You’ve heard it, I’ve heard it – just about everyone has heard how wonderful travel sales have been from “Travel Professionals”. Even with all the doom and gloom about a recession last year.

Heck, it’s easy to say things are wonderful when you don’t have to disclose just how well you’re really doing. Very few of the world’s travel agencies are publicly traded companies and as people often do, they tell you what they want you to hear.

Looks like the truth is starting to catch up with some of these folks, as Orbitz announces a net loss of $337 million for 2009 yesterday. Net revenue just for the fourth quarter was $738 million, down 15 percent from the same period of 2008. According to m-Travel news, the losses were pinned on “removal of most domestic air booking fees and a significant reduction in hotel net revenue due to lower average daily rates, lower hotel booking fees, lower breakage and disappointing results at HotelClub.”

2009 wasn’t a very nice year for the travel industry. Royal Caribbean had problems getting financing for their new mega ship at the beginning of the year. (Although they obviously secured the financing needed eventually.) Expedia was hit with a $129 million settlement in a class action that was filed for unfair business practices. We also can’t forget how hard Mexico was hit last year with the H1N1 virus that wreaked havoc across the globe.

All while consumers saw some of the best deals seen in decades – which was great for them, but not so sweet for Travel Agents. We had to sell two to three times as much in travel just to keep commission levels at levels they had seen in years past.

I have to hand it to any company who’s made it through a year like 2009 regardless of who they are, or what they do. When anyone in our industry takes a hit like Orbitz has, the entire industry is reminded of how lucky we are to still be in business. In a way, it shows strength and resolve – even with the huge losses.

Think about YTB with all that it had to endure for the last 18 months – yet I’m still here with a booking engine that’s producing sales and revenue. Some said I nor the company would make it past 2009. At this point, every day I look at my booking engine, or see a new cruise booked in my back office, I think about those people and smile. Why? Because I no longer have to question if they could be right – I see the fruits of my dedication and determination with my own eyes. My experience once again overrides mere words to the contrary.

It wasn’t easy, nor was it pleasant to endure all the doom and gloom during 2009.

The outlook for the coming year looks much better than it did this time last year. Commissions are getting close to where they were prior to the all fire sales we saw over the last year. (That’s not to say there aren’t some great deals to be had.) Businesses and families are traveling once again. Maybe not at the levels they once were, but when I look at the amount of advanced bookings compared to this time last year, it’s dramatic. Most of what I saw last year were last minute deals that customers just couldn’t pass up.

It’s good to see that I wasn’t alone or that our situation in YTB was unique. Everyone struggled and everyone had “issues”.

I’m just thankful that it looks like all this is behind us (for the most part) and everyone appears to be far more optimistic and on the mend.

Including YTB.

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Our friends at PhoCusWright have come out with another report revealing that monthly traffic and conversion for travel websites is up in almost all travel categories in the second quarter of 2009, compared to the same quarter of previous years. (Air being the only category that’s down – no surprise there.) Each area showed increases in traffic during the first half of 2009 compared to 2008 and 2007 when the company researched Online Travel Agencies and Travel Suppliers.

According to a PhoCusWright Press Release, the month of June revealed that visitors were strong with year-over-year growth. Almost all categories were up such as cruise lines – up 19 percent and hotel chains were up 13 percent.

“The reliance that consumers have on travel Web sites has not weakened one bit,” says Carroll Rheem, director, research at PhoCusWright in a press release. “Online channels are attracting, engaging and inspiring travelers who recognize that this year is actually a fantastic time to take a trip. Consumers are certainly spending less, but they are not giving up travel, nor are they turning away from the Web sites that offer them the selection and convenience they value.”

There are also signs that Online Travel Agencies and Supplier Web Sites are enhancing their ability to convert online shoppers to actual purchasers.

Don’t get too excited however, there are still a considerable amount of people who visit but don’t purchase according the report. (It’s what PhoCusWright calls “leakage”.) Online Travel Agencies are lagging behind suppliers, who are doing a better job of converting visitors into purchasers over their Online Travel Agencies counterpart. However, the average of actual purchasers is growing in both segments as consumers get more comfortable with the ease and convenience of shopping online. Monthly online conversion rates ranged from 20% for a car rental supplier to 0.2% for cruises booked via an Online Travel Agency.

