2009 Annual Report

2009 ANNUAL REPORT

ASTA is doing more. Its lobbying efforts are finding a toehold. Its education is engaging and relevant.

T R AV E L W E E K LY

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A S TA’ S VA L U E T O T H E I N D U S T R Y In 2009 ASTA’s value to the travel industry

Throughout the year, ASTA members were

expanded from federal and state legislation to

educated on topics that ranged from how to protect

include educational and technological realms.

their businesses to becoming more eco-friendly. In

Although the Society continued to speak up for

the spirit of accessibility, ASTA held its inaugural

travel agencies across the country on Capitol

virtual conference and board meetings, which

Hill on many subjects, education was its main

explored a new outlet for connecting the travel

goal. With more than 20 Webinars and 17

industry.

online tutorials, ASTA taught travel industry professionals how to survive in tough economic

ASTA also expanded its horizons in a non-

times.

traditional way: through social media. The Society ramped up its presence on social and business

When United Airlines announced they were

networking sites such as Facebook and LinkedIn

shifting credit card fees to select travel agents,

and joined the Twitter sphere where it promoted

ASTA stood against this movement. The Society

ASTA’s value to new industry partners, agents

created a grassroots campaign to lobby Congress

and travelers. By integrating social media into its

to overhaul the rules protecting the nation’s

campaigns, ASTA has developed a new way for the

credit card owners from unfair and deceptive

travel industry to learn from and connect with the

business practices. ASTA also worked closely with

Society and each other.

Congressional leadership to bring pressure to United on withdraw this practice.

Knowledge is power and ASTA became a leader in industry educational tools, increasing the value

In an effort to prepare its members for possible

of membership and creating a new role for itself.

additional fees and increasingly stringent

Through effective representation and shared

regulations, ASTA provided opportunities for

knowledge, ASTA continued to help its members

travel agents to learn how to better manage their

dedicate themselves to the business of selling

business and increase profits. Webinars were

travel.

held on topics from best business practices and branding to working with the media. All of these sessions taught members to use tools they already had to increase and strengthen their business.

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M I S S I O N S TAT E M E N T

ASTA’s (the American Society of Travel Agents’) mission is to facilitate the business of selling travel through effective representation, shared knowledge and the enhancement of professionalism.

V I S I O N S TAT E M E N T

ASTA seeks a retail travel marketplace that is profitable, growing and a rewarding place to work, invest and do business.

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MESSAGE FROM THE PRESIDENT

services allow members to do business with consumers and other ASTA members worldwide 24/7.

I think we can all agree that 2009 has been a year

In the past year we have grown our educational

of change. These past few years have brought us

offerings because we feel that knowledge is the

one challenge after another and I have to say, we’re

most valuable tool of all. With multiple Webinars

holding up pretty well. As an industry, we have

each month, more destination specialist courses

battled the public’s perception that the Internet

and hands-on training at events such as THET-

is taking some of our clients, various man-made

RADESHOW or for a more in-depth experience,

and natural disasters that have impeded travel

the International Destination Expo, ASTA mem-

and worst of all, the addition of more travel fees

bers are prepared. ASTA also helps international

and taxes. I hope to one day pass my agency to my

agents looking to expand their networks through

sons, so I need the travel industry to survive and

the Buyers Guide and Web Exchange. ASTA sup-

thrive for the next 20 years. I don’t look simply at

ports all of its travel agent members through the

our immediate future as an industry, rather I am

free consumer lead service from Travel Sense.org.

concerned about our long-term viability. So what

These are resources that expand your business in

do we need to do now to ensure our industry is

every way.

thriving in the future? Be involved. Whether it’s

We encourage all our members to make the most of

fighting taxes, working for legislation that is pro-

online networking opportunities. For example, we

small businesses or getting in line with the times

developed several member tools to allow suppliers

and communicating with our clients through social

to connect electronically with travel agents. But

media, we all need to work on behalf of our indus-

more than that, we are encouraging our members

try.

to explore the world of social networking through a series of LinkedIn groups created with the needs

ASTA has done a great job on our behalf, standing

of different sectors of our membership in mind.

up for travel agents when legislation or regulations

Social networking is not a one-size-fits-all medium.

threaten our livelihood, promoting our value to the

In the time I have been a travel agent, my excite-

traveling public and giving us the tools we need

ment for travel hasn’t waned. In the time I have

to make our businesses more successful and more

been active in ASTA, my enthusiasm for the Soci-

efficient. ASTA represents our industry when we

ety and what it continues to accomplish hasn’t fad-

have issues with legislation on a local, state and

ed. I am confident that in the year ahead we will

federal level and fights for our interests when other

continue to be challenged but that with a helping

groups have activities or policies which are harm-

hand, there isn’t anything we can’t handle. We’ve

ful to the travel agent industry.

come a long way fast, but we’ve had to because our members have had to.

We have been launched into a new age of technology and our clients have new needs. A few years

Regards,

ago, ASTA was just a physical presence. We had chapter meetings, a printed weekly newsletter, decals, pins, etc. We were only open Mondays

Chris Russo

through Fridays from 9-5. Now we are truly a

ASTA President and Chair

global virtual service provider--before, during and after. Members can access Webinars, white papers, education courses and more on ASTA.org. These 4

A S TA E X EC U T I V E CO M M I T T E E

President & Chair Chris Russo Travel Partners Broomfield, CO Vice President & Secretary K. Hope Wallace ADA Travel Casa Grande, AZ Treasurer Nina Meyer, CTC,MCC,DS Express Travel Miami, FL CAC-Member Director Ellen Bettridge American Express Retail Travel Network New York, NY

