
August 24, 2006
Busy times ahead for Virtuoso as group plans 1-on-1 meetings
LAS VEGAS -- Virtuoso, at its annual Travel Mart here this week, said it is ready to confer on a one-on-one basis with each of its 309 member agencies to help each determine how best to leverage its Virtuoso membership in order to grow sales. According to Mark Belles, executive vice president of sales and service, Virtuoso aims to address each agency's "hot buttons" in a personalized business analysis meant to match the organization's strengths -- in the areas of staff development, product mix, marketing and operations -- with each agency's needs. Calling the effort Strategy for Growth, Virtuoso said it aims to work with 100 members before year's end and to meet with the remainder throughout 2007. The project is effectively a response to the rhetorical question raised by Virtuoso CEO Matthew Upchurch in remarks to members: How does one plan strategy for an organization that is already turning in sterling results? Belles reported that members tallied $3.8 billion in revenues in 2005, up almost 19% over 2004; the group projects 2006 revenues of $4.2 billion. In addition, he said, in both years, members have turned in double-digit growth within each travel segment, including air. Citing a success within the larger numbers, he reported that a training and mentoring program for promising frontline agents produced $12.8 million in incremental revenue in the first eight months of this year for participating suppliers. Approximately 375 frontline agents were tapped for the program, and 65 have reached their sales goals for the year. As to prospects for the future, keynoter Ken Dychtwald told delegates that, in the U.S., the fastest-growing age group during this decade is the 55-to-64 set -- and the numbers aren't that much different in other developed countries. Lumping this decade and the next together, he said the fastest growth over those 20 years will encompass two groups, 55 to 64 and 65 to 74, and "there is no market force more predictable than this." The aging expert added that the 55-to-64 age group is in peak earning years and wants luxury experiences. He said members of this generation of affluence are individualistic rule breakers ("they want things customized"); they seek freedom and like variety. Upchurch followed the keynoter saying the opportunity "is there" for members to seize. "There will be a huge growth of the eclectic consumer ... people who won't be brand loyal ... [they are] just suited to the independent advisor role." Speaking of opportunity and eclectic tastes (among the wealthy, of course), Virgin Galactic, a Virgin Group company which aims to launch a space tourism product in the next two to three years, named Virtuoso its exclusive retail selling organization in North America. Members of Virtuoso have the option, after training, to be "accredited space agents" entitled to sell the company's suborbital flights at $200,000 per passenger and earn a commission. In a separate announcement, Royal Caribbean said it will tap a Virtuoso agent to be godmother for its Liberty of the Seas. Consumers and agents can nominate candidates at www.cruisingpower.com/libertygodmother. A panel of judges will winnow the list down, and later balloting will make the final selection. The Travel Mart drew 2,500 attendees, 1,100 of them agents, to participate in more than 260,000 (very short) one-on-one appointments.
Strategy for Growth effort aims to improve sales
By Nadine Godwin