EXTRAORDINARY VISIONS: VIRTUOSO’S TRAVEL MART VIRTUOSO HOSTS 2,800 TRAVEL PROFESSIONALS FROM 102 COUNTRIES FOR 260,000 INDIVIDUAL MEETINGS

LAS VEGAS, NV – (September 17, 2007) – Virtuoso, the leading luxury travel network, enjoyed record attendance of nearly 2,800 attendees from 102 countries at the organization’s Travel Mart conference, held recently at Las Vegas’ Bellagio hotel. Recognized industry-wide as the best networking opportunity in luxury travel, Virtuoso hosted an astounding 260,000 individual meetings between the network’s elite travel advisors and its world-renowned providers. With a roster of attendees that read like the “who’s who” of luxury travel, Virtuoso’s Travel Mart provided participants with both a vision for the future and the opportunity to establish and strengthen the relationships that both enhance and enable the world’s most extraordinary travel experiences.

The conference allowed the best in travel to celebrate the world’s best travel opportunities; another hallmark of the Travel Mart conference says the network. Virtuoso rolled out the red carpet, hosting over-the-top events such as the On-Site dinner representing 45 destinations, bringing together more than 265 hoteliers and 980 consultants for the first-ever “Best of the Best Hotel Awards” and a closing gala that honored network participants. Additional events throughout the week included everything from whisking away top producing travel advisors to a secret location via private jet and Explora Lodges featuring native dancers from Easter Island, to Micato Safaris bringing in the Boys Choir of Kenya to inspire participants. Virtuoso CEO Matthew Upchurch remarked, “This is what it’s all about, bringing together people and experiences.”

During the week-long event, Virtuoso also announced its newest partnership with Sustainable Tourism International, a non-profit organization that will promote Virtuoso’s members and suppliers’ current efforts in preservation while helping interested parties learn how to better manage their ecological footprint. Virtuoso says it believes the travel industry must be in the forefront of sustainability, stating that it makes economical sense, it preserves the future of travel and reflects the consciousness of today’s consumers. Virtuoso also declared another industry first, announcing that the Travel Mart conference had attained “carbon-neutral” status by offsetting 4757 metric tons of carbon dioxide emissions that come from flights and other transportation, hotel stays and conference related electricity by investing in STI’s international and domestic renewable energy projects. Travel Mart becomes one of the largest travel and tourism events to attain this status.

Travel Mart Networking by the Numbers:

• 2800 Conference attendees
• 102 Countries represented
• 55 Training sessions
• 200 Scheduled meals
• 3 Afternoon showcases for 1500 people each
• 9 Pages of social events
• 260,000 One-to-one, member agent/supplier appointments

Travel Mart Keynotes and Trends:

The event’s opening session began with a series of keynote speakers that supported the event’s theme of “Extraordinary Visions.” Leading the session, Dewitt Jones, a National Geographic photographer, brought the group to a standing ovation by using his awe-inspiring images to illustrate how imagination and intuition can turn a vision into reality. Jones identified several central messages, starting with the concept of there is more than one right answer. He identified this notion as the key to creativity, as well as a part of the foundation that makes the Virtuoso network so strong. Jones continued by stating that travel advisors need to train their technique, and then put themselves and their clients in the place of most potential. He also said that remaining open to possibilities that one never dreamed of is the best way to serve one’s clientele. And lastly, focus the vision by celebrating what is right with a situation and the opportunities available to serve one’s clients. Business is about continually finding the next right answer.

Following such an inspirational message is no easy task. Virtuoso brought in Dewitt’s brother, Terry Jones, the former head of Travelocity and a well-traveled Virtuoso client, to show how to turn “imagination into imagin-action.” Terry Jones began by stating that half of all travel is now booked online, but then quickly pointed out that the Internet world has not been successful in replicating the one-to-one, buyer-to-seller relationship and translating it into a relationship between a person and a computer. The Internet has changed pricing, distribution, even branding, as consumers remain driven by speed and convenience. However, despite customers having all the information and a platform for sharing experiences, Internet growth is slowing and conversion rates are flat; meaning online travel sales are slowing as well. He went on to explain that while information is free, consumers are looking for advice and consultation. There is still a lack of trust and service with the Internet, causing people to buy what’s inexpensive, popular and safe online. When spending a lot, going abroad or buying an experience, they want help. Consumers are tech savvy, information rich and busy, but time starved and overwhelmed by choice. Travel advisors can build on their clients’ research – clients have data, but advisors have wisdom and those are two very different things.

The question on everyone’s mind: Why would a guy who helped change an industry and has been to 70 countries be a Virtuoso customer? Jones went on to explain that his Virtuoso agent got him into hotels that he couldn’t get as the head of Travelocity. “Virtuoso agents deliver experiences,” said Jones, “and that’s where they’re different.” Half of travel may be booked online, but the other half isn’t. Offering even more encouragement for Virtuoso’s travel advisors, Jones cited information from Forrester Research, Inc. showing that quality-focused leisure travelers will grow 33% in the next two years.

