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The New ASTAAmerican Society of Travel Agents

The New ASTAAmerican Society of Travel Agents

Premium MembershipDedicated to the Business of Selling Travel

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New LeadershipCorporate Advisory CouncilNew 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.

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Corporate Advisory CouncilCorporate 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

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Travel Agent Political Action InvolvementTravel 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

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State IssuesState 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.

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ASTA’s New Governing BodyASTA’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

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What else is ASTA working on that affects your business?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

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Voids Effective July 21, 2007Voids Effective July 21, 2007

Day-of-Ticketing (Day 1)

Next Business Day (Day 2)

Ticket Issued in GDS

Ticket can be voided in GDS

Ticket can be voided in GDS

Ticket can be voided in IAR

At midnight, transaction (ticket or void) is locked down

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Voids 2008Voids 2008

Day-of-Ticketing (Day 1)

Ticket Issued in GDS

Ticket can be voided in GDS

At midnight, transaction (ticket or void) is locked down

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Operational IssuesOperational 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

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Preventing Chargeback LossesPreventing 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

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Pass through credit card fees-what can we do about it?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

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Why do Airlines want to do this?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

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What remedies are there?What remedies are there?

• Legal – Litigation

• Role of state laws governing surcharging

• Regulatory – DOT and DOJ

• Legislative

• Commercial – Counter the Buzz?

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The New ASTA serving the entire industryThe New ASTA serving the entire industry

• Speaking with One Voice

• Providing business services and market research

• Strengthening the industry

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Premium branding and marketingPremium 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

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Immediate informationImmediate information

• Industry Alerts – inside information

• Business Reports ARC Data Analysis Independent Contractor Study Privacy Policy Guidelines Financial Survey 2006 Technology & Web Usage Report

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Response to Independent Contractors ReportResponse to Independent Contractors Report

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

 % Share of

Responses

Very Useful 41.7%

Useful 33.3%

NA- have not read IC report yet 11.1%

Do not use ICs in my agency 8.3%

Other 5.6%

Not Useful 0.0%

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Just right, 80.6%

Other, 8.3%

Too few, 5.6%

Too much, 5.6%

Frequency of CommunicationsFrequency 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!

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Call to ActionCall to Action

• We need agencies like yours to lead the industry

• We look forward to having you be a part of The New ASTA

TOP Members

Premium Members

Allied and International

Members

YOU

Travel Agent Members

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The New ASTAAmerican Society of Travel Agents

The New ASTAAmerican Society of Travel Agents

Premium MembershipDedicated to the Business of Selling Travel