Sunday, 20 of May of 2012

Category » Business of Travel

Tapping X-Y Potential: next generation opportunities

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Panel: Malaka Hilton Admiral Travel Gallery, David Lowy Renshaw Travel, Shane Paquette  En Route Travel, Randy Yaroch Travel Society

Gen X= people born 1964 and 1984

Gen Y= people born 1980s to early 1990s

Moderator Joshua Bush: 65% of all travel agents over 45. Number of full time agents has dropped by 50% in ten years or so. Same time a big increase in travel spending. Gen X and Y grew up with internet and are self reliant do it yourselfers. Research there own purchases and like to control the process. Children of parents who use travel agents more likely to do so themselves for big ticket trips. Will trust honeymoon to Mom’s travel agent.

Panel-direct mail can work. social networking: twitter and facebook. Panel-search facebook for trip discussions homeymoons. Linked In network with other professionals. 20-30 ages are self starters and self sufficient not so trusting of people they are not connected with. Panel- These people are doing their own research come in knowing the destination and hotel etc. Advisors should emphasize our contacts VIP treatment. Randy- need new hooks for new generation. uses a rental car co in L.A. that meets clients with name on card and a town car instead of a shuttle at competitive rates. X-Y generations love it. Panel- facebook don’t do only for business it is also important to be social. Make it personal we are going to see Placido Domingo back stage. We are driving alfa romeos in Italy etc. Drop names and places to stimulate interest. David- important to have a blog. Questioner asked how can I get all these facebook friends without getting bombarded by all these “I’m walking my dog now” updates. <Me I am cool with the mundane updates and following my kid’s friends is a source of potential bookings. They got me on facebook in the first place> Questioner is facebook going to be passe by the time we older folks get up to speed? How can we know what the next trend the youngsters will be on to? Panel- Checking into Villa D’Este and a couple heard her group was getting breakfast free and asked why they weren’t. Desk told them they booked with Virtuoso advisor and gave them her card. She posted on facebook and someone responded I didn’t know that. Shane- not the end all or be all to use facebook or twitter but part of the pie, and one that appeals to gen X-Y. Questioner says Virtuoso should have more cool 4 star or 3 star properties and offer amenities to lure the gen X-Y more W hotels etc. Panel- says try to get extras via on sites. Comment from Gen X advisor that many want boutique not Ritz or other name brands. Have to be creative and emphasize time savings (especially for those with kids). Panel- work both ways with generations, go for kid’s parents and parents’ kids. Comment from advisor: ask for perks for clients at non-Virtuoso properties. Try to build relationships at people outside the network. Joshua- be careful to keep relationships within the Virtuoso network via on sites and tour operators. Panel- the relationships we build at Travel Mart meetings are the core of what sets us apart and creates customer satisfaction. Comment from advisor: How do we reach the gen X-Y and let them know our advantages and establish credibility? Another advisor- give them value they are price sensitive but do want some expertise. Joshua- It might take two or three trips to win them over as long term clients. Panel- get up front planning fee and many X-Y s will pay no problem then work with you to plan not do it themselves on the Internet.  Emphasis on the experience of travel. Sea Dream yacht club for gen X-Y. Use on sites and hotel connections to build memorable trips. Offer access to celebrity or experiences clients can’t get elsewhere.

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Virtuoso Travel Mart: Getting Up to Techno Speed: “Flexing Your Online Muscles”

tomtravel2 live blogging at #tmtechno

Thanks to Virtuoso I will be live blogging on Twitter and likely posting this blog right after the training. What follows are my notes:

“United breaks guitars” video played and a discussion thereof. Social Media is a reality. Deal with it or pay. David Kolner speaking. Manger of Tech Group for Virtuoso. Popular Technologist.

Stay Small owner Elite Traveler International and elitetravelgal blog @elitetravelgal on Twitter as if you didn’t know already.

Michelle Duffy Wandermom blogger member of Virtuoso technology team as program manager author of “traveling with kids” @wandermom

David: What am I going to do on monday morning with all this?

How do you manage to fit all this techno babble into your everyday work life?

Why get started? Branding. Compare who we are to who we want to be. Tech is another fundamental shift. Like email changed our work lives. Consumers are changing from experience consumers to shares of experiences now with many via blogs, twitter and facebook.

Remember postcards? Compare that to a blog with details and pictures from a trip.

I’m too busy! The most common reason not to start with all the social media and tech.

It’s not for me! Many don’t see themselves as the “type” to be online.

It’s overwhelming! That is partly true it can be a time suck.

It’s Scary and unsafe! Scary yes, and one should be careful not to put oneself at risk.

Its all moving too fast! It is moving too fast but if your not on the bus you will have to get on a moving bus when you change your mind.

From write ups weeks after @EliteTravelGal has shifted to live blogging of trips etc. building brand personalizing #tmtechno

Michelle mentioned online community of support on Twitter when her book came out from other travel writers and tweeps.

Discussing how Stacy live blogs on her blackberry with uber twitter and twitpics. Easy to find all these resources on Twitter or Google.

How the heck does a busy travel advisor find the time for all this blogging and tweeting ect? Michelle tries to focus and find ballance. Set aside that time for online brand building.

Getting back to Virtuoso basic value statements: Trust, relationships, etc.

Online is not one way it is communicating like a phone call, but not one to one one to many.

