Comments on: All hands on deck!

By: Independence Day

Independence Day — Sat, 04 Jul 2009 09:35:07 +0000

[...] their independence. Independence from what you might ask. Well, if you have read some of my past columns, I firmly believe that we are undergoing a huge renaissance in the travel industry. We are no [...]

By: Natalie Smith

Natalie Smith — Thu, 02 Jul 2009 18:48:09 +0000

I try to sell packages as much as possible and avoid doing air only. When I do, I charge fees for my service and am all for boycotting the airlines that try to pass cost on to the agency, but who is left to promote? United via credit card fees, American and Delta via GDS costs. And if you are in a market like Chicago, Dallas, Atlanta, or Denver where UA, AA, or DL are the big dogs and maybe the only ones that offer nonstops, what is left? Southwest doesn’t fly everywhere and everyone else is connecting. Am I supposed to sell a CO connection flight over a nonstop UA or AA, and why would my client want to do that?

The point is, there is nothing left to do but make the public, and hopefully the lawmakers aware of the repercussions. This is bad news for everyone but the airlines who continue to manage their business poorly and expect everyone else to absorb the costs.

By: Bob Mamberg, CTC, CTIE

Bob Mamberg, CTC, CTIE — Thu, 02 Jul 2009 17:38:25 +0000

All of these comments are right on and we can expect the cruise lines to join the fracas shortly. When asked how did RCCL Chairman Richard Faineplan to fill the new “OASIS” on a regular basis, he replied: “we owe it to our shareholders to investigate alternative methods of distribution.” With 6,500 beds to fill every seven days on “OASIS” alone, it behooves Faine to examine every possible distribution source. Too, you can do the math easily on this: with 6,500 beds at an average sales figure of, say, $1,500 that totals $8,400,000 and an average commission of 10% that figure is $840,000 every week. That a huge incentive to risk “going it alone” without agency support. But it could also buy a lot of advertiising, be used for further on board incentives or reduce the cruise ticket price to be more competitive. Think it over. Agents MUST develop and impliment consultaton fees, service fees and more. We are a valid source of information and services. There is a price for that. Recognize it and charge it.

By: Susan

Susan — Wed, 01 Jul 2009 01:05:44 +0000

This move by United is attacking the consumer as well as travel agents.

I’m writing to Congress and local newspapers to do whatever I can.

The airlines are trying to eliminate any kind of customer service.

By: Ina Schweitzer

Ina Schweitzer — Mon, 29 Jun 2009 19:47:55 +0000

We had a shot across our bow years ago, with the commission-stops, and we couldn’t do a thing about it. We “met the elimination of airline commissions with inadequate resistance” because there was nothing we could do. If, as an agency, you voiced your opinion, the airlines pulled your plates. Remember the story about the agency that put the toilet in their display window with the Delta model flying into it? Plates pulled. What about the agency that booked 300 seats on a Delta flight to block it all up? We all applauded, but the plates were pulled anyway.

It seems we’re always at the airlines’ mercy. What is it that we can do? Organize a boycott? A sit-in? A march on Washington? A fast? It all seems so feasible, but the fact is, we’re all afraid. Until we’re not afraid anymore, until the airlines realize that we don’t CARE if they pull our plates, we’ll be cowering at their feet.

We all have to get off our butts and actually spring into action. Willingly getting rid of our ticket printers won’t do it. We’ll just tell clients to book air themselves, and you know what? They’ll come out ahead, and they’ll have won again.

Personally, I think I’ll start a group on Facebook. May as well use that social networking function in OUR best interest. Of course, UA may disable my account…

By: Jami Sales

Jami Sales — Mon, 29 Jun 2009 17:23:50 +0000

A red flag to all of my fellow leisure only agency owners. Make no mistake: this is our problem, too.
John did his usual fine job in this analysis, and we must not overlook his comment that other airlines are watching this closely. I suggest that we remember that all suppliers are watching this, and the cruise lines and tour operators are just as surely considering their options as well.
It behooves every single agency in the industry to do three things: support the organizations that are stepping up on our behalf, move market share away from UA in any way you can, and be proactive with your top suppliers. Tell your suppliers about the level of resistance they can expect from your agency should any such actions be levied against your company’s operating procedures. Write to the national sales manager of your top five suppliers today, and get your position stated.
As an industry, we met the elimination of airline commissions with inadequate resistance. Let’s learn from that mistake. This challenge requires us all to step up to the plate, and to do so now.

