Notes On A Nutty Year

2004 was a year of peril for the airlines, that’s for sure. Bankruptcies. Liquidations. Kate Spade uniforms on Song. There were fare wars, air rage, security tensions, body-cavity searches (oops, I’m getting a little ahead of myself—that’s 2005), and of course the omnipresent “job actions.”

Now don’t get me wrong, I think everyone is entitled to a fair wage, and that unions have a very prominent, important and useful place in our workforce. But, for those who support these “job actions,” I have one question: Are you nuts?

Should airline workers be concentrating on getting the airlines back in shape and flying? Considering what happened at US Airways last weekend, I think everyone knows the answer.

I realize most unionized employees are long-timers earning a very decent wage along with some pretty decent benefits. No one likes to see something taken away from them. I don’t either, but you don’t see me griping about the 84 percent drop in my travel agency business I saw after 9/11.

In just a few years, most of the legacy carriers have gone from mismanaged but profitable to mismanaged and bankrupt, thanks to a flat economy and competition from low-cost rivals. Tough decisions need to be made by their chiefs.

All the G bosses (and why is it that the bulk of the airline CEOs names’ begin with the letter G?) are trying to salvage a company (and jobs) from a mess left to them by Don, Leo, Steve, and James. Believe me, they do not want to do it. But it needs to be done, and it will hurt.

But let’s look at some facts and some alternatives.

I hate to pick on US Airways, but as we all know it is in its second bankruptcy in as many years and emergence, to some, is unlikely. The airline is walking on a circus high wire and the slightest loss of balance will send it plummeting to the ground.

US Airways flight attendants decide that enough is enough and they’re not going to take any more cuts. They threaten a job action.

Everyone agrees that any job action on US Airways, or United for that matter, will probably push them into liquidation right away. What does liquidation mean? No planes, no meals, no baggage, no tickets, no passengers, and no employees.

But the flight attendants want to make their point and take a stand.

Point taken. So now they need to look to their future unemployment. Yes, unemployment. Striking workers will ultimately be fired and replaced (remember PATCO) or they will be unemployed. Strike Funds are limited and in high demand.

Once depleted, what are the options? Airlines are not hiring. Related industries are not hiring. Career changes are difficult, at best, for older workers. Besides, most employers see a job action as an act of disloyalty and would prefer that the “headache” be someone else’s.

So, after all is said and done, the strike pay and the unemployment payments have been exhausted. Candidates are fighting for every last penny in a highly competitive job market. Former airline employees are simply unemployable.

It is a tough world out there and the flight attendants may just be living in the ivory towers with rose-colored windows alongside their CEOs.

Stupid Travelers

Stupid people are everywhere.

Just look around and you will see that oh, about 90 percent of the population is a solid 30 points below you on the Stanford-Binet. And nowhere is that more true than when you travel.

It never ceases to amaze me how clueless people can be. It seems that each day brings another chuckle to our staff with the silly, insulting, inane and plain old stupid questions.

Last week, for example, in response to my column on why the airlines don't get it, I received the following e-mail.

"Mr. Frenaye, you seem to know a lot about the airlines and you own a travel agency. Do you know the best way to get pot on a plane?"

I have a feeling she wasn't attending a horticulture convention.

In August of 2004, a friend called me in despair because some of the Midshipmen he sponsored from the US Naval Academy in Annapolis were headed to France to backpack for the rest of the summer. Apparently they were never informed that they needed a passport to get there.

And these guys are getting the keys to a nuclear sub when they graduate?

(By they way, we were able to secure the passports in nine hours for the Midshipmen, so they made the flight.)

Here's another one: the frantic call from the frequent flier who booked his own flights into and out of Paris.

"Hey, I know I did not book with you but you guys know Charles de Gaulle airport. I am on Air France Flight 643, can you tell me what my departure gate is?"

No, but here's a clue: You're at the wrong airport.

Tourists are always good for a laugh or two, usually because they don't understand time zones.

"You obviously made a mistake, it says the flight is over an hour long, yet I am only arriving five minutes after I leave," they will sometimes say. After a brief explanation of time zones, we typically tell them that had they booked their trip to Los Angeles, they would have arrived yesterday.

Hawaii is a favorite destination for the feeble-minded. We have all heard about the client wanting to drive to Hawaii, but one of my personal favorites was the woman who insisted that it could not possibly take 8 hours to fly to Hawaii "because it is so close. Just look at my map and you will see that Hawaii is right there. Off the coast of California."

And exactly what does that little box labeled "inset" mean?

Hurricanes not only suck the trees out of the ground and the life out of hotels and resorts; they must also suck the grey matter from peoples' heads.

A client of ours was scheduled to visit St. Maarten in October. She was terrified of the hurricanes and decided that since the Caribbean seemed to be so prone to the hurricanes, she wanted to "go where it is safe from the hurricanes. I want to go to the other side of Florida so the hurricanes cannot get there."

We found a lovely place in Punta Gorda, Fla., for her. Sorry, Charley.

Of course, being a frequent traveler doesn't always make things better. One Thanksgiving, one of our road warriors decided to take his family to Europe and could not understand why we could not find "one stinking hotel" that would serve him the Thanksgiving dinner he wanted.

He made us try six countries before realizing that Thanksgiving was celebrated for the discovery of America, not England, France, Italy, or Spain. I guess his Independence Day party with the Queen might be a problem.

