(https://www.travelmarketreport.com)
Search TMR Subscribe (/tmr-sign-up)
(https://www.facebook.com/TravelMarketReport)
(https://twitter.com/travelmktreport)
(mailto:[email protected])
(https://www.linkedin.com/company/travel-
market-report/)
Who’s in Your Wallet? Credit CardPoints Remain a Challenge for TravelAgentsby Richard D’Ambrosio (/tmrsearchresults?st=1&sr=Richard D’Ambrosio) / July 18, 2019
With more and more credit card holders earning points and redeeming them for travel, how and when an advisor supportsthese clients can be tricky. Photo: Shutterstock
Nearly two out of three Americans plan to use credit card points to pay at least a
portion of their summer vacation this year, according to a new survey. When those
cardholders are travel agent clients, frequently that means the agent forgoes a portion
of their income on that booking, making serving these clients a difficult choice.
With 900 destinations across 7 continents, Silversea will take you wherever you dream to go.cid=dis_USA_TRAVELMARKET_CLASSIC_PRODUCT_CON_PARTS&utm_campaign=USA_TRAVELMARKET&utm_source=USA&utm_content=PRODUCT&utm_medium=Display)
With discounted group rates andprotected consumer amenities,you'll love MSC Cruises NEW EZGroups(http://www.mscdrinksonus.com/)
The NFL Schedule has dropped &you can earn commissions on ticketsto every game!(https://www.events365.com/)
Explore Europe's iconic waterways with the
TMR RECOMMENDATIONS
(https://www.silversea.com/en.html?
cid=dis_USA_TRAVELMARKET_CLASSIC_PRODUCT_CON_PARTS&utm_campaign=USA_TRAVELMARKET&utm_source=USA&utm_content=PRODUCT&utm_medium=Display)
(https://www.mscbook.com/shop/us/mscb2bstoreus/promo/EXPERIENCE-OCEAN-CAY-MSC-MARINE-RESERVE?
utm_source=TMR&utm_medium=display&utm_campaign=US_OceanCayEscapeToSea )
(https://www.silversea.com/en.html?
cid=dis_USA_TRAVELMARKET_CLASSIC_PRODUCT_CON_PARTS&utm_campaign=USA_TRAVELMARKET&utm_source=USA&utm_content=PRODUCT&utm_medium=Display)
(https://www.mscbook.com/shop/us/mscb2bstoreus/promo/EXPERIENCE-OCEAN-CAY-MSC-MARINE-RESERVE?
utm_source=TMR&utm_medium=display&utm_campaign=US_OceanCayEscapeToSea )
!
○#
○$
○%
○&
NEWS (/) TOURS & PACKAGES (/tours-packages/) CRUISE (/cruise/) HOTELS & RESORTS (/hotels-resorts/) DESTINATIONS (/destinations/)
RETAIL STRATEGIES (/retail-strategies/) NICHE & LUXURY (/niche-luxury/) PEOPLE & EVENTS (/people-events/) TRAINING RESOURCES (/training-resources/)
(https://www.amawaterways.com/landingpages/fly-free2019?
utm_medium=display&utm_source=Travel+Market+Report&utm_offer=Fly_Free&utm_flight=July&utm_unit=728x90 )
(https://www.amawaterways.com/destination/christmas-market-river-cruises?
utm_medium=display&utm_source=Travel+Market+Report&utm_offer=Triple+Savings&utm_flight=July&utm_unit=300x250
)
'
(https://www.mscbook.com/shop/us/mscb2bstoreus/promo/EXPERIENCE-OCEAN-CAY-MSC-MARINE-RESERVE?
utm_source=TMR&utm_medium=display&utm_campaign=US_OceanCayEscapeToSea )
(https://www.mscbook.com/shop/us/mscb2bstoreus/promo/EXPERIENCE-OCEAN-
CAY-MSC-MARINE-RESERVE?
utm_source=TMR&utm_medium=display&utm_campaign=US_OceanCayEscapeToSea
)
According to a report from CompareCards.com, one out of five credit card holders will
use points to pay for at least half of their summer travel bills, while the average
cardholder expects rewards will cover 11%-25% of their costs.
