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