Mary R. G. Grimes, CTIE
No one can contest the global impact of the Covid-19 pandemic, the staggering number of lives lost being the most devastating. As much as the global economy suffered during 2020 and into 2021, the effects were perhaps most keenly felt on the personal level; loss of family, employment, housing, livelihood and stability. The unemployment rate in the U.S. increased from 3.8% in 2019 to 8.6% in 2020 representing roughly 22 million jobs lost during the spring of 2020.(1) Within the travel industry in particular by December of 2020:
“The latest unemployment figures prepared for the U.S. Travel Association by Tourism Economics paint what the organization calls “a dire picture.” The travel-dependent leisure and hospitality industry is suffering from a 15 percent unemployment rate—nearly double the national level.”(2)
The downward spiral continued throughout 2020, prompting comments from American Society of Travel Advisors president and CEO Zane Kerby who released a statement in late 2020 highlighting the dire circumstances for travel agencies:
“All businesses in the country have been impacted by COVID-19 in one way or another, but few sectors have been as hard hit, or face a longer road to recovery, than the travel agency industry. With more than 90 percent of our members reporting revenue down 75 percent or more versus 2019, layoffs and furloughs spread wide throughout the industry and a projected three-to-12-month lag time in business income returning after bookings resume, it cannot be overstated–these are incredibly difficult times for travel agencies across the country.” (3)
Beginning in 2020, one by one countries around the world began locking down and severely restricting access both into and out of points of entry. The Bureau of Transportation Statistics compared US Airlines passenger percentages year over year from 2019 to 2020: Domestic decreased 58.5% and international decreased 70.3%. (4) Within the US, cities, towns and counties—all had individual Covid-19 protocols and guidelines which restricted travel between states. Tourism-dependent industries suffered devastating losses and the cruise industry was forced to shut down entirely costing the companies billions of dollars in lost revenue.
In March of 2021, The World Travel & Tourism Council’s (WTTC) annual Economic Impact Report (EIR) has revealed the full, devastating impact that COVID-19 had on the global travel and tourism sector in 2020, which suffered a loss of nearly $4.5 trillion. (5) Tourism Economics painted a grim picture of job losses in 2020, with the final numbers revealing that the travel industry shrank 42% in 2020, with travel-related jobs falling by 5.6 million (making up 65% of all American jobs lost due to the COVID-19 pandemic). (6)
During the early days of the pandemic, when the term “Covid-19 Outbreak” was the predominant terminology and the “outbreak” was still expected to be relatively short-lived, travel agencies and advisors were caught up in the chaos of cancellations and rescheduling. Suppliers [tour operator, cruise line, hotel, airline, etc.,] stepped up to offer support. In an article published in TravelPulse in March, 2020, Hannah Nowicki of Sunset Travel & Cruise in Chicago praised suppliers who were working hand-in-hand with agents to “field the insurmountable number of cancellations and changes coming their way, so realistically, all they can do right now is make sure that we are up-to-date with their policy changes as they come in.” (7) In the same article Nowicki also noted that suppliers are keeping the agency well informed. “Things are changing by the hour and it takes a lot to make sure that all agents are well-informed with the new information and policies as they come in.” We can all agree that the coronavirus pandemic has substantially impacted how we work and cooperate. Remote meetings are more common than ever before, and platforms like Zoom have made it possible. Zoom saw a 383% increase in its value since January 2020. The year 2020 was the year of rapid growth for this company, as Zoom’s customer base grew by 470.33%.
In August, 2020, Travel Weekly published an article and interviewed Andrea Klimak, co-owner of Largay Travel. Largay held about 20 virtual meetings in January. That increased to more than 200 in June, “It has forced us into a way of doing business that we weren’t necessarily comfortable with,” Klimak said.”
Supplier Sales Reps are also embracing the technology, something she said can free up their time and extend their budgets, “It will allow them to use their money differently,” Klimak said, adding that suppliers accustomed to driving hundreds and thousands of miles weekly will be able to visit some locations virtually. (8) And that is exactly what happened across the industry. The desire to maintain contact and support resulted in countless virtual meetings, webinars, presentations, weekly “chats” and dozens of variations.
As the weeks stretched into months, the cancellations began to outweigh rescheduling and refunds were mounting up. “Vouchers” became the watchword and both travel agencies and advisors had minimal new business. During this “downtime” when many travel companies had the opportunity to reassess their businesses and envision how to emerge from the pandemic successfully, many furloughed or laid off staff, temporarily closed or moved from brick-and-mortar locations to virtual offices. However, as 2020 passed into 2021, “Zoom Fatigue” started to set in and supplier sales reps found it more and more challenging to schedule virtual meetings. Face-to face interaction was critical as in-person visits continued to be severely limited.