Spring breakers are good for a laugh, too. With Cancun being a huge hotspot, most of today's youth (or so it seems) is unaware that Cancun is in a different country. When we discuss birth certificates and passports, they tend to look at us like we are from Mars. "We don't want to go anywhere foreign; we're just going to Cancun," they say.

Are they still accepting applications at the US Naval Academy?

Here's one that almost knocked me off my chair. After processing courtesy upgrades for a client, I was told, "Please tell your agent to stop getting me upgraded on these flights. I can only see my girlfriend when I travel and her company will not allow her to fly or upgrade. Oh, and if my wife calls…mums the word."

Uh, whatever.

But my favorite line is, "I saw it on the Internet so it has to be cheaper."

An Open Letter To The Airlines

Dear Gerard, Gerald, Glenn, Gordon, Douglas, and Bruce,

As we approach the holiday season, I want to wish you all a wonderful holiday and extend my most sincere wishes for your survival. I realize that the past several years have stressed you out in the ivory towers and I am afraid that you may have lost sight of the big picture.

So as a favor - call this an early Christmas present - I'll help you put the big picture into perspective.

You fly planes.

You are not in the direct to consumer sales business.

You have a ready willing and able sales force to handle your distribution. Remember travel agents? Carlson Wagonlit? American Express? ASTA? Home-based? The thousands upon thousands of independents? Orbitz? Travelocity? Expedia?

Just pay them something for the effort and they will reward you with full flights and, what's more, customer service. America West has done it and the last time I checked, their balance sheet was fairly healthy.

Besides, travel agents have already demonstrated that they are survivors - they're still here despite your best efforts.

You are not in the restaurant business.

Stop trying to convince your passengers that you are. Your catered food, when available, is horrible and the real restaurants have plenty of options in the airports. Save your meals for the really long flights, save some money and offer some prepackaged snacks. Sit down, shut up and eat your peanuts.

You are not the mafia.

Stop acting like it. People are willing to pay you good money to use your planes. Stop trying to extort more money from them with fee upon fee upon fee. You are not charged a penny when you return to a retail store for a price accommodation because your goods were just put on sale. Why do you think it is fair for you to do this to your customers? If you want to operate a cartel, why not just shake everyone down at the gate and collect all their loose change?

But be careful, a horse head in the bed is worse than cabin lights coming on after a red-eye.

You are not in the cruise business or the hotel business.

Stop trying to meddle in that market. If you guys could get your own house in order, I might understand the push. But first things first. It is bad enough that your customers hate to fly on your planes (and travel agents deal with your clients every day and trust me, "hate" is not too harsh). Now they might get a chance to hate a perfectly good cruise line.

You are in the people moving business. You know, as in elevators, escalators, moving walkways, mass transit. You move people from point A to Point B. You employ tens of thousands of bean counters to tell you how much it costs to operate your business.

Price yourself accordingly. Do not play games. They do not work and one would think that after the past four or five years you would have seen that they do not work.

How many harebrained schemes have you devised that have failed?

Douglas, remember the GDS "sharing" - this is not the sharing you learned in kindergarten. What about those "use-it-or-lose-it" tickets that you all, dare I say colluded, on implementing?

Instead of trying to figure out ways to land the golden parachute, concentrate on landing the planes - preferably on time and safely, but if it needs to be late, not that much, and please let your customers know what is going on.

Gerard, there is nothing special in the air. Gerald, we don't love the way you fly. Glenn, your skies are anything but friendly. Gordon, the proud bird with the golden tail is molting. Douglas, some people really know how to fly - unfortunately, it seems their names are Kelleher, Neeleman, Leonard, and Parker. And Bruce, while US Airways may begin with me, you need to remember it may also end with me.

Gentleman, fly your planes, price them fairly, and treat your employees, agents and customers as you would want to be treated yourself.

You do have some outstanding talent out there - look at your pilots, flight attendants, mechanics, gate agents, ground crew, management, travel agents, caterers, cleaners…they want to earn a fair wage and they want to work for you. Treat them and pay them fairly and soon you will reap the rewards.

Happy holidays.

One Fine Mess

Fine print is all around us and the travel industry leads the pack. While the terms and conditions are always available somewhere, they rarely are clear and concise. More often than not, they are so onerous and restrictive that the consumer does not have a fighting chance.

Once again, when it comes to the tiny print (or that terms and conditions button) the best advice seems to be - buyers beware.

Take a recent ad for Northwest Airlines' holiday fares, for example. Lansing to Washington: $59. But the small print tells a different story. All or part of the flight may be operated by Pinnacle Airlines, based on one way travel with a round trip purchase, only on super bargain days--November 21,22,25,26, December 25, and January 5th, does not include the ticketing fee, federal excise tax, passenger facilities charges, or the September 11th security fee.

Whew!

So what does a $50 ticket really cost? $186.40 before you add in the Northwest ticketing fee. By the way, fares will be higher if you elect to fly on days other than those mentioned.

The crime is, that while "disclosed" these fees will not materialize until after you have clicked "buy." When you call a travel agent, the price quoted should be the total price including all taxes and fees - no surprises.

Are you mad yet? Well, it gets worse.

American Airlines last week created and amended its "rollover policy". They called it an amendment, but since no one could confirm its existence, I figure they also created it (a typical airline tactic).

Prior to November 4th, if American lowered the price of a purchased ticket (fare war, pesky Southwest sale, etc.), it would issue a credit for the difference in the form of a voucher. However, you or your travel agent had to catch them in order to get the credit.

