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June 2005
Supplement to Travel Trade

Europe Sales Are

Looking Good

This summer, Europe bookings have been gaining ground for both tour operators and cruise lines -- and there's still time for agents to cash in. Moreover, many suppliers report that home based agent bookings are definitely leaving their mark.

"Trafalgar Tours has seen a huge increase in home based agency bookings," said John Severini, president. "That's probably due to the fact that these agents can book through the Web, enjoy high commissions and find that we offer the widest selection of escorted vacations."

Severini noted that Trafalgar is in the process of finalizing a new home based agent Web site. In the meantime, its new Web site contains information that can be utilized by home based agents (register at www.trafalgartours.com).

As for Europe sales, Severini said, "Trafalgar anticipates a strong year, with bookings particularly heavier now than the same time last year. Close-in bookings are up, and we are seeing a strong demand for our tours departing within 60 to 90 days. This means there is plenty of time for agents to get that last minute business for 2005. If agents are not selling Europe, U.S. and Australia for 2005, they are leaving 'money on the table.'"

Steve Perillo, president of Perillo Tours, told Home Based Trade, "We are having our best year since before 9/11 to Italy and Spain. Perillo's Italy is still the biggest and easiest sale, especially Sicily -- which has been coming out of its slumber for the past two years. Now we're just about sold out for the summer season!"

Agents still have the opportunity to sell Perillo tours in 2005, he added. "Off-season is coming on the market this week and should continue the trend of excellent sales along with an increasingly stronger dollar." (The euro has fallen about 10% versus the dollar this year).

Nigel Osborne, president of Destination Europe, the package division of Auto Europe, noted that the dollar's rise has resulted in lower car rental prices abroad. He pointed out to agents that "the best value is our business class packages."

One example is the Deluxe Business Class London, from $3,549 per person, double occupancy, including a 7-day Mercedes rental, two night's hotel accommodations and complimentary rental of a GPS and cell phone. Optional add-ons include chauffeur-driven transfers which, Osborne pointed out, cost "less than the cruise lines" and offer 12% commissions.

"Auto Europe/Destination Europe supports home based agents 100% and to help them, we have a product called Global Agent, an online booking section for agents on our Web site, www.autoeurope.com, which enables agents to book while the client is on the phone. And if clients book cars themselves online, the agent earns commissions."

Brian Stack, speaking as chairman of USTOA, said, "For our members, the strengthening of the dollar vs. the euro will generally cause a surge in Europe sales. While most of our members offer all inclusive tours priced in dollars, both the travel trade and consumers still have negative thoughts about Europe when the dollar is down."

As president of CIE Tours International, Stack said CIE is ahead of last year on escorted tour sales to Ireland and Britain. "We believe the reason is that people realize that buying an all inclusive tour eliminates any hassle with currency problems." Adding that fly/drive business is down, Stack noted that these types of vacations are "more dependent on the dollar's value."

As far as sales revenue, Stack said, "We are going to be ahead of last year, which was a record year in our 72-year history."  

Amy Mills, Europe/U.S. East marketing manager for LibGO Travel Inc., which includes GOGO Worldwide Vacations, said, "Europe is strong for 2005 and the cities where we are seeing the most increase are Paris, Rome and Amsterdam. We are also seeing some strong sales on our newly launched product in Greece (Athens, Mykonos, Crete and Santorini), Italy's Amalfi Coast and Copenhagen. Athens and Copenhagen are becoming big for pre/post cruise sales."

Mills said that looking forward "the outlook is even more positive. In comparing winter 2005/06 with winter 2004/05 year-to-date, our room night sales are up over 200%. The destinations with the largest increases are London, Paris, Rome and Dublin. This large increase is in part due to the early booking packages we have put together with American Airlines, as well as complimentary night specials in Paris beginning for travel in November 2005."

GOGO is currently offering more than $500 in savings on discounted air and fourth night free offers on Paris vacation packages, according to Mills.

Four night vacation packages to the 3.5-star K&K Hotel Cayre hotels in Paris start at $715 per person from New York/Newark. The packages -- which must be booked by Aug. 31, 2005, for travel from Nov. 1 to 30 -- include roundtrip air, hotel accommodations, daily breakfast and hotel taxes.

Marc Kazlaukas, Insight Tours president, said, "Italy and Spain are two of the most sought after destinations." Surprisingly, he added, space is available, though limited, during September and October, both busy travel months in Europe.

Insight offers 10 tours that are focused solely on Italy and seven that include Spain. Kazlaukas encouraged agents to book these tours soon, as the September and October departures are expected to sell out by mid-July. That's when the company will debut its 2005/06 product line, which will include new Christmas Market itineraries as well as packages to Eastern Europe, Italy, Spain and Portugal, Morocco and Egypt.

Robert Paris, co-president of Spanish Heritage Tours said, "The European summer season has started off quite well and for the most part looks solid all through the season. Air availability is becoming scarce, especially to our two key markets (Spain and Portugal) which is fairly common for summer, but this year it seemed to happen even earlier -- a clear indication that US. travelers are planning in advance, as should travel agents when making vacation recommendations and booking."

Paris said that one of the best benefits of selling Spain and Portugal in the summer "is actually the fall and winter." As he explained, summer is high season for the most part throughout Europe, but the temperate Iberian Peninsula stays warm and sunny well into its early winter.

"Selling vacations for fall and early winter NOW will provide clients with better rates, more availability, smaller crowds, better value and an overall more pleasurable vacation experience."

Paris noted that at the recent Travel Trade CRUISE-A-THON "we heard over and over again how home based agents had to stay ahead of the Internet gorillas by providing extra services, exceptional products, value-added amenities and vacations that are 'experiential.' That's why one of our major initiatives has been with promoting the Canary Islands -- a truly special destination that has excellent variety for the U.S. traveler, providing a very special Spain vacation 'island style.'"

As for cruises, Terry L. Dale, president and CEO of the Cruise Lines International Association, said, "The 2005 European cruise season is proceeding very strongly, with large numbers of leisure travelers taking advantage of the great values offered aboard CLIA member-line ships.

"European cruise vacations have always represented a great value, but are even more cost-effective this year. That's because unlike land-based visitors who pay as they go, cruise guests pre-pay for accommodations, meals and transportation in U.S. dollars, insulating them from out-of-pocket charges in higher-priced euros."

The decision to place the new Carnival Liberty in the Mediterranean for its inaugural 2005 season "was an easy one," according to Bob Dickinson, president and CEO, Carnival Cruise lines.

"Carnival is always looking for exciting new shoreside experiences for our guests and Europe is one of the world's most sought-after cruising regions," said Dickinson, who added that Carnival has assembled "a terrific seven-port, 12-day itinerary."

"Because it provides an opportunity to visit several destinations in a single voyage, cruising is an excellent way to experience Europe -- and with today's high euro/dollar ratio, it's also one of the most affordable."

Bookings for the Liberty's 2005 season have been so good that "just last month we announced an expanded program of Mediterranean cruises aboard the Liberty for 2006," Dickinson said.

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