Those who have been in the industry for a few decades will appreciate a recent New York Times headline: “Delta to Adjust SkyMiles Program After Customer Outcry.” In 1995, Delta was the first airline to cap commissions to travel agents, cutting off a major source of income for the industry. The move, followed by other airlines, essentially forced the travel agent community to reinvent itself as it raced to find new sources of revenue.
The more recent move by Delta happened in mid-September when the airline announced it was adjusting its SkyMiles frequent flier program. It was no longer going to be about how many miles customers fly, but rather how much they spend to fly and how much they spend with Delta’s corporate sponsors.
That didn’t sit too well with the airline’s top clients—not too well at all—and on September 28, Delta’s CEO, Ed Bastian, said the airline would make “modifications” to the new program based on the negative feedback it had gotten from its most loyal fliers.
The modifications remain to be seen but consider how different this scenario is from that of 28 years ago when commission caps temporarily spurred the travel agency community into a downward spiral.
It made me realize how much value luxury travel advisors have to suppliers. Advisors represent some of the most affluent travelers in the world; booking premium air, private jets, the top hotels suites, etc., and in many cases, money is no object. These travelers are incredibly influential and powerful and so, in turn, are their advisors.
What’s the main point of all of this? If you have something to say about what’s happening to your clients’ travel experiences—be it good or bad—make your voices heard. Be ready to quantify how much business you, your agency and your network bring to that travel company.
A supplier asked me this morning to describe who the audience of Luxury Travel Advisor is. I told them that our advisor audience is “your high-net worth clients.” If a supplier is going to look at the 80/20 rule, i.e., the 20 percent of customers who bring in most of their business, the luxury travel advisor arena is definitely in that 20 percent.
And, so, luxury travel advisors, take the time to review your client list, look at their spend. How often do they travel? Where are they sitting on the plane, where are they sleeping in the hotel and how many people are they bringing along with them? Assessing their worth to you will help you demonstrate your value to luxury travel suppliers. I suggest you develop an elevator pitch that describes your client roster when you introduce yourself to a supplier who hasn’t met you yet. Tell them in two to three sentences who you and your clients are and how much sway they have when it comes to spending, and how much influence you have on that spending.
Nearly three decades after airlines capped commissions, travel agents, now advisors, represent a new industry that’s incredibly more influential and powerful than it ever was. Let’s reflect on that and reframe exactly what a luxury travel advisor means to the rest of the travel stratosphere.
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