B OA R D O F D I R EC T O R S

Susan H. Aft, ACC Discount Travel and Cruise Atlanta, GA Patrick R. Byrne, CLU M.P.B. Travel Service, Inc. Buffalo, NY Robert Durant WD World Travel Vancouver, BC, CANADA Lila A. Ford, CTC, DS, ACC Van Zile Travel Service Webster, NY Dan Lanser, CTC A Plus Travel Adventures Uniontown, OH John I. Lovell, CTC Breton Village Travel Services, Inc. Grand Rapids, MI Karl E. Rosen Towne Centre Travel & Cruises Diamond Bar, CA Irene C. Ross, CTC Ross Travel Consultants, Inc. Boston, MA Kari C. Thomas, CTC, CNS Will Travel, Inc. Langhorne, PA Lee Thomas, CTC The Travel Authority/TTA, Inc. Jeffersonville, IN Carol L. Wagner Travel Plus/Travel Leaders Commerce Township, MI

2 0 0 9/2 010 C H A P T E R P R E S I D E N T S CO U N C I L ARIZONA Laura Rodriguez-Verbera Marina Tours And Travel Arizona LLC Phoenix, AZ

NEW JERSEY Ricky J. Ardis, ACC, CTA Ardis Travel East Rutherford, NJ

CAROLINAS Janice Adkins, CTC Brevard Travel Agency, Inc. Brevard, NC

NEW YORK CITY Alice Tillem Hillside Travel Hicksville, NY

CENTRAL & N FLORIDA Bob C. Robar Travel Centre of Gainesville, Inc. Gainesville, FL

ORANGE COUNTY Karl E. Rosen Towne Centre Travel & Cruises Diamond Bar, CA

CENTRAL ATLANTIC Larry D. Swerdlin, CTC Burton Travel, Ltd. Owings Mills, MD

PACIFIC NW Alex Trettin, CTA Travel Leaders/Travel Center Tacoma, WA

DELAWARE VALLEY Donna W. Thomas New Zealand Travel Inc. Langhorne, PA

PUERTO RICO/VI Daphne Barbeito Cruceros To Go Guaynabo, PR

GREAT LAKES John I. Lovell, CTC Breton Village Travel Services, Inc. Grand Rapids, MI

ROCKY MTN Joann Thompson Worldwide Travel Specialists Aurora, CO

HAWAII Raymond Miyashiro Regal Travel Honolulu, HI

S CALIFORNIA Daniel Genung Harr Enterprises Travel Redlands, CA

LONG ISLAND Steve Powers Hidden Treasure Tours Long Beach, NY

SAN DIEGO Merris Gold-Drew First Class Travel San Diego, CA

MID-AMERICA Christie A. Seddelmeyer Seddelmeyer Travel Concepts Lima, OH

SOUTH FLORIDA David Gedansky, CHA Travel Leaders Pembroke Pines, FL

MIDWEST Joanne Gardner, CTC The Travel Specialist Wheaton, IL

SOUTHEAST Susan H. Aft, ACC Discount Travel and Cruise Atlanta, GA

MISSOURI VALLEY Nora Faifer, CTC Heritage Travel, Inc. Saint Louis, MO

SOUTHWEST Frances A. Lindsey, CTC, ACC Oasis Travel Palestine, TX

N CALIFORNIA Scott Pinheiro Santa Cruz Travel, Inc. Santa Cruz, CA

UPPER MIDWEST Wendy Weigel, AAA Travel Agency AAA Minneapolis Minneapolis, MN

NEW ENGLAND Mike Spinelli, Jr. Vacation.com Windham, NH

UPSTATE NY Robert E. Endres Endres Travel East Aurora, NY

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I N T E R N AT I O N A L C H A P T E R P R E S I D E N T S CO U N C I L

BHUTAN Tashi Dorji Bhutan Nyinzer Expeditions Thimphu BRAZIL Robert Phillips DiscoverBrazil/Intelligent Leisure Solutions Salvador, Bahia BULGARIA Evgeniya Doneva Alexander Tour Sofia, CAMBODIA Tui Pakarate Rutten First Travel Phnom Penh CANADA Robert Durant WD World Travel Vancouver, BC CHILE Adrian R. Turner Darwin’s Trails Vina Del Mar CHINA Chen Yong China International Travel Service Nanjing EGYPT Mamdouh El Sebai Egitalloyd Travel Cairo GHANA Teye Doku Rylax Travel and Tours Ltd Accra INDIA Rajeev Kohli Creative Travel Private, Ltd. New Delhi

ITALY Rose Magers Artviva The Original and Best Tours Italy Florence

POLAND Magdalena Rosla Travel Agency Magellan Bydgoszcz

JORDAN Nasser A. Zaatarah Zaatarah & Co. Tourist & Travel Amman

ROMANIA Petre Balas Peter Express Bucharest

KENYA Joshua Nyiera Acacia Holidays Limited Nairobi

SAUDI ARABIA Fayyaz H. Siddiqui, CTA Hajeej Travel Tours & Umrah Services Jeddah

KUWAIT Naser Rezqalla, B.Sc., MBA Al Qasr Travel & Tourism Co. Hawally

SINGAPORE Cathy Thang Green Island Tours (S) Pte Ltd Singapore

MALDIVES Yoosuf Riffath Capital Travel & Tours Pvt. Ltd. Male

SOUTH AFRICA Jo Schutten Uni Travel (PTY) Ltd Cape Town

NEPAL Harish Mabohang Orion Travel P Ltd Kathmandu

SRI LANKA Raju Arasaratnam Jetwing Travels (Pvt.) Limited Colombo

NETHERLANDS Mustafa Arikan Travelalong Heiloo

TANZANIA Faiza Punja Winglink Travel Limited Dar es Salaam

NIGERIA Damilola Bademosi Lucan Travels Lagos

TURKEY Ertugrul Karaoglu Intra Tourism-Incoming & Incentives Istanbul

PERU Miguel Angel Lahura Viajes Pentagrama S.A. Lima

UNITED KINGDOM Kenneth F. McNab The Travel Company Edinburgh Edinburgh

PHILIPPINES Victor S. Limlingan Cristina Travel Corporation Manila

6

1S T Q u a r t e r : The economy was on everyone’s mind as 2009

Search Engine Optimization 101 for Travel Agents;

began, overshadowed temporarily by the inaugu-

Strategies You Can Implement Immediately to

ration of the 44th president of the United States.

