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The New ASTA American Society of Travel Agents

The New ASTA American Society of Travel Agents. Premium Membership Dedicated to the Business of Selling Travel. New Leadership Corporate Advisory Council. Corporate Advisory Council (CAC) comprised of leaders of largest travel agency organizations and travel agencies

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The New ASTA American Society of Travel Agents

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  1. The New ASTAAmerican Society of Travel Agents Premium Membership Dedicated to the Business of Selling Travel

  2. New LeadershipCorporate Advisory Council • Corporate Advisory Council (CAC) comprised of leaders of largest travel agency organizations and travel agencies • i.e. consortia, franchise organizations, independent agencies. • CAC maximizes its collective strength and provides leadership for the industry by contributing significant energy in a lobbying role and speaking on industry issues with “One Voice” through ASTA. • Use of CAC funds are voted on by the CAC members and allocated only for issues deemed of paramount interest to the industry. • Expenditures include legal fees, legislative expenditures, etc.

  3. Corporate Advisory Council • 20 companies • Priscilla Alexander – Protravel International, Inc. • Ellen Bettridge – American Express Company • Roger Block, CTC – Carlson Wagonlit Travel • Gloria Bohan – Omega World Travel, Inc. • Bruce Charendoff – Travelocity • U. Gary Charlwood – Uniglobe Travel (International) Inc. • F. Steven DiMasi – Orbitz Worldwide • Michael S. Dixon – Travelink, Inc. • Sho Dozono – Azumano Travel American Express • Tammy Troilo-Krings – Travel Solutions, Ohio • Tony Hughes, CTC – RADIUS • Lloyd Johnson – Expedia Travel • Scott Koepf – Jurni • Jack E. Mannix, CTC – Ensemble Travel • Thomas G. McIntyre – Passageways Travel Service, Inc. • Lee Thomas, CTC – The Travel Authority / TTA, Inc. • Steve Tracas – Vacation.Com • Matthew D. Upchurch, CTC – Virtuoso • Peter Millones – Priceline.com Incorporated • Jacque Salentine-Busby – Salentine Travel

  4. Travel Agent Political Action Involvement • Proactive involvement in political process essential today’s business environment • Means of delivering critical, timely messages on legislative concerns • When exercised, makes travel agents recognizable force all levels of government

  5. State Issues • Massachusetts • Issue: Governor Patrick’s proposed Corporate Tax Loophole Package calling for taxing travel agency fees charged in conjunction with hotel bookings. • Michigan • Issue: Governor Granholm’s 2007/2008 Executive Budget proposes a new 2 percent tax increase on 112 service industries that includes travel agencies. • Montana • Issue: H.B. 147 sought to impose a new hotel occupancy tax on travel agent service fees when booking hotel rooms in Montana. • New York • Issue: Governor Spitzer’s Executive Budget contained a provision that subjects travel agent service fees to a new hotel occupancy tax when booking hotel rooms in New York. • Pennsylvania • Issue: H.B. 388 provides for the licensing and regulation of travel agents; establishing the Travel Agent Recover Fund; and imposing penalties. • Illinois • Issue: Governor Blagojevich’s FY 2008 Budget proposes a tax on the gross receipts of all businesses doing business in Illinois. This tax will eventually phase out corporate income tax and is expected to generate an estimated $6 billion when fully implemented. • Texas • Issue: H.B. 3 passed in a 2006 special session, which amended and revised the tax base by imposing a new gross receipts tax on Texas businesses.

  6. ASTA’s New Governing Body • Board of Directors and Officers • (15) members- • (9) Directors at Large • (3) Directors selected by the Chapter President’s Council • (1) International seat • (2) Directors selected by the ASTA Corporate Advisory Council • (1) is an Executive committee seat • (3) Officers selected from (15) Board Members • Board Members are self selected by the CAC

  7. What else is ASTA working on that affects your business? • Voiding window • Pass through credit card fees • Travel agent employee shortages • Agencies promoting responsible tourism and environmental concerns • Preventing chargeback losses

  8. Voids Effective July 21, 2007

  9. Voids 2008

  10. Operational Issues • Agency Customers • Agency channel will be disadvantaged - carriers’ customer commitments offer 24 hour fare guarantee or the right to cancel within 24 hours • Operations • Leaves no time for agents with 24/7 online Corporate Booking Tools to audit transactions (example ticket booked at 11:45pm) • Staff back office agents until midnight or later M-F • Limited time to void if fraud detected after lockdown

  11. Preventing Chargeback Losses • Request ARC revise credit card rules at JAB-ARA • Endorsed by Continental Airlines • ARC Conference Call with Airlines & Agents (June 19, 2007) • Current rules are paper-based: Issue for leisure agents • Agents still required obtain credit card signature paper -Universal Credit Card Charge Forms (UCCCF) for most credit card transactions • Card number not masked • Address Verification Service (AVS) can be used in lieu of signature-charge back protection only if paper ticket mailed to purchaser’s billing address

  12. Pass through credit card fees-what can we do about it? • Options for the airlines to reduce credit card costs • Install alternative forms of payment on airline websites • Drive consumer to airline websites • Surcharge consumers who use credit cards • Surcharge travel agents when client uses credit card

  13. Why do Airlines want to do this? • Major Drivers • Low-Cost Carrier competition • Unbundling potential of Web-based applications • Unbundling not seen as possible in GDS environment • Travel agents’ admitted advantage in producing higher yield traffic believed to be short lived

  14. What remedies are there? • Legal – Litigation • Role of state laws governing surcharging • Regulatory – DOT and DOJ • Legislative • Commercial – Counter the Buzz?

  15. The New ASTA serving the entire industry • Speaking with One Voice • Providing business services and market research • Strengthening the industry

  16. Premium branding and marketing • ASTA Viewpoint in BTN • CAC members featured • Premium Recognition in print advertisements • Business Travel News • Travel Weekly • Travel Agent • Online banner advertisements • BTN online

  17. Immediate information • Industry Alerts – inside information • Business Reports • ARC Data Analysis • Independent Contractor Study • Privacy Policy Guidelines • Financial Survey 2006 • Technology & Web Usage Report

  18. Response to Independent Contractors Report 41.7% of Premium Member respondents found Independent Contractors Report to be “Very Useful”

  19. Frequency of Communications 80.6% of Premium respondents found frequency of communications “Just Right” • 1,092 email addresses: • Premium Members (116) • Managers (325) New! • Employees (651) New!

  20. We need agencies like yours to lead the industry We look forward to having you be a part of The New ASTA Call to Action Allied and International Members TOP Members YOU Premium Members Travel Agent Members

  21. The New ASTAAmerican Society of Travel Agents Premium Membership Dedicated to the Business of Selling Travel

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