David Harris Addresses Ensemble Decision To Defer Profit Share
Anna Kroupina, Open Jaw
Ensemble Travel Group has announced in a letter to shareholders last week that it will postpone the second half of its annual patronage distributions until it receives additional relief funding.
"While Ensemble did distribute the first half of 2019 patronages in April, I did share the difficult decision that I recently recommended to the board that we postpone the second half of patronage distributions," said David Harris, CEO of Ensemble, in a statement received by Open Jaw.
"That decision was based primarily on the fact that while we are still awaiting confirmation on receiving additional relief funding and have to make decisions based on what we know today. These are unprecedented times for all of us and many of these circumstances are simply beyond anyone’s control."
Ensemble distributed the first portion its patronage distributions for 2019 in APR. The subsequent payout was to be paid out in MAY.
"As I continue to reiterate, it is my genuine and dedicated focus to distribute the patronage as soon as we are able as it is our highest priority," Harris said.
"And as I also said, I truly believe that there has never been a better or more important time to be a travel advisor and that when we do emerge from this crisis that we will be stronger as a company and as an industry."
Anna Kroupina Journalist
Anna is OJ's newest member and she joins the team as a writer/reporter. She co-writes the daily news and covers events. Although she's new to the industry, pursuing a career path in travel/tourism has been a goal since her first family road trip to the Florida Keys sparked a desire to discover the world and this exhilarating, fast-paced industry.
David B.- May 26, 2020 @ 10:16
Let me see if I understand this ... the suppliers paid Ensemble our 2019 override. However, Ensemble did not put this money aside for its shareholders - they either spent it, or are keeping it aside for operating purposes, and are relying on assistance so they can pay their shareholders with funds that they already have. Maybe I'm wrong, but I don't see that this is any different than an agency taking a client's deposit and using it for operating expenses instead of sending it to the supplier.
Marian Lee- May 25, 2020 @ 17:15
During this difficult time with travel agencies, we are expecting the second payout from Ensemble could help, Its really disappointing to learn the payment will be deferred. Very disappointing indeed!
David Hoar- May 25, 2020 @ 15:13
I believe that Ensemble is stuck between a rock and a hard place. Our agency was looking forward to receiving the largest payout in our history with Ensemble. The funds would have helped us make payroll for June and part of July when very little commissions will be coming through. It was a rough call to make, and whereas I don't agree with the lack of disbursement this week, I can only hope that it will come sooner rather than later. However, I do agree with Ken's note above regarding membership and marketing fees that were collected on 01 April.
Ken Sears- May 25, 2020 @ 13:21
For an association that is supposed to represent and support travel agencies, they have:
1 - eagerly accepted 2020 membership fees
2 - holding back profit sharing from 2019
Talk about self preservation at the expense of your loyal members.... shame on you!