Cover your ASS ets

1. Cover your ASSets • Former director and treasurer of California TCRC • Currently Executive Director Kill Cancer Foundation • Currently President PowerBusiness Associates Inc. • Former C.O.O Apple Computer country operation in Europe • Former director of strategic markets Sun Computers Inc • Former President Intelcom Corporation • Taught marketing, advertising, distribution, California • Clients include divisions of Coke, Compaq, Pepsi, Dean Foods, Lucent, Avon, Apple Computer, Price Waterhouse • Started and sold 7 small businesses ByZigmund Sepanski, MSA, J.D. (Dec 2010)PowerBusiness Associates Inc.

2. Cover your ASSetsreducing risk – risk of losing $ or not making $ • Government • Courts • Clients • Hosts, vendors • Errors and Omissions • Travel business: • 10 mistakes agents make Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

3. Government regulations • Registration requirements • City • Licensing • State • Registration • Consumer protection funds • taxation • Federal • taxation Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

4. Seller of Travel Laws – consumer protection • SOT -California • Disclosures in writing • Supplier • Penalties • Deadlines • TCRC contact • SOT # • Funds & refund statement Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

5. Liability:Order taker or consultant? If taking the order – liability smaller If advising, consulting – liability greater This presentation is not legal advice. Consult a licensed attorney for any legal questions. Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

6. How courts look at agent’s duty This is not legal advice for which you should consult an attorney Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers 1.  Duty to disclose vendor identity 2.  Duty to warn & inform 3.  Duty to investigate 4.  Duty to confirm 5.  Duty not to over promise or misrepresent 6.  Duty to protect client funds

7. Federal Government • Taxes • Hobby or business? • Receipts • Internet, drive to clients, supplies, travel • Justification for fam: results • Talk to a CPA Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

8. Hosts and Vendors • Hosts – written contract. • Independent contractor • No desk, no office hours, no in-box, no schedule • Level of control by host • Take benefit of preferred agreements, marketing • Vendors • Registered with state if required • Name of person giving quote, time • Prequalified (preferred) vendors • Unless pre-qualifed stay with US based ops Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

9. Working at home risk Do clients drop by? You are most likely not covered if they trip on your rug. If your dog eats your client’s airline tickets you are most likely not covered. If the FedX guy trips on your child’s toy you are most likely not covered Get a rider Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

10. You did not tell me there was a palm tree in front of myocean front condo. I am suing you! E & O Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

11. What E & O Covers Bodily injury and property damage Personal injury. Libel, slander, false detention: (stuck in country due to agent’s failure to advise of proper docs) Errors and Omissions: visa problems, time change errors Non-owned hired auto, water/air craft Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

12. Do I qualify for E & O, Berkleyspecial home based pricing Independent contractor Sole proprietor or individual home-based travel agent Less than $1,000,000 in gross sales annually. No employees or independent contractors working for you nor can you operate your own tours Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

13. What E & 0 does not cover Fraud Non-compliance with state laws Negligence No credit card signature Failed to offer trip insurance? Bookings outside of host’s IATA Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

14. When to alert insurance co. You receive a verbal complaint during or after the trip You receive a written complaint You receive a letter from an attorney You are summoned to small claims court A lawsuit is filed against you AUTHORIZEDAGENTS TRAVELMAKERS

15. Failure to Advise of Visa Requirement Berkley paid out $22,968 Travel Agent booked clients on a World Cruise. The cruise line provided visa applications to the claimants. However, booking agent advised claimants that they need not worry about applying for visas since the ship had a blanket one. Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

16. 10 ways to minimize risk of losing $ or not making much $ Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

17. Circle Nothing Brand IMAGE?Cheap, Quality, Adventure, Niche Everything, Cruises? How do your docs look? Where is your name? Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

18. IMAGE: Sloppy Joe Look of many home based agents? Forgot to take off pajamas at meeting Just came back from dumpster diving Sad but true – what vendors think of you Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

19. Pterodactyl Syndrome How public perceives agents? Perception is reality VACATION CONSULTANT CRUISE CONSULTANT STRESS RELIEF CONSULTANT DREAM CONSULTANT Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

20. I work for free Hair dresser Plumber Prostitute Attorney Doctor Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

21. Swap Meet Don’t start with cheap first How many 3 day cheap cruises you would have to sell to make the same commission as one higher end cruise or land package? Don’t give low price first Don’t give price first Sell the experience and benefits first Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

22. One night stand Sold client – bye bye Thank you postcard Happy anniversary, birthday Call before trip, call after Etc. etc. etc. BUILD A RELATIONSHIP Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

23. Jack of all trades Air tickets from LA to Phoenix Bus to Cucamonga Train to TJ Will they come to you for Crystal? Will you have time to cultivate? AUTHORIZED AGENTSTRAVELMAKERS

24. Woe is me– no goals • I wish I had more clients • I hope business picks up • I want more sales but no one is traveling • I’d like to go after the wedding market… Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

25. Make a solid goal I’d like to go after the wedding cruise market – not a goal -dream I will increase my wedding business to $3,000 in commissions per month by March 31st & By January 10th I will develop a partnership proposal for wedding planners, photographers and caterers & By January 20th I will contact 30 wedding planners, 10 wedding photographers and 5 caterers & present to them my proposal no later than January 30th. Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

26. Splendid Isolation USE A HOST WHEN IT BENEFITS YOU Coop funds Group space Special amenities Marketing materials: consumer magazines Special programs Health and Wellness cruises Wine and Food cruises Special resort agreements Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

27. PPA: Piss Poor Attitude • Will affected everything around youYou control or you are controlled • View the world through what window • Sfo • RCCL fam Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

28. Risk management is also your time and task management • Prioritize everything A, B, C • Focus on important • Do the 20% that will give you 80% of $ Not 80% that give you 20% of $ Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers

29. Risk management covers everything from procedures to accounting, from E & O to attitudes A successful travel consultant is willing to address risks and opportunities which an unsuccessful one is not Booth 424 Zigmund SepanskiPowerBusiness Associates Inc.Authorized Agents - Travelmakers