Start Growing Your Business Again; First Steps

Even before the January inaugural event, ASTA

in Mastering Financial Data; and Card Mills and

and other industry groups were quick to get in

Your Community—A Grassroots Approach.

front of the incumbent administration’s transition team with the submission of seven recommenda-

Those members looking for more personal

tions, stemming from a prior travel and tourism

in

sector economic summit. Several elements sub-

LinkedIn group when it launched in March. There,

mitted by ASTA were included in the proposal,

suppliers and travel agents alike were able to

including the restoration of a 2001 Small Business

solicit advice and information from their peers

Administration (SBA) direct, low-interest rate loan

and catch up on the latest news from ASTA, while

program and the creation of an investment tax

fostering business connections with both domestic

credit program for small businesses that invest in

and international members.

communication were quick to join ASTA’s

information-related technologies. The latter measure was deemed by ASTA as crucial for travel

Just weeks in to the new year, travel agents

agencies to compete effectively in the years ahead.

received some good news with the announcement

Throughout the first several months of 2009,

from Regent Seven Seas that it would end most

ASTA saw positive signs for the economy in the

non-commissionable fees in 2010, an action ASTA

release of a draft stimulus bill that included provi-

was quick to praise. ASTA also had its eye on the

sions designed to create small business opportu-

airline industry when it called upon the Depart-

nity, a topic that would continue to be a focus for

ment of Transportation to complete its work on

the Society over the course of the year.

the Tarmac Delay Task Force. ASTA would go on to commend the Airlines Reporting Corp. (ARC)

ASTA continued to help its members develop suc-

for its announcement that it was dropping its plan

cessful businesses with a Webinar instructing

to reduce the airline ticket void window from two

travel agents on the use of the Travel Agent

days to the day of ticketing. ASTA then took Delta

Management Toolkit, a benefit geared to help-

Airlines to task for its refusal to engage the Soci-

ing members strengthen their businesses during difficult economic times. This Webinar, the first

ety over invoices sent to travel agents for violations caused by Delta’s own system.

of the year, would be followed by six others over the course of the coming three months, all edu-

February found ASTA Premium Members in San

cating members on such topics as: Advantages of

Francisco, where they met to discuss, among other

Going Green; Dealing with Consumer Complaints;

topics, ways to improve travel agencies’ relation7

ship with ARC. While in San Francisco, Premium

ances of deductible business expenses with the

members also heard from suppliers about how they

white paper Navigating the Tax Labyrinth.

see their travel agent relationships developing in the future. While at the meeting, John Rose of

Technology was in the forefront of ASTA’s research

Marathon Travel (Stevens Point, Wis.), noted that

when the 2008 Technology and Web Usage Re-

“ASTA’s Premium Membership has become a vital

port found that although travel agencies have

resource that enables us to be more than specta-

yet to embrace Web 2.0 marketing techniques,

tors to the current economic turmoil but active

standard technology has become second nature

participants in the decisions and policy changes

to travel agents. The 2008 Global Distribu-

that impact our business.”

tion System Report (GDS) went on to examine travel agent usage of GDSs, providing agencies

Travel agents looking to get more from their

with valuable benchmarking data. The 2009 ASTA

membership or simply learn how to make better

Agency Profile report found a significant increase

use of the hundreds of tools available to them on

over time in the number of agencies with sales

ASTA.org found themselves with 17 online

of either less than $1 million or greater than $10

tutorials from which to choose. These brief,

million, a trend that would continue as struggling

step-by-step video instructions covered everything

agencies merged or were bought by larger travel

from uploading a personal profile to ASTA’s

firms. Correspondingly, the percentage of agencies

consumer Web site, TravelSense.org, and tak-

located on “Main Street” and in strip malls de-

ing advantage of the free consumer leads service

creased as travel agencies gave up their storefronts

housed there to using ASTA’s WebExchange and

in exchange for home-based business models.

making use of ASTA’s online media and public relations resources to better promote themselves and

In March, travel professionals from far and near gath-

their services to their communities. This popular

ered in Sun City, South Africa, for ASTA’s fourth In-

Web site continued to grow and received more

ternational Destination Expo (IDE), where more than

than 50,000 unique visitors in January alone.

1,000 travel professionals from 29 countries gathered

And, thanks to a series of enhancements, the site

to learn about the culture, attractions and travel busi-

became more interactive for visitors who were then

ness of South Africa and its neighboring countries.

able to rate and review various publications and

The sold-out trade show was just one of many firsts

online tools.

that marked the annual event, not the least of which was the event’s debut on the African continent.

Members also benefitted from two white papers.