Travel mart is about conversations. This is another type. Half of conversations is listening.

Online conversations are not a cake walk. It is your company brand! You are your online company brand.

Dave Kolner googled all of the people signed up for the training. 76% on line. 14% compete with famous name. 90% are indexed . 8% have extended presence.

What is your online brand? How do you blend online and offline conversations together? Stacy: branded as elite travel gal on blog then twitter to make it easy to follow her. good keywords and easier to find and remember than a name. facebook as her name but linking to her blog her company web site and her twitter id. Michelle: has personal life and her techie life. sees it as a business she is building as a family travel writer. Choose carefully how you brand yourself. Use keywords or company name for best effect. Don’t do what I did and make one up on the fly (even though I could have done worse than tomtravel2).

Ideas for beginners: Stacy educate yourself read “whuffie factor” search on Twitter for social media. Mikiah tools like xobni tweetdeck (or seesmic my fav) Michelle: wanderlisting search top travel on twitter google to see conversations

Stacy: wefollow allows you on directory and can search for others.

Advanced": Stacy: follow breaking news on cnn or anncurry faster than TV. Online contests get brand out. Find authors clients by looking them up and following them. Michelle monitor your return on social media set KPIs how is it helping your business. Website use analytics to see source of inbound traffic. Twitter? Google?

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Virtuoso Travel Mart Day One

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I have arrived in Las Vegas for 5 days of travel business fun and madness. I checked into Bellagio and picked up my registration materials for Travel Mart. Today should be more fun than madness. At 3:00 I attend a training “One to One and Beyond: Harnessing the Power of Social Media.” When I saw the offerings for Travel Mart this little meeting was the first thing that jumped off the screen at me. At the time I was mostly curious what this would be about. I was early in my intensive effort to learn Twitter and how to make it work for me. I was really beginning to see progress by that time. Virtuoso on the other hand was hardly visible on Twitter. I signed up mainly to see what they would come up with in a few months starting from scratch.

It has been fascinating watching toes being dipped into the Twitter stream by travel agents, travel vendors and now by my travel consortium. I began to notice several individuals from Virtuoso trying to get up to speed. The individuals running the training I am about to attend ended up contacting me for inside baseball on Twitter. I hear I am going to be mentioned during the training which is cool. I still am very curious where they are going with the thing. I am also curious to see who will be attending. Last year I did not attend the early sessions at Travel Mart. I started the first day of meetings (where agents and vendors sit and meet one to one). I was quite surprised to see how many people are here a day early on a Saturday.

So in a few minutes my first taste of Travel Mart 2009 will tease my taste buds. I am looking forward to all of it, every hectic interesting slice of this mixed berry pie. The two things I am looking forward to the most are this class today and the Tweetup on Tuesday afternoon. The classes tomorrow look interesting as well, and I hope to blog about them as well a bit. “Getting up to techno speed: flexing your online muscles” is another one I probably could have taught. The other is a big part of what I am building my business on “Tapping the X-Y potential-the next generation opportunites.” I recently blogged about how only 7% of 20-30 year olds use travel agents. My angle was that they are missing out on the VIP treatment at hotels they are willing to pay up for at fancy nightclubs. Virtuoso VIP treatment usually costs them nothing yet they all book on the internet.

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I see people streaming by on the way to the training, and it looks to be time to head that way.Here comes the summary take-aways and my comments:

  • Mission Statement- Making Social media useful focus on Twitter and Facebook
  • Oprah? Yeah we are watching Oprah explain Facebook. As much as I am not about celebrities on social media, she did have a coherent basic explanation presented with high end video production.
  • Kier and Mikiah did their own video for Twitter. Not as slick as O’s but much more informative. Hey there’s Tomtravel2! That was very weird to see me up there with Mathew Upchurch and Ashton Kushter.
  • They are running the live feed of #tmsm but there is no wireless in here. Some of the Virtuosos are tweeting on their crackberries and I am stuck writing in my blog for later.
  • Policy- Who is going to represent your company or brand? Think before you jump!
  • One agency blocked facebook and twitter and reinstated it within 4 hours after employees complained.
  • Agency owners managers- coming to grips with how to implement and do we set rules? One id for personal and one for business ie.
  • Suppliers-Big Five encourages social media use by all employees. Use facebook for internal communications and sharing pictures etc.
  • Fairmont- doing top down and bottom up hotel by hotel. I have been generally impressed with their approach. Not totally there by any means but always moving in the right direction.
  • I just got drafted into answering a question by one of the members. Caught me offguard. What can you post more than four times a day that could possibly be of interest. I answered news, answer questions interact with others.
  • How do you get followers? Mikiah cited what Tom did by interacting and adding value. This is fun.
  • @Wandermom made a great point about putting your website URL in your profile.
  • Some of the blackberry contributers: @travelingking1 @cedery @davidtravel @tafaritweets @brownell  @ jjohnson66 @joshua_bush @scottru @bigfivetours @travelnetwork @travelking1  @?brownell? @?junefullersloane?
  • strategy- networking, personalization, advertising, fresh light focus on travel,
  • Scott Ahlsmith Virtuoso: hit it from all directions social media web site blog etc keep it interesting-genuine

 

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  • Tips-fill out complete profile-yes indeed I agree (put a link and picture as well)
  • Quality over quantity- in terms of followers/friends
  • Start something- anything- I agree on that.
  • tools: Xobni (can  add emailers to facebook automatic) posterous (post later tool) tweetdeck (twiiter client) I prefer seesmic but Ok that’s taste issue. Tweetdeck is very good as well.

