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AAA Outlines Travel Strategy At International Conference

17 September 1998

AAA Outlines Travel Strategy At International Conference

    MALAGA, Spain, Sept. 16 -- Vowing to refine its travel
strategy in the leisure market, AAA has stated its intentions to be as
"significant in the travel lives of its members as it is in their automotive
lives," according to Graeme Clarke, senior vice president, Travel Related
Services.
    "Through AAA Vacations, we are taking pre-emptive measures to assure that
we are still able to offer our members something they can't get anywhere
else," said Clarke, who spoke today at the organization's Travel Industry
Conference here.
    This refinement of strategy could include acquiring travel products,
enhanced alignments with preferred suppliers such as Disney or Thomas Cook or
building its own travel products, he said.
    Key to the new strategy is domestic market destinations, according to
Clarke.  AAA plans to focus on destinations where members are currently
traveling, as well as destinations that members say they would like to visit.
    Having AAA deliver that business directly to the destination through AAA
Vacations rather than another travel planning organization, "enhances our
brand and the identification of AAA as a leader in the leisure travel market,"
he said.
    A new strategy coupled with increased awareness of the AAA brand in travel
planning will also increase revenue, according to Mark Brown, executive vice
president, Association and Club Services.
    In 1997, 15 percent of members used AAA travel services for a total of
nearly $2.8 billion in sales.
    "That number could be $6-9 billion if our members alone do business with
us," said Brown, noting that 80 percent of AAA's travel sales come from
members.
    Another tool in the organization's travel strategy will be its redesigned
website (http://www.aaa.com), scheduled to be introduced later this year.  The fully
transactional site will increase member service by allowing users to book
travel online.
    "It helps us in the travel information side because members can find
things on the web and not have to come into the office," said Clarke. "If they
can find one city they plan to visit on the web, and not need to come in and
pick up a whole TourBook(R) guide, that saves our members time and it saves us
money.
    "When members book their airline tickets on the web, that also saves our
members time and us money because we don't make anything on air
(transactions)," said Clarke.  "That's more time a travel agent will have to
book cruises or tours."
    AAA is a not-for-profit federation of 95 clubs with more than 1,100
offices providing 41 million members in the United States and Canada with
travel, insurance, financial and auto-related services.
    AAA news releases can be downloaded from http://www.aaa.com