Ascenta, a marketing company, states “Face-to-face sales techniques strengthen relationships with prospects and customers, enhance brand credibility, and enable reps to communicate key value propositions more effectively. In-person selling tactics also help cut through the static and make brands stand out against the competition.” (9) Sales reps were now challenged with diminished accessibility to agents as many were now working remotely. In-person agency visits remained severely restricted (if allowed at all) and many sales reps were not permitted to travel at all. Given all of these obstacles, how could supplier sales reps maintain face-to-face engagement with advisors, keep them informed and generate sales?
Greek philosopher Heraclitus is quoted as saying “Change is the only constant in life.” The “Covid Year” of 2020 initiated changes that would become significant within the travel industry and set precedents on how future business would be conducted. As necessity being the mother of invention thus, the Trunk and Tailgate Shows were born.
It all started in a parking lot. Suppliers, recognizing both the travel advisors’ need to have contact with their respective Sales reps and their own obligation to provide critical support and personal connection, banded together to organize what became vendor-hosted exclusive travel industry events. Hoteliers, ground operators, cruise lines, tour operators, travel insurance and many more were represented. My research points to the Northeast putting on the earliest Trunk Shows. American Cruise Lines Sales Rep Mena Tuccinardi organized a “Trunk and Tailgate Event” held on January 21, 2021, in an empty theater parking lot in Londonderry, NH. There were six suppliers represented, including American, and the event was attended by over 20 advisors who braved freezing temperatures and blowing snow for the chance to meet with their Sales Reps. The new “trade show” concept spread mostly by word of mouth across the country. Appropriating empty parking lots, various local sales reps would park their vehicles, open their trunks or tailgates and use them as makeshift trade show tables. Tablecloths, banners and signs, brochures and flyers—sales reps went all out to attract and delight advisors who had been shut in for months. The response was amazing and the advisors’ appreciation gratifying. Another American Cruise Lines colleague, Faith Alchorn-Selk whose territory includes the Northwest and California began working with a handful of sales reps and the Northwest Trunk and Tailgate Roadshows took shape. Starting in February, 2021, these roadshows gained increased support and participation throughout Northern California. Many sales reps were restricted not only from air travel, but also from overnight hotel stays. Trunk and Tailgate Roadshows were within driving distance and provided the perfect solution to a vexing problem.
This innovative type of trade show became a new model. Hosted by supplier sales reps on a local level, and often in areas that seldom had trade shows or had infrequent visits from suppliers, the goal was to maintain the face-to-face connection, increase engagement and provide support. And it worked.
In April of 2021, I organized a Travel Advisors’ Trunk and Tailgate Show and partnered with Amanda Ward, then then a Sales Rep with Globus Family of Brands. In a deserted mall parking lot in Southern Colorado, we were visited by nine curious advisors who expressed their gratitude and appreciation and promised to spread the word to colleagues and co-workers.
In May, 2021, Amanda and I organized a second Trunk Show in Denver, CO, and were joined by 7 sales reps including Royal Caribbean Cruise Lines, AIG travel insurance, Rocky Mountaineer, Scenic Luxury Cruises, Riu Resorts, Auto Europe Group and Kensington Tours. This Trunk Show was attended by 37 advisors and the “thank you’ s” were heartwarming. This message from one of the advisors to all of the sales reps touched us deeply:
“Hello Team,
I just wanted to take this minute to tell you how awesome the event went today! FINALLY… A TRADE SHOW!!!
Thanks for giving us the updates and ‘spiel’!!!
Wish I would’ve taken pictures to send to all on how creative this was too! And what others missed out on.
By you creating such an event tells us that you care about us selling your product.
If other suppliers don’t get as creative, we now know ‘who cares about us’ …….and who we should sell!
You all are awesome!”
Kathy Dawson
The Fine Art of Travel
Throughout the summer of 2021, our trunk shows sales reps held shows in Colorado and each show had a higher attendance. It was exciting for the sales reps to visit with each other and with advisors we hadn’t seen in over a year. As one, suppliers remarked “it feels like the old days on the trade show circuit.” Amanda commented “…It felt incredible to be able to talk travel and see the advisors we were unable to see for so long. The travel community always does a great job coming together and it was evident even in a bowling alley parking lot. We received nothing but positive feedback from advisors who attended. They were thrilled to be able to connect with us.” Ultimately, our shows netted not only new contacts but also face-to-face engagement with over 100 advisors. Post-show survey results indicated that the advisors wanted more shows in different locations and for more suppliers to participate. This was just the beginning.