It would also be the first time that a local travel

The first provided them with a Travel Agent’s

trade association would hold its annual meeting

Guide to Secure Flight, designed to assist

in conjunction with the event: the Association

members in learning more about the new Trans-

of South Africa Travel Agents hosted its annual

portation Security Administration (TSA) regula-

conference for 2009 at Sun City. In addition to

tions and specifically, how to best comply with the

high-caliber education courses, the IDE provided

new data collection requirements. A month later,

attendees the rare opportunity to network with

and just in time for taxes, ASTA explained the nu-

smaller tourism entities from across South Africa

8

thanks to an event hosted by the South African

Expo and ASTA’s efforts on Capitol Hill and in

International Business Linkages program and the

the state legislatures to protect travel agents from

Tourism Enterprise Programme.

harmful legislation and anti-travel taxes. ASTA President and Chair Chris Russo continued to pro-

Many of the agents who took advantage of the

mote the Society and its efforts on behalf of travel

numerous educational seminars on offer returned

agents at chapters across the country, providing

home as FUNDI (South African destination

those in attendance with an overview of the many

course), Botswana and Namibia specialists and

benefits associated with their membership, as well

with new-found expertise in such niches as spa

as an in-depth look at the tools available to mem-

and wine travel. The annual International Travel

bers on ASTA.org. Overseas, ASTA CEO William

Agents Summit, held in conjunction with the IDE,

Maloney, CTC, addressed tourism officials at the

brought together attendees to establish key busi-

Jamaica Tourism Outlook Summit on the new face

ness contacts and to discuss issues of importance

of the travel agent.

to global travel sellers. The 2009 IDE closed with the announcement that Istanbul, Turkey, would be

Consumers were made aware of the importance

host to the 2010 International Destination Expo,

of using a professional ASTA travel consultant

April 19-22.

through a series of media pitches and releases, showcasing a variety of travel tips, hot travel desti-

While in Sun City, ASTA’s Board of Directors was

nations and the growing interest in “green” travel.

updated on ASTA’s efforts in the areas of member-

Thanks to a new partnership with CityBy-

ship, meetings, industry and government affairs

City, visitors to ASTA’s consumer Web site,

and consumer awareness. During their meeting,

TravelSense.org, were able to watch video tours of

the Board requested that ASTA staff develop

some of Europe’s hottest capital cities as well as

education materials that will assist travel agents

state parks across the United States. Meanwhile,

in sales and marketing and reinforcing their value

TravelSense’s Find a Travel Agent Directory, along

proposition when dealing with customers.

with articles offering travel tips and advice, began to be featured regularly on the International Busi-

ASTA’s successes were brought to the forefront

ness Journal.

during the first three months of 2009 through a series of editorials and articles appearing in the travel trade press. Topics ran the gamut from ASTA’s Green Member program and various research reports to the International Destination

9

2nd Quarter: April was a busy month for ASTA with the launch

that “(i)f finalized, this broad grant of immunity

of a new business solutions tool for members. The

could be used to undermine independent travel

multi-media Travel Agency Consultancy Fee

distributors, which are critical to promoting airline

course was written by noted industry expert

competition and consumer welfare.”

Nolan Burris and based on insights from ASTA agency research and consumer research from Bur-

Florida received ASTA’s praise when a U.S. Dis-

ris’ company, Future Proof Travel Solutions. The

trict Court judge permanently barred the state

result was a course that laid out in plain terms

from enforcing a law that would have imposed

steps agents could take to transform themselves

exorbitant bonding and registration fees on travel

from a commission-based to a consulting-fee busi-

agents who booked trips to any nation designated

ness model and the reasons why such a change is

by the State Department as a state sponsor of ter-

critical to an agency’s long-term viability.

rorism, namely, Iran, Syria, Cuba and Sudan.

April also found travel agents participating in

ASTA’s sister organization in Canada, the Associa-

Webinars covering topics such as new U.S. bor-

tion of Canadian Travel Agents, met with ASTA’s

der security requirements, use of ASTA’s Buyer’s

senior staff to discuss areas of common interest

Guide, and the myriad ways in which ASTA can

and determine what resources might be combined

help travel agents grow their businesses. Premium

for the greater good of both association member-

Members were able to benefit from an exclusive

ships and the industry as a whole.

Webinar which provided them with the latest on implementation plans for Secure Flight.

May found ASTA members on the receiving end of the 2008 Financial Travel Benchmarking Report,

On Capitol Hill, ASTA continued its lobbying ef-

which gave agencies the ability to compare

forts, working to promote a direct lending program

their businesses to industry benchmarks such as

for small businesses in the wake of Karen Gordon

agent productivity, revenue versus sales, operat-

Mill’s appointment as SBA Administrator. ASTA

ing expenses and FTE ratios. ASTA also held its

also came out in strong support of a bill introduced

first Virtual Business Conference, designed to help

by Representatives Frank Kratovil (D-MD) and

ASTA’s core membership—travel agents—utilize

Chris Lee (R-NY) that would expand the maxi-

the many resources at their disposal in creating

mum allowable federal tax deduction for business

successful agencies in a challenging economic

startup expenses. Meanwhile, before the Depart-

climate. The online conference covered the topics of

ment of Transportation, ASTA decried a proposed

branding, upgrading to a fee-based business model

grant of immunity for the Star Alliance, saying

and what community resources are available to 10

small-business owners, courtesy of groups such as

provided groundbreaking insight into the size and

SCORE and the SBA.

scope of the U.S. tour industry, a major source of commissions for travel agents. Specifically, the

Also in May, ASTA unveiled its latest education

study looked at threats to the tour operator in-

course, Boosting Your Leisure Sales, which was

dustry and strategic responses tour operators and

designed to provide travel agents with simple,

travel agents could implement. Distribution pat-

proven techniques for counteracting the effects of

terns, including the role of consumer-direct versus

the economic downturn and increasing their busi-

travel agents, were also examined. “Ultimately, it

ness. Although geared to leisure-based agencies,

will help travel agents understand the demograph-

the course included a section specifically targeting

ics and dimension of the tour industry and help

corporate agents who also sell leisure.

tour operators drive smarter marketing decisions and strategies,” said ASTA President and Chair

That same quarter, ASTA came out in strong sup-

Chris Russo. A Webinar based on the findings was

port of the Landrieu-Snowe Amendment to the

presented to members of ASTA’s Tour Operator

Credit CARD Act of 2009 (H.R. 627/S. 414), which

Program, providing them with first-hand analysis

would guarantee that the safeguards codified by

of the results.

the bill— limits on interest rate increases and more transparent disclosure of fees —would apply to the

The start of summer also brought with it the

cards used by America’s small-business owners.

second part of a Webinar on search engine optimi-

ASTA continued to fight for travel agents when

zation as well as a Webinar updating members on

ASTA President and Chair Chris Russo wrote Sen.