Online travel agencies have shown a slight increases in hotel and car rental visitor volume in the first half of 2009 compared to 2008 and 2007. The only category to show a decline in traffic from 2008 through 2009 for Online Travel Agencies was air – which is down 15 percent. Still, air conversion has increased significantly over the same time period, according to the PhoCusWright report.

“The online travel ecosystem now supports a diverse variety of transactional and informational sites—each playing a role in how consumers research, shop for and purchase travel,” adds Rheem. “For example, we found that visitation to planning and review sites drives dramatic differences in hotel conversion rates. Understanding the intricate relationships that connect all travel sites is essential to setting the right strategic path.”

Don’t know if you noticed or not, but our September Trip of a Lifetime Sweepstakes has a survey attached to it to find out more about our customers. This ability to collect data gives YTB an edge in finding product and destinations our customers care about, which in turn can convert online shoppers to actual purchasers based on providing products they’re actually looking for.

Technology – Ain’t it grand?!

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I’ve written about a company called PhoCusWright here before which measures online travel sales. I’ve also written about BurstMedia as recently as a few weeks ago, which looked at consumer research for travel related spending. Another company that measures on-line spending is a company called eMarketer who came out with a report last week which forecasts some significant growth once we get past this recession.

The Retail E-Commerce Forecast reports and tracks current online sales and then forecasts what will happen in the future based on the data collected. The current forecast indicates that online sales will begin to rebound in 2010 and hit full stride in 2011. A trend in greater spending by online buyers is the key to eMarketers forecast of continued e-commerce growth. Currently some 152 million individuals will shop online in 2009.

The report also goes on to state that many consumers opt to buy online for convenience, price and broad product selection. It also states that over 80% of online shoppers are also online buyers. According to PriceGrabber.com, the tough economy is driving consumers online to compare prices, look for retailers that do not charge sales tax or shipping fees, seek discounts and avoid impulse buying.

It should be noted that PhoCusWright and eMarketer specialize in two separate segments of online sales. Online travel sales are so large and significant in this day and age that it’s broken out into its own category of B2C e-commerce. The remaining group of sales, whatever that may be, is left in the hands of eMarketer.

We’ve heard Coach, Scott and Kim this year quote that $0.42 out of every dollar spent online is spent on travel.  YTB brought Aisle 19 on board at the beginning of the year to capture the other $0.58 of that dollar. If you have ever wondered where that statistic comes from you now know it comes from PhoCusWright and eMarketer who work together to bring you and me a complete picture of the online shopping market. In 2008 $95.3 billion of the total sales volume spend online ($227.6 billion) was spent on travel.

Yes, I know that traditional travel agents want to stake a claim to the $95.3 billion in travel that’s spent online in an attempt that they are changing with the times. The claim; they too book online. Mind you, Expedia, Orbitz, Travelocity and Priceline take up more than half of the $95.3 billion with $50.1 billion on their own. (As documented in last weeks 2009 Power List rankings.) If you’re wondering if this is nothing more than a desperate attempt to keep traditional agents in this changing and evolving game you can bet on it.

A few weeks ago I documented BurstMedia’s findings with how consumers are using the internet for travel research and spending. That article got a considerable amount of attention from various massage boards, forums, and blogs. (As noted in stat reports I read that document not only what people are reading, but where they are coming from.) The findings from the BurstMedia research upset many traditional agents, and the excuses started to mount. One traditionalist went as far as personally attacking YTB and myself in some feable price match to show that booking with him would prove to be a better value. I’m not sure how that one example will change the entire scope of consumer research and spending, but I will tell you that the traditionalist who spent days ranting over the issue has successfully relieved himself from any anxiety he once had.

If someone wants to point out that people still value traditional travel agents, they are free to do so. I’m fairly certain that there are independent reports out there that they can use. I’d certainly find an independent source far more credible than some self generated price match consisting of one obscure flight to prove my point however. Yet a simple copy and paste price match appears to be all some need to keep their dream alive that they’re still wanted or needed. Or even better, that they use an age old excuse that they too use the internet to purchase travel for thier customers which factors into the large online booking numbers we’re now seeing in the reports that are documented here.

I’ve yet to generate enough interest in proving this point, but I’m fairly certain from past reports that PhoCusWright puts out that it’s not calculating B2B as it would be in the case of a travel agent booking with suppliers, but B2C with suppliers booking directly with consumers online. B2C after all is what this and many other reports document rather than the other way around.

