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conference report news AGENT RELATIONS.
The Travel Convention • October 18-20 • Hilton Malta Conference Centre • St Julians CLIA REPORT.
Walsh warms to trade
DITCHING TRAVEL agents would have been a “disaster” for British Airways, the airline’s chief executive Willlie Walsh has said. Walsh told delegates that although it had
scrapped commission and expanded direct sales through
BA.com, it had never forgotten the importance of the trade. “Moving away from the trade would have been a disaster for BA. You have done an enormous amount of our business and will continue to do so,” he told delegates. “You are looking after our customers with that
personal touch, and we know that customers want to talk through their options with an expert who can advise them.” Walsh also thanked agents for their support during the ash cloud crisis in April, when he said airlines were banned by the government from flying through “ash-free clear blue skies”. He added that the trade should put aside its
differences and unite to oppose any more taxation on the aviation industry. Walsh said he disagreed with Abta’s position that a per plane duty was preferable to the ex- isting system of air passenger duty, where the tax is levied on the number of individual passengers. And he warned that while the trade argued among itself, the government was sitting back and enjoying the fact that the opposition from the industry was divided. “We should unite against these unfair and
extortionate taxes, not allow the differences to divide us,” he told delegates. “As we argue over the structure, the govern- ment smiles at the divided approach.” Walsh added: “We were conned into believing
POLICY CHANGE.
Why inviting an MP into your shop is good lobbying
FORMER CABINET minister Norman Fowler has advised agents to invite their MPs to their shops if they want to make an impact on government policy. Fowler, who is an Abta board member, said the
industry had a good case to make to government but needed to find an effective way of making its voice heard.
He advised delegates that the best approach was to request a meeting with their MPs by invit-
ing them to their businesses, or to go to see MPs at their constituency surgery at weekends. “Every MP wants to represent their con- stituency and know what is happening in businesses in their constituency” he said. “Do not underestimate the impact speaking to them can have – if MPs return to the tea rooms in the House of Commons having heard the same thing from con- stituency after constituency.” He warned against emailing MPs –
Lord Norman Fowler
due to them receiving a deluge of emails – and urged agents not to “shout” at their elected representatives but to use persuasion. Fowler also warned del- egates at the convention to brace themselves for 18 months to two years of strikes, demonstrations and direct action as the impact of spending cuts, which were unveiled on Wednesday.
22.10.2010 11
‘Agency cruise sales to rise 30%’
AMBITIOUS AGENTS can grow their cruise business by 20-30% in the next four years. Figures from US trade body Cruise Line Inter- national Association show that the body’s 25 member lines are set to add an extra 32 vessels and 57,000 beds by 2014. “Even if you just maintain your own share of the market you could expect 19% growth,” said Bob Sharak, CLIA executive vice-president of sales and distribution. “But if you are aggressive, and go after
more business, you could grow your business by 20-30% or more,” he said. Drawing comparisons between the cruise
Walsh: government is smiling at our divided approach
that the basis of the tax was environmentally related. If we had screamed in 2006 when Gordon Brown as chancellor doubled the rate of tax we would not have seen the increase last November and those coming this November. “These increases have no relationship with
the environmental impact of our industry. We estimate that the income generated from each flight is ten times the cost of off-setting the environmental impact.”
market in the US and Europe, he said that the UK and Europe remain relatively unpenetrated compared with the US. Less than 1% of the EEC population have cruised, while around 3% of North Americans and Canadians have done so. The market is limited only by capacity, he added, with CLIA member cruise lines booked at almost 104% of capacity in 2009. Sharak advised agents wanting to increase their cruise business to invest in technology that will minimise administration and maximise selling time. “Spend your time finding the next customer, focus on your selling time,” he said. He added that agents needed to be smarter than their customers, and must be adaptable, flexible and persistent to succeed. “Things like the volcanic ash cloud are going to happen. You have got to get around them and find out how to work amid the turmoil,” he warned.
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