Now, they are considering this a "change" and will be charging you $100 to issue the voucher. Thank you Mr. Arpey. But according to American, "This change will allow American to lower its operating costs, while continuing to offer fares competitive with low-cost carriers. Customers still can travel at low fares, and enjoy the benefits of American's extensive…"

While the airlines seem to hold a monopoly in the skies, they do not when it comes to the fine print. Next time you take a cruise, check out their fine print.

Pregnant? Better check. Thinking of canceling six months in advance? Better check. Always dreamed of seeing Barcelona by sea? Better check. Cruise lines are not obligated to transport pregnant women, refund your money within certain time frames, nor are they obligated to visit the ports of call that they advertise.

And don't think that hotels and packaged tours are exempt. You can be walked from one property to another if the property is sold out. Car rentals? When was the last time you rented a car for $49 a day and were not saddled with fee upon fee upon fee? All clearly detailed in the fine print.

Web booking has its own perils. Most of the sites give information "as-is" which leave you with no recourse if it is incorrect, old, or never transmitted to complete your transaction. Additionally, most sites claim (in legalese) that they "are not suitable for any particular purpose" - muddle that one for a bit.

When you accept their terms and agreements by using the site, you usually waive any right for a monetary claim. Dig a little deeper and you will see that by use of these sites, you agree to sue and be sued in particular jurisdictions convenient to - you guessed it, the airline, car agency, cruise line, or hotel.

Most traditional travel agencies do not have such requirements.

Considering the number of people traveling at any given time, the industry actually does pretty well in avoiding litigation. Most consumers are lucky and never have to exercise their rights, but occasionally, someone will get the short end of the stick.

Hopefully it will not be you, but if it is, you had better be familiar with that fine print.

Don't Get Screwed

Your travel agent just bolted with your money. Your cruise line sold your cabin to someone else. Your tour operator went belly up, and there's no chance for a refund.

Over the past six months there have been dozens of news stories highlighting the "shady" travel industry.

No one can dispute the fact that some travel agents did abscond with some money, Carnival did oversell several sailings, and several tour operators simply ceased operations with little more than a padlocked front door.

But how can you protect yourself?

To steal a concept from Terry Riley, no one is going to protect you - you need to do it yourself. But you can hedge the odds in your favor.

Today's consumers are becoming more and more gullible and taking less and less responsibility for their actions.

People actually wire money to the idiots that run the Nigerian e-mail scam. People actually buy stocks from the knucklehead that calls the office with a hot tip.

Hello. Why would anyone give access to their life saving to their travel agent? Why would someone give cash to a travel agent to give to a tour operator?

AA has its 12-step plan to sobriety; here is my 7-step plan to making a sound decision for travel purchases:

1. Deal with an established company. Online or off, it should have a track record of selling travel. Check the business out with the Better Business Bureau, the local Chamber of Commerce, ASTA, ARTA, CLIA, OSSN, or an existing client. While not a guarantee, this shows that it is interested in being in business and not just scamming you.

2. Never pay in cash. When you pay by credit card, it is usually processed by the travel supplier and you will have some protection if it fails to deliver. This also assures that your deposit was applied to your booking. Alternately, pay by check - and always get a receipt.

3. Guard your personal information. Your travel agent has a need (not a right) to know certain personal things about you - family members, passport numbers, credit card numbers, personal preferences. There is never a need to provide a social security number or an authorization for a direct draft from your bank account. If you feel uncomfortable, go with your gut and go elsewhere.

4. Deal with someone with experience. While not usually possible on the Web, you should deal with someone who has been there and done that. The Web will not let you know about the horrible drive from Montego Bay to Ocho Rios, Jamaica. A true professional will. Seek out those who have obtained their cruise certifications from CLIA, or their CTA or CTC designations from the Travel Institute (formerly ICTA) or destination specialists with credentials.

5. Use the Web to investigate and corroborate - with caution. This column is my opinion. We all have opinions and opinions are like … well anyhow, we all know about opinions. Tripadvisor.com has a wealth of information - but beware, there is nothing to stop a hotel from loading the site with favorable reviews, or a dissatisfied guest from trashing a property gratuitously. Read three pages of reviews to get a better insight.

6. Be sure that the travel provider is solvent or protected. Are they a member of the USTOA (they need to post a bond to carry the designation)? Alternately, does an escrow company manage their receipts? Do they have a history? These are questions you need to ask before handing over the credit card. You should know who is ultimately providing the service because travel agents and Web sites are simply intermediaries. Is the travel supplier well-known?

7. Trust your instincts. As my father always told me, "If it seems too good to be true, it probably is." But please don't let him know that I am listening to his advice after all these years. The best tip I can give is to go with your gut.

Use your head and don't be led blindly off the cliff like a lemming. You are ultimately responsible for your decisions and when you are shelling out some big bucks for travel - vacation or business - you want to be sure the investment is as safe as it can be.

The Travel Agent From Hell

You’re stuck in Orlando as yet another hurricane takes aim at Florida. The airport is closed and the best advice you can get is to sit tight and hang with the locals because you can’t extend your hotel reservation.

Not that it matters. Your “garden view” room actually looks out on a concrete pad that holds the dumpsters.

Congratulations. You may have the travel agent from hell.

Let me be perfectly clear about this: If you handle your own travel arrangements then you have only yourself to blame when something goes wrong. But if you put your itinerary in the hands of a professional, there’s no excuse.