Secure Flight. Meanwhile, ASTA’s Chapter Presi-

Chris Dodd (D-CT), the chairman of the Senate

dents Council met to discuss ways to strengthen

Banking Committee, to request that the Senate’s

the chapter structure and provide increased ben-

version of H.R. 627 include protection for small

efits to members at the local level.

business owners who use credit cards to finance business-related purchases.

ASTA made sure that the value of using a travel agent was in the forefront of consumers’ minds

ASTA continued with its mission of “one voice,”

with an ongoing series of tips, providing advice

becoming an industry clearinghouse for informa-

on planning honeymoons and family getaways,

tion on the resurging H1N1 virus. ASTA worked

spotting travel scams and ways to save on sum-

closely with the Centers for Disease Control as well

mer travel. ASTA’s annual summer travel ‘hot

as the Tourism Emergency Response Network, of

spots’ survey found that Orlando and Las Vegas

which ASTA is a member, to disseminate up-to-

were again favorites among travelers booking with

date travel alerts.

travel agents.

In June, ASTA unveiled the results of its ground-

ASTA members interested in promoting them-

breaking study, the U.S. Packaged Travel Landscape 2006-2010 . This report, conducted in conjunction with the noted industry research firm PhoCusWright, was the first of its kind and

selves to their local communities sat in on the May Webinar, Making Headlines: Getting Your Name in Print. Participants learned about working with media and drafting press releases and re11

ceived useful tips on conducting media interviews.

ASTA members were also provided a new weapon

Not soon after, a customizable press release ex-

in the fight against Chambers of Commerce that

plaining the many reasons consumers should book

sell travel in direct competition with its members—

their next vacation with an ASTA travel agent

a customizable public relations plan. In ad-

was made available for members to send to their

dition to step-by-step instructions, the plan

local media. Continuing its expansion into social

included a customizable press release, letters to

networking, ASTA launched the TravelSense

the editor, Chamber and local government officials,

Facebook Fan page in April, providing ASTA

along with a fact sheet and talking points for use

members and those who just love to travel a forum

when speaking with members of the media or gov-

in which to share tips and advice and comment on

ernment officials.

travel-related stories.

ASTA.org houses over 50 informative videos available 24/7.

www.ASTA.org/videos

12

3rd Quarter With the nation in the midst of a deepening reces-

problems created by the pass-through policy are un-

sion, many corporate and leisure travel profes-

derstood, and it seems to us that these two industry

sionals found themselves struggling to stay afloat.

leaders ‘get it’.” Throughout the remainder of the

Business travel was severely curtailed as orga-

summer and into the fall, ASTA and its allies would

nizations slashed expenses and sought low-cost

work behind the scenes toward securing legislative

alternatives to face-to-face meetings. Meanwhile,

support to block UA’s attempts to pass merchant

many American families either scaled back on the

fees along to travel agents and the traveling public.

traditional summer vacation or opted instead for a “staycation.”

Over the course of the summer, ASTA’s efforts garnered the attention of key legislators from Hawaii

With the summer barely begun, travel agents

to Maine. Hard work on the part of ASTA’s Gov-

found themselves on the firing line from

ernment Affairs staff translated to frequent and

United Airlines, which sought to cut off a select

detailed contact with legislators and committee staff

group of travel agents from using its merchant ac-

on Capitol Hill during which time they outlined the

count for credit card ticket sales. Instead, agencies

scope of what a hearing on this issue would encom-

would be forced to obtain and use their own mer-

pass.

chant accounts and settle with the airline in cash.

ASTA immediately moved into action, calling for

The Society ramped up its push to see that United’s

a Congressional hearing to examine the issue and

proposed actions went no further through mem-

the negative impact it would have on consumers

ber education, grassroots legislative contacts from

and the travel industry as a whole.

ASTA members during the August recess, direct outreach with elected officials, and a successful

Soon after United’s announcement, Southwest and

Capitol Hill press conference in September, which

Continental Airlines came out with assurances

garnered coverage in such publications as USA

that they would not follow suit, statements which

Today, Christian Science Monitor, CNNMoney.com,

received praise from ASTA and its allies, the Busi-

Business Week, Wall Street Journal, Bloomberg

ness Travel Coalition (BTC), the Interactive Travel

and the Washington Post. The diligent work on the

Services Alliance (ITSA) and the National Tour

part of ASTA members and staff went a long way

Association (NTA).

to educating Members of Congress to the fact that United’s merchant fee policy would pose a grave

In a statement, ASTA President and Chair Chris

threat to the travel industry that, if left unchecked,

Russo said: “Travel agents have been looking for

would expose millions of travel agency customers to

some sign that the consumer and travel agency

significant risks and higher costs.

