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Archive for the ‘Opinions’ Category

How Do Travel Agents Get Paid? A question I hear almost every day.

Through the summer I read about first the airlines, then the cruiselines and finally resorts charging their guests and customers “fuel surcharges”.  Now every day I read where airlines, cruise lines and other suppliers of hospitality services are (with some guidelines) reducing, or eliminating all together, the fuel surcharges they initiated during the summer of historically high fuel prices.

Travel agents were the front line recipients of consumer complaints about these charges.  And travel agents were equally chargrined about the charges.  No one was exempt from paying them, including travel agents.  And, in the case of the cruise lines, while we had to tell our clients about the fuel surcharges, collect the fuel surcharges and take some heat for the fuel surcharges, we did not get paid a commission on any of the surcharges.  Fuel surcharges and non-commissionable fees & taxes often caused the price of a cruise to more than double from the advertised “cabin” price.  And the cabin price is what travel agents earn their living from.  Those surcharges, along with non-commissionable fees and taxes, moneys spent on excursions and activities, and money spent on goods and services while onboard a ship, are all non-commissionable moneys the cruise lines keep in their own coffers.

EXAMPLE:  So imagine that in a 40 hour work week, you were working 20 hours for free so that the company you worked for could show more profit, or have a higher stockholder return or make more money to take home to the family.    How good would you feel about that?

This pretty much describes the situation for a travel agent.  Roughly half the prices a client pays for their cruise is non-commissionable.   When agents ask the cruise lines to pay commissions on more of the charges, the cruise lines say that those additional moneys collected are profit centers for them and they are not going to give up any of that money to their front line sales force (travel agents).

Just as people would not want to work for free 20 hours each week for their employers, travel agents do not much appreciate the cruise lines asking them to work for free when helping people choose a cruise.  Today’s itineraries are more complicated, the choices for cabins more varied and the excursion choices downright confusing.  There are pre-and post-cruise hotel rooms needed as well as air reservations, shore excursions and good advice.  That is why people go to a travel agent or consultant to begin with, for the expertise, the knowledge, the assurance of having someone who cares about you and looks after your best interests.

So people ask me, how are you being paid?  The best way I can be paid is by word of mouth referrals.  In my business, it takes volume…and I mean lots of volume…to earn a living wage.  So the greatest compliment my clients can give me is a referral to family, friends, clients, co-workers, just about anyone you talk to.  And when you are planning that vacation or cruise, any travel that involves leaving home for a night, call your travel agent.  Do whatever research you want on the internet, but call a travel agent to do the actual booking.  It will cost you exactly the same (or possibly less) as going direct and doing it yourself.  And you will receive valuable advice, have an advocate and someone to turn to if things go south on you.  Your travel agent is just like me: trying to earn a living wage, while performing customer service and loving what they do.

State of the Travel Industry As 2008 Draws To A Close – Opinion

After I survived my first year as a home-based agent, with a really terrible host agency, I remember realizing I was, indeed, a Travel Professional, even though I was deeply defensive about being a “home-based” agent.  Being served by a host agency was akin to blasphemy back then!  Brick and Mortar/Retail agents (except for a couple) and vendors alike tended to shun me at vendor/supplier “show-n-tell” events.  I have been around long enough to remember being a minority and an outcast.  Now the home-based agent is an acceptable form of travel professional, and a majority.  Independent contractors have proven to be the cost savior for many B & M’s.  That really came about in only a few years. 

Are we now looking at an alternative business format that is still in the outcast mode, but will one day be viewed as a legitimate business format? 

I am saddened that MLM has invaded our industry.  YTB is the big bad MLM but there are others that are travel clubs or MLMs (and the customary rant – “card-mills”) that we in our industry don’t rant about.  In other industries, I have seen MLM becoming viewed as less and less a pyramid scheme.  Rather it is viewed more and more as an accepted business format (in other industries).

I am not in favor of MLMs (I remember the old “Amway” parties of the ’70s—-argh!).  Nor am I in favor of the travel clubs and other alternative business formats.  But business will go on, with or without my approval.  I think ranting over YTB and Kim Sorenson being included in panels or by vendors is really just a temper tantrum on the part of agents.  The really BIG question is whether the travel industry as a whole is going to govern itself or eventually be governed.  When consumers get damaged by the MLM/travelclub/card mills of the industry and lawsuits happen, the industry will become “regulated” by government. 

Politically and as a nation, I believe we are entering an era of (re)regulation after so many years of de-regulation in a great number of industries.  Travel and hospitality could find itself under far more stringent regulation if consumers become damaged.  Better the industry regulate itself and establish criteria for “professionalism” for its members.  And that is what these strings of comments on lots of travel industry forums is really about.  Everyone who has an opinion and the wherewithal to start a membership organization seems to be starting one with some form of “accreditation”. 

I may be a little old fashioned, but I am proud of being an IATAN card carrying travel agent.  I also have my CLIA card, am a member of the Travel Institute and more.  These days there are enough associations and alphabet soup designations to choke a horse.  Maybe some joining of forces might be in order.   Instead of pointing fingers at YTB and anyone who allows Sorenson to open his mouth, maybe we ought to be thinking about putting some standards in place, AND (very importantly) getting the word out about those standards to the consuming public.  I am amazed at the amount of vehemence within the industry, yet the ignorance about the conflict by the public.  Maybe educating the public, ie. the consumer, is really the solution to the conflict we are facing internally.  And YTB (and others like them) may very well survive.  But they will have to evolve just as much (if not more) than the rest of us.  Card Mills are starting to become a thing of the past (YTB no longer issuing IATAN-look-alike cards).  Organizations are tightening up their requirements of qualification for their cards.  Vendors are no longer “giving away” “FREE” fam trips (no such thing as a “free lunch”). 