Comments: Virtuoso should have had wireless access set up for those of us who don’t tweet from a mobile device. Or am I the only dinosaur left who doesn’t? I hated seeing the #tmsm scroll and not being able to tweet! Here I sat writing a blog in Live Writer that I had to schlep the laptop back to the room to post! Oh well, it is a minor complaint. So I have to pay Bellagio for a day! They say there will at least be a tech center room starting tomorrow I can go wireless in. Over all they did a good job getting themselves up to speed. It was cool being called out, but caught me off guard when they wanted me to answer questions. Good thing I was a Speech major way back when. Always ready to improvise.

More to come after VAST!

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You’re Young, Successful and in Vogue But Not in the VIP Room?

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I do not pretend to be young or on top of all the latest in youth culture, but I am building my luxury travel business mostly with people in their 20’s and 30’s. How is an offline travel agent making repeat clients our of the online generation? Connections, baby! If the headline fits you probably know how to get inside the velvet ropes at the trendy clubs in your city. You think nothing of tipping a doorman or working your connections to bypass the line outside. You may even pay up to get a table in the VIP. What you probably don’t know is that booking your hotel stay on the internet puts you on the wrong side of the velvet ropes, and far from the VIP room you want and deserve.

I am a father who had a very open household as my kids grew up. We had one of those houses where kids didn’t mind hanging out. As our kids became successful young adults their friends have kept in touch. One young couple we know booked their honeymoon on the internet at very nice hotels in Hawaii. I had just started my adventure as a travel agent. After we looked at the photos I pointed out to them that they were in two Virtuoso properties. If they had booked with me they would have had a room upgrade if available, free daily breakfast, resort credits, and VIP status all for the same price they paid on the internet. They let me compare their next trip to what they could do themselves on the web and have been regular clients since. When they start planning a trip now the first question is usually “Is that a Virtuoso hotel?”

This has led to a number of referrals to their friends who are also becoming regular customers. You are probably already hooked on the idea of getting VIP treatment. What most of you don’t know is the cool way to book your travel is not on the internet. A recent article claimed that only 7% of this age cohort uses traditional travel agents! You are the web generation indeed. Are you sure you want that online room? What I offer that the web can’t is connections. I am off to Las Vegas this weekend to build on the great connections I have already made. At Virtuoso Travel Mart we have the opportunity to meet with the sales managers and general managers at the chic hotels you crave. These are the people who decide who gets the VIP treatment and who doesn’t. Who would you give the best room to, an anonymous booking or the client of someone you know? I don’t need to know the doorman, I know the doorman’s boss.

As luxury travel agents we take every opportunity to create and nurture relationships with the people at the places you want to stay. If you don’t schmooze you lose. What the internet travel sites will never be able to do is replace the person to person relationships that we have. Many of the people I have met in the industry want you to book your trip with us, not on the web. It makes it easier for them to make sure your stay is exactly what you were looking for. This creates a satisfaction that leads to repeat business. We have a very high rate of repeat business among our clients. We also mostly generate our new business off of referrals from our happy clients. The internet travel sites struggle with customer loyalty. Under 20% of internet booking customers express satisfaction with the experience. Repeat business is just as low. I know once I get you inside the velvet ropes and into the VIP you will come back for more. Not to mention the free breakfast and resort credit.

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Online Travel’s Big Money Race to the Bottom

When you hear the words internet, web, or online combined with the word travel what’s the first thing that comes to mind? If you are like most people “cheap” or “less expensive” was one of the first things. You may have also thought of a particular brand of online travel agency or OTA. You might have even remembered one of the many catchy ads these companies have placed on television, radio and print media. This image of internet travel=cheap travel is almost universal with consumers. It is also by design.

Back in the heady days of the ‘90’s Internet bubble, venture capitalists and stock market investors were throwing huge gobs of money at almost anything related to the internet. Remember pets.com and their sock puppet? Selling that sure to lose money company short was the best investment I ever made. My previous career was trading and analyzing stocks. It seemed clear to me that as cool as I thought the Internet was there would be more losers than winners in the long run. I began to place bets against the companies that seemed to have insane business models (like fed-exing pet food or bricks). If I had made bigger bets I would be retired and traveling instead of helping other people with their travel needs.

Among the companies to come out alive and actually make money on the internet were the large OTAs. Online travel was, along with selling books and collectables, one of the winners. They were able to raise huge sums of money with venture capital investments and stock offerings. It is how they have spent that money that is the subject of this post. Like most Internet start ups the OTAs placed large money bets on conventional advertising as well as search engine click campaigns. If you Google “travel agents” or any related term most of the ads you will see are from OTAs. The television ads of these companies are ubiquitous. So what message did all this expensive advertising with slick Madison Avenue campaigns convey? We are cheaper. Nearly all of the online travel companies focused on this concept. Cheap, cheap, cheap!

The result of all this advertising has been an almost universal assumption among consumers that the Internet is always the least expensive way to book travel. What is has not led to is any sort of loyalty by travel consumers to any one company. Despite all their expensive attempts at brand building the online travel industry has not created a repeat business among their customers. The vast majority of people booking travel on the internet say they don’t care what company they book with. They only want the lowest price and are willing to shop one web site against another.