By: Nancy Peklo-Nosal

Nancy Peklo-Nosal — Mon, 29 Jun 2009 16:11:32 +0000

John, you are the only one who has not been afraid to spell out what more than likely will occur. That’s what the agents/owners need to hear instead of being made to believe that this is something that, too, will pass. It’s not going away. Those who read this article will be informed and need to think seriously about their future. Certainly, they should begin to wein themselves off their dependency on their GDS and start shifting their skills to making the ticketing functionality either a task for the client or, if they prefer, a convenience that they perform as part of their trip preparation process. The smartest thing the travel planner could do is book that air reservation directly on the airline site and not on a Travelocity, Orbitz etc., site.
The shakeout from the 1993 commission cuts is still not over and won’t be for a while yet. But it’s easy to see the changes occuring. ARC now has a non-ARC status. Unheard of 15 years ago! IATA still hasn’t quite figured out how or who to address these changes to. And recently I saw an article that ASTA, the association who, for many, many years was supposed to be the advocate for all agencies now is holding a seminar to train agencies, wanting to sell or thinking of buying the troubled agencies, on the most effective ways to take. Of course, there is a $250 charge for non-ASTA member agencies.

Bravo John. Leaders lead. Others ‘lead’ you to believe!

By: John Frenaye

John Frenaye — Mon, 29 Jun 2009 16:10:16 +0000

Exactly Lucy! Thanks for commenting!

John

By: Lucy Hirleman CTC

Lucy Hirleman CTC — Mon, 29 Jun 2009 15:58:51 +0000

We’re an agency that started charging fees way before the airlines started their “agency” stupidity in the mid-nineties. I have a merchant account and between ARC and my merchant account I have NEVER had a chargeback. That’s over 22 years of no chargebacks. Not one. And I’m not about to jeopardize that for many reasons but the most glaring is I will not assume responsibility for fools that have NEVER figured out how to operate a successful business. Just think for a minute….your client is standing at the gate and the flight is oversold and the airline says what……..? Oh we’re sorry, call your agent, they processed your credit card. Or your client is at the gate and they make an announcement that there’s a mechanical or bad weather or anything. Do you want to be left holding that bag? I won’t be holding that bag because I will either STOP selling that particular airline or I, if it’s absolutely necessary, will do it on the airline’s website and charge a fee. Fortunately for us, we’re in an “airport” area that we don’t need UA as things are pretty competative in the NY area. If this processes the same as the commission fiasco did the only good news will be saying bye bye to ARC. Hopefully agents have smartened up or will let history teach them a lesson. They will then be able to figure out what is best for their bottom line.

By: Murray H

Murray H — Mon, 29 Jun 2009 13:48:00 +0000

Airlines can do what they like. What they seem to forget is that travel agents are skilled retailers. At present they choose to retail travel. They do not have to retail travel – they can retail anything they please – and being on balance small, can adapt very quickly. So, the concept that someone will pay someone to be able to retail their (indeed, any) product is not exactly the thinking of the sharpest tool in the shed.

If airlines do not wish to have an agency network (on or offline) to flog their product by all means say so and one can go off and do something else. I have. You see, airlines really are very stupid. Firstly, they cannot grasp the concept that if one cannot make money flying from A to B, do not fly from A to B. Secondly, they assume that there is a multitude of egits out there who will want to flog a product which a) you have to pay for the privilege of selling b) Has a very high entry costs to start selling and c) In any event, has a low margin. Agents do not owe airlines a living. Best t’were they should remember that.