I wrote about the client from a hell a few weeks ago, and I got plenty of “attaboys” from my agency colleagues. But the pendulum swings both ways, my friends.

If you are using a professional, you are paying for, well, professionalism. And the $25, $30, $40, $50, or $100 or more you do pay should be worth it. If it is not, you need to reevaluate the relationship you have with your agent.

How do you know if you’ve got an incompetent agent?

They leave you to fend for yourself. That’s what happened in Central Florida recently, when a series of hurricanes bore down on the region. One client I knew of was left in the lurch - no hotel room, no flight out - by an agent. Sure, it would have taken a little extra work to get the traveler into a hotel and rebooked on a flight. Instead, the agent pocketed the commission or fee and moved on to the next sale.

They don’t act as your advocate. When one cruise passenger inadvertently got stuck with extra luggage after a vacation - and was accused of theft - one travel agent I know let the client work it out alone. Worse, the agent called the cruise line and they said that he might be an accessory to theft. The traveler had to drive three hours to return the luggage. Thanks for nothing.

They don’t pay attention to the details. True story: One traveler I know of saved up for a once-in-a-lifetime trip to Jamaica and even splurged on the upgraded room with a fantastic view. But the hotel was oversold and when the agent found out, he did nothing - leaving the hotel guest with substandard accommodations with a stunning view of … a dumpster. Some special vacation that turned out to be.

In this day of book-it-yourself Web sites, travel agents have to set themselves apart from the competition with their service.

There are years of contacts and connections at an agent’s disposal. Even the greenest agent has colleagues; and from my experience, most agents are willing to share their connections for the mutual benefit of the client. I can’t fathom that some still believe they will survive simply because they’re already here.

A travel agent’s fee or commission is worth every penny - provided he or she is working for you. If not, then it’s time to look for someone who will.

Who's Next? A Chapter 7 Oddsmaker

Which airline is going out of business first?

No network carrier is immune to a bankruptcy filing - or a liquidation - but some are less immune than others. (And if they don’t go out of business, then they’ll at least get an extreme makeover.)

Conventional wisdom says US Airways will be toast soon. Some of the travel trade bulletin boards look like Vegas odds sheets predicting the day it stops flying. But I don’t think that calendar is in print yet.

US Airways is in a really bad situation which was brought on by a set of rose-colored glasses during their first emergence from bankruptcy. A lot has changed and I think that US Airways is not only on the right track, but it is on a strong track for survival. But the US Airways you know today will probably not exist in the post emergence world.

I see the airline emerging from bankruptcy as a solvent carrier with a low-cost model operating on the east coast and the Caribbean. It may even have a low cost - or full-service - transatlantic presence.

How many markets have their new GO Fares? More are being added almost daily. US Airways is boosting its presence in Fort Lauderdale and scaling back its Pittsburgh operations. The federal government has almost a billion of our dollars on the line and this administration does not want to shoulder that burden.

I imagine that US Airways will get a lot of help from the bankruptcy courts this time around in renegotiating its contracts. Perhaps even more encouraging is that the unions representing the various sectors finally realize that this situation is dire. For the most part, they are willing to honorably negotiate in order to save the ailing carrier.

And from personal experience, the morale of their employees is remarkably high given the situation.

So, no, I don’t think US Airways is about to fold. Who will it be?

American is a diversified monster and it still holds very profitable routes in the Caribbean and South America. United is making headway in their reorganization, but there are still some hurdles to clear. The unions do not believe in management and I believe you will see a regime change before they emerge from bankruptcy protection.

Continental and Northwest are so tight and seem fairly stable. Northwest has considerable real estate holdings in Japan. These two, considering their closeness, are also likely partners for a merger and I believe they will lead the charge to find new and unique revenue streams similar to the recent fee for phone bookings.

Could it be -- Delta?

Why yes, it could. While Delta is a relative newcomer in the “Hey-I-want-to-file-for-bankruptcy-too” club, I feel that it is in a lot worse shape than they let on. If you look at some recent Delta events, you will probably reach the same conclusion:

Its CEO abruptly resigns and parachutes into semi-retirement.

Its COO abruptly resigns to head Virgin’s effort to launch a low-cost carrier in the US.

Its CFO bailed to work outside the industry.

Its chief of customer service just bailed out for “personal” reasons.

It has lost more than $5.6 Billion since 2001.

Its low-fare spinoff, Song is not singing. Its CEO “retired” just last week.

American is also singing in Dallas, now that Delta has reduced their flights from more than 250 to less than 25 per day.

Management is betting that in one year 50 percent of its booking will come from its Web site - currently it is less than 20 percent. No odds sheets on that just yet.

Gate Gourmet abruptly stopped providing food to Delta last week but was court ordered to resume service.

Its Unions are still trying to strong-arm management and are not aware of the dire situation.

Delta, US Airways and Continental are not “known” for anything other than being domestic carriers. United has a solid transatlantic market, Northwest has a solid transpacific market, American has a solid Caribbean and South American market.

The domestic carriers are now Air Tran, Jet Blue, and Southwest - and the big boys need to realize this.

What does the future hold? I think the domestic landscape will be controlled by the low-cost carriers and the current legacy carriers will hold only a small portion of that market to support their profitable international markets. Five years from now, along with the low-cost carriers who make it (and I think some of them may fail as well) we will have United (having merged with a surviving US Airways), Continental (having merged with Northwest), and American - each with their own niche, operating their own profitable routes.

