Profile In Courage? Mega-Travel Company Launching A New Affluent Agency Consortium In a Recession
Affluent Traveler Collection takes on established groups like Virtuoso and Ensemble in seeking to leverage clout of high-end agencies.
Groups like Virtuoso, Ensemble and Signature have demonstrated an ability to leverage the clout of their high-volume members. But is there room for another entry into that arena? And in this challenging economic climate?
A company called American Marketing Group – parent of mega-agency
network Travelsavers -- has jumped into the fray and is inviting the
cream of the agency crop to join forces with it. Luxury Travel 360
spoke at length with executive vice president Cheryl Weldon, an
industry veteran who spent many years with Worldspan, the GDS, about
her plans to establish the Affluent Traveler Collection. Weldon, with
a long career on the technology side of travel, will use that
background and AMG’s potent resources as a multi-dimensional travel
conglomerate to take on the big consortia. Here are some highlights from her action plan-
Plans For Growth: According to Weldon, AT is sending
out 450 “very beautiful” invitations to agencies that are within AMG
(members of Travelsavers and NEST) – as well as to other agencies “that
we have prospected over the last 12-18 months and that we perceive to
be a good fit. We are not targeting competitors as such but contacting
agencies that come to us through our sales organization."
On AMG: AMG is the holding company and investment group
behind 14 travel verticals including Travelsavers; NEST (a network of
high-producing, home-based agents); and Acclaim Meetings, a meeting
planning firm. Other verticals, some of which are used by other large
agencies like American Express, include Travel Helpline and agent24,
which supply 24/7 support to agents and clients. The vertical divisions
are all run separately.
Launch of Affluent Traveler:
Although it was incorporated in 2004, Affluent Traveler had its “new
positioning” launch at Luxury Travel Expo in Las Vegas in November
(Tiffany jewelry was offered as mementos). AT already had in its
portfolio: a consumer travel magazine called The Affluent Traveler; an
amenities program to encourage customer loyalty; and a booking engine;
Membership Goals: Affluent Traveler is aiming for 200 members by next year (the number is already at 100 because of Travelsavers and other automatic members.
What AF is looking for: “We are looking for agents with a certain sales volume and who have a significant client data base. They can be members of Travelsavers but cannot be a member of a competitive consortium or agency group. High producing Travelsavers agencies are grandfathered in.”
What Affluent Traveler Has To Offer Agents: “We offer access to luxury content through our program. Because of the sister companies under the AMG banner, agents enjoy the resources of Acclaim Meetings, Travel Helpline and the rest. We can provide one stop shopping for agents,” The Affluent Traveler magazine is available through Barnes & Noble, and is distributed at Delta Crown rooms throughout North America. Our specific focus is to provide our agencies with the type of marketing programs that will attract current affluent clients and new clients aspiring to be affluent.”
On What Affluent Traveler has to offer suppliers: “I’ve been in the supplier side my entire career and AMG was a customer for years. Travelsavers was one of the few agency groups that ever provided me with truly targeted data on their agents; for a supplier that’s the most important thing. We will have the same approach with Affluent Traveler. We will have luxury suppliers talking to luxury agents; it will not be a scattershot situation. We will be able to directly market against an agency’s database.”
On annual fees: “We will be flexible; sales volume with certain suppliers will be part of the equation.”
Marketing Plans: “Two campaigns will be launched to highlight preferred suppliers. One will be specifically targeted to the aspirational affluent. We will always have an online positioning that we will be carefully focused on – the intent is that we have bookability on the site as suppliers will allow us to use it.”
On the future of affluent travel. “There are still wealthy people and they will continue to travel. They are not likely to ‘flaunt’ wealth, but will travel well. And there are the aspiring, who will travel well for a special occasion, or after saving for a long time. Research shows that all bookings will be challenged across all sectors. Luxury travel will benefit because clients will still be able to use their accumulated wealth for their vacations.”
Ipsos Mendelsohn and American Express Publishing-Harrison Group OfferFreshInsight on Consumer Behavior in 2010
According to new studies from two blue-chip research sources, Ipsos Mendelsohn and American Express Publishing - the affluent are not only ready to travel -- they are frequently going to spend more on it. While the Ipsos study focused on intent and American Express Publishing on mindset, they both point to a surge in affluents taking to the road (Amex sees an increase of 6 to 8% in spending on all luxury categories).Interestingly, both studies agree on a positive attitude despite lingering concerns about the economy. Here's a look at the highlights of both 2010 studies.
LuxuryTravel 360 has long looked to the affluent as a burgeoning market in business and leisure travel, fueling growth in more affordable, common sense luxury - less glitz and glamour, but ready to pay extra for memorable family experiences and genuine local culture.
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