American outbound agents go rogue to survive. Saturday, 24th October 2009 Source : Luke Clark at ITB Asia & WIT 2009 – Exclusive

Don't slash prices – just get creative. That's the message from a luxury-focused outbound travel agent from the United States, having survived one of its toughest periods to date. 

"We've had a year from hell," says Mario Scozia, executive director of A&A Holidays. "In 30 years, I never would have thought it could happen. It fell off a cliff completely," Scozia says of his outbound business.

Job losses to the white collar sector in particular have left 1.2 million unemployed in the US, and sapped confidence, even among those with significant amounts of disposable income. 

"The market we all relied on, the luxury Wall Street market, collapsed. Before, when the middle class fell, the upper end was the backup. This time, we found ourselves with nowhere to go."

As people paid closer attention to home issues, luxury spending was not a priority, he said. The domino effect had been more serious than most operators expected. Instead of luxury outbound, A&A Holidays had initiated niche market programmes, domestic packages, and inbound programmes. 

With the weak US dollar, European and Asian business to the United States was strong, he said. Markets he focused on included the Italian, Middle East and French markets, he said. "You have to do something to survive."  

What he was not prepared to do, he stressed, was to drop his longhaul prices. "It's hard to bring it back. That's where our problem lies. No packaging or special prices, because it does not incentivise the market," he said. 

Having been dire, he said enquiries are now starting to come back. By the second semester of 2010, easily accessible destinations like Hawaii and the Caribbean will start to come back, he predicted. "We're seeing interest again in luxury. There's always money – if they get the confidence and courage," said Scozia.