Of course, that’s just my opinion.

What If My Airline Folds?

These aren’t the best of times to be an air traveler.

US Airways’ chairman has said that in the event of a second bankruptcy filing there’s only a one to two percent chance the airline would survive. And his airline just filed for Chapter 11 protection.

Delta is grasping at straws to stay afloat. United is still mired in bankruptcy with emergence nowhere in sight. American has been disturbingly quiet. ATA is looking to default on a government loan. Northwest is busy making - and then unmaking - ludicrous pricing decisions.

The last airline to go belly-up was TWA, which was absorbed into American. I’m not sure that most of today’s travelers remember when Eastern or Pan Am ceased operations.

It’s anyone’s guess who will be first to liquidate (and yes, I believe there’ll be more than one).

But the real question is: What do I do?

Protect your investment. Buy on credit. You may be offered some protection from your credit-card company if your airline fails to deliver the product it promised. Insure your trip with travel insurance. As long as your carrier is not on the “Do Not Insure” list, your investment (less the premium) is protected. This is reasonable for the leisure traveler, but probably cost prohibitive for the road warrior. Check with your travel professional to see who made the list and who did not.

Protect your itinerary. When your plane is grounded, most legacy carriers will protect you on their planes. I imagine that protection will run you $100 in the form of a fee charged by the carrier. But don’t expect to be on time to your destination. You will need to modify or cancel your down line reservations. Be particularly careful in markets which are served by only a few carriers-if US Airways stops flying, American will take up what slack it can in the Caribbean, but rest assured that there is more slack than American can handle. Expect to be delayed at least a full day if not more.

Look out for code shares. Code shares are our worst fear. This “scheme” (to coin a British term) was to benefit the passenger, allowing greater reach by sharing equipment. In the beginning, no one ever imagined a partner to stop flying. When they do, chaos will reign. Lufthansa’s people on US Airways’ planes, Emirates’ people on Delta’s planes, Singapore’s people on United’s planes, Continental’s people on Delta’s planes. The list is long and frightening, but in this world of code shares, when one airline stops flying, it will probably affect the operations of ten to twenty other carriers. Remember, the code share partner entered into the agreement because they did not have the equipment to do it on their own in the first place.

What can you do? Step away from the Web.

Go back in time to the days when you always dealt with a human. Imagine the volume that online agencies (including the airlines own sites) automatically handle on a typical day? Now imagine the day when an airline stops flying. The online sites do not have a mechanism to handle the magnitude of this situation. The carriers’ own reservation lines average a 20 minute hold on a good day.

Can you imagine the lines at the ticket counters? One call to your agent will be able to tell you exactly what is available and when. But more importantly, your agent can re-ticket you immediately. (Please don’t ask us to “fix” an Orbitz record or one that was done elsewhere-we have no access to that information for your protection and security.)

So, listen up - do not book online, do not book too far in advance, use your credit card, purchase insurance if it is feasible, prepare for the worst, and be sure to keep your travel professional’s business card handy. You may want to look into redeeming some of those miles as well.

I think everyone is safe for the rest of the year. The lucrative holiday period is approaching. But no matter who and when, it will be a mess and the impact will be felt worldwide.

While it may very well be the end of an airline, it is not the end of the world. It will take some time to sort it all out, but with a dose of patience, a pinch of manners-no make that a heap of manners-and a clear head, we will get through this mess.

Who will be the first? Who knows?

Smoothe Move Northwest!

Last time you walked into a bank to deposit your paycheck, were you charged extra because you dealt with a person instead of an ATM?

When you bought a magazine at the bookstore, were you slapped with a “service fee” because you purchased from an employee instead of its Web site?

No, of course not.

But that’s not true if you’re booking a ticket on Northwest Airlines.

Starting next month, it’s going to cost you an extra $5 if you call Northwest. If you book through an agency, you’ll pay a $7.50 surcharge, and if you go to the airport, the markup will be $10.

The absurdity of this move is both frightening and at the same time, funny.

It’s frightening because there are millions of people out there without Internet access or credit cards. These folks are now going to be penalized for doing business with Northwest since they will be forced to deal with a travel agency or a Northwest employee face-to-face.

It’s also frightening because air travelers are now faced with a sneaky fare increase and a possible reduction of choices.

No agency will ticket Northwest at a loss - remember, an agency is making no money from selling you the ticket now. There’s no way they’ll absorb this fee as a cost of doing business, so it won’t offer Northwest as a flight option.

Can’t your agent just use Northwest’s Web site?

Not really. If I book a ticket on Northwest’s site as your travel agent, I also lose all control of your record. And you lose the ability to interface with my agencies’ 24-hour services, management reports or back-office accounting programs. If I book on Northwest’s site, I also have to “dual-entry” every ticket, reducing productivity and increasing the possibility of agent errors.

I’ll probably have to raise my fees as a result.

Northwest’s decision is funny, too. Funny, because it’s so ridiculous. First, Northwest caps its commissions, then it eliminates them. And - let me get this straight - now it wants me to pay it to sell its tickets?

I can’t think of any other business that forces its distributors to pay for the privilege of selling its product. Not one.

I’m surprised that Northwest’s unions are not up in arms. This is a clear indication that the airline is trying to eliminate jobs by shifting its bookings to the Web. Indeed, if the masses flock online to Northwest, there is no longer a need to staff the call centers and ticket desks at the airports.

