The New ASTA American Society of Travel Agents

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The New ASTAAmerican Society of Travel Agents

• Premium Membership
• Dedicated to the Business of Selling Travel

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New LeadershipCorporate Advisory Council

• Corporate Advisory Council (CAC) comprised of
  leaders of largest travel agency organizations
  and travel agencies
• i.e. consortia, franchise organizations,
  independent agencies.
• CAC maximizes its collective strength and
  provides leadership for the industry by
  contributing significant energy in a lobbying
  role and speaking on industry issues with One
  Voice through ASTA.
• Use of CAC funds are voted on by the CAC members
  and allocated only for issues deemed of paramount
  interest to the industry.
• Expenditures include legal fees, legislative
  expenditures, etc.

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Corporate Advisory Council

• 20 companies
• Priscilla Alexander Protravel International,
  Inc.
• Ellen Bettridge American Express Company
• Roger Block, CTC Carlson Wagonlit Travel
• Gloria Bohan Omega World Travel, Inc.
• Bruce Charendoff Travelocity
• U. Gary Charlwood Uniglobe Travel
  (International) Inc.
• F. Steven DiMasi Orbitz Worldwide
• Michael S. Dixon Travelink, Inc.
• Sho Dozono Azumano Travel American Express
• Tammy Troilo-Krings Travel Solutions, Ohio
• Tony Hughes, CTC RADIUS
• Lloyd Johnson Expedia Travel
• Scott Koepf Jurni
• Jack E. Mannix, CTC Ensemble Travel
• Thomas G. McIntyre Passageways Travel Service,
  Inc.
• Lee Thomas, CTC The Travel Authority / TTA,
  Inc.
• Steve Tracas Vacation.Com
• Matthew D. Upchurch, CTC Virtuoso

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Travel Agent Political Action Involvement

• Proactive involvement in political process
  essential todays business environment
• Means of delivering critical, timely messages on
  legislative concerns
• When exercised, makes travel agents recognizable
  force all levels of government

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State Issues

• Massachusetts
• Issue Governor Patricks proposed Corporate Tax
  Loophole Package calling for taxing travel agency
  fees charged in conjunction with hotel bookings.
• Michigan
• Issue Governor Granholms 2007/2008 Executive
  Budget proposes a new 2 percent tax increase on
  112 service industries that includes travel
  agencies.
• Montana
• Issue H.B. 147 sought to impose a new hotel
  occupancy tax on travel agent service fees when
  booking hotel rooms in Montana.
• New York
• Issue Governor Spitzers Executive Budget
  contained a provision that subjects travel agent
  service fees to a new hotel occupancy tax when
  booking hotel rooms in New York.
• Pennsylvania
• Issue H.B. 388 provides for the licensing and
  regulation of travel agents establishing the
  Travel Agent Recover Fund and imposing
  penalties.
• Illinois
• Issue Governor Blagojevichs FY 2008 Budget
  proposes a tax on the gross receipts of all
  businesses doing business in Illinois. This tax
  will eventually phase out corporate income tax
  and is expected to generate an estimated 6
  billion when fully implemented.
• Texas
• Issue H.B. 3 passed in a 2006 special session,
  which amended and revised the tax base by
  imposing a new gross receipts tax on Texas
  businesses.

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ASTAs New Governing Body

• Board of Directors and Officers
• (15) members-
• (9) Directors at Large
• (3) Directors selected by the Chapter Presidents
  Council
• (1) International seat
• (2) Directors selected by the ASTA Corporate
  Advisory Council
• (1) is an Executive committee seat
• (3) Officers selected from (15) Board Members
• Board Members are self selected by the CAC

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What else is ASTA working on that affects your
business?

• Voiding window
• Pass through credit card fees
• Travel agent employee shortages
• Agencies promoting responsible tourism and
  environmental concerns
• Preventing chargeback losses

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Voids Effective July 21, 2007
Day-of-Ticketing (Day 1) Next Business Day (Day 2)
Ticket Issued in GDS
Ticket can be voided in GDS Ticket can be voided in GDS
Ticket can be voided in IAR
At midnight, transaction (ticket or void) is locked down
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Voids 2008
Day-of-Ticketing (Day 1)
Ticket Issued in GDS
Ticket can be voided in GDS
At midnight, transaction (ticket or void) is locked down
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Operational Issues

• Agency Customers
• Agency channel will be disadvantaged - carriers
  customer commitments offer 24 hour fare guarantee
  or the right to cancel within 24 hours
• Operations
• Leaves no time for agents with 24/7 online
  Corporate Booking Tools to audit transactions
  (example ticket booked at 1145pm)
• Staff back office agents until midnight or later
  M-F
• Limited time to void if fraud detected after
  lockdown

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Preventing Chargeback Losses

• Request ARC revise credit card rules at JAB-ARA
• Endorsed by Continental Airlines
• ARC Conference Call with Airlines Agents (June
  19, 2007)
• Current rules are paper-based Issue for leisure
  agents
• Agents still required obtain credit card
  signature paper -Universal Credit Card Charge
  Forms (UCCCF) for most credit card transactions
• Card number not masked
• Address Verification Service (AVS) can be used in
  lieu of signature-charge back protection only if
  paper ticket mailed to purchasers billing
  address

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Pass through credit card fees-what can we do
about it?

• Options for the airlines to reduce credit card
  costs
• Install alternative forms of payment on airline
  websites
• Drive consumer to airline websites
• Surcharge consumers who use credit cards
• Surcharge travel agents when client uses credit
  card

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Why do Airlines want to do this?

• Major Drivers
• Low-Cost Carrier competition
• Unbundling potential of Web-based applications
• Unbundling not seen as possible in GDS
  environment
• Travel agents admitted advantage in producing
  higher yield traffic believed to be short lived

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What remedies are there?

• Legal Litigation
• Role of state laws governing surcharging
• Regulatory DOT and DOJ
• Legislative
• Commercial Counter the Buzz?

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The New ASTA serving the entire industry

• Speaking with One Voice
• Providing business services and market research
• Strengthening the industry

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Premium branding and marketing

• ASTA Viewpoint in BTN
• CAC members featured
• Premium Recognition in print advertisements
• Business Travel News
• Travel Weekly
• Travel Agent
• Online banner advertisements
• BTN online

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Immediate information

• Industry Alerts inside information
• Business Reports
• ARC Data Analysis
• Independent Contractor Study
• Privacy Policy Guidelines
• Financial Survey 2006
• Technology Web Usage Report

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Response to Independent Contractors Report
  Share of Responses
Very Useful 41.7
Useful 33.3
NA- have not read IC report yet 11.1
Do not use ICs in my agency 8.3
Other 5.6
Not Useful 0.0

• 41.7 of Premium Member respondents found
  Independent Contractors Report to be Very
  Useful

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Frequency of Communications

• 80.6 of Premium respondents found frequency of
  communications
• Just Right
• 1,092 email addresses
• Premium Members (116)
• Managers (325) New!
• Employees (651) New!

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Call to Action

• We need agencies like yours to lead the industry
• We look forward to having you be a part of The
  New ASTA

Allied and International Members
TOP Members
YOU
Premium Members
Travel Agent Members
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The New ASTAAmerican Society of Travel Agents

• Premium Membership
• Dedicated to the Business of Selling Travel