13

When not hard at work in the halls of Congress,

for taking liquids and gels on flights in carry-on

ASTA developed numerous business resources

luggage.

for members’ use until the economy was again on stable ground. Among them were Webinars such

In July, with summer in full swing, ASTA mem-

as: Federal Loan Assistance for Travel Agents

bers elected to the Board of Directors national

Nuts and Bolts of Agency Acquisitions in 2009.

directors-at-large Patrick Byrne; Dan Lanser;

Along with two research reports—

Nina Meyer, CTC; Irene Ross, CTC; and Hope Wal-

2008 Travel Agency Service Fees Report

lace, CTC. Lila Ford, CTC, DS; Chris Russo; Kari

2008 Labor & Compensation Report.

Thomas, CTC, CNS; and Carol Wagner would fin-

Both white papers provided members with

ish out the final year of their terms. A month later,

benchmarking data they could use to determine

during the Society’s first virtual Board meeting,

their position relative to the competition and what

Chris Russo was re-elected to serve as President

measures they might undertake to further their

and Chair, with Hope Wallace, CTC, returning

agency’s growth. ASTA also would release its

for a second term as Vice President/Secretary.

2008 Marketing & Customer Retention Report,

Treasurer Nina Meyer, CTC; Ellen Bettridge

which in addition to offering benchmarking

(American Express), CAC member-at large; and

data for customer leads, provided insight on how

ASTA CEO Bill Maloney, CTC (ex officio) rounded

ASTA’s agency members retain their clients and

out the Executive Committee. The full 2009-2010

what marketing tools have proven the most effec-

ASTA Board of Directors would consist of the

tive .

Executive Committee and the domestic national directors-at-large, along with CAC representatives

Educating members on new and innovative ways to

Lee Thomas (The Travel Authority); International

market themselves was a focus over the summer.

Chapter Presidents Council Chair Robert Durant;

ASTA members were able to take part in several

and Chapter Presidents Council Chair John Lovell

webinars, such as the Top 10 Ways to Make

(Great Lakes Chapter) and chapter presidents

Your Site a Consumer Magnet, which exam-

Susan Aft (Southeast Chapter), and Karl Rosen

ined search engine optimization and other means

(Orange County Chapter).

through which travel agents could increase Web site views. And, for those looking beyond tradition-

That same month, ASTA wrote to the Congressio-

al marketing efforts, ASTA presented a Webinar

nal sponsors of then-pending legislation to reau-

that gave the inside track on utilizing social media

thorize the Federal Aviation Administration on

to expand a firm’s market reach.

so-called “back-to-gate” time limits for delayed passenger flights, requesting that Congress es-

ASTA released a series of travel tips proving

tablish a clearly-defined time limit beyond which

advice on traveling with children among other

passengers who have been subjected to lengthy on-

topics. And with summer travel reaching its peak,

board tarmac delays must be permitted to return

ASTA sponsored a Public Service Announce-

to the gate and exit the delayed aircraft. In its

ment (PSA), advising travelers of the Trans-

letter, ASTA wrote: “In the face of continuing de-

portation Security Administration’s 3-1-1 rules

lays and the evident lack of concrete efforts on the

14

part of the airlines to create a meaningful solution

Pestronk, who provided an in-depth look at the se-

thereto, and absent a robust reporting mechanism

rious issue of outside sales fraud and mechanisms

that would compel airlines and airports to report

for preventing fraudulent activity by independent

back to the Department of Transportation on their

sales contractors. Later that summer, Premium

actual progress in implementing the recommen-

members received a detailed look at the numerous

dations …, we see little hope for real progress in

resources ASTA has developed to help them pro-

this area without further action from Congress.

tect their businesses.

… [W]e respectfully ask that you establish a clear standard for the airlines to follow. A Congressio-

Members interested in taking a more active role

nally-defined standard will not in itself solve the

in shaping government laws and regulations took

inexorable problem of chronic flight delays, but

part in a Webinar in August, which focused on

it will surely represent an improvement over the

grassroots lobbying and provided participants

current system, in which people are trapped on

with easy-to –implement steps and advice for

planes without adequate supplies for hours on

making their voices heard at the state and federal

end.” ASTA’s objections did not fall on deaf ears,

levels.

and back-to-gate limits were established.

The question of taxes came to a head as summer Because in today’s world of electronic commerce,

ended, when New York City announced a hotel

travel agencies are bound not only by the laws of

occupancy service fee tax. ASTA, working

the states in which they operate, but of the states

closely with ITSA and officials from New York

in which they advertise and have clients, ASTA

City’s Department of Finance (DOF), was able

developed a tool for Premium members, providing

to provide members with confirmation that com-

in-depth information on the seller of travel laws in

missions, “concierge” fees and service fees on rent

17 states, including the District of Columbia. This

paid by guest directly to hotel were excluded from

four-part package included the white paper

taxation under the new law. Members also received

Commerce Clause Analysis of State Seller of

clarification regarding the geographic and general

Travel Laws, a visual overview of the various laws

scope of the tax and the ways in which the tax

and where they intersect, a series of fact sheets

would be applied to the bundling and packaging of

summarizing each of the states’ seller of travel

travel components.

laws and sample disclosure language required for compliance with California’s Seller of Travel Law.

North America’s number one travel show,

ASTA also produced a white paper exclusively for

THETRADESHOW, took place in Las Vegas in

Premium members, explaining the nuances of the

early September, and brought together thousands

Airlines Reporting Corp.’s Electronic Miscella-

of industry professionals for the purpose of educa-

neous Document and Carrier Fees Project.

tion and networking. The show debuted a seminar track exclusively for travel suppliers and exhibi-

Premium members were also able to take

tors, providing them with new and improved ways

advantage of several exclusive Webinars, the

of increasing their market share, whether through

first produced by noted industry legal expert Mark

enhanced relationships with travel agents or tips

15

on new geographic markets. The networking op-

travel, personalized service, traveling on a budget,

portunities for suppliers were furthered with the

multi-generational travel, villas and private home

National Tourist Offices (NTO) Summit, with pro-

rental, and luxury travel.

vided NTOs an environment to discuss best marketing practices, and an evening reception solely

During its annual meeting at THETRADESHOW,

for exhibitors.