I’ve been shopping online for years because of it’s convenience and ability to search for the best price I can find. Three years ago I was in the market for a brand new digital camera and went to the internet for a match of what I was looking for. I already knew the specs I desired, already had a budget in mind, and was already willing to purchase the camera online. What I found was the Fuji FinePix S9000 and it’s been one of my most enjoyable investments I’ve ever made.

When I do get a call from a client (as opposed to a booking just showing up in my back office) these clients already know the dates, times, and have a budget in mind because of the research they’ve done online. Some still refrain from buying online due to security and privacy concerns or the inability to touch and feel products. Others will go ahead and book or purchase themselves because they’re comfortable with the medium.

With almost nine out of 10 Internet users browsing and researching to compare products online this year as documented in this report, it’s yet another example via independent research of the bright future of online retail.

And YTB appears to be right in the thick of it. In more ways than one. ;-P

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You’re well aware by now how much I appreciate the internet and the information that flows on this puppy. I can find information on just about any subject I care to look into. This technology has become so ingrained into our culture we’re tweeting about subjects we find interesting and important to us. We’re able to communicate with people from all over the world instantly at all hours of the day and night.

We hook up with “tribes” on the internet, and share our experience and knowledge. We read blogs, newspapers, and even prefer to watch news and sports clips on the internet rather than TV.

I was an early adopter of the internet and have been using this medium as a source to gather information and educate myself on a variety of subjects. Today, one of the first places most people go to research is the internet.

There are a number of companies that specialize in gathering information about internet use and combine statistical data based on what they find. I’ve written about PhoCusWright a number of times on this blog, and love how it corrects the many many myths and misconceptions that others put out there. I don’t know why a few stragglers spend thier time twisting and spinning, or why they’re so afraid of the truth. Some do spend a considerable amount of time trying to distract you with thier own perception and opinions rather than sticking with the facts. I guess it works for them.

Me, I like facts from independent sources. Travel Weekly has done a terrific job in documenting for us the last couple of years. I found another company yesterday while reading the trades that has once again corrected the myths about self service travel. Travel Agent Central did a piece on Burst Media who publishes Online Insights which highlights emerging trends in online media and eCommerce. One of the most recent being summers travel plans.

Would it surprise anyone in YTB that 80.3% of “summer travelers” say they will use the Internet to help plan their summer vacation? Maybe because that’s a lot higher than what we’ve discovered in the past. (Even from PhoCusWright) But once again, we find statistical data from independent companies who don’t have any motives to bend or twist the truth for personal gain.

I also find in rather interesting that the higher the income, the more likely they are to use the internet for research. (As depicted in the graphic in the article.) Right or wrong, many correlate income with how smart someone is, and based on that belief, (or meme) the smarter someone is the more likely they are to use the internet for planning their summer vacation. The most popular features among the respondents was destination information and the ability to check flight, hotel and car rates and availability.

Respondents were asked what features and content of a travel website make them return they specified destination information (46.3%), the ability to check flight, hotel and car rental rates/availability (45.2%), and travel promotions and specials (44%) as reasons. Quite honestly, I can see this as a huge benefit for most consumers who are planning because a good portion of the Traditional Travel Agents are spending more time posting on blogs and message board forums than they are answering phone calls or talking with walk-ins who visit thier establishments.

You also have to wonder, with so many “consumers” researching rates, promotions, and destination information on thier own quite comfortably, why there’s a need for all the specialized training we wrote about Monday. Based on this report, most consumers don’t need no stinkin’ Travel Agent because they’ve been able to find all the information they need on thier own via the internet.

Which brings us back to the beauty of YTB. For someone like me who’s been a pied piper of sorts on the features, advantages and benefits of cruising for over a decade now, YTB gave me the opportunity to get paid when I told someone about why “a cruise was the best vacation money could buy”. It’s not rocket science folks, it’s travel and vacations. Travel is something that everyone does, and vacations are something that everyone loves.

All I have to do is open my mouth and tell someone that I we own an Online Travel Agency and the very next thing out of thier mouth is “Really, can you get me a deal too ______________?” We would more than likely talk about it what we have to offer, but the vast majority of the time, I simply hand them a business card with my website address, and if they find my prices competitive, I’ll find a booking in my back office without doing anything further.

Why, for the very same reasons Burst Media pointed out in their report.

