Monday, May 10, 2010

Misinformation is misleading the Industry

Did you know that you can only book cruises if you're a CLIA member? You have no use for ARC because you don't issue airline tickets, right? Did you know that IATAN is THE accrediting body for the travel agent? Did you know that you needed an ID Card in order to take a FAM trip? I sure didn't.

Believe it or not, these are a few things I've heard over the past few years. Clearly there's a lot of misinformation floating around the Industry and none of it really benefits the travel professional, if you ask me. If anything, it adds to the idea that our Industry is becoming more and more fragmented - "I'm better than you".

I typically remove myself and ultimately the VTC Program from any sort of "talk" or "shots", but as I continue to jot down the latest line of misleading words in my "Do You Believe This?" notebook, I felt compelled to write a little in response to a growing list of misinformation, especially when this misinformation can very possibly sway current and/or interested travel professionals away from the VTC Program.

In a recent newsletter from a homebased agent association newsletter, which was passed along, the association head makes a great effort to market the benefit of an entity managed by this association. Within the effort the head of the association asks "Why pay more for less?" and he is referring to "booking ID codes." I read that line 3 times. Not because I couldn't answer it, but because I was really surprised that this was the angle taken to compete with the VTC Program and one the of the VTC Program's components. Yes, other programs were mentioned, as well, so I didn't feel isolated, but again, I was surprised because one bit of information that was not shared with the reader - the fact that before you can have access to this "booking ID code" you must first be a member of that association. Furthermore, there is no mention of what that cost is to join the association. Why is cost important? For the sake of this blog it is important because the head of this association references the cost of 3 programs, including the VTC Program (application fee + annual fee). I make no secret or shy away from the $300 initial fee ($300 if you join in January; we prorate the annual fee based on the acceptance month), and I'm not suggesting this gentleman does either, but he failed to compare apples-to-apples. Let's break-it-down for a moment, just on "cost" alone (I hate that word - "cost")...

NEW PARTICIPANTS ONLY
VTC Program - $300
Said Association - $99

Actuality...

VTC Program - $300 ($105 app fee + $195 annual fee, prorated by month of acceptance)
Said Association - $304 ($99 for the "booking ID code" + $205 1 year travel agency membership)

Wow! The association is actually $4 more than the VTC Program, assuming the VTC joins in January (the association could be a lot more depending on when the VTC is approved in the year). Truth is, it's difficult to compare apples-to-apples. And here's why...

  • There are varying levels and "costs" of membership for the association. I used the travel agency membership category because that is what the VTC Program vets - travel agency entities. There is a single IC membership with this association at a cost of $155, which would make the total cost, "booking ID code" included, $254 - a whopping $46 less than the VTC Program.

  • The VTC Program is an investment, not a "cost" (told you I didn't like that word). There is more to the VTC Program than just a number, we have and will continue to build products and services for our VTCs, but for other organizations, the number (and in some cases, an ID card) is really all they have to offer.

  • The VTC Program is what I like to call "all-inclusive." You don't have to join the VTC Program and then apply for the well-respected and well-known ARC #, it comes with your participation - why make it complicated?

  • The association managing the entity that distributes "booking ID codes" is an association and the VTC Program is not an association.

  • Cheaper isn't always better. Ask me about my debacle that was my home deck contractor last year. Cheap doesn't translate into quality 100% of the time. In the newsletter the association head paints a cheaper picture for a component of a Program, but when was the last time you saw Mercedes state that their GPS system is cheaper than Infiniti's? Get my point?

So let's bring it full-circle...

  • Did you know that you can only book cruises if you're a CLIA member? NOT TRUE.

  • Did you know that IATAN is THE accrediting body for the travel agent? NOT TRUE. They are an accrediting body, but "THE" is a marketing tactic, in my opinion.

  • Did you know that you needed an ID Card in order to take a FAM trip? NOT NECESSARILY TRUE. Read my past post about ID cards.

  • You have no use for ARC because you don't issue airline tickets, right? WRONG.

  • Did you know that cheaper is better? :)

If your agency is a VTC, terrific. I hope our products and services are helping your business - look out for future offerings. If you're not a VTC, I urge you to consider. The Program is not for everyone or may not serve the needs of some. The important thing is to do your homework. Find out what your business objectives are and align them with what a program (or association) is offering. And remember, cheaper isn't always better.

Chris Flores
VTC Program Manager