Executive Board paper: WYSE Travel Confederation ... · WYSE Travel Confederation Page 1 of 43...

WYSE Travel Confederation

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Confidential document belonging to WYSE Travel Confederation. DO NOT CIRCULATE

ExecutiveBoardpaper:WYSETravelConfederationStreamliningforGrowth


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TableofContentsList of acronyms: ..................................................................................................................................................... 5

Executive Summary ................................................................................................................................................. 6

Introduction ............................................................................................................................................................ 8

Background ............................................................................................................................................................. 9

The evolution and challenges facing WYSE Travel Confederation ...................................................................... 9

Current status ..................................................................................................................................................... 9

Where to from here? ........................................................................................................................................ 10

Proposed consolidation ........................................................................................................................................ 11

Aims and objectives .......................................................................................................................................... 11

Considerations ...................................................................................................................................................... 11

Core Organisational Pillars ................................................................................................................................ 11

Strategic priorities ............................................................................................................................................. 12

Governance and organisational structure ............................................................................................................ 12

Executive Board ............................................................................................................................................. 12

Finance and Audit Committee ...................................................................................................................... 12

Sector Associations ....................................................................................................................................... 12

Governance structure infographic .................................................................................................................... 13

Current financial status of the Sector Associations .......................................................................................... 14

Consolidation of the Sector Associations with WYSE ........................................................................................... 15

Benefits The following overarching benefits of the proposed consolidation include: .................................... 15

Sector Association Brands ................................................................................................................................. 15

New proposed Governance Structure .................................................................................................................. 16

Terms of reference ................................................................................................................................................ 16

Executive Board ................................................................................................................................................. 16

Finance and Audit Committee .......................................................................................................................... 17

Advisory Panel representation on the Executive Board ................................................................................... 17

Advisory Panels – Terms of Reference .............................................................................................................. 18


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Voting system for Advisory Panels – Industry Sector Preference ..................................................................... 18

Industry Advisory Panels – new structure to support members .......................................................................... 19

Aims and objectives .......................................................................................................................................... 19

International Association of Student Insurance Services ............................................................................. 19

International Au‐Pair Association ................................................................................................................. 19

How will the Advisory Panels work? ................................................................................................................. 20

Formation of Advisory Panels ........................................................................................................................... 20

Governance ................................................................................................................................................... 20

Industry Specialists ........................................................................................................................................ 21

Advisory Panel Meetings logistics ................................................................................................................. 21

Reducing internal costs and procedures ............................................................................................................... 21

Accounting structure ......................................................................................................................................... 21

Operating costs ................................................................................................................................................. 21

Human resources and general administration ................................................................................................. 22

Proposed new accounting structure ................................................................................................................. 22

Trends – WYSE Travel Confederation and Sector Associations ........................................................................ 23

Structure and fees ............................................................................................................................................. 23

Proposed new membership structure and fees ................................................................................................ 24

Membership rating instrument/mechanism .................................................................................................... 24

Financial projections ............................................................................................................................................. 25

Membership numbers required ........................................................................................................................ 25

Projected budget for 2016 ................................................................................................................................ 26

Strategic Action Plan ‐ Board approval and member engagement process ......................................................... 28

Strategic Action Plan – a roadmap for the consolidation and implementation of new membership model ....... 29

APPENDICES .......................................................................................................................................................... 30

APPENDIX A – Sector Association composition ................................................................................................ 30

APPENDIX B – The role of the sector associations ............................................................................................ 31

International Au Pair Association (IAPA) ....................................................................................................... 31


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WYSE Work and Volunteer Abroad ............................................................................................................... 31

STAYWYSE ..................................................................................................................................................... 32

STUDYWYSE ................................................................................................................................................... 32

International Association of Student Insurance Services (IASIS) .................................................................. 32

International Student Identity Card (ISIC) ..................................................................................................... 32

International Student Travel Confederation (ISTC)....................................................................................... 33

Student Air Travel Association (SATA) .......................................................................................................... 33

APPENDIX C – Current accounting structure .................................................................................................... 34

APPENDIX D – Proposed new accounting structure ......................................................................................... 36

APPENDIX E – Membership trends 2010 ‐ 2015 ............................................................................................... 37

Membership trend graph .............................................................................................................................. 37

APPENDIX F – Current membership structure and fees ................................................................................... 38

APPENDIX G – Proposed new membership model ........................................................................................... 39

APPENDIX H – SWOT Analysis: without change to the current organisation ................................................... 40

APPENDIX I – SWOT Analysis: with a consolidated organisational structure ................................................... 41


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Listofacronyms:ALTO AssociationofLanguageTravelOperatorsAP AdvisoryPanelUNWTO UnitedNationsWorldTourismOrganisationIAPA International Au Pair Association IASIS International Association of Student Insurance Services ISTC International Student Travel Confederation ISIC International Student Identity Card ISP Industry Sector Preference ITB International Tourism Bourse FIYTO Federation of International Youth Travel Organisations KPI Key performance indicator ROI Return on investment SATA Student Air Ticket Association WETM‐IAC Work Exchange Travel Market – International Au Pair Conference WTM World Travel Mart WWVA WYSE Work and Volunteer Abroad WYSETC World Youth, Student and Educational Travel Confederation WYSTC World Youth and Student Travel Conference


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ExecutiveSummary In 2014 young travellers generated US$249 billion towards global tourism receipts propelling the youth travel

sector to one of the fastest growing and most important markets for many destinations around the world.

Facilitating this growing youth travel sector is a dedicated, widespread and multi‐faceted industry that designs,

inspires and delivers an abundance of experiences and life‐long memories to millions of young people every

year.

For nearly six decades the WYSE Travel Confederation has played a vital leadership role; not only as an

advocate on behalf of the industry, but also initiating and delivering a range of industry development

programmes and opportunities that foster the growth and development of members and the wider youth,

student and educational travel industry.

Currently the Confederation is also representative of eight sector associations that provide specialised support

to its members. The sector associations occupy a central position within the Confederation community,

providing a range of valuable sector services and products to the industry.

Whilst the Confederation, in partnership with the Sector Associations has held the unique mandate of being

the only youth travel trade association servicing the global industry, the convergence of technical and

economic forces along with the rapid advancement of digital methods of interacting and doing business is re‐

shaping market conditions. An industry that was once very reliant on WYSE now has greater access to trade

partners, business development programs and market information from a plethora of sources.

What this means is that it is essential for WYSE Travel Confederation to be proactive to uphold its position as

the peak trade association within the youth travel industry. This includes adapting to current market

conditions and developing innovative tactics to remain a relevant and strong membership association –

creating a roadmap that will help manoeuvre the Confederation to long‐term viability and a brighter future.

This proposal explores the current financial and operational status of WYSE Travel Confederation, the role of

the Sector Associations and outlines a proposed strategic approach that will empower the organisation to

better service and align with member needs. Based on internal investigation, consultation with the WYSE

Travel Confederation Executive Board and members, Executive management proposes a transformation

process that involves two key areas including consolidation of the Sector Associations with the main

Confederation and the introduction of a new membership structure.


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Key recommendations:

The following provides a summary of the key recommendations associated with this proposal:

1 Dissolve or otherwise make dormant the existing Sector Associations that are currently active in WYSE

2 Consolidate strategic objectives of SA’s and WYSE Travel Confederation to create one, unified voice of on behalf of the youth travel industry

3 Dissolve existing debts currently owed between all the WYSE entities

4 Rollover all existing funds to the Confederation, governed by the Executive Board via an Audit & Finance Committee.

5 Establish industry advisory panels to service sector specific needs, empowered by members and managed by sector experts.

6 Present proposed consolidation initiative to members at WYSE Travel Confederation AGM in September, with formal decision to be taken by members at an EGM in November 2015.

7 Support the introduction of the proposed membership structure and associated fees with effect from1 January 2017. Current members maintained on existing fees for the duration of 2016 and new membership fees applied to any new members recruited from 1 January 2016.

8 Approve the distribution of details outlining the proposed membership structure and fees to members as part of AGM papers.

