AIMEE K. WILES Nancy Smith has closed her Brockport agency, Travel Designs. She had been using some of her retirement savings to keep going after Sept. 11.

By Todd Grady
Democrat and Chronicle

(Saturday, February 2, 2002) -- Nancy Smith kept her travel agency open this past year by subsidizing it with her retirement savings.

"I couldn't stay in business there and keep paying the bills," she said. "If I kept pumping money into it, I wouldn't have any money."

So the 70-year-old closed Travel Designs in Brockport on Jan. 1 even though she had no retirement plans.

Travel agents have been among the businesses hit hardest financially since the Sept. 11 terrorist attacks.

The dramatic drop in revenue after the attacks was only one factor that affected the agencies. For example, airlines in August cut ticket commissions.

Travel agents around the country lost money when airlines took back commissions on tickets sold to people who later canceled. Many agents had already used the money to pay for business expenses.

"It was tough to take before Sept. 11, and that just compounded the problem," Smith said.

"A lot of agents have consolidated, and some agents have gone out of business," said Richard Copland, chief executive and president of the Amercian Society of Travel Agents.

Anita Schoepfel said she hasn't had a paycheck since Sept. 11. Schoepfel owns Tradewinds Travel, a 5-year-old agency in Gates.

In September 2001, sales were $12,000 compared with sales near $100,000 in September 2000.

"I was actually putting money in (the business) out of my pocket to pay the agency bills," Schoepfel said. "You can only afford to do that for so long. I don't know too many owners of smaller agencies at this particular time who are taking a paycheck."

Schoepfel said she has used a credit card and a break on rent payments to help keep her business afloat.

Tradewinds also cut employees. In September, it had 21. Now it has 12 commissioned sales associates serving about 6,000 clients.

Three of the nine local companies approved for loans through the U.S. Small Business Administration's Expanded Economic Injury Loan Program have been travel agencies. The program helps businesses directly affected by the events of Sept. 11.

Many smaller agencies also have merged. For example, Gallery of Travel bought Ben-Ham Travel Service in Webster in November.

Owner Lila Ford said business has begun to pick up for some agents over the last few months. Her agency has seen a marked increase since Jan. 1.

"Fortunately, we've seen a big comeback. The phones have been ringing off the hook."

Schoepfel hopes the renewed willingness to travel will help sustain her Gates business but has opened a home office in case it doesn't.

"We need to get back in the profit zone," she said.