Maybe the hullabaloo about YTB needs to die down.  Instead, start some serious conversation about what constitutes professionalism.  Retail agents, home based agents, organizations and associations, vendors and suppliers, we all need to be included in the conversation.  We may even have to include the MLMs in the conversation.  Let’s get beyond the babble of the rabble and have some serious conversation in 2009!

Continental Air Changes Policy on Size of Bags

So Continental Airlines is now charging for checked bags and then, since people are cramming more into their carry-ons in order to avoid the nickel and dime gauging, cuts the size of the carry on bag from 51 linear inches to 45 linear inches.  Now 6 linear inches does not sound like much, but….

I am an amateur photographer, which means I like to carry on my rather hefty camera, and lens, and my 15-inch computer with a backup hard drive, and numerous and sundry filters, cleaners, and other accessories.  I have a Pelican bag that, until now, just fit the criteria for a carry on bag.  (And who in their right mind would check that kind of camera equipment!)  But with Continental, that no longer applies.  Go measure your “pilot-size” carry on bag and see if you can fit it into 45 linear inches.  If it does not, scratch Continental Airlines from your list of desirable airlines to fly! 

And my clothes?  Well, how many layers of clothing can I wear so that I do not have to pack any clothing?  I am starting to look for the clothing that is microfiber and wash-n-wear silk.  Very lightweight, rolls up into a small bag (like a gallon freezer bag) and can be hand washed each night and dry by the morning.  Efficiency is very important now.  One pair of shoes – the ones I wear to the airport, is all I will wear on the trip!  OK.  I am female.  I have to have one dressy pair, so I go by the strappiest sandals I can find that will also fit into a corner of my carry-on. Grrrrrrrr.   Maybe the airlines would rather not be in the business of transporting people and their baggage (literally) around the world.  

Does this mean I will not be traveling?  NO!  I will travel.  And I will travel in style!  I will go by train, I will fly an airline that does not abuse my good nature, and, if I do have to fly one of the other ones, I will pack very carefully. 

I would much rather buy some cool, new , lightweight clothes than pay the amount of money the airlines wants to charge me for my bags.  The lightweight clothes will last for many trips and eventually I might even have enough spare change left over to buy, well, a bottle of water while I am on the flight!

Airline Baggage Fees = $$$$$

These days it feels like the consumer is being nickel’d and dime’d to death as they fly the different airlines.  I heard a rumor, but I do not know it as a fact, that United Airlines has revised their checked baggage policy.  So I checked their website to see what the written policy is. 

On United Airlines website, it says that the first bag will be charged at the rate of $15 and the second bag will be charged at the rate of $25.  And, if your bags are oversized or overweight  or you have excess baggage or special types of baggage (I think golf clubs might fall into the special type of baggage) you might have to pay additional fees as well.  Such examples given are:  if you check more than 2 bags, or any of your bags weigh more than 50 pounds (23 kg), or if your bag exceed 62 linear inches (158 linear cm).  These charges could be anywhere from $125 per bag to $250 per bag. 

It is definitely advisable to check with United before booking your ticket if you think any of your baggage will fall under these guidelines.  There are luggage forwarding services that might be cheaper for you to consider.  The website does not itemize or identify what “special Items” might be, so asking ahead of time is a really good idea!  And the charges on all baggage are for one-way travel only.  So for a round trip you will pay fees each way.

A good way to save some money with United Airlines, however, is if you pay your baggage fees on line between now and January 31, 2009.  You can save 20% on the fee for your first checked bag by paying online.  That is a small savings. 

So no matter what you read or where you read it, until any airline website reflects changes, it is best to call and ask, and even try to get it in writing if you are told that they are not charging the first or second bag fees.  Flying today is just not what it used to be!  And no matter what airline you are flying, it is best to check out all those extra fees before you buy a ticket!

Norwegian Cruise Lines – The Pearl

While it may sound like a cliche, in my opinion there was a reason NCL named that ship “The Pearl”!   She is truly a pearl of a ship.  I had the pleasure of doing a ship inspection  yesterday, Sunday the 8th day of June.  Under cold, grey and damp skies, the Pearl was shining.  I had actually done an inspection of her almost exactly a year ago at the Seattle “Cruise-a-thon” that travel agents attend every year in a port city.  If I am to sail a cruise, I want it to be on her!

There were about 100 travel agents, few from Seattle, many from the central and west coast of the US.  Doing a “fam” is grueling and exhausting, with lots of information imparted that has to be digested and soemhow communicated to our clients and prospective clients.  I was able to sleep in my own bed, but I had to negotiate my way home each evening.  Instead of climbing into a big, comfortable bus to return to the hotel each night, I trekked home up 6 blocks of steep hills to Belltown from the waterfront.

Back to the Pearl.  On the ship, at the top, is a private area that is wonderful for families to occupy, as well as, let’s say, 3 couples who are close friends, or a batch of executives from the same company who want to have privacy to talk about their goals setting/planning/stragetizing for an upcoming change in their business or planning for the upcoming year.  There is a large living area (complete with baby grand piano), three bedroom suites (each has their own door key and private bath) and a private terrace with outdoor seating areas.  All this is accessed by key card, so no one but those assigned to the villa can intrude.  It will, however, hold up to 100 people in a cocktail setting (in case one hundred of your closest friends happen to also be sailing with you).    Here are  some pictures: 

Garden Villa, Baby Grand Piano

Garden Villa Bedroom Suite1

Garden Villa Bedroom2

Vanity/Dressing Room

Garden Villa Terrace

I can not imagine anyone saying they would not like to spend a week in a garden villa!  I have many, many more pictures and stories to tell of this weekend and have set a goal to do a blog entry with pictures every day this week.  Shall see, shall see. Until we meet again……

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