ASTA presented its 2009 Travel Industry Awards:

Another first was the Hosted Buyer program,

• Allied Member of the Year Award: Cynthia

whereby select agents had the opportunity to be

Perry, CTC, vice president of sales and indus-

hosted by a THETRADESHOW partner such as

try relations, Travel Insured International;

Wynn/Encore, Amtrak, Hilton or Starwood. This

• Travel Agent of the Year: Mary Louise Seifert,

program positioned THETRADESHOW as one of

CTC, owner, Welcome Aboard Vacation Center,

the elite travel trade shows, bringing together sup-

Inc. (Scottsdale, AZ);

pliers with highly qualified travel buyers.

• Travel Hall of Fame: U. Gary Charlwood, founder, Charlwood Pacific Group; and

The International Business summit provided a

• Young Professional: Jason Beukema, MCC,

forum for international travel professionals to meet

president and owner, Whet Travel (Miami

one-on-one and discuss global travel industry is-

Beach, Fla.).

sues. The group was given a preview of educational and networking events of interest going on over

ASTA also held its annual Advocacy Dinner, an

the course of the three-day event, and provided

evening during which speakers and special guests

attendees with the opportunity to establish a close

celebrated ASTA’s value in shaping political poli-

rapport with their fellow international delegates.

cies affecting the business of selling travel. During this event, ASTA member Olga Ramudo received

ASTA members interested in learning more about

ITSA’s Barbara O’Hara Advocacy Award for her

promoting themselves to the media were able to

leadership role in the fight against United Airlines

participate in a media training session held at this

merchant fees policy. Ramudo was an outspoken

year’s THETRADESHOW, which covered every-

critic of the fee shift and participated in an event

thing from the basics of drafting and disseminat-

for media in Washington, DC. Las Vegas was also

ing press releases to advice for media interviews. A

the location for a Premium Member Business Sum-

TV production crew was also on-hand to interview

mit, in which ASTA’s Premium Members again

ASTA members for travel segments that would ap-

gathered to share their business insights and hear

pear throughout the coming year on the cable pro-

from industry leaders on the state-of-play within

grams Inside Business with Fred Thompson and

the travel sector.

the Art of Living with MariLu Henner. All told, 10 ASTA members were interviewed on such topics as

At ASTA’s annual meeting, ASTA’s CEO Bill Malo-

travel trends, corporate and leisure travel, green

ney and President and Chair Chris Russo provided

16

members with updates on the Society’s numerous actions on their behalf over the previous year. Their addresses spotlighted everything from legislative and industry efforts on behalf of travel agents to consumer awareness initiatives, promoting the value of working with a professional travel consultant to consumers. These speeches prompted Travel Agent and Travel Weekly publications to praise ASTA for its efforts on behalf of members in recent years:

ASTA is doing more for its members than at any time I can remember. Its lobbying efforts are finding a toehold in Congress. Its education programs are engaging and relevant.

[ASTA President Chris Russo’s speech at the annual meeting] as well as those of Bill Maloney, CEO, and Paul Ruden, senior vice president of legal and industry affairs, represented more activity and impact in the past 12 months than in any other one-year period I can recall in the last 20 years.

—TRAVEL WEEKLY MAGAZINE

Travel agents need ASTA to provide forceful representation in Washington, D.C. and to defend travel agents from punitive regulation and taxation. From SBA business loans to IRS defining what is or is not an independent contractor the industry needs the ability to know what is happening and to be able to muster the expertise and legislative skills essential to survival.

—TRAVEL AGENT MAGAZINE

17

4th Qua r ter: Kicking off the fourth quarter of the year, ASTA

presence on Facebook, featuring additional fan

and The Weather Channel entered into an agree-

pages for ASTA’s Young Professional Society and

ment to feature content from the consumer Web

ASTAnetwork magazine. LinkedIn was also

site TravelSense.org on Weather.com. Each article

home to four networking groups, all related to

not only promotes the value of working with a

ASTA.

professional ASTA travel agent, but links back to TravelSense.org and its ‘Find a Travel Agent’

ASTA again had a presence at the World Travel

directory.

Market in London, where in addition to an exhibition booth, ASTA CEO Bill Maloney, CTC, spoke

With the holiday travel season fast approach-

before international travel agents and tour opera-

ing, ASTA released a series of consumer-oriented

tors. In his speech, he revealed findings from AS-

releases, providing tips on holiday travel, planning

TA’s recent U.S. Package Travel Industry Survey

family reunions, travel during an airline strike

and discussed lessons international tour operators

and for women traveling alone. ASTA also revealed

might use to better understand their US competi-

its consumer travel forecast for 2010: the ASTA

tion and make sound marketing decisions and

Travel Agency Business Trends survey found

strategies when dealing with US travel agents.

that consumer interest in cruises would remain high for the upcoming winter and spring travel

In November at the joint meeting of ASTA’s Board

seasons, with the Caribbean and Mexico topping

of Directors and Chapter Presidents Council, Puerto

the destination charts for winter travel and spring

Rico was chosen as the host of the 2011 International

finding U.S. travelers heading to the Caribbean

Destination Expo. The Board also adopted new

and Europe.

International Chapter Standards, establishing rules governing International Chapter fundraising as well

ASTA’s daily news roundup, ASTA SmartBrief,

dues collections, and financial record keeping and

ended the year with close to 29,500 readers

reporting. The move unified ASTA’s international

from around the world, while the TSA 3-1-1 public

chapter policies, allowing for greater engagement

service announcement released earlier in the year

with international members and the expansion of

was aired on an estimated 624 stations across

international membership. The Board also endorsed

with country with more than 102 million audience

a new micro-fundraising initiative from the Mil-

impressions. By year-end, ASTA has five Twitter

lennium Foundation—MASSIVEGOOD—whereby

accounts, updating followers on everything from

consumers, through a donation of $2 at the time of

ASTA’s legislative efforts to TOP promotions and

purchase, can work to stamp out HIV/AIDS, malaria

THETRADESHOW. ASTA had also increased its

and tuberculosis in developing nations.