“If people are trying to use points on hotels, flights, it really is difficult to make it
worthwhile for you as a travel advisor,” said Jacob Marek, who owns IntroverTravels,
an agency in Sioux Falls, South Dakota.
Points are so important to some clients of Hermes Travel, in Astoria, New York, that 25
years ago, the company saw a steep drop in bookings from loyal clients, said agent
Nancy Damianeas.
“Regular clients who came in every year for their summer travel, weren’t calling,” she
remembers. “We called them up and said, ‘We haven’t heard from you in a year, two
years.’ They kept mentioning using their American Express points.”
Hermes decided to work with an American Express rep network agency to help their
clients redeem their rewards points so that Hermes could still purchase their
customers’ tour packages and hotels, and salvage some of their sales. “That decision
saved a whole segment of our business,” Damianeas said.
Indeed, some 75% of cardholders told CompareCards that their rewards affect their
vacation plans, in terms of where they travel, how they will get there, or where they
might stay when they arrive.
About a year ago, Matthew Exline, owner of Matthew Exline Cruise Planners, in
Ormond Beach, Florida, lost a whole potential sale to Japan because the client wanted
to use points to upgrade her airline ticket to business class.
“In the process of qualifying her for the trip, she really got hung up on using points. It
seemed to impact every aspect of our discussions back and forth,” Exline said. “In the
end, she decided to not only use her points to upgrade her airfare, but to book the
whole thing on her own.”
According to CompareCards, which surveyed more than 1,000 Americans, Millennials
(72%) and travelers in the Northeast (73%) are the most likely to use credit card points
to pay for some of their summer vacation. Midwesterners are least likely to use
rewards points, at 46%.
(CompareCards, which is owned by LendingTree, commissioned Qualtrics to conduct
an online survey of 1,036 Americans, fielded Apr. 2-17, 2019. The margin for error for
all respondents is +/- 3%.)
Protecting commissions
Credit card point redemption with American Express has grown so prevalent that
consortia, host agencies and franchises have all formed partnerships with American
Express to help its cardholders redeem points on trips booked by agents, but still
protect agent commissions.
At Travel Leaders Group, the Apex program allows agents to book their clients’ air, rail,
cruise, hotel/resort, and tours purchased on American Express’ Premier Rewards Gold,
Business Gold Rewards, Platinum and Business Platinum cards. (The program does not
include co-branded cards like Delta Skymiles.)
After the trip is charged to the client’s American Express card, points can be used on all
or part of the trip using the Pay with Points tool, with the added ability for clients to
elect a commissionable upgrade to a higher suite category, or a trip extension.
Since Travel Leaders launched its Apex program about a year ago, some 2,500 Travel
Leaders Network advisors have completed training to be certified for the plan, and
have processed more than 2,600 Membership Rewards point redemptions for
UK's leading river cruise line, earn lifetimecommissions(https://www.rivierarivercruises.com/agency)
Read... (/articles/Into-the-Home-Stretch-
Travel-Agents-Fill-the-Traditionally-
Slower-Months)
Read... (/articles/Offering-Travel-
Insurance-to-Groups-Can-Boost-an-
Agents-Income)
Read... (/articles/BNI-is-Networking-on-
Steroids)
Read... (/articles/Singapore-Airlines-
Once-Again-Ranked-Best-International-
Airline)
TOP STORIES
Into the Home Stretch: TravelAgents Fill the Traditionally SlowerMonths (/articles/Into-the-Home-Stretch-Travel-Agents-Fill-the-Traditionally-Slower-Months)
Travel advisors across the countryshare their tips and strategies forbolstering their businesses during thesecond half of this year.
Offering Travel Insurance to GroupsCan Boost an Agent’s Income(/articles/Offering-Travel-Insurance-to-Groups-Can-Boost-an-Agents-Income)
The law of numbers – more travelerson one trip means morecommissionable sales – should work toan agent’s advantage. But offeringinsurance to group travelers isn’t sosimple.