And what if Northwest’s Web site can’t handle the spike in traffic that this action is bound to stimulate? The airline hasn’t addressed that question yet.

Needless to say, this is a huge mistake for Northwest and it very well may put them on the heels of the other bankrupt carriers. Sabre (one of the major Global Distribution Systems for ticketing) has renounced its efforts and considers the airline in breach of contract. As a result, Sabre will no longer share some information with them - and information is critical when you’re selling airline tickets.

These are uncertain times, with carriers on the verge of bankruptcy or liquidation. The balance is easily upset. I’m afraid Northwest has tilted its distribution system against itself.

I hope that the others don’t follow, because it will set a bad precedent for every other business model that trades both online and in the real world.

Online sales were designed to be a cost savings over traditional models, not a replacement. Certainly, no one should be punished because of a desire to transact with someone who is professional, knowledgeable, fluent in English, friendly, and able to provide customer service.

So when the fax from Northwest Airlines arrived in our “in” box a few mornings ago with its unfortunate announcement, we did what we had to do.

We stopped selling Northwest Airlines tickets.

Newton's Law of Travel

During the past few weeks I’ve read many articles with the tips and tricks on how to get the best deal on airfare, hotel rooms, car rentals, and leisure vacation packages. But be careful what you ask for - and who you ask.

As a travel agent, I can’t help but think of Newton’s Third law of Motion: “For every action, there is an equal and opposite reaction.” While Newton was right on, he was not in the travel industry and those opposite reactions (mostly unseen by the consumer) can wreak havoc on your agent.

For example:

Airlines. There are dozens of ways to save a buck or a thousand with the airlines. The problem is that they tend to be “illegal” in terms of their contract of carriage. Our own Supreme Court Justice Antonin Scalia skirted one rule while duck hunting with our Vice President. He purchased a round trip ticket because it was less expensive than the one-way ticket he needed, since he was returning on Air Force 2.

Hidden Cities are another workaround. Let’s say that there is a seat sale between West Palm Beach and Baltimore, but you want to travel to Philadelphia and there is no seat sale that is as low as the one to Baltimore. If you booked the ticket from West Palm Beach to Baltimore with a connection in Philadelphia, and got off in Philly, you would be using the hidden cities trick.

Back to back ticketing is another scheme where two low fare tickets are purchased and only one way of each set is used to skirt the higher price. Rarely is the client punished for these crimes, but Newton’s reactions will be felt full force by your travel advisor. Your agency will probably be charged the full walk-up fare for the discounted route and there is little it can do to defend itself. If not paid, the airlines will prevent them from ticketing - essentially putting them out of business for that particular airline.

Please do not put your agent in an awkward position by asking for a favor “just this once” because once is all it may take!

Car rentals. You walk up to the counter and the new employee offers you an upgrade at a minimal cost. Sounds like a great deal. Chances are that they have already screwed up your reservation and probably don’t have your requested vehicle. While it may sound good on the surface, Newton’s Law will probably be prevailing.

Once again, Newton’s Third Law swings into effect. This “moneysaving swap” will negate your agent’s booking which will eliminate any commission he or she might have received, but if there is an issue with the rental, your agent is now effectively out of the loop, leaving you to fend for yourself directly with the rental company.

Hotels. A well-respected daily publication (when their reporters are not plagiarizing) recently mentioned a “tip” to look for large companies in the area of your destination and to call local hotels looking for their special “corporate rate.” This is fraud, pure and simple. This rips off the hotels from needed revenue. This will rip off your travel agent because these negotiated rates are never commissionable. And Newton proves himself once again because the properties must recover these costs in some way - resort fee, exorbitant telephone fees, increasing rates, parking fees, etc. - to you.

Workarounds and loopholes are best left to Enron and the IRS. In travel, let’s keep Sir Isaac at bay and work towards a win-win relationship for everyone. We are all entitled to be compensated for our work, product or service. Let’s not shortchange the effort.

Besides, do you really want to rip off a company that will be transporting you at 30,000 feet above the planet?

Travel Agent? Or Double Agent?

A travel agent used to cost nothing to use. Not anymore.

When airlines eliminated commissions paid to travel counselors, agents began charging service fees. And by and large, customers went along with it, in part because the fees implied that the agents were now working for them. Exclusively.

But that’s not true. Service fees never really replaced the revenue from the airlines. They just supplemented it.

The question is - and it’s a question most agents may not want you to ask - does this create a conflict of interest?

Maybe. Maybe not.

My mother always told me that “it never hurts to ask” and I think it’s always worth following the money. I mean, the agent is probably asking some probing questions of you as well, and any good relationship is based on trust.

Today’s travel agency is a far cry from the bored housewife who used to run the local agency simply for the free travel and a generous second income - both of which are virtually non-existent today.

Today’s agency is probably a part of a consortium or cooperative in order to maximize its buying and earning power. Today’s agency will also charge you a fee for the added value it brings to the transaction.

Today’s agency may earn an override - that’s trade-talk for a bonus payment - based on sales of a particular supplier. Today’s agent also adds to the basic product from the supplier - personal recommendations, insight, destination guides, after-hours service, problem resolution in a timely manner, and, of course, a true appreciation for your business.

Most importantly, today’s agency probably operates on less than a 9 percent margin.