9 Proposed membership structure and associated fees to be incorporated in EGM proceedings that will take place electronically

The Executive is confident that the proposed consolidation will translate into a more streamlined, collaborative and cooperative operating environment for WYSE Travel Confederation. Improved efficiency combined with increased resources will create opportunity for the organisation to deliver new programmes that will generate additional revenue streams, which will in turn be re‐invested into the support and development of members and their sector specific interests.


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IntroductionWYSE Travel Confederation plays a critical role within the fabric of the youth travel landscape and is dedicated

to developing and delivering opportunities for the global youth, student and educational travel industry. The

Confederation is also recognized for its commitment to positioning and advocating youth travel as a catalyst

for economic growth for destinations around the world and for encouraging governments to develop

strategies that aim to increase youth mobility and cultural awareness.

However, like most organisations and businesses around the world, membership associations are being re‐

shaped by disruptive economies, with recruitment and retention becoming increasingly challenging and

competitive. Whilst the Confederation has for decades enjoyed being the only association representing the

global industry, it is becoming difficult for the organisation to retain dominance within the marketplace

because members and the wider industry are able to access market intelligence and trading opportunities

from a variety of sources. Furthermore, often membership fees are scrutinised against measureable

investments and viewed as discretionary expenditure, with product development, marketing and operations

prioritised over membership dues.

In order to retain a strong competitive position the Confederation needs to demonstrate and deliver increased

value to its members, build on its advantages and develop new and innovative programmes and initiatives that

retain and attract new members worldwide, create additional revenue streams to ultimately ensure

sustainability of the organisation.

Transforming a membership organisation such as WYSE Travel Confederation, which is founded on a complex

governing and membership structure is not an easy task. It can be tempting to be conservative and protect

what has historically been in place by maintaining a traditional approach to operations and delivery of member

services. However, arguably this is a risky approach and may result in the organisation ending up in a state of

increasing irrelevance to all but the most passionate and supportive members.


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Background

TheevolutionandchallengesfacingWYSETravelConfederation

The founding organisations of WYSE Travel Confederation, FIYTO and the ISTC, were formed just after World

War II to help remove cultural barriers and inspire young people through international travel. WYSE Travel

Confederation was established in 2006 following a merger of ISTC and FIYTO to create a more unified

organisation representing the youth travel sector.

WYSE Travel Confederation is also representative of a range of sector associations that provide specialised

support to its members. To this date, there are seven sector associations under the Confederation’s umbrella,

including STAYWYSE, WYSE Work and Volunteer Abroad, IAPA and IASIS. SATA and ISTC are dormant

associations and ISIC a self‐managing member. Management agreements have been in place with STAYWYSE,

WWVA and IAPA since 2013, with ISIC remaining operationally independent. All these Associations are

deemed to be Founding Sector Associations. Study WYSE is not constituted as an association, but acts with an

advisory panel.

Following the establishment of WYSE Travel Confederation, reasonable progress was achieved between 2006

and 2009, but it was becoming apparent that the organization was starting to face increased financial strain

and becoming more reliant on substantial funding support from ISIC to sustain operations.

WYSE Travel Confederation was further challenged when two sector associations decided to split away from

the main Confederation. The first to become independent was ALTO in 2010, followed by ISIC at the end of

2011. This situation was partially addressed in 2012 with a change to the governance structure that saw the

dissolving of the 26 person Congress that was replaced with an Executive Board of seven members made up

from a combination of members and sector association representatives.

In early 2012 three of the main remaining associations also made provision to break away. However, with the

appointment of a new Executive team in 2013, the Confederation’s operating environment and sector

association partnerships started to stabilize.

Currentstatus

WYSE Travel Confederation has invested considerable time and effort in raising awareness of the organisation

and its role at government level and wider industry. A range of profitable partnerships and alliances have

been secured predominately as a result of a successful WYSTC in Dublin, the Confederation’s presence at ITB

Berlin and WTM and the delivery of WETM‐IAC in London and Lisbon.

Although WYSE has benefited significantly from the success of these events and increased exposure of the

organisation over the past two years, the Confederation is currently facing a steady decline in membership,

with recruitment and retention becoming increasingly challenging.

With current human resources working at maximum capacity there is limited ability to expand and enhance

the existing member benefits portfolio to help address membership decline. So, it is clear the Confederation

needs to change its organisational framework in order to achieve membership growth and ultimately

sustainability.


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Wheretofromhere?

Based on both internal and external influences currently challenging the organisation, WYSE Travel

Confederation is at a crossroads and without change the Confederation may struggle to continue its existence

beyond another two years.

As a first step, we need to look inward and ensure we are operationally and financially stable and secure. With

a solid foundation, we are equipped to take on external challenges, address and remove impediments for

growth and importantly seize opportunities that will not only see the organisation prosper, but will also

enhance our members by delivering new valuable business development tools.

WYSE Travel Confederation needs to be ambitious and take vision‐driven action to drive a strategic

transformation that will strengthen the organisation and at the heart of this; deliver increased value to existing

and potential members within the youth travel industry.

We must ensure premier services and benefits are accessible, we must increase engagement at all levels of the

industry, be at the forefront of industry debates and we must look outside the box in terms of strategic

partnerships and funding opportunities.

Executive management proposes a strategic transformation that involves a consolidation of the Sector

Associations into the main Confederation. This amalgamation will unlock the WYSE Travel Confederation’s

potential to evolve to a more financially and operationally efficient membership association. One that will be

armed to continue to successfully deliver existing programs as well as new, innovative initiatives and services

that will engage and retain members attract new constituents and partners and generate on‐going revenue

streams.

It is time for WYSE Travel Confederation and the Sector Associations,

along with the wider member community to recognise that there is a

shared responsibility and opportunity to shape and develop a

reinvigorated Confederation by working collaboratively on the

challenges and opportunities that lie ahead.


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To contribute to the personal and professional growth of students and young people and positively impact our global community by fostering international understanding,

responsible international travel, cultural exchange and education”.

Proposedconsolidation

Aimsandobjectives

The purpose of this report is to examine the current inter‐relationships between the Confederation and the

sector associations, the financial health and operating structure and importantly provide calculated solutions

that will result in the organization becoming more operationally streamlined, aligned with industry needs and

securely position WYSE Travel Confederation as the leading membership association servicing the global youth

travel industry.

This analysis has been prepared in order for the WYSE Travel Executive Board to make an informed and unified

decision about the future of the Confederation and Sector Associations at the upcoming Executive Board

meeting in Amsterdam 18‐19 June 2015.

Pending a decision to pursue the proposed consolidation, the proposal will be presented to WYSE Travel

Confederation and Sector Association members at the Confederation’s annual general meeting in September

2015 in Cape Town.

Considerations

CoreOrganisationalPillarsProviding specialist industry support to a worldwide community of youth and student travel organisations and

businesses, the WYSE Travel Confederation’s vision and mission is underpinned by four core, strategic pillars

that provide the foundation on which the organisation builds its focus, relevance and delivers value to its

members.

It is necessary to incorporate the following strategic themes when considering the future direction of WYSE

Travel Confederation, as it will help bridge the strategy‐to‐execution of the proposed consolidation.

Business

development

platforms

Research and

insights

Industry

education

Policy and

advocacy support


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Strategicpriorities There are a number of strategic questions that have been identified and should be taken into account when shaping the proposed transformation strategy:

1. How can WYSE increase its profile, reputation and relevance within the global youth travel industry? 2. How does WYSE evolve to a strong, competitive and sustainable membership organisation? 3. What are the needs of existing and potential members? 4. Where are the gaps between current provision of benefits and services and member/industry needs? 5. How do we clearly define and communicate the membership proposition? 6. What opportunities exist to create additional revenue streams that will improve the financial position

of WYSE Travel Confederation?

GovernanceandorganisationalstructureThe governance, organisational structure, financial position and accounting process currently in place with

regards to WYSE and the Sector Associations are factors of relative concern. Not only as a catalyst for change,

but also areas that need to be carefully addressed within the proposed consolidation structure.

CurrentGovernanceStructure The following provides an overview of the existing structure of the WYSE Travel Confederation and Sector Associations:

Executive Board

The Executive Board consists of seven people, including three members from the membership at large and

four members directly appointed from the Sector Associations. Executive Board members serve a three year

term and elections to re‐elect board members, or to elect new board members, take place at the Annual

General Meeting that is held at WYSTC.