BNI is Networking on Steroids(/articles/BNI-is-Networking-on-Steroids)
Considered by many to be the pinnacleof networking groups, BNI could be atravel agent’s strongest source forsales referrals – as well as personal andprofessional growth.
Singapore Airlines Once AgainRanked Best International Airline(/articles/Singapore-Airlines-Once-Again-Ranked-Best-International-Airline)
Travel + Leisure unveils readers’ picksfor best international airlines for2019.
Travel Sales Will Remain Strong,MMGY Survey Shows(/articles/Travel-Sales-Will-Remain-Strong-MMGY-Survey-Shows)
(https://attendee.gotowebinar.com/register/5438898493607705602)(https://attendee.gotowebinar.com/register/4750372217359171843)
American Express Gold and Platinum cardholders, according to Travel Leaders
(https://www.travelmarketreport.com/articles/Headquarter-Happenings-Travel-
Leaders-Wants-Its-Members-to-Get-On-Board-With-American-Express-Program).
Michael Batt, chairman of Travel Leaders Group, recently told attendees at this year’s
annual EDGE conference that he believes the Apex program could be “a phenomenal
source of new revenue and profits” for agents.
Host agency Avoya Travel and travel agency franchise network Cruise Planners are
part of the American Express Rep network, and offer similar benefits for their agency
owners and their clients.
“If you find you are losing a lot of business from Amex cardholders, consider joining a
group that’s part of the Amex ecosystem,” Exline said. “If you are losing a lot of
business to Visa and Mastercard [cardholders], do your best to save the sale by
offering the best price and service. But at the end of the day, if someone is determined
to do it themselves with points, they’re probably too much of a control freak to be a
long-term client anyway.”
Visa and Mastercard point programs grow more popular
While American Express is making it easy for some agencies to profitably book
vacations with reward points, American Express cardholders only represented about
26% of global purchase transactions in 2016, according to industry experts, The Nilson
Report. Issuers of Visa and Mastercard cards dominate the landscape.
Some of the most popular travel rewards cards with consumers include the Chase
Sapphire Preferred Card, Capital One Venture Rewards Credit Card and the
Barclaycard Arrival Plus World Elite Mastercard. CompareCards lists these cards
among the best general-purpose rewards credit cards because they aren’t exclusive to
one hotel chain or airline, and they free up the cardholder to shop for the best deal
from any supplier.
Because redemption programs vary, Damianeas finds it crucial to identify what specific
card a client is using. If it’s a co-branded airline card, “we send them to the airline
directly. We can only handle their hotels.”
She finds the Capitol One Venture card one of the easiest to work with, because like
the American Express Pay with Points program, the client can purchase their travel
elements and afterwards choose which to redeem their points on. “You can erase it, no
matter where you bought the travel service,” Damianeas said.
Andrea da Rosa, account manager, Balboa Travel, in San Diego, uses a Capitol One
Ventures card to earn and redeem points for herself. “It’s the easiest in the industry.
With a click, you can select your vacation through whomever you want to purchase it
through. If you want to maintain that relationship with an advisor, you can.
“And if a flight is canceled, or there is some other kind of issue, the tickets are treated
the same way as if I purchased them from my travel advisor. My advisor can support
me.”
Find the right clients to make it work
Agents who aren’t part of a network offering a program like Travel Leaders does can
still make servicing clients profitable and worth their time, said Marek at
IntroverTravels, part of Virtuoso. Clients who have large quantities of credit card miles
and points frequently are high net worth individuals who still need and want a travel
advisor to take care of their vacation planning.
For example, Marek has a client who owns a popular District of Columbia bakery, and
frequently travels internationally, often including his family and friends. “He loves fine
hotels, traveling, and dining well, so he racks up hundreds of thousands of points by
putting most of his business expenses on his business card,” Marek said.