Today’s agency wants your repeat business and should be prepared to discuss how they are compensated. As with most business entities, total revenue is made up of several income streams. Your agency needs to keep people employed, pay the bills, and hopefully make a profit. There is nothing wrong with achieving these goals from two sources as long as the interest of the principle (the client) is served.

Other suppliers have found secondary income streams, too. Airlines are charging for food and changes to reservations. Cruise lines are charging to eat in specialty restaurants and for ice cream. Hotels charge resort fees and exorbitant telephone rates. Car rental agencies are charging for … well, whatever they can. And our agency even created a cartoon character and produced a poster in 2002 which supplemented our income stream.

In our travel agency, we have a “soft dollar” agreement with a major carrier where we can earn free travel. Their service overlaps with other carriers, and we have no problem directionally selling to them as long as the clients’ needs are met.

With our free travel, we sponsor local charities, attend industry education seminars, offer tickets to clients for holiday parties, and even use them to remedy our rare screw-ups. Because of this relationship, our airline account manager is able to work “miracles” - wait lists get cleared, upgrades mystically appear, emergency rows and bulkheads become available, and any issues are resolved in short order.

Who wins here? We both do.

We typically receive a commission from other travel suppliers ranging from 5 percent to 12 percent and we also charge a fee on top of that. Our selection of vendors is made with the best interests of our clients and our agency. We will never sell a product that is not right for the client - and we know our clients.

If your agent sells you something you do not feel is right, call him on it and ask him why. We are not afraid to answer or to turn away business if it is not good for our agency or the client. The business that we write must be a good match to insure satisfaction. If a client is referred to another source, at least they will know why, and that we were honest. More likely than not, he or she will return.

Happens all the time.

I regard accepting payment from two parties as one way of keeping the costs to the consumer down. However, there will be a day in the not-too-distant future where there will be no commissions or awards to agencies and they will be operating off of a net basis, eliminating any perceived conflict.

The product will be available to the agency to mark up as the market will bear (traditional retail model); or it will be sold to the consumer at cost plus the agency hourly consulting fee (consulting model).

Personally, I can’t wait.

Are You The Client From Hell?

Has your travel agent seemed a little on edge with you lately? Have you noticed a change in tone when he talks to you? Are you becoming more and more intimate with his voicemail? Quite possibly you could be turning into the client from hell.

Relax. There is still time to reclaim your status as a nice person. Read on.

Be conscientious of my time. I am a professional and my time is every bit as important as your time. Please be aware of this when you call to ask for help. While I will go out of my way to help you, you must also remember that I have other clients as well-some of whom may have (sorry to say) a greater priority. I need to prioritize my work so I can deliver the knockout service to each client of mine. We are no different than any other professional-you would not do that to your doctor, would you?

Be honest with me. If you have already booked that vacation or trip and are just trying to keep your agent (or your own surfing skills) honest, please let me know. I am not saying that I won’t help you, but I would rather know up front that I don’t have a chance at the sale-but given my knowledge, I might have a shot at the next one. And, when I do help you, please remember my first point.

Refresh those kindergarten math skills. Apples belong with apples and oranges belong with oranges. There is nothing more frustrating that being asked to investigate one option only to be told that you found it cheaper elsewhere only to find out that it is not comparable. When you say you want to leave from Baltimore to Ft. Lauderdale, I will research Baltimore, Washington and Dulles Airports for you as well as Palm Beach and Miami. Boston is not an option in my book, nor is Tampa. Yes, you may find the fare to be less expensive for the Boston to Tampa route, but that is not what you asked. So, please be sure that you clearly define yourself.

Have an idea about what you want. It is very difficult to help someone when they cannot even decide what they want. Please do not be the ice cream-lover who must sample all 31 flavors. If you come to me looking for pricing on a family vacation to Alaska, the Caribbean, Europe, or the Pocono Mountains, chances are that I am not going to take your request too seriously. Now, if you are trying to decide between Alaska and the Caribbean in the summer, we can talk.

Be realistic. Inevitably, the question is going to come up, “What is your budget?” Believe it or not, I am not looking to empty your wallet. This is a critical question that needs an honest answer to design your trip. I need to set some expectations for you and you need to have an idea as to what to expect for your hard earned dollars. I am not able to find a week in Disneyworld for a family of four in the Grand Floridian (concierge level) including air, character breakfasts, park hopper passes, and a personal meeting with Walt himself for $1,999. But, I might be able to get you into an off-resort property-but still no Walt. I am not being nosey, and you always have the final say.

Do you see yourself? Be honest…most travel agents are genuinely nice people, who have specialized in this ever changing complex field. Your travel agent will work with you to the Nth degree but if you wind up morphing in to the client from hell, be prepared. You just might be the one getting a pink slip.

Don't Leave Home Without One!

In previous columns, I’ve told you when you don’t need a travel agent. I’ve also told you when you can’t trust a travel agent. But when do you absolutely have to call a professional?

Well, here are two scenarios when you must - repeat, must - call an agent.

1. The honeymoon. You bought the ring, mustered up the nerve to actually ask someone and now you might be shelling out upwards of $30,000 for the whole shebang. Please remember that somewhere in the ceremony the words “till death do you part” will probably be uttered. Please remember that if you screw this up, death will come sooner than expected.

If there ever was a vacation that must go off without a hitch, this is it. This is the Big Kahuna.

A trusted travel agent will know what needs to be done to make this go off without a hitch. If you are happy now, you are going to come back again and again - that anniversary trip, the family vacation to Disney, the renewal of vows cruise, and that retirement trip.

