effort to answer both
questions."