Forget the Headlines — Here’s What’s Really Stressing Consortia, Host, & Franchise Execs

While macro issues are certainly on the minds of executives at travel agency consortia, hosts, and franchises, it’s the things they can control that keep most of them awake at night.

“There’s all kinds of noise out there that we can’t control,” said Michael Johnson, president of Ensemble. “From our perspective, we’re focused on what we can control…”

“Our success is based on our advisor’s success,” added Jackie Friedman, president of Nexion Travel.

As a result, it behooves every agency group to ensure they’re equipping their members with everything they need to succeed.

For some, like Friedman, it’s providing the factual information advisors can use to counter misinformation spread across consumer news and social media that occupies her thoughts.

“We want to make sure that they have the information to provide the facts,” she said. “That’s a challenge for advisors, the availability of information plus an informed and educated consumer. How does the advisor stay a step ahead of the consumer… to ensure that the consumer is making the choice that’s right for them… That keeps me up at night.”

Debbie Fiorino, chief operating officer at Dream Vacations, echoed Friedman.

“Nothing keeps me up at night as it relates to the world,” she told Travel Market Report. “What keeps me up at night is making sure that we’re giving our agents everything they need to continue to make sure that their business can be successful… It’s about reinforcing the importance of staying proactive, making sure our advisors are equipped with the right messaging, the talking points, the tools, the offers that they need so they can confidently sell and guide their clients no matter what’s happening in the world. Because it’s always going to be something.”

Put another way, it’s helping advisors wear the many hats they need to wear.

“For our predominantly U.S.-based customers, they [advisors] are geography professors. They’re psychologists,” said Alex Sharpe, president & CEO of Signature Travel.

For other executives, it’s about providing the right tools to helps advisors work more efficiently.

“Advisors use up to five platforms to book air and up to seven platforms to book hotel, and it’s not getting any easier,” Johnson said. “What keeps me up at night is the voice of the independent contractor or the travel advisor working in a brick-and-mortar location. Who is listening to them? Who’s trying to make their lives easier?”

For Kathryn Mazza-Burney, chief sales officer of TRAVELSAVERS and president of NEST, it’s the pressure of maintaining her own high standards that keeps her awake.

“What keeps me up at night is that we have seen such incredible growth within our organization. My biggest fear is that I will never be able to maintain the service levels that we offer today, which are extremely important to me… It’s continuing to grow my team to keep up with the demand, to make sure that our agents get the service levels they expect from us.”

Macro Issues Still a Concern

Though the executives we spoke to spend more of their time thinking about what’s within their control, macro issues affecting the world at large still concern them.

“Uncertainty is not good for business in general,” Johnson explained. “We know that when there’s economic uncertainty, discretionary purchases are the first to go and travel is right up there, so that’s a risk.”

“Obviously, we’re concerned,” Friedman said, referring to things like economic worries, natural disasters, and global war. “If we end up with unrest, there could be a true fear of traveling.”

“The macro stuff, it is scary,” Phil Capelli, chief sales officer for Avoya Travel, told TMR. “All that stuff comes into play daily and impacts consumer behavior. Because how could it not?… There’s a lot going on in the world right now that would keep up anybody in the travel business.”

Mazza-Burney agreed.

“Of course, we’re all watching the political unrest. We’re looking at the tensions around the world, the unpredictability, which frightens people sometimes,” she said, but added, those have always been issues that the travel agency community has had to watch.

“I think advisors are unfortunately used to a lot of turmoil in the business,” Christina Pedroni, executive vice president and general manager USA, Envoyage said. “They’re better educated and better prepared to have potentially difficult conversations with customers.”

As Cruise Planners’ founder and CEO Michelle Fee put it, “My personal motto has always been, ‘this too shall pass.’”

“After so many years in the travel industry, one thing I’ve learned is that there will always be ups and downs, peaks and valleys,” she said.

“Geopolitical, terrorism, environmental issues, wildfires, hurricanes, all that stuff, when you think about it, this is what we’re always dealing with. This year isn’t new,” said Lindsay Pearlman, president of Travel Leaders Network.

But what’s also true, several executives said, is that people will continue to travel.

“COVID reminded us all how important it is to truly live our lives – and for many, travel is a meaningful part of that,” Fee said.

“People have made an assessment in their lives that travel is important to them,” Capelli added. “There may be pockets of slowdown, but overall people still want to travel.”

Plus, when there’s turmoil the value of the travel advisor goes up.

“In this environment, the value that the travel advisor brings to the traveling client now is stronger than it was before,” Pearlman added.

Travel Industry Specific Concerns

Other macro issues that concern executives we spoke to are closer to home, like the relationship between suppliers and the advisor community and how aggressive suppliers can get with their direct business.

“Suppliers have capacity to fill and, obviously, I would love it to be 100% through the trade, but we know that is not realistic,” Friedman said. “I want to make sure that we can coexist… that there’s no competition. What keeps me up at night is making sure that the trade remains a viable distribution channel and that we do our part to make that happen. If we’re not doing our part to fill the rooms or the beds or the airplane seats, then they will have to find other ways to do it.”

Though Cruise Planners’ Fee told TMR that nothing keeps her up at night, she does worry about the increasing threat of fraud for advisors.

“From phishing emails and fake client inquiries to compromised systems, advisors are having to be more vigilant than ever,” she said.

While it’s not entirely something she can control, she said Cruise Planners is working hard to equip its members with the education they need to help prevent it.

“Fraud is a serious issue that requires ongoing awareness and vigilance from all sides—and it’s something we’re committed to addressing proactively.”

For Signature’s Sharpe, who also told TMR he sleeps well at night, it’s having organizations like ASTA covering his back that keeps many of the macros issues that could be a concern off of his plate.

“That God we have ASTA. They do everything at ASTA that we don’t want to, that we’re not equipped to do. That helps me sleep at night, knowing that they are vigilant.”

(This is part two of TMR’s annual look at how the travel agency industry fared in the first six months of the year, what executives wish they could change, what trends are driving business, and more. )