1. Habits of Excellence CBTG November 9, 2007 San Antonio, TX ROSE A. HACHÉ Attorney at Law 3555 Timmons Lane, Suite 1020 Houston, Texas 77027 Telephone: (713) 621-7253 E-mail: Hachelaw@aol.com

2. Business Environment Travel Agency Individuation: Spotlight: Corporate Travel Management Cruising with Alumni Groups Comets over Libya Religious/Spiritual Conventions Government Travel

3. Successful Owner’s Characteristics Independent lifestyle-You would have succeeded anywhere… Sense of humor Flexible/Resilient Living your passion Deliver excellence Objective: More leisure time, and increased financial resources

4. Legal Operating Environment Emphasis on Seller of Travel Law and Tax Developments GDS Trends Terms and Conditions: Consumer Risk Management (Non-Preferred Issues) Credit Card Authorization Form Sell Travel Insurance or Obtain Signed Waiver

5. Objective: Preserve Profit “Give me 6 hours to chop down a tree, and I will spend the first 4 sharpening the axe.” President Abraham Lincoln

6. Objective: Preserve Profit Consumer Claims managed by: Form of doing business Refer to http://travel.state.gov and http://www.cdc.gov/travel/http://travel.state.govhttp://www.cdc.gov/travel/ Terms and Conditions- Website and/or stuffer Travel insurance/preferred vendors Seller of Travel Laws compliance

7. Objective: Preserve Profit Errors and Omissions Insurance- If dealing with ICs, each business should have their own coverage for protection. ICs- Characterize the relationship in writing.

8. Objective: Preserve Profit Seller of Travel Law Developments –Where do corporate accounts/consumers reside, purchasing travel from your office or your independent contractors? –How are you selling travel? Face- to- face Non face-to-face Telephone Website sales Group sales Credit card or other form of payment

9. Objective: Preserve Profit “The illiterate of the 21 st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn.” Alvin Toffler

10. Objective: Preserve Profit Taking practical steps to comply with state laws regulating Sellers of Travel: Puts your business in compliance with state law Helps protect your business from State Attorney General claims for non-compliance Creates a bond of respect and trust between your business and customers.

11. Objective: Preserve Profit Special Focus – Registration Resident/Non-Resident –California –Florida –Hawaii –Nevada –Washington

12. Objective: Preserve Profit What happens if you are not registered? Penalties vary, but note California states: “A misdemeanor by a fine of not more than $10,000, by imprisonment in a county jail for not more than one year, or both fine and imprisonment for each violation.”

13. Objective: Preserve Profit Michigan 6% tax on specific Michigan service industries effective 12-1-07 ASTA Michigan Chapter hired Pat Harrington Pro-active watch in advance

14. Objective: Preserve Profit- GDS Trends-Chemistry $.80 Content Continuity Fee: Negotiable Limit increase in charges to 10% Aggregation clause Loss of Content No market share commitment Conversion Dissatisfaction Clause

15. Objective: Preserve Profit- GDS Trends- Incentives Upfront Payment: Loan tied to goal fulfillment Marketshare vs. No Marketshare Development Fund Additional Segment Goal/Tiers vs. starting at #1 without Tiers Suspend NPAT(non-participant airline ticketing)

16. Objective: Preserve Profit Claims:Vendors and Consumers Back office auditing software Rise in trip costs imposed by vendor Vendor cancellation fees “Super-agreeable” personality….

17. Objective: Preserve Profits Risk Management: Over 55-#1 thing they want to do is travel…. Have you implemented legal tools available to limit your potential liability? Consumers pragmatism and acceptance Recent examples-Attorney General inquiries: Senior citizens in East Africa, refund for lack of time for inoculation, and 6 month passport issues.

18. Objective: Preserve Profits Implementation of the following: Terms and Conditions Credit Card Authorization Form Insurance conversation and signed waiver Non-Preferred Supplier Form

19. Dealing with ICs Boom after 9/11 Characterization: Be safe Don’t convert long time employee to an IC for essentially the same job function Written agreements must reflect actual performance.

20. Objective: Preserve Profits “Business is the salt of life.” Voltaire

21. Thank You! ROSE A. HACHÉ Attorney at Law 3555 Timmons Lane, Suite 1020 Houston, Texas 77027 Telephone: (713) 621-7253 E-mail: Hachelaw@aol.com