Consumers are actively using the Internet as an information resource and a place to make travel purchases. Take advantage of the Web’s ability to target specific travel audiences – such as families and the affluent – with content that is highly meaningful and engaging to the viewer. Also, take advantage of the Web’s ability to deliver information by utilizing advertising creative the user can interact with, draw information from, and possibly complete a travel transaction.

There you have it. Another independent source with practical information and data you can use to build your business that documents stats and facts, not a bunch of hype and spin. It’s rather simple to implement if you know how to do it.

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Did you feel that? It’s the winds of change.

The NEW YTB booking engine came as an early Christmas present and the upgrade is now official in the US. You may or may not have heard about this and I’m only too happy to update you on advancements and upgrades from the folks in Wood River, Illinois, YTB Travel Network.

I’m sorry to inform some that “Being Powered by Travelocity” is no more. Our new platform is being serviced by Convergentware, out of Canada. (Thus why the beta testing was being done there.) While the relationships we had with both Priceline in 2005 and 2006 and World Choice (Travelocity) in 2007 and 2008 were extremely beneficial in helping the growth of our company, it’s clearly time to step up and not only own the client information, but provide better services to these clients via customer profiles.

Travel Agents are typically connected to one or more GDS systems. Today, travel content can be found outside of the GDS’s and directly via supplier websites or via direct links to suppliers’ back-end systems. (Which YTB is currently working on with its growing list of suppliers and vendors as these vendors create their own infrastructure to do so.)

This new product with Convergentware not only represents multiple GDS systems, (Global Distribution Systems) but they also seamlessly combine such GDS content with non-GDS content such as Web fares, Charter fares and Consolidator fares into one interface. There are air, car, hotel, insurance, tour, cruise and net fare modules for both client and business environments.

Convergent CRS Gateway is a back-end Centralized Reservations System (”CRS”) that is capable of searching and integrating data from the following five environments:

1. The Global Distribution Systems (“GDS”) such as Sabre, Galileo and Amadeus;
2. Travel suppliers directly via Application Programmer Interfaces (“API”);
3. Travel supplier Web sites;
4. GDS New Entrants (”GNE’s”) such as ITA Software;
5. Specialized or customized content via Convergent Publisher.

Convergent CRS technology is a global leader in automating these environments for the entire front-office to back-office reservations process which involves searching for relevant travel content, managing and attaching customer profiles to a particular reservation, and then book all the individual components of a travel reservation, including, but not limited to air, car, hotel, cruise, insurance and tour packages, ticketing specific components of a travel reservation that require ticketing in conjunction with reserving space such as air bookings.

Another nice feature I’m thrilled about is creating integrated quotes, itineraries and/or invoices regardless of where the travel content comes from. I can create and send a complete quote to a client and if they like what they see, all the client has to do is log in and pay for the trip I created for them.

How cool is that?! Talk about customer service.

The Convergent CRS Gateway powers all Convergentware front-end products such as Convergent Online and Convergent Professional. Add the power of Convergent Publisher, with its specialized content, contract and inventory management capabilities, and the Convergent CRS Gateway transforms into the leading customizable, centralized reservations system in the world. (Sorry, no more “gleaning” of travel bookings.)

Hang on…it gets even better.

You heard about the Worlds Largest Travel Party last week with the Worlds Most Popular Cruise Line in the World. This format was just a glimpse of things to come with MONTHLY Travel Party’s all across the country featuring suppliers and destinations each and every month that clients can not only book for themselves, with a Best Price Guarantee, but clients can also register themselves for monthly sweepstakes featuring a free vacation to one of these exotic destinations. Sweepstakes will range from 3-5 day weekend getaways, a 7 day all inclusive, or up to 14 days of bliss at an exotic destination that can be won only from the fine folks at YTB each and every month.

If you have not done so yet, I would highly recommend you subscribe to the Weekly Steals & Deals. (Found at the bottom right hand corner of our Booking Engine.) This is your first step in creating a customer profile and getting yourself registered for these sweepstakes. When you hit our web site, simply register with e-mail and password, and the Convergentware system will keep track of frequent flyer numbers, passport information, home/office and billing information, and other traveler information that you’ll only have to input once as the CRS does the rest.

By the way, are you as tired as I am over these “other companies” who send specials from Chicago to San Diego when YOU live in Atlanta? No longer a problem with YTB Travel Network as Convergentware Publisher will only find specials from your specified city in your customer profile. I don’t know about you, but I’m not all that interested in flying up to Chicago or finding that special to San Diego isn’t all that special from Atlanta.