As an example of how effective this industry wide advertising emphasis on lower prices was, I was actually surprised when I began working as an offline travel agent to learn that it was not true. Many calls will come in from clients who have found “a great deal” on the web. With very few exceptions it is the exact same “great deal” that I can book the same trip for in our GDS (global distribution system, or travel agent booking engine). Often I can get clients the same price they see on the internet but with added perks or amenities they can’t get on the web. So what we almost all assume to be cheap can in reality be more costly.

There is no magic in the Internet that brings lower prices for travel automatically. The truth about travel pricing is that the vendors control the prices. The only way any distributor of travel can offer a lower price than any other is by negotiating a special deal with a vendor. Although the OTAs have gotten quite large, they compete with travel agency consortiums that are often larger. An individual travel agent is usually part of one of these consortiums which then negotiate prices with the vendors on their behalf. I belong to Virtuoso which is the largest luxury travel consortium in the world. Virtuoso travel agent bookings represent a much larger share of the business of high end travel vendors than the OTAs. Why would these vendors give them a better price?

Despite the seeming meteoric growth of the online travel business, as a whole they still make up less than half of the overall market. Conventional travel agencies have survived the onslaught and the advertising blitzkrieg. A closer look at how the market is now spit up between the two travel selling intermediaries is even more revealing. The internet travel companies have managed to grab most of the air travel market. They have made big inroads in hotel bookings, particularly at the lower end of the market. Conventional offline travel agents continue to make the vast majority of cruise, tour package, and luxury hotel bookings. In the war for the travel consumer the traditional travel agents have held the high ground. The OTAs have been engaged in a very costly race to the bottom.

Margins in the travel business are very thin. The travel agency business has survived on those thin margins for years. A typical travel agency spends very little on advertising compared to their internet competitors. Last year we spent several thousand dollars on all our marketing efforts but generated around one million dollars in travel bookings. More importantly the vast majority of our business comes from repeat clients. The next largest segment of our business comes from referrals from our existing clients. Business brought in from our diverse marketing efforts comes in third. For us marketing is a way to grow the business. For the travel web sites advertising is needed to survive. This addiction to advertising spending is the Achilles heal of the OTAs. With such thin margins it will be hard to sustain the level of ad buys they currently do. It seems unlikely that much new investment money can be raised now that the market has matured. I have read articles predicting a shakeout or consolidation coming soon. With such an unsustainable business model it had to come eventually.

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When DM means “Dead Message”

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Direct Message

The Direct Message feature of Twitter is one I use sparingly, and for good reason. Twitter is a fairly public interaction between people for the most part. If one is promoting a business like I am, the public nature of the interaction is the whole point. Direct Messages are seen by no one but the sender and the recipient. I always respond to those rare private messages privately. On occasion I have something to say to a Twitter friend that I think they would prefer not said in public. That is the only thing I do with DMs.

It is my opinion based on studying those individuals and businesses that are using Twitter with great success that the DM is best used only for things of a sensitive or very personal nature. It is also best to refrain from over using it with those one doesn’t already interact with in the public timeline. A quick introduction to a new follower will usually not offend unless it is impersonal and self promotional. I choose not to use the DM to introduce myself. If I want to spark up a conversation with someone new I have found, or someone who has found me, I do it in the public timeline.

 

Dead Message

In my opinion the worst usage of the Direct Message is what I call the “Dead Message.” This occurs when one follows a new Twitter profile and receives a DM without a follow back. Like most people, when I see a new DM my first instinct is to respond. If you have seen my other blog postings you know I learned to tweet by studying the best practices of Twitter consultants and others who have had success with the medium. You also know I believe those most successful on Twitter are those who interact with others. This twillosophy has worked very well for me. If you look for “travel” on Twitter grader I am very high on the list. The responsive nature of Twitter is the key to it’s success as a medium.

The lack of an ability to respond turns a DM into a Dead Message! It was sent to me, read by me, and without the ability to respond it dies. If a business has the goal of annoying their potential customers and partners the Dead Message will certainly do the trick. Put yourself in the mindset of the recipient. They found your business somehow and decided to “follow” you. That was very nice of them. You have sent them a message back, but unfortunately you decided not to start a conversation. In effect you have ended the conversation before it had a chance to start!

When I first encountered a dead message I was rather offended. Most people are. The more the person getting the dead message is accustomed to the use of Twitter the more likely they are to be offended. I had another travel agent  express in no uncertain terms how angry it made her to not be able to respond to a direct message without a follow back from one of her favorite travel vendors. This was a company she is actively promoting to her clients on a daily basis. She is a very successful agent who is one of this companies best partners. The dead message left a bad taste in her mouth.

 

Twitter is not Facebook

Many companies first dipped their toes into social media via Facebook. It is important to understand that Twitter is not Facebook! It is perfectly acceptable to set up a fan club type page on Facebook to broadcast your message. Taking this approach on Twitter is counterproductive and may do severe damage to your brand image. People who are using Twitter frequently become accustomed to interaction. Failure to respond or invite response by a business sends the wrong message to those people. The Dead Message is like having your  800 number respond with a recorded message saying “Don’t call us, we’ll call you.”

