WASHINGTON -- Despite persistent challenges from emerging
technology and revenue shortfalls from airline commission cuts, the
dawn of the new century found a number of agents bullish on the
travel industry as they aggressively shift from selling airline
tickets to leisure packages.
Others are using the Internet to market cruises and tours. The
initiatives do not surprise ASTA, which expects to release a new
survey on services fees and other travel industry trends by the end
of March.
"It is funny that there is this notion out there that travel
agencies have been scared or reluctant to embrace technology," said
an ASTA spokesman. "When the airline industry was deregulated in
1978, the agency community was the first to have computers on their
desks. I mean, Microsoft wasn't even a company yet."
ASTA is convinced agencies will continue to shift their product
focus and embrace new technology to remain competitive in the
future.
"Our [previous] surveys show that over 76% of our members have
on-line access and over 49% have agency Web sites," the ASTA
spokesman said. "Those numbers are going to creep even higher."
Indeed, agent John Cott conceded that if he extended the
business hours of his travel agency to include weekends, he could
probably increase his sales. But instead, Cott and his wife,
Valaria, often play golf, since his agency virtually has more
business than it can handle.
"Since coming back from the holidays, we have been inundated
with phone calls [from clients]," Cott said.
More than a simple post-holiday sales rush or a fluke example of
pent-up travel demand, the phones at Cott's agency are typically
busy.
Cott, who with his wife owns Redlands Travel Services in South
Miami, Fla., said he has found many clients anxious to book cruises
and tours since he began focusing on selling leisure packages over
airline tickets.
"With the commission cuts, my wife can sell 15 airline tickets
and maybe we will make $120 total. There is not much there as far
as commissions go," Cott said. "But I can sit here and quote a nice
Mediterranean cruise and knock out $500 to $600 in
commissions."
Cott's agency is situated within the offices of a large credit
union for teachers, which he said provides him with a ready
market.
Nevertheless, he races through a dizzying week that includes
regular mailings to customers, updating his client database,
marketing over his own Web site and co-op advertising with certain
cruise lines.
He also spends several hours each week, particularly on Mondays,
quoting prices to clients by e-mail. In short, Cott said, he leaves
no stone unturned when it comes to marketing and selling.
"If you quote 10 by e-mail, you will probably sell two or
three," said Cott, who also is a big believer in dealing out his
business cards to round up new customers.
"Selling cruises and tours is an exciting business. There is big
business with Mediterranean and Alaska cruises. That's where the
money is."
Richard Prager, owner of Prager Travel in Miami Beach, Fla.,
agreed.
"The problem isn't the business," said Prager. "The problem is
making money."
Prager instituted service fees for airline tickets and two years
ago he established a Web site, www.pragertravel.com, where he
markets cruise and tour packages. Although he doesn't actively
promote the site, it receives hundreds of hits throughout the year,
including some from travelers overseas. Prager also is a big fan of
selling only a handful of preferred suppliers.
"That way you can focus your volume so that you can build up
your override commissions," Prager said. "You must do that."
Another way agencies intend to remain competitive is by
affiliating with consortia. One such agency is 17-year-old Glenview
Travel & Tours in Northfield, Ill.
"We have aligned ourselves with Carlson Wagonlit [as of last
September], and that's been a big help in commission payments,
support and getting good suppliers to provide good products," said
Bernadette Harvey, Glenview's manager.
Two years ago, the agency began charging service fees for
booking airline tickets.
"We have recently increased them because of the last [airline
commission] cuts," Harvey said. "But we haven't had too much
opposition. Our clients appreciate the work that we do and they are
willing to pay a few extra dollars for it."
Still, the shift to charging fees remains an agonizing decision
for some agencies.
"We are in a rural area," said Joyce Shaw, owner of Weber Tours
& Travel in Olney, Ill. "We have been here 20 years. It has
taken us 20 years to convince people to walk in our doors at no
charge. So we were very reluctant to do that, but it was
necessary."
Despite the fact that hers is the only agency within 40 miles
and has accounts around the country, Shaw believes this year and
the years ahead will be a "challenge," but she predicted the agency
will be around for years to come.
However, Ann Payne, owner of Blueseas Travel in Seabrook, Texas,
wasn't as certain. Based in a small community, Payne said she has
done everything possible to keep her 11-year-old agency profitable,
but so far nothing has worked.
At the same time, her aging clientele is resistant to such
marketing options as the Internet and service fees. Now, Payne
feels she has only one option left.
"Now, I'm looking at the possibility of selling," she said.