A Needed Fix Sparks GOGO’s New Commission Structure

GOGO Vacations’ recently announced a new commission structure aimed at fixing its former plan that had gotten “a bit blurred,” according to president Randy Alleyne.

The new structure, to launch Jan. 1, features three tiers based on sales levels. It will enable travel agents to increase their commissions by up to 25%, Alleyne said.

The plan is just one of several initiatives in GOGO’s new Travel Agent First program, designed to forge a stronger relationship with agents. The other facets—including additional educational opportunities, marketing services, operational tools,and fam trips—will be introduced next year.

Alleyne, who joined the company in January 2013 as vice president of sales, has a long sales career with retail giants like Banfield/PetSmart, Circuit City and Walmart.  He was promoted to his current position in April.

Travel Market Report spoke with him to learn more about Travel Agents First.

Why did you introduce the Travel Agents First at this time?
Alleyne: For me, just coming into the travel industry, it was important to take a hard look at the industry and to take the time to speak with agents and gain an understanding of how they were doing business and what they needed to do more business.  

At the end of the day, none of this is possible without the agents.  We owe it to travel agents to give them more so they can do more.  We know the value will come back to us.

What do you hope to accomplish with this new commission structure?
Alleyne:  When I sat down and started speaking with my team, one of the things that stood out was how we could help travel agents.

With this new commission structure, we want agents to realize that we can be a solution. We want them to think of GOGO Vacations as a one-stop company where they can get products, information, education, and other benefits.

Coming in and taking the reins of a company that’s 60-plus years old, I had to understand where we’ve been as well as where we’re going.  At GOGO, we have a passionate group.   

But the commission structure from GOGO got a bit blurred, so we needed to fix that.  We’re starting with commissions, but that’s only one part of what GOGO will be doing for agents coming into 2015.

Why did you choose a three-tiered structure?
Alleyne: I was looking at how we could best build relationships with travel agents.  The best way to understand agents is to understand their business needs.  

Each agent level has its benefits.  Booking Agents are just getting started with GOGO. They’re really just beginning to understand the company. They will receive up to a full 2% increase in commission.

The Partner Agent is operating at a higher level. We wanted to give them that distinction, plus the help they needed in marketing, training and technology. They will receive up to a 3% increase.

Our Premier Agents are fully functioning agents with global or other specific targets.  For them, GOGO will supply specific initiatives so they can grow from level to level.  They will receive up to a 2% increase.

How do commissions of 2, 3 and 2% gibe with the 25% commission figure?  Can you do the math for me?
Alleyne:  The numbers 2, 3 and 2 are actual commission percentages. If, for instance, a travel agent was at 1% commission, he or she will go to 3%. That’s a 25% increase in growth rate compared to what they were earning.

You plan to unveil other programs as part of Travel Agents First in 2015. Tell us more about that?
Alleyne: Well, we have to keep some things confidential at this point. But our “Ready, Set, Go!” monthly promotions will offer additional commission bonuses of up to 5%.

Does the new tiered structure have anything to do with CLIA’s recent initiative in that its membership structure is now based on tiers?
Alleyne: No, this came out of the GOGO think tank.  We did our own company analysis. We didn’t look at other tour operators, though we do have an advisory group of travel agents.

How much of your product do agents sell?
Alleyne: Our current mix burn is 98% of the GOGO portfolio.  The other 2% are tours that are no longer relevant.

Does GOGO do any direct sales to clients?
Alleyne: No, all of our sales are through travel agents.

You’ve said Travel Agents First is “more than a campaign name—it’s a movement.” Do you think other tour operators will follow in your footsteps and launch similar programs?
Alleyne: Change starts with one. At GOGO, we are leap-frogging the industry.  Our position will create a swell, create a spark, spur innovation. We are innovators.  

Travel is a wonderful experience. We don’t move packages—we provide experiences.  My only hope is that our competitors will become more innovative, too.