Become a Home Based Travel Agent

 An Interview with ARC's Christopher A. Flores
Product Manager - IP & S
By Joanie Ogg CTC, MCC

So Chris, it has been a year since you met with us to explain the Verified Travel Consultant (VTC) Program.  What has happened over the past 12 months?

First and foremost, Joanie, thanks for giving me the opportunity to share developments.  This past year was very exciting for the VTC Program.  We exceeded growth expectations in 2009 – we have now welcomed over 1,000 travel agency entities into the Program.  We have created a very good looking “VTC Profile”.  The VTC Advisory Board was established and the Board had their first meeting prior to THETRADESHOW last September.  VTCs are doing very well with our products and services; the service fee program, Agent’s Choice, saw growth year-over-year, and ARC MarketPlace, too, has seen an increase in traffic and business from VTCs.  And the Program now has a nice working relationship with Marriott International.

All-in-all, we are very pleased with these and many other successes in 2009.

What do you attribute the success over the past year to?

I don’t think you can pinpoint one “thing”, but a collection of “things” that are all interrelated.  First, my marketing team did a really good job branding the VTC Program in 2009.  The foundation was set in late 2008 and they did an excellent job increasing our impressions in the marketplace… in the trades, at trade shows, a little in social media, and through your normal email marketing.

Second, the market responded to these impressions.  Now I keep the total number of VTCs in perspective – there are thousands of prospective VTC participants out there today and the Program includes a small percentage.  But, it was evident that travel professionals were taking notice.  I had several VTCs tell me that they “heard” about the Program in 2008, but “saw’ us in 2009.  That’s neat feedback.

Third, and in relation to the first, trade shows.  I can say we were more active in the trade show arena in 2009, meeting and talking with agents and agencies.  Word-of-mouth marketing for the Program is best at these events.

And fourth, the continuing change in the travel agent channel; models continue to change.  Some agencies who issued tickets as an appointed ARC agency gave-up their “plates” for the VTC Program to sustain their ARC Number and to continue to utilize our products and services.

You mentioned a “VTC Profile.”  What is that exactly?

Good question.  With the growth of any program it’s always good to get a good understanding of the demographic of the group’s make-up.  We surveyed our VTCs twice over the year, asking them for information relating to sales, growth, product usage, supplier preference, among other things.  The response rate was great and the end result is a pretty nice picture – a VTC Profile.  A profile which I share with current and prospective VTCs, as well as with industry suppliers, to help them understand the strength of the VTC Program.

What are some of the items that standout in the VTC Profile?

Annual sales (average) for a VTC is $407,000+.

Nearly 70% of VTCs are home based.

Over 50% of VTCs have been in business for 11+ years.

Nearly 70% of VTCs collect service fees.

VTCs are projecting (on average) 9% growth in 2010.

Which one of these speaks volumes to you?

Personally, I think it’s the service fees. 

Why?

I think it’s an essential part of an agency’s business.  It’s bottom line oriented and seeing this percentage makes me very happy.  Commission percentages are holding firm, but pricing is not.  Agencies have to find a way to sustain their revenue and protect their bottom line and service fees is clearly the method to do that.

You mentioned a relationship with Marriott earlier.  Can you explain how this relationship came to be?

Very late last year, Marriott International agreed to recognize VTCs and their respective ARC Number.  This is clearly good news for those VTCs who had been asking us to help them gain access to Marriott.  After reviewing a number of agency channel partners, Marriott concluded that the VTC Program was one of the strongest in the industry.  VTCs are now a part of a select group of valued travel agency partners for Marriott.  VTCs can now book Marriott directly and receive commissions and take advantage of Marriott’s Hotel Excellence Program through Marriott’s travel agent portal. 

It’s a great opportunity for our VTCs and I look forward to our VTCs responding to this.

I asked you about your competition last time we met.  Any wind on what they’re saying about the VTC Program?

I hear things.  That’s the nature of the business, but I don’t focus on that.  As I said in my previous interview, we have many indirect competitors, but no true direct competitor, because of our products and services. 

We all offer something different.  And as I stated in a recent post on HBTACommunity.com, perform your due diligence.  Don’t base your affiliation decision on just one thing.  Evaluate your options based on several factors.  Be sure to measure your return on investment from that program, and not just your investment(s) into the program.  If you can’t say to yourself “Hollistically, I think this program offers the best value for me, and more importantly my business,” then perhaps you need to keep looking.  I’m biased but I believe our VTCs can say that.    

Do the challenges of 2009 continue into 2010?

Not as much.  There are varying levels of the challenge for 2010.  From supplier engagement, to eliminating some of the misinformation out there.

Misinformation?

Yes.  I’ve heard things ranging from “I was told that I can’t book cruises unless I have a CLIA Number,” to “I was told that I don’t need to be with ARC or a VTC because I don’t do air,” to “You don’t have an ID Card?  I need an ID card, I don’t want to join then.”  It’s all over the place, Joanie.  Some of it is passed misinformation and some of it is lost in translation and some of it just tells me that the focus is somewhere else other than selling travel and providing quality service to clients.  Obviously, it’s not wise for me to expend my marketing budget to set the record straight, but I can focus on the VTC Program’s marketing message and hope that the market interprets it as fact versus fiction.

So tell the readers again why they should join the VTC Program.

I’ll start by stating that the VTC Program may not be for every agency.  You have to match your business objectives with the Program’s offerings and if there is a match, then take advantage.  The VTC Program is unique in that VTCs are issued the widely-accepted ARC Number, which they can use for commission remuneration purposes.  Additionally, the VTC Program offers products and services that actually allow you measure your return on investment because those products and services are bottom line focused.  This includes our service fee program, ARC’s Agent’s Choice.  With Agent’s Choice VTCs can accept payment for any major credit card for a very, very competitive processing fee.  VTCs also have access to ARC MarketPlace which offers several thousand destination activities, pre/post and shore excursions, all of which are commissionable.  Visa and Passport services are also offered on ARC MarketPlace and that, too, is commissionable.

Throw in ARC Check, where suppliers and consumers can check your status within ARC, the VTCs’ inclusion on the Agency List File, the VTC Mark, and I believe the Program has a lot to offer, with more to come this year. 

Are there any last words you would like to share with those reading this newsletter?

Folks have joined the VTC Program for several reasons.  They want their agency to have their own identity.  They want their agency to collect their commissions directly.  They want to establish relationships with sales reps.  They want to utilize our service fee program.  They want to use the ARC Number.  They trusted our vetting and accreditation process.  Whatever that one reason was, I was able to introduce more and that painted the picture of an investment – they understood what they were getting, not what they were taking. 

If you haven’t considered the VTC Program, check it out.  The investment is nominal and if your agency is accepted and you start utilizing our products and services, your return will be noticeable.  Visit www.arccorp.com/vtc to learn more.  And as always, feel free to reach out to me directly at cflores@arccorp.com.  Lastly, if you’re headed to FLL for the Travel Weekly CruiseWorld 2010 / Home Based Travel Agent Show and Conference, be sure to visit our 20 x 20 booth and visit our sessions on how to help you business.