Finance and Audit Committee

The Finance and Audit committee is made up of one Executive Board member, one member at large voted as

Chairperson of the Finance and Audit Committee and one independent professional, who has audit skills and

acts as in an advisory capacity.

Sector Associations

Each sector association has a governing board with members voted on to the board via their respective annual

general meetings. Except for StudyWYSE, the sector associations also have individual constitutions that guide

operations and their respective strategies. Appendix A provides an overview of their respective compositions.


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Each of the sector associations is unique in its own right and whilst they serve the needs of individual industry

sectors, they collectively are striving towards one common goal; to facilitate the growth and development of

the overall youth travel sector. For an overview of each sector association, please refer to Appendix B.

Governancestructureinfographic


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CurrentfinancialstatusoftheSectorAssociations

Another important aspect that has been considered is the financial status of the various Sector Associations.

As at 15 May 2015 the following provides a financial health‐check:

Association Projected profit for 2015

Cash reserves (0000’s)

Cash due from other Associations (0000’s)

Cash due to other Associations (0000’s)

STAY WYSE (€8,000) €0 €0 €0

WWVA (€2,100) €27,000 €123,000 €2,200

IAPA €3,000 €150,000 €19,000 €0

IASIS €30,000 €0.00 €64,000 €26,000

ISTC (€40,000) €412,000 €1,400,000 €30,000

SATA (€10,000) €200,000 €0 €0

Please note, the above figures are based upon Budgets for 2015, Intergroup Balances in 2014 and approximate

current bank account balances.


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ConsolidationoftheSectorAssociationswithWYSE

BenefitsThe following overarching benefits of the proposed consolidation include:

1. Increased capacity to deliver ‐ leveraging combined resources

2. Improved member servicing ‐ reducing the layers of governance and associated legal

requirements

3. Economies of scale – maximizing internal efficiencies

4. Increased relevance and value ‐ empowering the Confederation

5. Increased access and ROI for members – providing a compelling membership proposition

Reducinglayersofgovernanceandassociatedlegalrequirements

Whilst the importance of governance of is not by any means discounted, one of the fundamental factors that

will help support the Confederation’s capacity to achieve sustainability is the creation of a new governance

structure that will remove inefficiencies. The new proposed structure will still facilitate a framework that will

ensure all fiscal and directional control is retained, enhanced and governed by an engaged board of non‐

executive directors.

Based on the current structure, if a comment or stance is required it can take several days to get the boards

together to obtain approval before action can be taken. A more streamlined composition of the organisation

will enable the Confederation to be in a position to respond efficiently and effectively to policy issues or

industry opportunities and represent its members proactively.

In addition, governance of WYSE Travel Confederation and the sector associations is costly and

administratively heavy. To reduce the governance requirements and the associated cost overheads it is

proposed that the existing sector associations are dissolved, folded or parked as appropriate and depending

upon their board and members’ directive.

The Executive believes that the consolidation of the Sector Associations with the main Confederation will

create a more transparent and favourable environment and position for the Confederation to address the

needs and challenges and deliver a strong membership proposition to our members in 2016 and beyond.

SectorAssociationBrandsThe sector association brands would be maintained due to their recognition within the industry and valuable

focus they would provide for both the Confederation and the membership. The proposed consolidation

process would see the sector association boards replaced with advisory panels that are addressed as follows.


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NewproposedGovernanceStructureTo ensure complete transparency of the Confederation, the following governance structure is proposed:

TermsofreferenceMembers via the AGM, which constitutes the highest authority for WYSE Travel Confederation, will elect the

Executive Board and Advisory Panels. The below provides a Terms of Reference for the Executive Board and

its sub‐committees.

ExecutiveBoardThe Executive Board will continue to play an important role in providing strategic advice to the Confederation,

ensuring “quality control” of deliverables and monitoring of financial diligence and viability of initiatives.

To ensure the consolidation transitions smoothly and to maintain continuity, it is proposed that existing

members of the Executive Board maintain their respective positions in 2016 by extending all current tenures

by one year.

The proposed new composition of WYSE Travel Confederation Board is the following:

The Executive Board will comprise of up to seven members to serve for three‐year periods. If the

board make up is less than seven, this will not inhibit the function of the board.

A board member can only serve a maximum of two consecutive periods and must step down at the

conclusion of these periods for at least two years before eligible to stand for election again.

The maximum period a member can serve on aggregate on the Executive Board is 12 years.

The term of service will be aligned with the membership year.

The period between the AGM and the end of the membership year will be utilised as a familiarisation

period for new Board members.

The Board will include three members who are drawn from the membership at large. One of these

three will stand for and be appointed as the Chairperson of the Finance Committee. These seats will be

decided by secret ballot at the AGM.

To be eligible to stand for election for an Executive Board position the member is required to have

completed a minimum of two full years of membership of WYSE Travel Confederation. In certain cases

where a member can provide valuable contribution to the Confederation and does not have the

required length of membership and wishes to stand for election then their circumstances can be

deliberated by the Executive Board and approved.


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FinanceandAuditCommitteeThe Finance and Audit Committee will be appointed as an official sub section of the Executive Board and will

have the delegated authority to guide and approve the financial matters of the Confederation, which will then

be reported back to the Main Board for ratification. This Committee will comprise of:

1. The Chairperson of the Executive Board

2. The Chairperson of the Finance and Audit Committee

3. One independent person who must have professional accountancy or auditing status and is appointed

for a period of three years in an honorary capacity. This person will have a vote on the Finance and

Audit Committee, but will not have a vote on the main Board.

4. This committee will meet at least quarterly to review the accounts and budgets and to authorise

expenditures outside of the approved budgets

AdvisoryPanelrepresentationontheExecutiveBoardIt is envisaged that WYSE Travel Confederation would establish the following industry Advisory Panels 1

January 2016:

1. Accommodation

2. Work or cultural exchange and volunteering

3. Insurance and travel safety/ child protection

4. Language and study abroad

The above industry sectors will be represented on the Executive Board, via the following composition:

ThevariousindustrysectorswillberepresentedontheExecutiveBoard,viathefollowingcomposition:

a) The Chairpersons of the Advisory Panels will fill the remaining four positions on the Executive Board.

b) These positions will be appointed via secret ballot at the AGM and eligibility to vote and stand is

defined further in the document.

c) In the event there are more than four Advisory Panels in existence, the top four panels by votes will be

eligible to take a seat on the Executive Board.

d) The Executive Board can appoint the Chairpersons of the remaining Advisory Panels who did not gain a

place, to join the Board in an advisory/ non‐voting capacity.

e) In September 2016, members of WYSE Travel Confederation will elect new members to Executive

Board and the Advisory Panels for 2017.

f) In 2016, the existing Sector Association Chairperson and board would transition to the Advisory Panel.

Following elections at the AGM in September 2016, a new Chairperson would be elected by the

Advisory Panel to serve the remaining two years of the three‐year term.


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AdvisoryPanels–TermsofReferenceThe following provides an overview of the proposed structure of the panels:

Each of these sectors will have an Advisory Panel comprised of up to four people appointed from the

WYSE Travel Confederation membership.

One of the panel members will be elected by the remainder of the panel as Chairperson and will also

serve as the sector representative on the Executive Board. The term of appointment for the

Chairperson will be three years.

If required, each Advisory Panel has the ability to co‐opt non‐member industry experts to the Panel.

Co‐opted panel members will not have access to WYSE Travel Confederation member benefits or the

ability to vote on WYSE matters.

VotingsystemforAdvisoryPanels–IndustrySectorPreferenceTo ensure WYSE Travel Confederation members with sector specific interest/s are adequately represented via

the Executive Board, members will have the opportunity to vote members on to the various Advisory Panels.

This will ensure, each core sector has a voice on the Board and relevant and valuable initiatives and

opportunities are designed and delivered. The following provides the proposed system;

To be eligible to stand for election for a position or to have the right to vote on an advisory panel

position each WYSE Travel Confederation member will, upon joining the Confederation declare their

Industry Sector Preference (ISP)

Each member can be assigned to up to two ISP’s and will have the opportunity to vote for the member

at large and for Advisory Panel members to which ISP they are assigned.

Members will have access to the entire suite of WYSE Travel Confederation benefits and services. The

restriction is only applicable to the voting of sector specific Advisory Panel positions.

