Habits of Excellence CBTG November 9, 2007 San Antonio, TX ROSE A. HACHÉ Attorney at Law 3555...

Habits of Excellence CBTG

November 9, 2007San Antonio, TX

ROSE A. HACHÉAttorney at Law

3555 Timmons Lane, Suite 1020Houston, Texas 77027

Telephone: (713) 621-7253 E-mail: Hachelaw@aol.com

Business Environment

Travel Agency Individuation:• Spotlight: Corporate Travel

Management• Cruising with Alumni Groups • Comets over Libya• Religious/Spiritual Conventions • Government Travel

Successful Owner’s Characteristics

• Independent lifestyle-You would have succeeded anywhere…

• Sense of humor • Flexible/Resilient• Living your passion• Deliver excellence• Objective: More leisure time, and

increased financial resources

Legal Operating Environment

• Emphasis on Seller of Travel Law and Tax Developments

• GDS Trends• Terms and Conditions: Consumer Risk

Management (Non-Preferred Issues)• Credit Card Authorization Form• Sell Travel Insurance or Obtain Signed

Waiver

Objective: Preserve Profit

“Give me 6 hours to chop down a tree, and I will spend the first 4 sharpening the axe.”

President Abraham Lincoln

Objective: Preserve Profit

Consumer Claims managed by: • Form of doing business• Refer to http://travel.state.gov

and http://www.cdc.gov/travel/• Terms and Conditions-

Website and/or stuffer • Travel insurance/preferred

vendors• Seller of Travel Laws

compliance

Objective: Preserve Profit

• Errors and Omissions Insurance- If dealing with ICs, each business should have their own coverage for protection.

• ICs- Characterize the relationship in writing.

Objective: Preserve Profit

• Seller of Travel Law Developments– Where do corporate accounts/consumers

reside, purchasing travel from your office or your independent contractors?

– How are you selling travel?•Face- to- face •Non face-to-face•Telephone •Website sales •Group sales•Credit card or other form of payment

Objective: Preserve Profit

“The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn.”

Alvin Toffler

Objective: Preserve Profit

Taking practical steps to comply with state

laws regulating Sellers of Travel:

• Puts your business in compliance with state law

• Helps protect your business from State Attorney General claims for non-compliance

• Creates a bond of respect and trust between your business and customers.

Objective: Preserve Profit• Special Focus – Registration

• Resident/Non-Resident– California– Florida– Hawaii– Nevada– Washington

Objective: Preserve Profit

What happens if you are not registered?

• Penalties vary, but note California states:

“A misdemeanor by a fine of not more than $10,000, by imprisonment in a county jail for not more than one year, or both fine and imprisonment for each violation.”

Objective: Preserve Profit

• Michigan 6% tax on specific Michigan service industries effective 12-1-07

• ASTA Michigan Chapter hired Pat Harrington

• Pro-active watch in advance

Objective: Preserve Profit- GDS Trends-Chemistry

• $.80 Content Continuity Fee: Negotiable

• Limit increase in charges to 10%

• Aggregation clause

• Loss of Content

• No market share commitment

• Conversion Dissatisfaction Clause

Objective: Preserve Profit- GDS Trends- Incentives

• Upfront Payment: Loan tied to goal fulfillment

• Marketshare vs. No Marketshare

• Development Fund

• Additional Segment Goal/Tiers vs. starting at #1 without Tiers

• Suspend NPAT(non-participant airline ticketing)

Objective: Preserve Profit

Claims: Vendors and Consumers

• Back office auditing software• Rise in trip costs imposed by

vendor• Vendor cancellation fees • “Super-agreeable” personality….

Objective: Preserve Profits

Risk Management: Over 55-#1 thing they want to do is travel….

• Have you implemented legal tools available to limit your potential liability?

• Consumers pragmatism and acceptance• Recent examples-Attorney General inquiries: Senior

citizens in East Africa, refund for lack of time for inoculation, and 6 month passport issues.

Objective: Preserve Profits

Implementation of the following:

• Terms and Conditions• Credit Card Authorization Form• Insurance conversation and signed waiver• Non-Preferred Supplier Form

Dealing with ICs

• Boom after 9/11

• Characterization: Be safe

• Don’t convert long time employee to an IC for essentially the same job function

• Written agreements must reflect actual performance.

Objective: Preserve Profits

“Business is the salt of life.”

Voltaire

Thank You!

ROSE A. HACHÉAttorney at Law

3555 Timmons Lane, Suite 1020Houston, Texas 77027 Telephone: (713) 621-7253 E-mail: Hachelaw@aol.com