Ironically the company mentioned above that offended my fellow travel agent is one that is well known for it’s friendly customer service. Sending out a Dead Message is neither friendly or service oriented. Luxury travel vendors in particular should be wary of how their Twitter account reflects their brand to potential customers. They should be doubly wary of offending their partners in the travel agent community. In general we would be very likely to promote your brand on Twitter like we do every day talking to our clients by phone or in person. Help us help you by opening the lines of communication.

 

Thick Skin

I admit I used to be offended when one of my favorite travel vendors failed to follow me back, or worse sent me a “Dead Message.” I soon realized that it is not the company’s intention to offend me or others. They just don’t get it yet. I am seeing more and more who are getting it. Most still do not. While I no longer take offense I am still baffled by seeing companies that have wonderful products and great brand images doing things on Twitter that damage that image. You know, I love you but I really hate to see what you are doing to yourself.

Every company in travel and all other businesses knows that have to be on Twitter by now. Many would be best served to study the best usage of the medium before they start tweeting themselves in the foot.

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Responsible Travel? Not a Simple Answer.

 

 Rio Savegre Costa Rica yan

I had posted a link to an article about a luxury travel vendor and one about “green travel” in the same series of news links. I was asked a very pertinent question by @RyanJohnston: “Hello @tomtravel2 – Can ‘luxury travel’ be green and/or eco-friendly? Is there a market for eco-luxury?”

This is the rest of our conversation:

Tomtravel2 @RyanJohnston Any travel and eco-friendly is problematic. No carbon free jets yet. That said at any level people are trying to find balance

RyanJohnston @tomtravel2 I think you are totally right. Finding a balance is what influences me.

Tomtravel2 @RyanJohnston I do what I can to be eco-friendly in all aspects of life (recycle, organic garden, etc) but I MUST travel #traveltuesday

Later that day these related threads wove themselves into that conversation and made me think even more on the subject:

Tomtravel2 @RyanJohnston Check out this profile that just showed up in my followers: @ElevateTravel

Tomtravel2 Wow! Very thoughtful article on responsible travel certification by Justin Francis: http://bit.ly/glLdz #travel #traveltuesday #green RT!

To summarize this very long and very interesting and very intelligent article, Mr. Francis who runs a web site on “Responsible Travel” makes the argument that no one global stamp of approval would work or should be adopted to label any travel vendors or destinations. He feels that the very definition of what is responsible culturally or ecologically is best defined locally by the people impacted in the destination. Each country or region is better at judging the impact of tourism on them than any international group. I think he makes a very good point.

Contrarily some local governments and even local communities would trash their environment and gladly give up their unique local cultural identity in exchange for the money that comes from tourism. Tourism cannot help but have an impact of some sort on any destination. As one who has lived most of my life in a popular destination I have seen the changes that come from development at any cost. Although all of the growth of the Phoenix area is not due to it being a destination, the growth has been sharply accelerated by it. The environment has been turned into an urban sprawl that surrounds the mountain preserves that local people wisely voted to tax themselves to create. Many in the development and tourist industries opposed each of the local initiatives to “save the mountains” the latest of which created the McDowell Sonoran Preserve in North Scottsdale. The first round created the Phoenix Mountain Preserve, and a second one expanded it. A smaller preserve in Phoenix was added not long ago. None of these initiatives passed with more than 55% of the vote. They all could easily have gone the other way. The tourism industry here benefits greatly from easy access to hundreds of miles of trails in the world’s largest urban wilderness system. Most in the industry opposed the preserve initiatives, after all those lovely desert mountains would be great places to put new resorts. The local community almost gave away what is now our jewel in the crown.

Local or Global, the tightrope we walk between business culture and environment is a tricky journey. My grandfather would not recognize the Phoenix that now exists. He surely would not feel at home in it’s new culture either. Most people who know me would be surprised to find out that I grew up “cowboy.” When our ranch was sold to developers our world changed dramatically and as time went on so did I. There are far more people my age in this city that were born in Chicago than there are those few of us who are natives. We locals had to adapt to the new majority much more than the newcomers have adapted to the culture they replaced. The cowboy statue in “Old Town Scottsdale” seems misplaced now.  I have chosen to stay here and make the best of it. I consciously take a positive view of change in order to avoid slipping into a negative nostalgia for what was but will never be again. It is similar to the way I look at travel and it’s impacts both cultural and environmental. Yes, there are impacts and many negative. Can I see positives from an activity that usually starts on a carbon spewing airplane? Yes.

We must travel. It is a human imperative that has only grown as time has passed. Travel changes us for the better. Nothing we can read or watch in the media can bring the immediacy of experiencing a foreign culture for ourselves. Those who travel have a worldly perspective that makes them better citizens of this globe. It is harder to ignore those places we have immersed ourselves into even if briefly. Familiarity leads to understanding which can lead to compassion. I followed a loved one on a world voyage with Semester at Sea. This is a college campus on a small cruise ship. Reading the blogs of those students was enlightening. It was like watching minds and hearts bloom over the course of one hundred days. Young people who have experienced this incredible program will tell you years later that nothing they have ever done has had more impact on the way the see the world. Is that worth the carbon cost of propelling a ship around the world? Every journey, no matter how brief, opens the doors of the soul.