Virtuoso President, Kristi Jones, went on to explain that news of the travel agent’s demise was grossly premature and that Virtuoso has always recognized the value of a trusted travel advisor. To illustrate her point, Jones noted that while online travel distribution channels saw average invoices below $400 last year, Virtuoso member agents saw invoices with the network’s suppliers of more than $7,000. Says Jones, “In 2006, Virtuoso’s sales growth was 21% higher than Expedia’s.” Jones went on to explain that the biggest challenge facing the travel industry is not the Internet, but rather the lack of knowledgeable advisors to handle the overwhelming demand for sophisticated travel planning. She presented staggering statistics indicating a declining workforce over many professional sectors: seven million people in managerial roles will leave the workforce in the next decade; Fortune 500 Companies will lose 50% of their senior managers over the next five years; and, the Employment Policy Foundation projects a shortage of 10 million workers by 2015 resulting in a ¾ trillion dollar reduction in gross domestic product.

Jones expressed that Virtuoso will continue working with the network’s member agencies to tackle the talent situation faced by many travel agencies. Jones stated, “Virtuoso is working in four critical areas to assist with the transition of travel agent to advisor and to assist our members with attracting new talent: providing unique and experiential product, improving the network’s sales performance, offering more effective technology, and publicity that highlights the value of Virtuoso members and partnering.” Jones went on to explain that Virtuoso’s exclusive product portfolio includes 71 tour and on-site companies, as well as 303 hotels, only available to the Virtuoso network. When speaking of sales performance, Jones noted that the organization’s Local Business Development initiative played a significant role and single-handedly accounted for $20 million in incremental sales and 4,600 new clients for participating suppliers over the past year. In closing, Jones quoted Virtuoso’s mission statement, stating that it is the best recruitment tool in the industry, “Virtuoso will utilize the assets of the Virtuoso network to increase the compensation and fulfillment of the frontline travel consultant.”

Gareth Forsey, Group Executive of United States Commerce Development for MasterCard Worldwide, spoke to the spending habits of the elite affluent and the significant role Virtuoso plays in attracting and servicing this type of consumer for MasterCard’s new World Elite™ MasterCard® card. With the program nearly a year old, World Elite cardholders are already taking advantage of the travel network’s services and products, a central component to the card’s competitive portfolio.

MasterCard’s strategic partnership with the network provides further validation to the value of travel agents. Ironically, Virtuoso Chief Executive Officer, Matthew Upchurch, followed by taking a look back at the industry ten years ago. In 1997, consumers found themselves armed with the Internet and the ability to seek out travel information and make reservations online. He noted that during this time, Virtuoso identified a need for the specialist model. Originally, specialization pertained to a particular product or destination, though eventually consultants became specialists in their own clients as well. In the past ten years, travel consultants have regained their credibility by providing their clientele with advocacy and counsel at a time when consumers need someone to decipher the glut of information found via the Internet. Upchurch drew the parallel between travel and the financial services industry, indicating that the future of the travel industry will closely resemble the path that financial services has taken. Using information from Forrester Research, Inc, Upchurch identified the Financial Services Investor types showing how investors see themselves. While an estimated 31% of them are “delegators,” meaning they want an advisor to handle all transactions for them, more than half are “validators” and seek advice from a professional to back up their decisions. The same is true of travel decisions when more intricate planning is desired. He also noted that financial advisors may be managing money, but travel advisors are managing an equally important asset – free time.

In identifying a clear path of unifying the travel industry, Upchurch noted a transformation currently occurring within the industry: the importance that consumers place on advice, not solely on travel product. Upchurch went on to explain that his prediction ten years ago showed the significant influence Baby Boomers would have over the luxury sector, and travel in particular. However, he underestimated the opportunity that travel advisors would have with Boomers. Upchurch further explained that the two industries within travel – meaning suppliers and travel advisors – will have to marry product with advice to meet the demands of this generation and be successful. There is interdependency between consultants and travel product, and the only way for all travel professionals to increase revenues is to elevate the satisfaction and experience for the shared consumer. For Virtuoso’s part, he said the organization will focus its marketing on customer insight, that customer service will be at the core of its talent development, and relationships will deepen with suppliers that can deliver the best customer experience. Conversely, Upchurch also stated that relationships will weaken, or eventually end, with suppliers that lessen the travel advisor’s credibility with their clients.

About Virtuoso
Virtuoso is the industry’s leading luxury travel network. This by-invitation-only organization comprises over 300 independent agencies with more than 6,000 elite travel specialists in 22 countries in North and South America, the Caribbean, Australia and New Zealand, as well as over 1,000 of the world’s best travel providers and premier destinations. Travel agencies receive sales, marketing and technology support, as well as exclusive services and products, as a result of their membership in Virtuoso. The network’s member agencies generate over $4.2 billion annually in travel sales, making the group the most powerful in the luxury travel segment. Their relationships with the finest travel companies provide the network’s affluent clientele with exclusive amenities, rare experiences and privileged access. Virtuoso is the exclusive luxury travel network provider for World Elite™ MasterCard®.

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