As the popularity of these events continued to grow in the Southwest, the venues changed to meeting and event space in hotel properties. Parking lots became less convenient as the number of suppliers increased, and hotel properties were also eager for business and appreciated the exposure to advisors. Because marketing and sales budgets were minimal at best, splitting the cost for the event space among the sales reps was affordable and ranged from $25.00 to $75.00, averaging about $50.00 per participant. The number of suppliers represented at each show averaged 15; the largest show included 25 suppliers. Renamed Vendor-Hosted Travel Advisor Road Shows, sales reps began scheduling regional shows to include several venues; e.g., Dallas, Oklahoma City, and Tulsa.
It is important to note that the steady increase in supplier participation and advisor attendance from Quarter 1, 2021 through Quarter 4, 2022 prove the success of this novel trade show format. Although we did not share our sales revenue to a central database, we all experienced increases in sales as a direct result, not only from existing accounts but also from new business relationships. I participated in Vendor Hosted Travel Advisor Shows held in both May and July 2022 in Oklahoma (one of the eight states within my territory). My account revenue increased over 35% as a result and the consensus among Sales Reps who have participated regularly in vendor-hosted travel trade shows is similar. There is significant increase in their ROI which makes their continued participation in shows worthwhile; and the added exposure to advisors and agencies previously unfamiliar with the supplier products is invaluable.
The Trunk and Tailgate format continues to thrive as does the Vendor Hosted format which utilizes hotel and event space. The entire concept is here to stay because it works; a sales rep recently described these shows as the “new normal” for advisor engagement. For sales reps these shows are cost-effective, maximize brand awareness, offer the opportunity to engage with many advisors in one setting, develop new business, and lower travel spend. The ability to meet dozens of advisors during one 3-hour show is by far more effective than making multiple trips to meet with fewer agencies and advisors over a period of days or weeks.
And it all started in a parking lot.
References
- Jesse Bennett. “Fewer jobs have been lost in the EU than in the U.S. during the COVID-19 downturn.”
Pew Research, April 15, 2021. https://www.pewresearch.org/fact-tank/2021/04/15/fewer-jobs-have-been-lost-in-the-eu-than-in-the-u-s-during-the-covid-19-downturn/. - Jena Tesse Fox. “USTA: Travel industry unemployment double national level.” Hotel Management, December 7, 2020. https://www.hotelmanagement.net/operate/usta-travel-industry-unemployment-double-national-level.
- Janeen Christoff. “70 Percent of Travel Agencies Will Be Out of Business Without Federal Relief”. TravelPulse, August 6, 2020. https://www.travelpulse.com/news/travel-agents/70-percent-of-travel-agencies-will-be-out-of-business-without-federal-relief.html.
- Bureau of Transportation Statistics (2022). U.S. Scheduled Service Airline 2021 Passengers Increased 83% from 2020, Decreased 27% from Pre-pandemic 2019 (Preliminary). United States Department of Transportation. https://www.bts.gov/newsroom/us-scheduled-service-airline-2021-passengers-increased-83-2020-decreased-27-pre-pandemic.
- Matt Turner. “WTTC: Industry Lost $4.5 Trillion in 2020 Due to Impact of COVID-19”. Travel Agent Central, March 25, 2021. https://www.travelagentcentral.com/your-business/wttc-industry-lost-4-5-trillion-2020-due-to-impact-covid-19.
- Emma Weissmann. “65% of All U.S. Jobs Lost in 2020 Were From the Travel Industry.” TravelAge West, March 17, 2021. https://www.travelagewest.com/Industry-Insight/Business-Features/COVID-19-Travel-Job-Loss-2020.
- Claudette Covey. “How Suppliers Are Helping Travel Agents During COVID-19 Outbreak.” TravelPulse, March 23, 2020. https://www.travelpulse.com/news/travel-agents/how-suppliers-are-helping-travel-agents-during-covid-19-outbreak.html.
- Jamie Biesiada. “Recalibrating Agencies: Many travel agencies are using the Covid-19 shutdown to rethink compensation models, supplier relations, marketing strategies and more. Businesses that survive the crisis will look different than they did before the pandemic.” Travel Weekly, August 5, 2020. https://www.travelweekly.com/Travel-News/Travel-Agent-Issues/Recalibrating-agencies.
- Sarah Flis. “6 Benefits of Face-to-Face Sales.” Ascenta, November 12, 2019. https://ascentagroup.com/blog/6-benefits-of-face-to-face-sales/.