Read... (/articles/Travel-Sales-Will-
Remain-Strong-MMGY-Survey-Shows)
Read... (/articles/California-Bill-That-
Could-Eliminate-Travel-Agent-ICs-Passes-
Key-Senate-Committee)
Some major economic indices arepointing to a travel slowdown, but aleading annual consumer vacationsurvey says sales should stay solidthrough 2019.
California Bill That Could EliminateTravel Agent ICs Passes Key SenateCommittee (/articles/California-Bill-That-Could-Eliminate-Travel-Agent-ICs-Passes-Key-Senate-Committee)
The controversial law could reclassifyindependent travel advisors as full-time employees, which could force41% of them to end their agent careersor leave the state.
NEWS BRIEFS
New ASTA Campaign Connects withLocal Media for California IC Battle(/articles/New-ASTA-Campaign-Connects-with-Local-Media-for-California-IC-Battle)
Southwest Airlines Partners withNintendo for ‘Summer of Surprises’(/articles/Southwest-Airlines-Partners-with-Nintendo-for-Summer-of-Surprises)
ASTA Encourages Travel Advisors toParticipate in National Travel AdvisorDay (/articles/ASTA-Encourages-Travel-Advisors-to-Participate-in-National-Travel-Advisor-Day)
Find A Host Agency Review Site GetsOverhaul (/articles/Find-A-Host-Agency-Review-Site-Gets-Overhaul)
Travel Agents See FITs Driving NewBusiness in 2019 (/articles/Travel-Agents-See-FITs-Driving-New-Business-in-2019)
Booking.com Content to Be Integratedinto Sabre Lodging Platform(/articles/Bookingcom-Content-to-Be-Integrated-into-Sabre-Lodging-Platform)
TMR REPORT CARDS & OUTLOOKS
(https://www.addthis.com/bookmark.php?v=250&username=xa-4b46093b659f43e6)
0 0
Since Marek met the client in 2018, the customer has traveled to India and Costa Rica,
just got back from Jordan, and is going to Vietnam and Cambodia this fall.
“He visits Virtuoso’s Best of the Best catalogue all the time,” Marek said, bookmarking
his dream hotels and things he wants to do. “Then, he will use credit card points to
book his flights, send me an Excel spreadsheet with all of the details, and ask me to fill
in the gaps with hotels, tours, activities,” Marek said.
“He’s so organized, he makes it easy, why wouldn’t I take him on. Yes, there’s no
commission in the air for me, but a 10% commission on his hotels, suites, villas, is worth
it,” Marek said. “And he needs me because everything I do takes up time he needs to
run his business and live his life.”
What do you think?0 Responses
Upvote Funny Love Surprised Angry
Sad
0 Comments Travel Market Report Login!1
t Tweet f Share Sort by Newest
LOG IN WITH OR SIGN UP WITH DISQUS
Name
Start the discussion…
?
Be the first to comment.
Subscribe✉ Add Disqus to your siteAdd DisqusAdddDisqus' Privacy PolicyPrivacy PolicyPrivacy&
Recommend'
TIP OF THE DAY
Brought To You By
(https://www.travelplannersinternational.com/)
As travel advisors, we have to becurious. Curiosity leads to impactful
connections that pave our road tosuccess. - Jenn Lee, VP of Sales and
Marketing, Travel Planners International
DAILY TOP LIST
Brought To You By
(https://www.ncl.com/)
Top Tips for Your Blog
1. focus on the big picture and long-termROI.
2. Be consistent with your posts.
3. Get your team or ICs involved.
(https://www.travelmarketreport.com/library/2019/TMR-
Report-
Cards/TMRExpeditionOutlook2019/index.html)
(https://www.travelmarketreport.com/library/2019/TMR-
Report-
Cards/TMR_SocialMediaOutlook/index.html)
(http://www.travelmarketreport.com/library/2019/TMR-
Report-
Cards/OutlookCaribbean2018/index.html?
