On behalf of USTOA, I would like to officially welcome everyone -- our Active, Allied and Associate members-- to our 24th Annual Conference and Marketplace. I also want to thank you for your support, and let you know how important it is to us, especially in these days.
No one here can deny that we are living in challenging times. This is nothing new to the travel industry and to USTOA. Over the years we have weathered crises: recessions, terrorism in various parts of the world, and war. We have also enjoyed periods of unsurpassed prosperity and seemingly endless optimism.
For nearly 30 years now USTOA and its members have played a vital role in good and in bad times. We have worked hard to win the confidence of the travel industry and the public. We are not perfect, but we think we are the finest organization in the industry.
And the proof is in our 57 Active category corporate members, representing more than 150 different tour operator brands. Our supplier members in Associate and Allied categories number more than 750 strong. We are all proof that the leisure vacation industry is here to stay through good times and bad.
There is no doubt that 2001 will go down as a year of challenge for the travel industry as well as for USTOA. Last spring, for the first time in over ten years, we were faced with a member bankruptcy, when Kingdom Tours suddenly closed its doors. USTOA immediately went into action, to help protect consumer losses. The USTOA office has worked nonstop since then to help travelers regain as much of their money as possible. Because kingdom was a USTOA member, the $1 Million Consumer Protection plan was able to help reimburse travelers who otherwise would have had little recourse. And while losses have exceeded the million dollars, USTOA was able to raise an additional $1 million and we have hopes of raising even more through aggressive legal action we have undertaken.
Another challenge, of course, is the current situation brought about by the events of September 11. We are all affected by the short-term impact. But, as USTOA Chairman, I submit to you that we need to look ahead at the long-term promise that travel holds for all of us.
With this in mind, our Long Range Planning Committee recently surveyed USTOA's Active Members to help redefine our goals and mission for the future. The committee has reiterated USTOA's mission to serve as a major voice for the industry. As a trade organization our goals will be to focus and strengthen our efforts in the areas of consumer protection lobbying networking, and public relations. We will continue to set standards in ethical conduct.. protect the business interests of the package travel industryand serve as a symbol of stability, reliability, and integrity. As you can see, USTOA will be active on many fronts.
Before we look at the future, however, I'd like to review some of our highlights over the past year.
Our lobbying efforts included working with the Hawaii legislature to defeat a sales tax on tour operators. We also introduced legislation in Washington to assist tour operators on specific IRS rulings.
The USTOA web site continues to be a valuable source of information for the public, for the press, and for travel agents. Our plans call for improving and expanding the site to better serve all members as well as the travel agent and the traveling public.
Since its inception three years ago, the Travelers Conservation Foundation has raised and generated contributions of over $1 million to help preserve and protect the world's natural, cultural and historic treasures for future generations.
Through our active Public Relations program we have delivered important messages to the traveling public, both prior to September 11 and during the current situation.
USTOA continues to be a major resource for the press on what the industry is doing, and how our tour operator members are responding. In the days and months to come, our public relations program will continue to play a key role in encouraging the public to travel.
These are just some of our activities over the past year.
As we go into a new year, we are looking at one of the toughest
situations many of us have seen. To quote New York's Mayor,
Rudy Giuliani, "we are being put to the test, and we will
pass the test." It is my firm belief that, through strong
leadership and partnerships with others in the industry, we
will proactively confront the issues facing us, and move forward.
Because, my friends, travel is here to stay!
.
Today people look at travel as a birthright. It's a right they
have earned. In the short run, some folks may be cautious and
temporarily suspend traveling.
But they're not going to stop. They've discovered the world,
and they want more.
Following the events of September 11, well-known travel personality
and author who many of us know and respect, Arthur Frommer, wrote,
"Travel--and especially international travel--has become
an essential part of a civilized life. We are the first generation
in human history that now visits other continents as casually
as people used to go to a neighboring village."
Think about that. Travel is one of the biggest growth industries in the world, it will keep growing, and no one will take that away from us...not only will our industry grow, but USTOA will be in the forefront of that growth.
We are confident that there will be a pent-up demand for travel, and we will be ready for it. Partnerships will play a key role in returning business to normal. And, I can't think of a better organization to encourage the development of industry partnerships than USTOA. In this room today we have the top suppliers and tour operators in the world.
We can harness the energy, ideas, and know-how that all of our members Active, Allied, and Associates bring to the table. For in times such as these, relationships are more important than ever .
During the crisis following September 11, when many of us and our passengers were stranded, we saw how the industry came together. Tour operators, hotels, and airlines as well as our travel agent partners worked closely with one another. We worked to house clients until we could get them home; we found ways to bring them home. We worked with our suppliers to adopt more flexible policies and to waive cancellation fees. Without a tour operator cooperation from our vendors and coordination with our travel agents, travelers would have been on their own. This is a shining light that shows how tour operators, vendors, and travel agents working together in times of crisis helped the consumer.
We are seeing many partnerships now, all geared to bringing business back to normal. Consider the following:
Shortly after the September 11 crisis, 24 travel organizations, including USTOA , banded together, forming the Travel Industry Recovery Coalition. This cooperative effort lobbied congress for the "Travel America Now Act," that would provide a short term stimulus package to encourage the American public to travel.
Delta Airlines took a first step in partnering with tour operators to allow incentives and flexibility in reticketing.
The National Restaurant Association has mapped out a marketing campaign encouraging Americans to dine out. It's called "Turn the Tables," and is sponsored by a number of private companies, including American Express.
New York city has enlisted Broadway producers the restaurant and lodging industry as well as museums and attractions to join together in a campaign titled, "Paint the Town Red, White, and Blue." The city's Visitors and Convention Bureau has partnered with tour operators and airlines to offer low cost packages and travel incentives.
Other destinations like Hawaii and Mexico are aggressively promoting through partnerships between their respective tourist offices, the lodging, transportation, and tour operator segments to offer highly attractive packages and promotions for sale through travel agents.
We should be proud of the work we've done together, working with hotels, tourist bureaus, other suppliers, and travel agents to stimulate business. I would especially like to acknowledge the important role that travel agents play as our distribution system and our direct link to the consumer.
USTOA has always believed in partnerships. Several years ago we recognized the value of partnering with a travel and entertainment card. The American Express Card became a valuable sponsor and marketing ally.
This year we have joined with Smithsonian Magazine to award the first annual Smithsonian Magazine/USTOA Conservation Award, which will be presented today. The award honors an individual or entity in the travel or tourism industry for their work in preserving natural, cultural or historical resources.
We will be partnering with the Institute of Certified Travel Agents on public relations initiatives, and we will be announcing a companion survey of travel trends with Travel Holiday magazine.
These are some examples. There are many other creative ways in which all of us can partner. This afternoon's panels will address some of the ways we can work together. For, working together, we can achieve far more than as individuals going our own way.
We've faced challenge before, and together we will move forward. We need to communicate closer, understand each other, and work together. In unity there is strength. Let's be proactive. Don't sit back and wait for the other guy to do something.
As I mentioned earlier, USTOA will be in the forefront of encouraging the American public to travel. We will continue to work aggressively on behalf of the industry and on behalf of consumers, and we will provide the kind of leadership that has made us a trusted name in the travel industry for nearly 30 years.
We will face the challenges before us head on we will learn we will adapt, we will respond and, most important, with your help we will succeed!
If anyone can pull things off it's the people in this room.
Over the next three days, let's meet with one another and
let's discuss ideas for moving forward, as we explore
the power of partnerships.
Public Relations Contact:
Linda Kundell Communications
(212) 877-2798, (212) 877-3387 fax
(For all other inquiries about USTOA, please contact USTOA.)