Good agents build relationships, and a honeymoon is a great start. Your agency should match the destination to your interests. But it should also have personal contacts with the resorts and destinations.

A good agent will be sure that everywhere you go you are treated like a VIP - with upgrades, gifts, and special amenities. For this vacation, you are the king and queen of the world and should be treated as such. And remember, the resorts want your agent to send more people so they have a vested interest as well.

Don’t leave this one to chance. A couple I know booked their honeymoon online with a one hour connection in Chicago for their December destination wedding in St. Lucia. The bride and groom were late to the wedding and the bridal gown spent the honeymoon in St.Thomas.

2. The business trip. Any medium or large corporation that spends a great deal of money on travel needs an agent. Travel and entertainment - T&E in business-travel speak - is the second largest and most manageable budget item for most corporations. While small companies can probably manage their own travel, it makes sense to centralize your purchasing and utilize an agency if you are a medium to large company with multiple travelers.

A good corporate agency can identify trends in your travel in order to save you money. It can negotiate hotel, car, and airline contracts for you. It’s there to plead your case for the elusive waiver and favor. Many good agents can also negotiate to have your frequent flier status upgraded.

You may pay your agent a management fee, or a transaction fee but this is money well spent. Your agent knows the ins and outs of corporate travel - for example, to never issue a ticket until the last minute. Your agent will have access to the same Web fares that you can find - just remember you must compare apples to apples. Your agent will have a 24 hour service to handle your trip when your plans change. And most importantly, your agent will have the knowledge, intuition, and experience that most consumers and all Web sites lack.

A self-booked client made his connection in Paris with two hours between flights. We received a call because he couldn’t find his gate. (Hint: there are two airports in Paris). And to quote those wonderful MasterCard commercials - cab fare to the right airport: 60 euros…unexpected hotel stay in an airport hotel: 210 Euros…airline change fee: $100…your missed business meeting: priceless.

By the way, these aren’t the only two reasons to use a travel professional. I’ll have more in a future column.

Questioning Your Agent's Loyalties

Whose side is your travel agency on?

Is it on your team, ready to help you if something happens on your trip? Or is it busy cashing that commission check from your last reservation?

You deserve an agent who works for you. But how do you determine if your travel counselor cares?

Here are a few questions that will help you weed out a bad agent:

Were you properly interrogated? If you are asked a lot of questions when you book a trip, you’re probably working with a competent agent. A good travel agent or agency Web site will ask questions to be sure your trip runs smoothly. Do you need a car? A meeting room at your hotel? Tickets for an evening show? If you don’t get the questions, move on.

Did you get the itinerary you wanted? You wanted to fly on “Myway Airlines,” right? Do the new routing, carrier and cost all make sense with your plans? Or do they make more sense for your agent? Fact is, all airlines are still cutting deals with agencies - online and offline - and your agent should disclose these relationships. After all, a lot of these deals result in better perks for the agency’s clients as well as the agency itself. If your agent steers you to another airline because it’s only in his best interests, then run, don’t walk.

Do you have someone to call if things go wrong? This is especially important for a business traveler, but can also become a factor for a leisure traveler who has been looking forward to a hard-earned vacation. Is there someone to contact when things go awry (they do). If your agent doesn’t offer access to 24/7 personal assistance, forget it.

And what if something goes wrong? Before you book, find out what your agency will do for you if the trip goes south (figuratively speaking). Remember, you are paying them. Your agency should be a member of a major industry associations such as ASTA, CLIA, ARTA. Your agency should also have an errors and omissions insurance policy. They should hold some industry recognized certifications. In short, your agency should be a professional and when things go wrong, it should immediately step in and help to make things right. If your agency is not interested in you after the sale, fire it.

Remember, it’s your trip. You need an agent - a real agent - who is on your side. Not someone who looks at you and sees nothing but a fee or a commission.

Fire Your Travel Agent!

You don’t need me.

I may be the only travel agent to admit it, but it’s true. Under some circumstances you’re better off booking a trip without my help.

Think about it. Do you need an accountant to make a deposit at the bank? Do you need to see a doctor to treat a headache, or an attorney to pay for a parking ticket?

Nope.

So here are some situations where using an agency might not make sense:

When it’s a simple itinerary. If you’re talking about a point-to-point ticket on one carrier with no more than one stop, an agent is overkill. But with each change of planes, change of crew, change of scenery, your risk of a problem escalates proportionately. Otherwise, go online or call the airline directly.

If you’re a sole proprietor. If you run a small business with one or two employees, you probably do not need the travel management capabilities of a good travel consultant.

If you’re ‘Net-savvy. If you are computer literate with a high-speed connection, you may be able to find some last-minute fares that are not available elsewhere. However, make sure you read the terms and conditions before you click.

When you’re always on the road. If you are a frequent traveler and are familiar with the myriad of rules and regulations of the various airlines, booking online might work for you.

If you’re a night owl. Of course your travel consultant needs some sleep too. If you like to pull all-nighters and just can’t wait for business hours to make a booking, then hit the Web. Most airlines and Web sites make their revisions in the wee hours of the morning and you might just get the first shot at a terrific fare.

If any of these descriptions apply to you, then what do you need me for? On the other hand, there are many times when not using a professional travel consultant is simply just not an option. You’d be surprised at the pitfalls that lurk for the not-so-careful clicker.

I’ll get to those next time.