All members can access reports and benefits from any ISP as they wish.

During January to March of each membership year, members may alter their ISP if they so wish

provided that it is clear that they operate within that sector.

If a member’s business changes significantly the member may apply to have their ISP changed.

The ISP of all new members and of those members wishing to change will be subject to approval by

the Executive Board.


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IndustryAdvisoryPanels–newstructuretosupportmembersA fundamental goal of the consolidation is the commitment to create a stronger and more relevant

organisation, one that can support the growth and development of the global youth travel industry in an

increasingly competitive marketplace.

A membership organisation whereby a broad cross‐section of sector needs are serviced through an enhanced

and holistic suite of programs and services and can leverage a ‘one voice’ approach delivered by a cohesive

organisation.

AimsandobjectivesThebroadaimsandobjectivesoftheWYSETravelConfederationadvisorypanelsareto:

BuilduponthelegacyandachievementsoftheexistingSectorAssociations Focusonstrengtheningmembersthroughthedeliveryofspecialisedsectordevelopment Deliverbusinessdevelopmentprogrammessurroundingtrading,researchandeducation. Providestrategicadviceonissues,opportunitiesandpoliciesthatdirectlyrelateandareof

significancetoeachofthesectorstheadvisorypanelsrepresent Providesectorspecificadvocacyandrepresentationsupport. Deliveraholistic,valuableandcost‐effectivemembershipexperience.

SectorAssociationBuy‐inBased on consultation with the various Sector Association Boards, both WYSE Work & Volunteer Abroad and

STAYWYSE have indicated preliminary support and buy‐in of the proposed consolidation. The following

outlines the current position of the other Sector Associations as at 10 June 2015.

International Association of Student Insurance Services

IASIS has after careful consideration opted to remain independent from the merger, but will continue to have

close affiliation and collaborate with the new Confederation in 2016 and beyond. One of the main reasons

behind this decision is that IASIS operates more like a commercial business, promoting and selling products to

youth travellers, rather than a membership association. WYSE Travel Confederation appreciates the position

of IASIS and will continue to partner on opportunities and initiatives as they arise.

International Au‐Pair Association

IAPA is a very unique association, providing specialist services solely relating to the Au‐Pair industry, following consultation between the IAPA Board and Executive Board, IAPA has decided to also remain as an independent

association, potentially contracting the services of WYSE Travel Confederation to manage operations. IAPA

understands the concept and value of the proposed consolidation and has requested to re‐visit the

opportunity in early 2016, with a possible member vote on the matter at the AGM in March. IAPA are also

open to and considering all options.


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HowwilltheAdvisoryPanelswork?At the heart of the Advisory Panels will be the interests and needs of the Confederation’s members. Each

advisory panel would be adapted according to the sector it represents, serve as a reciprocal channel to the

industry and provide WYSE with information and guidance on trends, issues and business development

opportunities relating to the various industry sectors.

As a first step, the anticipated sectors would be represented within the Confederation via Advisory Panels as

per below. However, as the organisation progresses and member/industry demand, additional Advisory

Panels would be included in the portfolio.

1. Accommodation

2. Work and cultural exchange/ Volunteering

3. Insurance and travel safety/ child protection

4. Language and study abroad

FormationofAdvisoryPanelsAdvisory Panels can be formed where a need is identified and verified as being an essential part of the youth

and student market place. The formation of an Advisory Panel can be initiated based on:

Member demand

Market demand

Recommendation by the Executive Management

Prior to forming an Advisory Panel, it must be ratified by the Executive Board. The Executive Board will

consider the viability of a Panel, the potential longevity and the value it can bring to the industry in terms of

representation and to the Confederation in terms of membership.

Subsequently, the Panel consist of invited members who will hold temporary positions until the next AGM at

which point they can stand for formal election as previously outlined.

Governance

Whilst the consolidation would result in a one‐membership approach and provide a holistic value proposition,

it will be important to establish a governance structure of the advisory panels that ensures member needs are

met and valuable and relevant business development opportunities are provided.

The figure below demonstrates the proposed reporting structure and positioning of the advisory panels within

the Confederation.


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Industry Specialists

The establishment of the Advisory Panels will also require the Executive to engage a team of highly skilled and

experienced experts that are supported by the industry advisory panels. The Industry Specialists must have

specialist skills and experience (sector insights, policy, industry development) appropriate for the respective

AP. The Industry Specialist would have the responsibility (in consultation with the AP) to develop an annual

strategic action plan, with associated KPI’s and budgets (that are inline with the Confederation’s strategic plan)

to be approved by executive management and endorsed by the Executive Board.

Advisory Panel Meetings logistics

As a norm, AP’s would have between 1‐2 face‐to‐face meetings (in conjunction with WYSTC and an additional

trade event that is attended by the majority of AP members i.e. WETM, WTM or ITB), with between 3‐4 virtual

meetings per year. Formal Minutes would not be taken. However, key outcomes and action items would be

noted and distributed as a summary to AP members by the AP Manager. AP Chairperson and AP Manager

would present to the Board bi‐annually (present strategy at the beginning of the year and KPI’s at the

conclusion of the calendar year) and the Industry Specialist would also provide a report on activities to the

membership at the AGM.

Reducinginternalcostsandprocedures

AccountingstructureOver the years, the accounting structure and procedures WYSE Travel Confederation has used has become

time consuming and complicated. Evidence also suggests that the current accounting structure is becoming an

increasingly financial liability to the organization. Please refer to Appendix C for an outline of the current

accounting structure.

OperatingcostsEach sector association has significant costs that are currently subsidised by the members as part of the

membership fees. Each association also has a management cost which is payable to WYSE Travel

Confederation and is between €60.000 and €90.000 per annum, with the following additional costs:

Although covered by the management fee, accountancy costs to the whole organisation is estimated to

€50,000 more than it needs to be.

Item Approximate cost

Audit and legal costs €2500

Bank charges €1500

Website €2500

Marketing costs Circa €5000

International representation and conferences

Circa €5000


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HumanresourcesandgeneraladministrationCurrently of the 15 staff employed by the Confederation, only six are member‐facing, with the rest being

required to provide administration for:

Board meeting set up, agendas and minutes and other association administration

Invoicing and debt collection

Membership application process, resignations, disaffiliations and other administration

Accountancy services

A consolidation of accounting procedures will not only simplify the process, but also create significant

economies of scale to the organisation as a whole and ultimately ensure more resources are focussed on

member servicing and delivery of benefits.

ProposednewaccountingstructureThe current Danish/ Dutch accounting structure is no longer tax efficient as the Confederation is not making

surpluses in the way that it was in the past. It will be more cost effective to incorporate a new Dutch not for

profit company to handle the operations.

Appendix D highlights the proposed new accounting structure.

Keyrecommendations–Consolidation

Based on the findings within this report and consultation with the Executive Board, the WYSE Travel Confederation

Executive Board is requested to support Executive Management’s recommendations to:

1. Dissolve or otherwise make dormant the existing Sector Associations as deemed appropriate and

confirmed by the Association members.

2. Consolidate strategic objectives of SA’s and WYSE Travel Confederation to create one, unified voice of on

behalf of the youth travel industry

3. Dissolve existing debts currently owed to the Sector Associations by WYSE

4. Roll‐over all existing funds to the Confederation, governed by the Executive Board via an Audit & Finance

Committee.

5. Establish industry advisory panels to service sector specific needs, empowered by members and managed

by sector experts.

6. Present proposed consolidation initiative to members at WYSE Travel Confederation AGM in September,

with formal decision to be taken by members at an EGM in November 2015.


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Membership

Trends–WYSETravelConfederationandSectorAssociationsIt is commonly accepted that membership retention is the largest problem facing most membership

organisations, regardless of the industry they represent. It’s not a revolutionary problem, yet it appears to be

a continual struggle for most membership organisations.

An important aspect to take into consideration and one that is a key driver to the proposed consolidation; is a

holistic overview of the WYSE Travel Confederation’s membership base and how it has been trending over the

last few years.

In terms of Confederation membership alone, in the last four years, numbers peaked in 2011 with 558

members worldwide and since then, attrition has been on a downward trend, with membership sitting at 469

year ending 2014 and as at 15 May 2015, 447.