I have always leaned “green.” I participated in the first Earth Day celebrations in the seventies when I was in college. I started recycling way before it was fashionable or convenient. I grow some of my own vegetables and fruits in my back yard. I traded down to the most economical vehicle that still could get me off road with my kayak and gear. I am not perfectly green, and I don’t pretend to be. I do my best when it is feasible and economical. I do support conservation organizations with my money and my time, and I vote for candidates somewhat based on their environmental policies. Given all that, I still cannot wait to get on my next flight to a far off land. I will go with no regrets, only the joy of discovery.

I see travel vendors trying to jump on the eco bandwagon. It is a tricky jump for many. How do we call ourselves green when our guests are consuming carbon while enjoying our wares? Do carbon offsets make up for the oil burned by the act of flying, driving or cruising? Is there a simple way to put a green stamp of approval on any travel vendor? I have chosen not to market my services or the travel experiences I plan for people as eco or green. It just seems insincere. Do I prefer to work with vendors who are making an effort at being environmentally or culturally sensitive? Absolutely. Is any travel experience completely so? Absolutely not.

No matter the cost to cultures and the environment in the short term, I can’t help but feel the value of travel outweighs it. Travel has made me a better person. Travel has given me a more compassionate view of the world and it’s peoples. Travel has filled my soul and opened my mind. I have to travel. Living without the joy of discovery is hardly living in my view. I will continue to support anything that can mitigate the negative impacts of travel. I will also continue to celebrate the positive impacts that travel brings to individuals and the world. Balance of a sort.

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The summer of travel vendor discontent? Insure your vacation!

Cloudy sky over travel industry

Independent travel insurance is more important than ever this summer! 

 

The economic tsunami that swept the world of finance last fall has had some major impact on travel vendors the world over. Some companies have adjusted well and continue to function without a great deal of long term damage. Some cruise lines have managed to increase the number of bookings and the percentage of cabins booked by drastically lowering fares. Surprisingly some have actually managed to stay profitable or even increase their profits in this economic malaise. This is not the case across the board as some companies have already declared insolvency or otherwise dramatically curtailed operations. This year has seen the demise of one major package tour company. One river cruise company will cease operations in the fall. Where will the next shoe drop?

Who can you trust to follow through on the promised travel you have booked? Most hotel bookings are less at risk, but it behooves the traveler to know what exactly the cancelation policy is. We never advise non-cancellable hotel reservations and that policy makes even more sense now. Car rentals also usually allow for short term cancellation, but again read the fine print (or use a good travel agent who can do it for you)! Air arrangements now should also be done with care due to the addition of onerous change and cancel fees for all but one domestic airline (thank you Southwest Airlines). The more complex and expensive the travel the more one should consider travel insurance purchased independently from a reputable third party insurance company a necessity. I never travel without it.

 

Not all Travel Insurance is Created Equal!

There are major differences in travel insurance companies and in the policies they sell. We keep a careful eye on the financial health of the insurers and only deal with the ones that pass muster. There have been cases in the past of insolvency and even fraud from companies selling travel insurance in the past, and now is no time to gamble with your vacation or your money. We receive updates from our host agency and from travel agent organizations on companies in travel who are having financial troubles (including insurance companies) and we do not do business with the ones at risk. Period.

The policies offered by vendors often differ from those a good travel agent can purchase for you from third parties. It is important to evaluate what type of coverage you are most likely to need. Most policies do not allow you to “cancel for any reason”. This makes it important to understand what reasons are covered by each policy. During the recent H1N1 or swine flu panic many people cancelled their trips (or attempted to) out of fear of contamination. Most travelers found their coverage did not extend to fear of health risk. Many people want to cancel trips to places that have experienced a recent terrorist attack. Most travel insurance would not cover cancelling unless an attack occurred within 30 days of travel in the exact city (not country or region) the attack occurred. In these cases only cancel for any reason coverage would apply. The nervous traveler might be best served by this type of policy.

While it has always been a good idea to purchase insurance that covers vendor default, it is now crucial. To many large companies in all fields have been shown to be vulnerable in this economy. Travel companies are no exception and none should be considered to be risk free when it comes to your vacation. Ask your travel agent to make sure you are covered no matter what happens to the companies you are purchasing travel from. Some insurance offered by vendors has all the coverage you need including vendor default put many policies do not. It is important to know the difference. It is also helpful to have an experienced advocate on your behalf which you get when you book your travel with a full service travel agent.

My associate Judi Walker  just tweeted an article on Twitter that shows one case of consumers who had to fight a travel vendor for what they thought they had purchased http://tinyurl.com/lz6rvf.  There have been many others who were surprised to learn the nuances of the coverage they had actually purchased. The moral of the story is to consult with an experienced and knowledgeable travel advisor who only uses reputable vendors or caveat emptor.

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Booking Luxury Hotels on the Internet? Don’t you want the free breakfast?

 Sanctuary Resort Sign

 

Summer Resort Getaways in Arizona, a Case Study:

Long before a clever journalist coined the phrase “staycation” Valley of the Sun (Phoenix, Scottsdale, Carefree, Paradise Valley, Tempe, Chandler, etc.) residents were doing in town resort getaways every summer. My home town is blessed with a wonderful array of luxurious resorts. As a true seasonal destination our luxe resorts that are priced to the stratosphere during the fall winter and spring high season always come to earth during our long hot summer. This summer the rates have fallen into a well. The local tourism economy has taken a severe beating, and resorts have priced to sell. No popular American destination has been effected more except Las Vegas. If you live in Arizona this is the summer of deals and steals on the best resorts! If you are crazy enough to come and take the heat it might even be tempting to out of state visitors at these prices.

