Sandals Holds Firm on New Policy; Meeting Mollifies Agents

While Sandals Resorts International is not backing down on controversial policy changes to its Soon Come Back program, agents who attended last week’s emergency meeting with Sandals to discuss the issue appear to be satisfied with the outcome.

If some agents were not pleased, they are not saying so publicly.

Sandals called the meeting, an all-expenses paid, three-day event at its Emerald Bay resort in the Bahamas, after agents reacted angrily to new rules, including a 10% commission cap, for future bookings made by clients while at a Sandals or Beaches resort. About 30 of Sandals’ top-producing agents attended the meeting.

The rules, which took effect March 1, require agency clients to send written instructions to Unique Vacations, Sandals’ exclusive booking representative, indicating they want the booking transferred to their travel agent.

Sandals also capped commissions on Soon Come Back bookings at 10%, as opposed to the up-to-16% commissions that Sandals pays high-producing agents on routine bookings. It also forbade agents from processing Soon Come Back bookings through their wholesaler partners, which also effectively capped commissions. (See Agents Angered by Sandals; New Limits on Soon Come Back Bookings and Sandals Call Emergency Meeting With Top Agents)

‘Very productive’
Mark Hennigan, owner of Dreamers Travel in Hampstead, Md., was at the gathering in the Bahamas. “The meeting was very productive,” said Hennigan, whose agency sells about 150 Sandals vacations annually.

While acknowledging that Sandals did not recant its 10% commission policy for Soon Come Back bookings, he said that such bookings account for just 3% of Sandals’ total program, “so it should not be alarming to most agents.”

“If we are smart about educating our clients about Soon Come Back, we will not have any issues on keeping our 15% to 16%,” he said.

Prior to attending the meeting, Hennigan told Travel Market Report that he was optimistic about its outcome. But he also expressed concerns about the policy changes. “If they’re cutting this 6% off Soon Come Back, what are they going to do in the future to take things away from us?”

Another agent who attended the meeting, Penny Sheldon, owner of Penny Sheldon Travel in Boise, Idaho, characterized the meeting as “informative.” She declined to elaborate, noting that “it is not my place to speak on behalf of Sandals.”

Not saying much
Lisa Sheldon, executive director of the Destination Wedding & Specialist Association, noted that agents who attended the meeting are being tightlipped and not saying anything negative. Her organization had received numerous communications from angry agents after the policy changes were announced.

“Everyone seems to be satisfied with the meetings’ outcome, including some that were expressing concerns before they attended,” she said. “It makes us wonder if Sandals had asked them to keep what was discussed confidential.”

Agents at the Sandals meeting were not told to keep the meetings content confidential, according to Hennigan.

Costly waste of time
Jennifer Doncsecz, president of VIP Vacations in Whitehall, Penn., a top Sandals producer, did not attend the meeting but, she noted, “the spin on Twitter is that ‘Sandals really listens to agents.’”

Doncsecz said she is not convinced this means much. “I think listening is great – my cat listens. But what are they doing?”

She viewed the meeting as “a waste of time to create spin,” said Doncsecz, adding that it would have been better if Sandals had instead created an advisory board of agents to consult prior to making the announcement about Soon Come Back.

“Ironically, the money they spent on sending 25-plus agents to Emerald Bay at the last minute could have been greatly reduced if they had just invited them to Miami or held a conference call with their top 10 agents.”

Statement form Sandals
Sandals declined Travel Market Report’s request for an interview, instead issuing a formal statement on Thursday from Chairman Gordon “Butch” Stewart.

“We just wrapped up a fantastic meeting with our partners and are confident that the relationship we value most is strong as ever,” he said. “We appreciate our Club members coming together and have let them know that they have been heard, understood and that together, our future is bright.”