Each year sees a loss of around 40 – 50 members and the recruitment of 20 – 30 new members. Membership

sales are hampered by the complicated membership options.

In terms of the various sector associations, excluding IAPA, a membership decline has also been experienced.

IASIS does not have memberships in the same format as WYSE. Please refer to Appendix E for an overview of

membership trends.

As membership is one of the core revenue streams for the Confederation and Sector Associations, the decline

must be addressed.

Structureandfees

Currently the membership model of WYSE Travel Confederation is very complex with multiple points of entry

for prospective members and is often quite confusing both in terms of which category is most relevant and

what the return on investment is.

Compounding the complexity is the availability of the range of sector association memberships, with many

businesses members of both WYSE Travel Confederation and one or more sector associations.

At present, businesses are required to join WYSE Travel Confederation before they can join a sector

association (except for IAPA). As a result, some prospective members can simply not afford more than one

membership and as a result misses out on the full benefits WYSE can offer.

The membership sales process is often a challenge as the “sales pitch” becomes complicated and unclear, with

the outcome revolving back to unaffordability and the question of value. Please refer to Appendix F for a

detailed overview of the current membership structure.


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Proposednewmembershipstructureandfees

To support a transition to a more invigorated and empowered Confederation, it is critical to have a supportive

membership structure that can help the organisation adjust to new business realities, become more market

driven and ultimately achieve membership growth.

Given the challenges facing the current membership mechanism, the aim with the proposed new membership

model is to:

Offer a compelling value proposition

Simplify the structure

Offer accessible entry points according to needs and size of business

Open up sector specific benefits and services through one membership

Streamline the membership sales process enabling quicker conversion

For detailed information, please refer to Appendix G.

Membershipratinginstrument/mechanism

WYSE Travel Confederation takes the reputation of the organisation and its members seriously and along with

the respective Sector Associations played an important role in the quality assurance of its members. Becoming

a WYSE or SA member is not a simple process, with each new member required to provide substantial business

information and referees to support their applications. Following the potential implementation of a new

membership structure, the Executive will design and introduce a quality orientated ratings instrument in

consultation with the Executive Board. It is envisioned that this mechanism will rate members on the following

items:

The provision of key documentation

Self‐certification

Test phone call or other correspondence

Face to face meetings with WYSE staff

WYSTC attendance

Consumer feedback

Keyrecommendations‐Membership

Based on the proposed membership model with associated benefits and services and SWOT matrix presented within

this paper, the Executive Board is requested to:

1. Support the introduction of the proposed membership structure and associated fees 1 January 2017. Current

members maintained on existing fees for the duration of 2016 and new membership fees applied to any new members

recruited from 1 January2016.

2. Approve the distribution of details outlining the proposed membership structure and fees to members as part

of AGM papers.

3. Proposed membership structure and associated fees to be incorporated in EGM proceedings


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Financialprojections

Based upon the existing cost base, the following projection has been done to examine the level of membership

required to support the Confederation.

Membershipnumbersrequired

Membership Type Acronym 2012 2013 2014 2015 2016Number of

Members

Growth

required

Total

Membership Fee

Full Member, Category 1 CAT 1 57 53 55 63 400€ 63 ‐ 25,200€

Full Member, Category 2 CAT 2 220 214 220 230 1,550€ 230 356,500€

Full Member, Category 3 CAT 3 8 6 6 4 6,500€ 4 ‐ 26,000€

Full Member, STAY WYSE 1‐100 Beds CAT 1 + S 14 10 12 9 100€ 9 ‐ 900€

Full Member, IAPA FULL subsidised*** CAT 1 + I 1 116 112 170 ‐€ ‐€

OTO, NTA, NTO Member OTO 13 13 15 11 750€ 11 ‐ 8,250€

NGO Member NGO 11 18 20 10 750€ 10 ‐ 7,500€

Service Partners Service 13 12 12 11 1,600€ 11 ‐ 17,600€

Full Member, Category 2 subsidised CAT 2S 15 15 15 17 ‐€ 17 ‐ ‐€

Full Member, Category 3 subsidised CAT 3S 8 19 19 21 ‐€ 21 ‐ ‐€

Full Member, Contra Partnership SPEC / REP 13 ‐ ‐ ‐€ ‐ ‐ ‐€

Study WYSE ‐ ‐ ‐ 31 250€ 31 ‐ 7,750€

Student ‐ ‐ ‐ ‐ 50€ 10 10 500€

Associate ‐ ‐ ‐ ‐ 200€ 30 30 6,000€

WWVA Full 1 400€ 40 16,000€

WWVA Full 2 750€ 30 22,500€

WWVA Full 3 1,200€ 12 14,400€

WWVA Full 4 1,700€ 6 10,200€

SW 50 225€ 7 1,575€

SW 50‐100 325€ 10 3,250€

SW100‐200 425€ 3 1,275€

SW200‐1000 600€ 18 10,800€

SW1000‐5000 120€ 2 240€

SW5000 5,000€ 1 5,000€

AFF 700€ 10 7,000€

Booking engine 5,000€ 1 5,000€

OTO 600€ 1 600€

(New) ‐ ‐ ‐ ‐ ‐€ ‐ ‐ ‐€

373 476 486 577 588 40 554,040€

Member Numbers Projected members and prices


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Projectedbudgetfor2016

This projection is based upon the achieving the above membership numbers whilst retaining the same cost

base as in the existing organisation.

Financial forecast 2016 - new structure

CONFEDERATION INCOME1A Confederation Membership Fees 554,040€

1B Association Membership Fees -€

1C Sector Association Management fees 45,000€

1D Other income ITB 12,000€

1D Income from WYSE Research 12,000€

1D -€

TOTAL CONFEDERATION INCOME 623,040€

BUSINESS UNIT RESULTS1E

1E Results from STUDYWyse Activities -€

1E Result from WYSTC Annual Conference income 395,000€

1E Result from WETM Annual Conference income 40,000€

TOTAL BUSINESS UNIT RESULTS 435,000€

TOTAL REVENUES 1,058,040€

OPERATING EXPENSES BudgetTOTAL OPERATING EXPENSES 80,000€

ADMINISTRATIVE EXPENSES BudgetTOTAL ADMINISTRATIVE EXPENSES 956,724€

DEPRECIATION AND FINANCIAL COSTS Budget

2D Depreciation 900€

TOTAL DEPRECIATION AND FINANCIAL COSTS 900€

TOTAL COSTS 1,037,624€

RESULT BEFORE FINANCIALS 20,416€


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Commentsandassumptionsonthefinancialmodel.As part of the producing the financial projections outlined above, we have looked at the general effect of the

changes in membership pricing and an alteration in WYSTC discount to look at the number of members who

are affected either positively or negatively.

We have had to make a number of assumptions to achieve this.

1. We maintain the existing level of membership

2. The price of WYSTC increases across the aboard by €100

3. We don’t sell any new memberships

Status Quo

If all members stay at the current level of WYSE membership then 173 organisations will be better off and 141

members will remain the same. The Confederation will have a financial hole of €126,650 to bridge.

Projection proposal

The optimum pricing structure is as below:

Starter Associate Full member Service NTB/OTO Elite Member Association

Annual fee € 400 € 600 € 1,550 € 2,000 € 750 € 6,500 € 750

WYSTC discount € 100 € 300 € 600 € 800 € 300 € 1,000 € 300

In this scenario, 182 organisations will be on average €453 better off and 132 organisations will be on average

€382 worse off. The financial hole for WYSE will be reduced to around €20,000 which can be covered through

selling new memberships, enhancing the profitability of WYSTC and in cost cutting.

What type of members gain?

Those who have multiple memberships and/or

Attend WYSTC with multiple delegates on a CAT2+ membership

What type of members are worse off?

WYSE CAT 2 ONLY members who do attend WYSTC.

20 CAT 1 & OTOs who attend WYSTC – as they will no longer get the full WYSTC discount.

(These members pay less for their membership than the value of the WYSTC discount which

we can no longer afford to subsidise. There is a risk that they can’t afford to come to WYSTC in

the future– that could mean that we lose up to 32 delegates.