Last week I called all seven of the Virtuoso properties to get the best rate or package for June 26th 2009. I also searched for the best deals available on seven major travel web sites. The client I was helping mentioned “an amazing deal” she had seen advertised by one of the big “online travel agencies".” I am not posting the rates that I found for the client for a stay on June 26th because rates are subject to change. I will show a comparison to what was available with a Virtuoso advisor and what was available for booking on the internet.

Internet travel sites and online travel agencies have spent a ton of money trying to convince the traveling public that they always have lower prices. This is one of the few things they have excelled at: creating the perception that the internet is cheaper. I often speak to clients who think they have found bargains on the internet, only to find that it is the exact same price I can get for them. In the case of luxury travel vendors my “price match” comes with added perks that gives my clients a huge advantage. Take a look at the amenities that come with a Virtuoso rate at these fine hotels then read on for the rate comparisons.

The Arizona Biltmore Resort and Spa, a Waldforf Astoria Collection: The venerable and classy Arizona Biltmore is the resort that set the stage for the Valley of the Sun as a vacation destination. Unique architecture inspired by sometime Arizona resident Frank Lloyd Wright is complimented by lush garden setting and green lawns. The convenient location gives easy access to downtown Phoenix and Scottsdale’s shopping. The resort is nestled at the base of popular hiking trails at Piestewa Peak and the Phoenix Mountain Preserve.

Virtuoso guests receive:

· Upgrade on arrival, subject to availability

· Daily Continental breakfast for up to two in-room guests,in the restaurant

· 4pm late check-out, subject to availability

· A complimentary lunch for two, once during stay (excluding alcoholic beverages)

The Boulders Resort & Golden Door Spa: This resort has one of the best settings of all of the Phoenix area properties. True to it’s name The Boulders resides in and among large red boulders at the foot of Black Mountain just to the south of the town of Carefree. Well known as a spa and golf destination for celebrities, The location offers a peaceful retreat that still offers access to the amenities of the booming Valley of the Sun.

Virtuoso guests receive:

· Upgrade on arrival, subject to availability

· Daily Continental breakfast for up to two in-room guests, in restaurant or via room service

· A US$100 recreational credit once per stay to be used for golf or tennis

· VIP Status

· Welcome amenity given in the name of the booking Virtuoso agent or agency

· 4:00pm late check out based on availability

Fairmont Scottsdale: Location, location, location. What golfer doesn’t want to stay overlooking the TPC? This is the site of the rowdy “biggest party on grass” or FBR Open (formerly the Phoenix Open) often the most attended stop on the PGA tour. Low-key southwestern architecture and well known Fairmont hospitality are found at the former Princess Scottsdale now Fairmont Scottsdale Resort. I had lunch there on Father’s Day which was excellent. There are some renovations being done on what was the large water feature off the main lobby. We were told that this would be done by summers’ end.

Virtuoso guests receive:

· A one-category upgrade at the time of booking, subject to availability

· Daily Continental breakfast for up to two in-room guests, served in LV Bistro, The Grill or via In-Room Dining

· 12 Noon early check-in, subject to availability

· 4 PM late check-out, subject to availability

· A US $100 Food & Beverage credit per room, once during stay (no cash value if not redeemed)

Four Seasons Resort Scottsdale at Troon North: This newest entry among The Valley’s Virtuoso gems is considered by many to be it’s crown jewel. Set at the foot of iconic Pinnacle Peak, the Four Seasons Scottsdale overlooks the greater Paradise Valley and Scottsdale areas with views of the distant Phoenix Mountains and beyond. Fine dining, luxe decor, and pampering service are provided in a way only Four Seasons can deliver. Some of Arizona’s best golf is right outside the door in one of the most exclusive addresses in Arizona.

Virtuoso guests receive:

· Upgrade on arrival, subject to availability

· Daily breakfast for up to two in-room guests, in Crescent Moon or in Casita dining

· Welcome amenity of a snack trio & bottled water

· 50% Discount off valet parking for duration of stay

The Phoenician: This modern resort sets the bar high for glitz and style. This 250 acre resort property features 10 restaurants, 9 pools and has a $25 million art collection for guests to admire. Sitting at the foot of Camelback Mountain the Phoenician is close to Scottsdale’s shopping and downtown Phoenix sports and culture venues. I like the having tea at the Phoenician while I take in the wonderful view of Scottsdale and the distant Superstition Mountains. Golf, pool and spa here are top notch.

Virtuoso guests receive:

· Room view upgrade on arrival, subject to availability

· Daily full breakfast for up to two in-room guests, (up to $50.00 credit per day) in restaurant or via room service per guest room

· Welcome amenity of fresh seasonal fruit

· $50.00 Food & Beverage Credit, once during stay

Royal Palms Resort and Spa: A lush private oasis of luxury just south of iconic Camelback Mountain the Royal Palms is one of a kind. Winding paths lead throughout the garden setting and Camelback rises majestic above it all. This Mediterranean villa styled property makes guests feel they are far from the madding crowd, yet it is very convenient to Old Town Scottsdale, Fashion Square, and the Camelback Corridor. Get Pampered at Alvadora Spa or dine at widely acclaimed T. Cook’s all in Old World ambience.