And some have the audacity to claim we’re not serious about selling travel.

Hard to fathom, I know. But this is just the beginning. As other vendors and suppliers create the backbone to connect with this new platform, you’ll see more and more offerings and ways to combine great travel deals with the best prices, from one incredible travel agency.

And the cost to either RTA’s of YTB or customers for this advanced booking system?

Not a penny more. (In fact, it’s on sale right now.)

Congratulations YTB. You’ve proven yourselves to be a true innovator and leader in the Travel Industry once again.

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I can’t think of a better way to get going again after an extended weekend like we just had than hosting a “Travel Party”. I love weeks like this. Everyone is longing for more vacation time and looking to get back into that relaxation mode. The only difference I can see is possibly replacing “turkey” with “lobster” when it comes to stuffing ourselves. Short breaks like this, spending time with family, (mine who by the way are still here) and getting a break from traffic, time clocks, and office politics remind people how much they need a vacation. I love the sparkle in people’s eyes when the subject of travel or vacations comes up. It never ceases to amaze me how this subject is so universally loved by everyone. I’ve yet to meet anyone who’s told me;

You know, I’ve tried one of those vacations once…HATED it!

No, bringing up the subject of vacations is something everyone loves to talk about, and for some, you can’t get a word in edge wise. Not a big problem, but some do tend to go on and on about how much they just LOVE the destination they came from or the destination they’re looking to head to next. With the economy looming over everyone’s head these days both agencies and suppliers are looking for that edge to help increase both visibility and sales.

This week, both YTB and Carnival appear to have that answer. Apparently, Carnival was pleased with the outcome of last years 24 Hour Cruise Event and has come to YTB again to help boost last minute year end sales to help both our bottom lines. Back in October, CLIA held its annual “World’s Largest Cruise Night”, which in years past has produced fourth quarter sales for both agencies and cruise lines. Last year the month long promotion for CLIA produced some 17,852 cruise bookings, however I’ve yet to see any hard numbers on this year’s event. YTB’s own cruise sale last November produced 12,000 passenger bookings. (Although, critics like to cut the number of “passengers” in half.)

This Tuesday, December 2 at 7:00 p.m. in each time zone, YTB will host the World’s Largest Travel Party in several cities around the country.  All locations are teaming together to host one huge event. The cities include:

• Atlanta, GA
• Baltimore, MD
• Boston, MA
• Chicago, IL
• Dallas, TX
• Denver, CO
• Detroit, MI
• Houston, TX
• Kansas City, MO
• Miami, FL
• New York, NY
• Orange County, CA
• Philadelphia, PA
• Reno, NV
• Richmond, VA
• San Diego, CA
• San Francisco, CA
• St. Louis, MO
• Tampa, FL

At each location, door prizes will include one free cruise certificate (for guests only) and five tickets to YTB’s 2009 National Convention for Reps or Travel Site Owners. Rooms at the live venues will have a party atmosphere with round tables, fun music, snacks, and drinks. (No alcoholic beverages.) The Cruise giveaways for two are for guests only, and you must be present to win. There will be a short video entitled “Cruising, the Best Vacation Value” followed by a live feed from the YTB Home Office via streaming video. After the presentation a flyer with the December 4th Sail-a-thon Cruise Specials will be handed out in addition to the free cruise drawing for each city.

On Thursday, December 4th, there will be a live webcast from 5 -10:00 pm Central from the YTB Headquarters in Wood River, Illinois. Phones will be open all day till Midnight Central Standard Time as well.

RTA’s have an opportunity to invite friends and family over for this Carnival Cruise Night on December 4th to watch Coach, Kim, and Scott, along with many guests, through a live webcast sales event. There will be dozens of cruise specials and a live team ready to take reservations. Travel customers can also choose from 18 different Gift Certificate options available for online purchase through December 31, 2008. Certificates are valid for a 3, 4, 5, 7 or 8 day Fall Cruise for Two and most include all Government Taxes, Fees and Gratuities. ALL certificates are upgradeable if desired and are valid for up to 18 months. Upgrades are never a problem at the time of booking, simply pay the difference.

It’s nice to see Carnival and YTB teaming up again in this way. I’m not aware of any other supplier who teams with a single agency such as this, but then again, no other single agency has the potential to reach as many customers at one time as YTB does. It’s very unique to our model and our company.

It’s all in an effort to “Be Number 1 with The Number 1!”

Happy Sailing!

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