Interesting statistics

Members who stand to be €1000 or more better off with the new membership system, tend to bring on

average 3 delegates to WYSTC.

Members who lose out with the new membership system tend to bring on average 0.7 delegates to WYSTC.


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StrategicActionPlan‐Boardapprovalandmemberengagementprocess

The following provides a critical path relating to the implementation of the restructure proposal and approval

process:

Action Start date Deadline Duration Business Days

Responsible

Distribute revised proposal 10 July 10 July 1 day DC

Executive Board to review updated proposal

10 July 15 July 4 days Executive Board

Board sign‐off as per final proposal:

Organisation structure

Membership structure

Accounts structure

15 July 15 July 1 days Executive Board

Development of member communiqué incorporating proposed restructure

9 July 15 July 5 days JW/DC

Design member communiqué 15 July 18 July 3 days Marketing

Distribution of member communication to Executive Board

10 July 10 July 1 day DC

Revision and finalisation of member communiqué

16 July 20 July 3 days JW/DC/marketing

Circulate communiqué to members with AGM papers

21 July 21 July 1 day WYSE

Outreach and consultation with members to gain buy‐in from keys stakeholders

22 July 18 Sept Approx. 2mths WYSE Executive team and Board

Present proposal in detail at WYSE AGM, Cape Town

22 Sept 22 Sept 1 day DC

Revise and re‐write WYSE Constitution to reflect new structure

28 Sept 12 Oct 11 days External constitution specialist

Distribute EGM papers October End October

WYSE

Hold EGM 30 Nov 30 Nov 1 day WYSE


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StrategicActionPlan–aroadmapfortheconsolidationandimplementationofnewmembershipmodel

Based on a successful EGM whereby there is a majority vote to proceed with the restructure, the following

outlines a broad strategic action plan with an approximate timeline:

Objectives Strategy Key Actions Approx. delivery timeframe

Who

Ensure members and wider industry are informed of EGM results

Publish EGM results to members

Develop and implement comms strategy in advance.

Mid Dec DC/MarComms

Ensure WYSE is a strategic and relevant membership organisation servicing the global youth travel industry

Develop a 2016 Strategic Action Plan that incorporates and offers a portfolio of benefits and services that is aligned with vision and mission of WYSE, new structure and member needs

Hold strategic planning session with Executive team

Consultation with Executive Board

Finalisation of strategy

Dec DC

Ensure members and wider industry are informed of new structure and membership proposition

Launch a comprehensive sales and marketing campaign to promote the new organisation and membership structure to existing members and wider industry

Design marketing and PR strategy

Dec MarComms

Ensure optimum member recruitment and retention is achieved

Develop Membership Recruitment framework that provides the relevant tools to leverage the new model and effectively attract new members

Develop member prospectus

Launch prospectus and activate aggressive sales campaign

Dec Jan and ongoing

Executive/membership

Ensure the interests and needs of the various industry sectors are fulfilled

Establish Advisory Panels Establish Terms of Reference for the AP’s

Invite existing SA Board members to sit on AP’s

Source and secure SA Managers

Develop strategic framework for respective Advisory Panels

Dec‐Jan DC & JW

Ensure strategic objectives of the organisation are achieved

Conduct a mid‐year assessment of KPI’s to determine gaps and alternate strategies required to achieve successful outcomes

Prepare progress report for Executive Board

Executive Board review

Develop alternate strategies of required

June 2016 DC & Executive Board

All dates are approximate and preparation will be started after the WYSTC AGM


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APPENDICES

APPENDIXA–SectorAssociationcomposition

Sector Association Members Roles

IAPA 4 1 Chairperson

1 Treasurer

2 additional IAPA members

WWVA 6 1 Chairperson

1 Treasurer

? additional WWVA members

IASIS 4 1 Chairperson

3 additional IASIS members

STAYWYSE 5 1 Chairperson

1 Treasurer

3 additional STAYWYSE members, one of which is a permanent seat awarded to Hostelling International

ISTC 3 1 Chairperson

2 additional ISTC members

SATA 5 1 Chairperson

4 other members

ISIC 11 1 Chairperson

9 additional ISIC issuers Study WYSE Study WYSE is an advisory panel with no constituted

board or association


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APPENDIXB–Theroleofthesectorassociations

International Au Pair Association (IAPA)

IAPA was founded by leading au pair organizations in 1994 and has more than 170 member organizations in 45

countries worldwide. One of the primary objectives of IAPA is to promote au pair programmes among young

people throughout the world in order to both assist in the development of friendly, peaceful relations and

strengthen cultural ties between nations. The aims and objectives of IAPA are to:

Promote au pair programmes among young people throughout the world in order to both assist in the

development of friendly, peaceful relations and strengthen cultural ties between nations.

Secure mutual understanding and co‐operation between all members of the Association in via access

to conferences, seminars, exchange of literature and information.

Take such action as may be possible to assist in the development of au pair programmes in countries

where they do not exist and to encourage governments and official bodies to sanction au pair

programmes to and from their countries with the minimum of restrictions.

Lobby governments to treat au pair programmes as cultural exchange and not as work programmes so

that au pairs and their receiving host families are not subject to employment taxation.

Establish guidelines for the conduct of business between members and for the treatment of au pairs

and host families.

Increase public awareness of the professionalism of the members of the Association and to monitor

their conduct.

WYSE Work and Volunteer Abroad

WYSE Work and Volunteer Abroad is the leading global forum and trade association for all organizations

involved in work abroad and volunteer programmes. The mandate of WYSE Work and Volunteer Abroad is to

facilitate and increase international youth travel and exchange through the promotion of culturally‐oriented

work and volunteer abroad activities aimed at providing young people greater knowledge and understanding

of other cultures. WYSE Work and Volunteer Abroad supports work and volunteer abroad opportunities by:

Providing a Code Of Conduct among members, and for the treatment and protection of participants in work and volunteer abroad programmes

Assisting in the development of work abroad and volunteer programmes and encouraging governments and official bodies to facilitate these

Encouraging governments to treat work abroad and volunteer programmes as cultural exchange

Increasing public awareness of the value of culturally oriented work abroad and volunteer programmes

Promoting an International Standards Manual for Work Experience Programmes, which establishes best practices to the benefit of both participants, as well as work abroad and volunteer organizations

Networking: hosting conferences and seminars, and promoting the exchange of literature and information for members

Taking part in the Global Youth Travel Awards (GYTA) by supporting two awards: Best Work Experience

Award (previously called “Expand Your Horizons” Video Contest) and the Outstanding Volunteer

Project Award


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STAYWYSE

STAY (Safe Travel Accommodation for Youth) WYSE is an industry association to represent the entire global youth travel accommodation sector. By bringing together the diverse segments of this significant $34 billion/year industry, STAY WYSE provides much needed support and representation for one of the travel industry’s fastest growing niche markets.

The priorities for the STAY WYSE Association are to:

Create a strong profile and representative force that will encompass the needs of all youth and student accommodation service providers.

Provide PR and marketing to increase and strengthen the profile of the youth travel and student accommodation industry.

Offer members access to market and industry intelligence, statistics and analysis.

Provide networking and trading opportunities for members.

Maintain a guide to best practice on safety for youth travel & student accommodation providers

Facilitating best practice on safety

Undertake lobbying and representative activities to encourage the development of youth travel & student accommodation services in countries around the world.

Work in a consultative relationship with established youth accommodation organizations.

STUDYWYSE

Study WYSE represents the global language and study abroad community and provides its members together with WYSE Travel Confederation, a year‐round service to help optimize business opportunities for its members. Joining together higher education institutions, language travel schools, agents, university prep‐courses and all organizations in the global education travel industry; STUDY WYSE represents the entire global youth educational travel sector.

International Association of Student Insurance Services (IASIS)

The International Association of Student Insurance Services (IASIS) is a global not‐for‐profit organization and sector association of the World Youth Student & Educational (WYSE) Travel Confederation. IASIS helps to fulfill young peoples’ international travel ambitions by ensuring that a student’s appetite for adventure is not restricted by their insurance coverage. For over sixty years, IASIS has been developing flexible and affordable insurance policies that meet the unique needs of youth and student travellers, in partnership with trusted insurance companies. These policies have been specially developed for youth and student travel specialists such as: adventure tour operators, student travel agents, work abroad programmes, language schools, au pair agencies, universities, school groups, sports tours and youth hostels.