Virtuoso guests receive:

· Upgrade on arrival, subject to availability

· Daily Continental breakfast for two in T. Cook’s Restaurant

· An $100.00 Resort credit, once per stay

· VIP status

· 4 PM late check-out, subject to availability

Sanctuary On Camelback Mountain, Resort and Spa: This one of a kind resort has a feng shue vibe and a celebrity pedigree. Long a favorite of Hollywood types and VIPs, it is truly a Sanctuary. Sitting high on the slopes of fabled Camelback Mountain, guests at this gem are treated to one of the Valley of the Suns best views. The “Praying Monk” rock formation seems to be blessing it’s nearby neighbor and the Phoenix Mountains and Mummy Mountain rise across the valley known as “Paradise” between. Dining at Elements while the lights come sparkling to life at dusk is treat for the taste buds and the eyes.

Virtuoso guests receive:

· Guaranteed upgrade at time of booking on Mountain Rooms; upgrade on arrival, subject to availability, on Spa Rooms

· Daily Continental breakfast for up to two in-room guests, in restaurant or via room service

· A complimentary 30-minute massage OR 50% off spa treatment of choice (gratuities not included)

· VIP status

Online Travel Agencies: For comparison only. I searched for all seven properties for the same date on five of the popular online travel agencies and two multi-site comparison sites. For four of the resorts the best rate available on any web site was the same as the Virtuoso rate, but the online rates included none of the above amenities for the same price. For one resort all of the internet sites showed a rate that was over $100 higher than the Virtuoso rate with no amenities. For one resort one site had a rate $10 less than the Virtuoso rate (all other sites offered the same rate as the Virtuoso rate or higher) with no amenities. One resort had a special rate that was available to me and on all but one of the internet booking sites (the Virtuoso rate was applicable only to upgraded rooms and was higher than the special). For this one I could only match the web booking sites

Conclusion: The best rate is not always the best value. When the best rate is equal to or more than the Virtuoso rate this is especially the case. When is paying the same for less a good deal? Never. Prices for self booking even on the internet are in the vast majority of cases the same as rates available through any travel agent. Sometimes one web site or booking directly with a hotel can offer a slightly better rate. Sometimes a travel agent can offer the best rate. Frequently when booking luxury hotels the Virtuoso amenities included are by far the best value.

Do us both a favor and contact a Virtuoso advisor the next time you are looking for a high end vacation. Chances are you will save yourself money and gain added value. If you select a Virtuoso advisor who makes and nurtures contacts with the resort management you will also be afforded special treatment beyond your expectations. Do you still want to book a luxury resort stay on the internet? Don’t you want the free breakfast, upgrade and etc.?

Visit the Alliance Travel Partners web site if you would like to talk to me or my partners about these or other great values in travel!

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Plunging into the Travel Business

img_2119 The world as we know it now revolves around the Internet. The world of travel is no exception to this rule of thumb. People look to the Internet for information about hotels, cruises, and destinations. Many have become comfortable with booking their own travel directly with vendors or with online travel agencies (OTAs). Yet even in the age of Internet omniscience, the traditional travel agent survives. In some cases offline booking is thriving and possibly growing faster than the OTAs.

In my previous career as a stock trader and analyst, I learned to examine a business. Is it growing? Is it profitable? Is it’s business model sustainable? What is the competition? What are the prospects for future growth? What I saw when I looked at the business of booking travel was an odd picture. The traditional business was a disparate collection of small agencies and a few larger ones. The business had been moving to a home-based outside agent model for some years, further diversifying the business model. The OTAs seemed to be advertising dependant and fueled by venture capital and stock issuance cash.

Despite the huge ad spends by the big OTAs, small players in that niche have been stealing market share. How long can they keep buying TV, magazine, and SEM ads? In the online booking of travel the consumer is king. Those who book travel online seem to be driven by price not loyalty to one brand. Further complicating things for online travel agencies is new competition from the vendors themselves. The vendors control the inventory and the price. For the consumer it makes little sense to add a middle man unless there is value added. OTAs’ notorious poor service adds little value to the transaction.

Many consumers assume that the visible growth of the OTAs must have been a death blow to the traditional travel agent business. This is far from the truth. Ask any veteran travel agent and they will cite two factors that hurt their business far worse than competition from garden gnomes; the airlines cutting commissions in the 1990′s and the drop off in travel after the 9-11 tragedy. Travel is a fast growing market segment (although 9-11 and the current deep rescession put the brakes on that growth). The market share of traditional agents has held it’s own in recent years and the OTAs growth has slowed appreciably.

Travel agents have through all the battles with the online industry “held the high ground.” The vast majority of cruises and tours are still booked offline by individual agents. The more complex and expensive the travel, the more likely that travel agents are still the dominant means of booking said travel. Many agents will no longer book air travel alone, or will charge a booking fee to do it. Almost any travel agent will be happy to book your next cruise.

As for us, business is good. I see room for multiple models of booking travel. Most of our clients are seasoned frequent travelers who seek expert advice and high touch customer service. Many return for the value we add to their trip by our close relationships with the vendors. Some have come to count on the extra amenities that come with a Virtuoso booking. Most of our business comes from our existing client base. There is a high loyalty rate in our business model, while the OTAs have a very low rate. The prices paid on our bookings are most often identical to the price online, but if you pay the same for less it is not such a great deal.

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