18

At home, ASTA members were able to take advan-

On Capitol Hill, ASTA praised a House action to

tage of webinars targeting ASTA’s Tour Operator

accelerate credit card reforms that would extend

Program as well those which offered members

protections for small businesses. While urging

ways to bullet-proof their business and an in-depth

Congress to finish its work on the bill, ASTA called

look at ASTA’s efforts in the areas of government

on the Senate to ensure that the bill’s protections

and industry affairs. International members,

apply to small business owners who rely on credit

meanwhile, took part in an exclusive Webinar,

cards to finance their business needs. “As travel

providing tips on growing relationships with U.S.-

agents and other small-business owners continue

based travel agents and tour operators. Thanks

to face difficulty in obtaining credit on reasonable

to the Webinar, Using ESOPs for Succession

terms from traditional lending sources, parallel

Planning and Business Sales , ASTA Premium

credit sources such as credit cards are more impor-

members were able to learn the ins and outs of

tant than ever,” said Chris Russo, ASTA president

employee stock ownership and how privately held

and chair. ASTA was one of 17 organizations to

companies can use them to arrange either for a

endorse a bipartisan amendment by Reps. Neil Ab-

tax-free sale of their business or for a tax-free

ercrombie (D-HI) and Nita Lowey (D-CA) to apply

diversification of their wealth.

Truth in Lending Act (TILA) protections to small business credit card transactions, an amendment

With the year coming to a close, ASTA released a

that was not included in the final version of the

series of valuable research reports providing mem-

bill, however.

bers with the 2009 ASTA Travel Agency Business Trends Report, the 2009 NACTA Independent

Meanwhile, the fight against United’s attempt

Agents Report and the 2009 Supplier-Travel

to shift its merchant fees onto travel agents and

Agent Relationship Marketing Report, which ex-

consumers continued into the last months of 2009,

amined the rationale behind selecting a preferred

with ASTA continuing to exert pressure for law-

supplier, among other issues. Those looking for

makers to hold a Congressional hearing on the is-

more in-depth information on inbound and out-

sue. At year end, the UA merchant fee shift policy

bound travel trends availed themselves of the data

remained a limited move applied to 28 agency

found in ASTA’s two international travel studies—

locations, while ASTA continued its work on Capi-

Non-resident Inbound Visitations Trends Overview

tol Hill and elsewhere to assure that agency and

and the U.S. Resident Outbound Visitations Trend

consumer interests in this matter are recognized

Overview. The white paper, Using Census Bu-

and protected.

reau Statistics for Market Segmentation, which explained the ways in which travel agents could use Census Bureau data to enhance their marketing was also made available.

19

LOOKING AHEAD As a pivotal election year, 2010 is sure to be

This year has already seen the introduction of leg-

marked by dramatic change in our country’s politi-

islation at the state level to apply hotel occupancy

cal and business landscape. Relations between the

taxes to travel agent service fees. ASTA remains

White House and Congress have soured, throwing

on the front lines of this issue, and is diligently

the fate of the Obama Administration’s first-term

working with its industry allies to prevent these

agenda into disarray. Major items remain on the

burdensome taxes from becoming law. The good

Congressional ‘to-do’ list, including a climate

news is that ASTA has a record of success in ral-

change bill; comprehensive immigration reform;

lying individual travel agents to weigh in directly

and long-overdue reforms to the financial markets.

with elected officials to explain how this law would affect their business. We hope to continue this suc-

A number of factors are responsible for these de-

cess in 2010.

lays, including ongoing partisan gridlock; struggles between the House and Senate leadership for

Finally, ASTA is working to grow its Political

control over the legislative calendar and Congres-

Action Committee, ASTAPAC. By bundling indi-

sional procedure; voter unrest due to the lingering

vidual political contributions to build relationships

recession; and even the weather. All indications

with candidates for federal office, this important

are that the rest of 2010 will see a scaled-back

tool allows travel agents’ collective voice to stand

agenda compared to what appeared likely in early

out among the multitude of interests competing for

2009. The stalled agenda may be cause for either

lawmakers’ attention.

relief or dismay, depending on your political perspective. The good news, however, is that the travel

As is the case every year, 2010 offers both signifi-

agency industry has several key opportunities to

cant risks and real opportunities for the travel

influence the political process in 2010.

agency industry. Be assured that ASTA staff is working for you every day.

20

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Gold

Silver

Amadeus American Express Avis Budget Group Best Western Business Travel News Intercontinental Hotel Group Las Vegas CVA Marriott International Orlando CVB Sabre Travel Network Starwood Hotels and Resorts Travel Weekly Turkish Culture and Tourist Office

Accor Hospitality Enterprise Holdings Hertz Hilton Worldwide Hyatt Hotels JetBlue Travel Insured International Travelport

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RADIUS Signature Travel Network Strong Travel Services The Travel Authority/TTA The Travel Team/American Express Travel Leaders Corporate Travel Leaders Franchise Group Travel Dynamics Group Travel Planners International Travelink/American Express Travelocity TravelStore Ultramar Travel Management Uniglobe Travel International Vacation.com Valerie Wilson Travel Virtuoso Wings Travel Group

22

a s ta 11 0 1 k i n g s t r e e t , s u i t e 2 0 0 a l e x a n d r i a , v a 2 2 3 14 a s k a s ta@a s ta .o r g w w w. a s ta .o r g w w w.t r av e l s e n s e . o r g

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