International Student Identity Card (ISIC)

The ISIC Association is the non‐profit organisation behind the International Student Identity Card (ISIC). The

ISIC card is the only internationally accepted proof of bona fide student status.

First established in 1953, the ISIC card is now issued to students in over 130 countries. The ISIC card is not

exclusive. All bona fide students over the age of 12, regardless of their nationality, race, gender or religion can

purchase an ISIC card at an affordable price. Via one single card, ISIC students gain preferential and discounted

access to products, services and experiences relevant to all aspects of student life, from software licenses and

cinema access, to bookstores, public transport, cafés and eateries.

Through the wide range of opportunities available to cardholders, the ISIC Association aims to play a

supporting role in improving intercultural understanding, increasing educational opportunities and facilitating

student life across the world. Related to this, the ISIC card has been endorsed by the United Nations

Educational, Scientific and Cultural Organization (UNESCO) since 1968.


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International Student Travel Confederation (ISTC)

The ISTC’s mission is: “to increase international understanding through the promotion of travel and exchange opportunities among students, young people and the academic community.” The International Student Travel Confederation (ISTC) is a not‐for‐profit organization, founded in 1949 by the travel departments of a group of national student unions, to explore the needs of the growing numbers of student and youth travellers. Thanks to ISTC, students, young people and teaching professionals have access to a global network of leading travel specialists, offering low priced flights, travel tickets, insurance, accommodation, work and study abroad programs as well as special deals on entertainment, sightseeing and shopping in countries all over the world.

Student Air Travel Association (SATA)

SATA is an international membership association of student travel agencies who share a commitment to provide affordable and accessible travel to young people. Recognizing that a student traveller is a unique customer niche, SATA began more than 30 years ago to provide specialized air travel products that meet young people’s unique needs.

SATA is best known for the “SATA type ticket”, a uniform flight ticket providing special fares to full‐time students and youth under 26. SATA tickets are negotiated via Ticket Acceptance Agreements between air carriers and individual SATA members.

SATA members and agents of the SATA ticket have established a distribution network of 2,500 retail outlets

worldwide. As student and youth travellers have a specific need for flexibility and often change plans or make

new ones on the road, this network ensures that they can find a SATA ticket agent almost anywhere they go.

This distribution network and level of customer service are unique and are what makes the SATA ticket so

attractive to students.


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APPENDIXC–Currentaccountingstructure


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Accountingprocess‐associatednotes:

WYSE Travel Confederation including the sector associations are constituted in Denmark as not for

profit associations.

Each constitution contains the condition that, in the event of dissolution then all remaining funds are

gifted to another not for profit entity to continue similar work to the dissolved association, or

remaining funds are gifted to WYSE Travel Confederation.

The associations are located in Denmark for taxation reasons. There is a unique gifting treaty between

the Netherlands and Denmark with allows unlimited frequency of gifting of unlimited amounts

between entities. This taxation position was very useful when the Confederation and the associations

were making surpluses each year.

As the main Confederation has commercial activities (e.g. leasing of office space and equipment as

well as the employment of staff), there is a wholly owned subsidiary called International Association

Services A/S Dutch Branch that handles these activities.

The entity handles all the commercial activities of the Confederation and the associations and is

registered for VAT. The commercial activities also include the WETM and WYSTC events.

IAS trades via Dutch bank accounts.

All commercial activity, both income and expenditure, for all association projects is channeled through

IAS, with the activity coded against each association or project. The net of VAT cost and revenue is

accounted in this way.

At the end of each financial year, a set of accounts is produced for each project and this is

consolidated with the association membership fees. As a result of the current accounting structure,

separate accounts for each association need to be generated and maintained as well as a set of

accounts for each association within IAS.

At the end of each year, there is then a tally up of the costs paid out of IAS and this should then be

reimbursed back to IAS by the association.


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APPENDIXD–Proposednewaccountingstructure

The Danish/ Dutch accounting system is no longer tax efficient and will be replaced by a single entity that can

handle membership income and trading activities in one.


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APPENDIXE–Membershiptrends2010‐2015

Year WYSE WWVA STAYWYSE STUDYWYSE IAPA IASIS

2010 532 123 46 147 151 24

2011 558 121 48 115 150 0

2012 495 116 66 66 177 20

2013 480 102 172 29 175 11

2014 470 108 221 52 180 20

2015 447 102 214 46 170 20

Membership trend graph

0

100

200

300

400

500

600

2010 2011 2012 2013 2014 2015

WYSE

WWVA

STAYWYSE

STUDYWYSE

IAPA

IASIS


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APPENDIXF–Currentmembershipstructureandfees

WYSE Travel Confederation Category Euro

Full Member, Category 1 CAT 1 € 450.00

Full Member, Category 2 CAT 2 € 1,250.00

Full Member, Category 3 CAT 3 € 6,500.00

Full Member, STAY WYSE 1‐100 Beds CAT 1 + S € 100.00

Full Member, IAPA FULL subsidised CAT 1 + I No fee

OTO, NTA, NTO Member OTO € 750.00

NGO Member NGO € 750.00

Service Partners Service € 1,800.00

IAPA

Full Voting Member FULL € 600.00

Full Non‐Voting Member FNV € 450.00

Associate Member ASS € 700.00

Affiliate Member AFF € 300.00

NGO Member NGO € 250.00

National Au Pair Association Members NAPA No fee

IASIS

Full Voting Member No fee

Issuing Agent No fee

STAY WYSE Number of beds

Accommodation provider: 1 ‐ 50 Beds one ‐ 50 € 225.00

Accommodation provider: 51 ‐ 100 Beds 51 ‐ 100 € 325.00



Accommodation provider: 1001 ‐ 5000 Beds 1001 ‐ 5000 € 1,200.00

Accommodation provider: 5000 + Beds 5000 + € 5,000.00

Booking Engine € 5,000.00

Affiliate Member AFF/Service € 700.00

Official Tourism Organisation Member OTO € 600.00

National Association NA € 100 per member

STUDY WYSE

Full Voting Member FULL € 300.00

Associate Trading Member ATM € 300.00

Associate Non‐Trading Member ANT € 300.00

WYSE Work & Volunteer Abroad Nr. Of participants

Full member 1 ‐ 500 € 400.00

Full member 2 501 ‐ 2000 € 750.00

Full member 3 2001 ‐ 6000 € 1,200.00

Full member 4 over 6000 € 1,700.00

Affiliate Member € 250.00

Associate member € 540.00

Official Tourism Organisation Member € 200.00


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APPENDIXG–Proposednewmembershipmodel Student Starter Associate Full member Service NTB/OTO Elite Member Association

NB: Upgrades must be done 6 mths prior to WYSTC if attending WYSTC

€ 75 ISIC card holders € 100 non‐ISIC

€ 400 € 600 € 1,550 € 2,000 € 750 € 6,500 € 750

NB: Downgrades can only be done after completing 1 full membership year.

Proof of Uni email Max 5 FT employees

Max 1 office/location Subsidiaries possible Subsidiaries possible Subsidiaries possible Subsidiaries possible

NB: Membership pro rata 25% per quarter after first quarter

Not available to multiple locations

Must be sender or receiver of both.