page=1)
View All (/report-cards-outlooks)
(http://www.silversea.com/exclusive-offers/caribbean-air-offer/)
ABOUT TRAVEL MARKET REPORTMission (/tmrwhoweare#dvTMRMission)Editorial Staff(/tmrwhoweare#dvTMREditorialStaff) AdvisoryBoard (/tmrwhoweare#dvTMRAdvisoryBoard)Advertise(mailto:[email protected]) TravelTrade Readership Report(https://www.travelmarketreport.com/library/tmr/surveys/currentsurvey.pdf)
SELECT LANGUAGE
Select Language ▼
TMR RESOURCESWebinars (/tmrsearchresults?vds=1&dept=31)Calendar of Events (/tmrcalendar)
DO YOU HAVE AN [email protected](mailto:[email protected])
GIVE US A CALL 1-(516) 730-3097 (tel:15167303097)
DROP US A NOTETravel Market Report243 South Street, OysterBay, NY, 11771
News (/) | Leisure Travel (/leisure-travel) | Land Vacations (/land-vacations) | Cruise (/cruise) | Canada (/canada) Retail Strategies (/retail-strategies.aspx) | People (/people) | Luxury(/luxury) | Training (/training)
© 2005 - 2019 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | 243 South Street, Oyster Bay, NY, 11771 USA | Telephone (516) 730-3097| Terms and Conditions
Cookie Policy (https://www.travelmarketreport.com/cookie-policy) Privacy Policy (https://www.travelmarketreport.com/privacy-policy)
Share... (/articles/TPI-Sponsored-Tip-of-the-
Day-78)
Share... (/articles/Top-Tips-for-Your-Blog)
Source: TMR
(https://www.travelmarketreport.com/articles/Tips-
to-Help-Travel-Agents-Produce-a-High-
Performing-Blog)
Previous Daily Top List (/TMRShowAll?
artid=38776&tid=31&t=99)
MOST VIEWED
Brought To You By
()
1. Mexico and the Caribbean’sSeaweed Problem Isn’t Going Away(/articles/Mexico-and-the-Caribbeans-Seaweed-Problem-Isnt-Going-Away)
2. Two Tour Operators Disappear,Leaving Travel Advisors andCustomers in the Lurch(/articles/Two-Tour-Operators-Disappear-Leaving-Travel-Advisors-and-Customers-in-the-Lurch)
3. How Travel Advisors Can Competewith Costco (/articles/How-Travel-Advisors-Can-Compete-with-Costco)
4. State Department Advisory forDominican Republic Remains theSame (/articles/State-Department-Advisory-for-Dominican-Republic-Remains-the-Same)
5. Royal Caribbean’s Allure of theSeas Docks in San Juan AfterCanceling Two Ships(/articles/Royal-Caribbeans-Allure-of-the-Seas-Docks-in-San-Juan-After-Canceling-Two-Ships)
6. News is Hurting DominicanRepublic Tourism (/articles/News-is-Hurting-Dominican-Republic-Tourism)
MOST EMAILED
Brought To You By
(https://www.rssc.com/)
1. Pop-Up Taco Bell Hotel Sells Out inTwo Minutes (/articles/Pop-Up-Taco-Bell-Hotel-Sells-Out-in-Two-Minutes)
2. How Travel Advisors Can Competewith Costco (/articles/How-Travel-Advisors-Can-Compete-with-Costco)
3. Mexico and the Caribbean’s SeaweedProblem Isn’t Going Away(/articles/Mexico-and-the-Caribbeans-Seaweed-Problem-Isnt-Going-Away)
4. State Department Advisory forDominican Republic Remains theSame (/articles/State-Department-Advisory-for-Dominican-Republic-Remains-the-Same)
5. Norwegian Cruise Line DroppingOpen Bar on Sky and Sun(/articles/Norwegian-Cruise-Line-Dropping-Open-Bar-on-Sky-and-Sun)
6. Two Tour Operators Disappear,Leaving Travel Advisors andCustomers in the Lurch(/articles/Two-Tour-Operators-Disappear-Leaving-Travel-Advisors-and-Customers-in-the-Lurch)
( )
Top Related