Arnie Weissmann:
C an an ‘heirloom operator’ prosper
i n an era of heirloom tomatoes?
P. 12
www.trave lweekly.com
HAWAII LEADERSHIP FORUM:
Upping visitor confidence
and outmaneuvering the
competition tops the agenda. P. 21
AIRLINES IN TURMOIL
United and US Airways add 1st bag charge. P. 6
Former AA CEO calls for limited reregulation. P. 6
Continental to ax 43 routes from U.S. hubs. P. 8
Section 1 of 2
THE NATIONAL NEWSPAPER OF THE TRAVEL INDUSTRY
JUNE 16, 2008
Leisure travel now feeling
pinch of soaring oil prices
By Lester Craft
Soaring oil prices are beginning
to exact a toll on leisure travel,
prompting some economists and
analysts to downgrade
their expectations for
the summer vacation
season and the remainder of the year.
The Fed found softening tourism activity
in destinations including New York, Southern California and Hawaii, but reported increased activity at some resorts in the mid-Atlantic region “as families took vacations
closer to home.” The Fed did not weigh in on
outbound tourism.
The Bottom
Line:
‘Something
is rotten in the
state
of oil trading.’
P. 33
Last week’s release of the
Federal Reserve’s “beige
book,” a periodic report on
U.S. business conditions,
served to reinforce industry
concerns. Noting that consumer incomes were being pinched by rising
food and energy costs, the Fed reported that
“higher energy prices also appeared to damp
domestic tourism.”
So far, corporate travel
appears to be more resistant
than leisure travel to oil’s im-
pact. And demand for some
leisure segments, particularly
luxury, appears to be faring
better than it is for others.
Although industry fore-
casters had expected some
slowing this year as a result
of the soft economy and
weak consumer confidence,
they now predict that oil prices, which
have climbed by about 50% in the past six
months, have emerged as an additional
See OIL on Page 34
[ CORPORATE AGENTS TEND TO EARN MORE ]
Agent pay trend not bright but not all bleak
By Nadine Godwin
for a new frontline agent was $20,133, while
the average salary and commission package
for all counselors, regardless of tenure, was
$28,785.
While the compensation picture for
travel agents is certainly not bright,
it might not be quite as bleak as a
recent survey of members by ASTA
seemed to suggest.
If only corporate agencies are considered,
ASTA said, the average starting compensation rate is $24,739 and the overall average
income is $38,767.
ASTA, which collected its data from a representative sample of members in late 2007,
said it found that the average compensation
o verall average that is 34.7% higher for corp orate agents.
The data suggest that corporate agents
start with compensation that is 22.9% above
the average across all agency types, but the
gap grows still wider with time, producing an
10 TRAVEL
TRENDS
A special
supplement
celebrating
our 50th
anniversary is
being mailed
with this issue.
PART 2 OF 2
For agents who have managerial and sales
r esponsibilities, ASTA’s survey found an ave rage compensation of $38,648.
ASTA said the research was the first in a
p lanned series of surveys meant to assist
m ember agencies in benchmarking their
c ompensation, benefits and hiring practices
a nd in identifying trends in these areas.
A leading futurist looks at how technology, social
responsibility, generational changes, regulatory issues
and consolidation will affect travel in the future.
BY MARVIN J. CETRON PAGE 16
See COMPENSATION on Page 35