Insurance, IT, marketing, finance, consultants

City, region, government

Can be elite full member, service or OTO

Only applies to staff of association, not its members

Not rolling membership

Upgrade after 2 years

Continuous membership Continuousmembership

Continuousmembership



Continuous membership

WYSTC registration discount € 0 € 100 € 300 € 600 € 700 € 300 € 1,000 € 300

WYSTC booth discount € 0 € 0 € 100 € 400 € 400 € 400 1 FOC Medium Stand € 100

Access to Webinars No Yes Yes Yes Yes Yes Yes Yes

Access to Research reports Yes Yes Yes Yes Yes Yes Yes Yes

Logo No No only 1 possible ‐✓ Up to ✓✓✓* Up to ✓✓✓* Up to ✓✓✓* Elite up to ✓✓✓* Up to ✓✓✓*

Listed on site & WYSTC ‐ with verification tick

No No only 1 possible ‐✓ Up to ✓✓✓* Up to ✓✓✓* Up to ✓✓✓* Elite up to ✓✓✓* Up to ✓✓✓*

Letter of Support No No No Yes Yes Yes Yes Yes

ITB booth space No No Yes ‐ no discount 10% Discount 15% Discount 15% Discount FOC Yes ‐ no discount

Voting rights No No No 1 Vote No 1 Vote 2 Votes No

Board member nomination No No No Yes No Yes Yes No

Discounts to WYSE events (excluding WYSTC)

No 10% 15% 25% 25% 25% 35% 15%

Access to online member portal (trading connections)

No No No Yes Yes Yes Yes No

Ten bespoke data sets – existing data

No No No No Yes Yes Yes No

Full page advert WYSTC Trade Catalogue

No No No No No No Yes No

Research sponsor No No No No No No Yes No

Webinar sponsor No No No No No No Yes No

COMMENTS


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APPENDIXH–SWOTAnalysis:withoutchangetothecurrentorganisation

The following analysis has been undertaken to demonstrate the strengths, weaknesses, opportunities and threats if the operating environment and organisational structure remains the same:

Strengths Weaknesses

Sector associations agenda continues to service the needs of their members

The voice of WYSE will not be leveraged to its full capacity by the sector associations

Sector associations have strong, recognisable and reputable brands which can continued to be leveraged

Multiple memberships will continue to cause confusion among potential recruits for both WYSE and SA's

Members of sector associations are clear on the benefits and relevance of being a member of sector associations

Due to financial strain, WYSE administrative support to sector associations may decrease

Sector associations currently have full financial control over income and expenditure of their respective budgets and accounts

Growth of WYSE will be restricted by lack of funds and bureaucracy if consolidation of funds is not established

Sector associations have full industry insights and expertise relating to their respective sectors

WYSE will continue to be burdened by the cost and arduous accounting procedures that currently exist managing multiple accounts

The Sector Associations are in relatively good financial standing

Opportunities Threats

Continued understanding of the existing structure will not confuse members

On going financial deficit and unsustainability of WYSE may result in inability to service sector associations

Inability for WYSE to clear existing debts to sector associations may result in liquidation of WYSE, creating a significant industry development gap

Continuing with a complex, fragmented membership structure, may result in loss of members for both WYSE and Sector Associations

Without forward‐thinking/organisational change in terms of member value and benefits, sectors may lose members and relevance

Sector associations may not be able to leverage the administrative support currently provided by WYSE, due to financial strain on WYSE


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APPENDIXI–SWOTAnalysis:withaconsolidatedorganisationalstructureMembership & industry engagement

Strengths Weaknesses Solution

WYSE Travel Confederation is the only global membership organisation servicing the global youth travel industry

Consolidation will place full responsibility and pressure on WYSE to service and deliver sector specific member value

Ensure a clear strategic action plan is developed to ensure valuable, relevant and timely benefits and services are delivered

Sector interests can continue to leverage WYSE Travel Confederation's longstanding heritage as the global representative of the youth travel industry

Members with specific sector needs, issues, challenges and opportunities risk being lost if sufficient resources are not established to service

As above

One cohesive global membership organisation will create a strong message to members and wider industry that there is a reliable and credible support/advocacy mechanism

Consolidation of membership, programs and initiatives will require additional human resources

Hire sufficient resources

Consolidation of WYSE and sector associations will create a unique, relevant and competitive membership organisation that fosters industry ‐wide growth and development

Removal of formal (constitutional) processes may be perceived negatively by members

Member education necessary to gain support

Ability to streamline strategic organisational objectives to improve alignment with (sector) member needs

One membership will provide one access point to the suite of benefits and services, creating a more attractive member proposition

Opportunities Threats Solution

Opportunity to minimize areas of difference and maximise areas of common ground, again to increase membership value and relevance

Sector Association boards may perceive that the consolidation will translate to "loss of control" or feeling of uncertainty

Board consultation needs to be undertaken, full buy‐in/support prior to AGM

The ability to offer a singular, all‐encompassing membership that has an attractive pricing strategy

Membership association culture will change and can be met with resistance among existing members who have been members for a long time

A comms plan needs to be established so benefits are clearly communicated and thus fully understood by members

The member recruitment process from a human resources perspective will be simplified and more efficient ‐ one sales pitch, one recruitment process

Initiative does not receive majority vote (support) at the 2015 EGM

One‐on‐one consultation with "industry leaders/opposition" will be required to get buy‐in/support prior to AGM & EGM

Improve cross fertilisation and exchange of ideas internally which will transcend into member benefits

Potential loss of members e.g. IAPA due to higher membership fees

New membership model to be established to provide affordable membership dues

Greater financial freedom, will enable WYSE to deliver more targeted and bespoke member and sponsor benefits and services

Loss of members from sector associations due to perceived lack of sector specific focus

Again, clear messaging and education of members will be required to counteract negative mind‐set

Create one consolidated online member portal via the establishment of one website

Sector association brands may lose exposure

Retain sector association brands and educate existing members and industry they will remain important and strong sub‐brands of WYSE

Consolidation of member communications, creates a more powerful voice

May take time for SA members to have confidence in new structure and recognise benefits

As above

Opportunity to create one consolidated strategic plan, with shared vision, goals and objectives

Establish advisory panels to continue to service the needs of the various sectors

To continue to grow the Confederation's intelligence network within industry


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Finance, strategy, administration & resources

Strengths Weaknesses Solution Consolidation will have a positive impact on the Confederation's financial standing through the increase of member assets ‐ supporting financial sustainability

Consolidation will remove the Sector Association Board's financial governance of existing funds

Establish internal financial control mechanism to satisfy due diligence

Sector interests via Advisory Panels will benefit from existing WYSE administrative support (research, events, policy and marketing)

Removal of Association Boards and transitioning to advisory panels will reduce the formal governance of programs and initiatives

Establish detailed strategic action plans

Uniting sector associations with WYSE and creating Advisory Panels, will reduce administration duplication and increase productivity

Transfer of knowledge and expertise to Executive to speak with authority on all industry sector issues and opportunities may take time

Must ensure there is an internal skills development and transfer mechanism in place

Removal of lengthy and time consuming Sector Association Board procedures and processes will free human resources

WYSE does to a degree, not have the current sector specific experts required to manage internal advisory panels

Hire capable resources to complement existing structure

Establishing one cohesive industry association will create a competitive advantage as a youth travel industry membership organisation

Existing staff may feel there will be added workload as a result of a consolidation

Staff consultation, planning and buy‐in will be essential for success and a healthy work environment

Improvement of governance with one membership association

Opportunities Threats Solution Consolidation of human and financial assets enables WYSE to increase the delivery of business development platforms and initiatives that will benefit all members

Current organisational (human resources) structure may not be in a position to service the needs of a consolidated membership association

Re‐structure and review of resources required to ensure capacity to deliver

Consolidation of administration of membership will provide cost savings

Opportunity to create a more time efficient and cost effective financial structure

Reduction in administration of sector associations (AGM, Minutes etc.) will free resources to focus on developing and implementing new, valuable sector initiatives


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Communications & profile

Strengths Weaknesses Solution An increased membership base will create greater authority and reach

Consolidation will increase WYSE Travel Confederation's presence and profile within the industry

Media communications process and delivery will be more efficient and productive due to decrease in administrative process

Ability to communicate to other national youth travel associations with one voice


Policy & Advocacy


Members with specific sector interests can leverage the credibility and reputation WYSE has established at government (national and global) and association level

Ability to put forward a collective and clear view and position of its members to government departments, agencies and regulators

Ability to effectively and efficiently disseminate industry and market intelligence and respond quickly without having to go through multiple internal channels for feedback and sign‐off


WYSE to become the key access point for government policy makers and youth travel marketing bodies as it will have access to the best‐available evidence from its members

Sponsorship, partnerships & event attendance


WYSTC will be branded as the must‐attend event, continuing to cater to all sector association needs

Consolidation will free resources to create, secure and deliver new programs that will provide added revenue streams to strengthen the organisation


Opportunity to secure more lucrative sponsors and corporate partners as a holistic value proposition (spanning across all industry sectors) can be offered

Executive Board paper: WYSE Travel Confederation ... · WYSE Travel Confederation Page 1 of 43...

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