LAS VEGAS -- Carlson Leisure Group unveiled incentives geared to
enable agents in the Carlson Wagonlit Travel associate (franchise)
network to buy competitors and to persuade other agencies to become
franchisees.
At Carlson Leisure Group's annual meeting here, Michael Batt,
company president, announced a $3 million loan fund to help
associates finance their acquisitions, with a per-loan maximum of
$100,000, payable over five years at 10% interest.
Batt said his target profit formula for individual Carlson
Wagonlit associates is "11.5% gross and more than 2% net. A $4
million agency finds it far easier to get to 2% margin than a $2
million agency."
Batt also said he wants a 10% market share for the Carlson
Wagonlit network, but "we are still only at 4%."
The other new incentive, a referral program called Builders
Club, will pay Carlson Wagonlit associates $1,500 if agencies they
have referred become Carlson Wagonlit franchise owners. "You are
our best sales force," Batt said.
In addition to these efforts, Carlson itself will buy agencies
in key markets where it cannot achieve sufficient coverage through
franchising, Batt said.
Carlson's North American franchisees, which include Carlson
Wagonlit and Travel Agents International agencies, currently number
about 1,100, the firm said.
Also at the conference, Carlson Leisure Group announced the
following:
The departure of Pam Myhr, vice president of Carlson Wagonlit
Travel associates, at the end of 1998, to spend more time with her
family.A new marketing theme line -- It's Your Time, Use Our
Connections -- to convey that Carlson agents respect the importance
of consumers' time and have the connections to give them the best
overall value.A leisure hotel program, aimed at vacation and weekend
travelers, to complement its existing commercial hotel
program.An expansion of its technology department from eight employees
to 20 by year's end. The 1998 capital-spending budget is $8
million.A company-wide relational database that lets Carlson Leisure
Group headquarters and individual agencies share customer and
prospect information for "one-to-one" marketing. Agencies submit
customer information to Carlson Leisure Group's marketing
department in Minneapolis, which matches travel offers to select
customers, follows up with direct response mailings and records
responses and bookings. Customer reaction, such as a request for
more information or a booking, will produce data that can be used
to fine-tune future target groups. The program is in a pilot test
with 14 agencies.A Web-site package that enables Carlson Wagonlit Travel
associates to maintain their own sites; offers e-mail capabilities
and provides a direct connection to the Carlson Leisure Group
booking engine in enQuest, the company's Web site. Carlson will
subsidize the program for the first six months and then charge $30
per month.