ORLANDO — Ensemble Travel Group's new nonshareholder affiliate division will enable agents to reap many of the benefits the consortium offers for a fraction of the cost of becoming a full, shareholding member.
Co-presidents Lindsay Pearlman and Libbie Rice announced the Ensemble Affiliate Division during the company's annual conference at the Omni Orlando Resort at ChampionsGate here.
The program — which costs $199 annually, thousands less than joining as a shareholder — is geared toward small, niche and midsize travel organizations. It includes access to Ensemble's contracts, technology, marketing, training programs and events like the annual conference.
Pearlman said Ensemble's field team reached out to agencies that are not Ensemble members and found a demand for such a division. He said it offers a good way for agencies that might be interested in affiliating with a consortium to give it a try.
"The thought was, well, how do we allow them to come in and see what we're all about?" he said.
The program would also be a good fit for smaller agencies that might not make minimum production requirements but could still benefit from the technology and other offerings. Pearlman called it "a nice little sweet spot."
Ensemble's split of U.S. and Canadian members is about 50/50. Canadian agencies will have the opportunity to come onboard as affiliates, as well.
David Harris, vice chairman and owner and president of Orion Travelinx in Burlington, Ontario, said, "it's safe to say that [the affiliate membership's] intent is not to be our driver. It's an alternative, and it's addressing a specific market need."
Harris cited an example of members "who are in their sunset stage" and could benefit from scaling back membership expenses but could still use the tools offered at the affiliate level.
Affiliate members will have limitations that shareholder members do not. They will not be able to vote, sit on the board or host on hosted cruise programs, nor will they share in overrides.
Ensemble is organized as a member-owned cooperative. To join, agencies must have been in business for a minimum of two years; be accredited by ARC, IATA or CLIA; meet or exceed a minimum level of preferred supplier sales; pay an annual membership fee; purchase a share of stock upon membership approval; and attend the annual international conference.
Pearlman said the annual shareholder membership fee is $1,188 per year, and additional services are available a la carte. Upon first joining Ensemble, shareholder members must also purchase a share in the company for $2,000. That money is placed in a trust account and held in perpetuity.
Regardless of the size of their organization, each member holds one share in the cooperative. If one shareholder bought another, Pearlman said, the second share would need to be redeemed and they would only own one share. If a shareholder leaves Ensemble, they get their investment back. If the company were ever to be sold, shareholders would be paid out based on its value at the time.
"Ideally, we want somebody to come in as a shareholder," Pearlman said.
However, he said, the affiliate division is a recruiting tool. Affiliate members can upgrade to shareholder status at any time, as long as they meet the requirements.
As of now, there is no limit on the number of affiliate members that will be accepted, Pearlman said. Asked what happens if there comes a point where there are too many affiliate members to support the program, he said, "I'd be delighted to have to cross that bridge."