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June 23, 2008

ARE YOU A NAIVE OR MISINFORMED TRAVEL AGENT?

Let us for the sake of this article, break down today's travel agent into two types. The first type we will call the naive and misinformed travel agent. The second type we will refer to as a serious travel agent desiring to be the best travel agent professional she/he can be. Here is my view of the first type of travel agent. The second group, of course, is my favorite.

THE NAIVE OR MISINFORMED TRAVEL AGENT

These travel agents belong to the various multi-level- marketing, card mills or financially challenged travel agencies. Most of these agencies are really in different businesses. The MLMs are in the business of selling memberships, websites, etc. with one actually in the used car business. The card mills are generally in the business of selling travel agent perks and benefits by selling their own photo ID card or promoting the disappointing CLIA card. The financially challenged, which does include the MLMs, are generally in the business of tap dancing around their real problems or putting a spin on their problems or business models.

The big question is why do the travel agent wannabees and even some productive travel agents want to associate themselves with these agencies? These agencies, for the most part, provide little training and little or no support. Most of these agencies charge more fees and provide smaller commissions. For example, A certain MLM charges $500 to join plus $49.95 a month for a worthless website. Sure, they give you credit if you entice someone else to join. That's what an MLM does. Most Host agencies charge far less for a lot more training and support. These MLMs lead you to believe they are the only game in town and this is the future of the travel agent. That's all BS. My question is, "Why would any self- respecting experienced travel agent want to continue being looked down upon by their peers by affiliating themselves with these companies?"

There are some people selling travel as well as websites and memberships and a tiny percentage make some money, at least until they run out of family and friends. However, I'm addressing the 5% of the MLM affiliates who only want to sell travel. You really need to think about your future as a professional travel agent and move over to the mainstream travel industry either as completely independent or affiliating with a legitimate Host Agency.

I have taken the liberty of listing the "bums" below. If you are one of those naive, misinformed travel agents, please do your research. We all make mistakes in our life. I've made a few beauties of my own. Most importantly, we can learn from our mistakes.

This month's thought.
The Myth:
If MLMs were not legal, they would have been shut down long ago. MLM's have survived legal challenges. The fact that they are still around tells you they are legitimate.

The real truth: Consumer protection officials are reactive, not proactive. Since victims rarely file complaints, law enforcement seldom acts against even the worst schemes. Victims don't complain because they blame themselves and they fear self-incrimination. Source: MLM Watchdog.org

EXPOSING THE MLMs and CARD MILL AGENCIES-

This section appears and is updated on a monthly basis. I think it's always good to know who these vultures are that prey upon the travel agent or consumer. The vultures are the companies only and do not reflect upon the few serious travel agents among them. I do not address why these serious travel professionals belong to such trash, however, it is their business and their decision.

The companies listed below are either an MLM or a card mill. Some are both. I just cannot understand why some suppliers support the 95% of these MLM affiliates when they are just consumers trying to discount their vacation. Some suppliers will say they support these companies because they can't separate the consumers from the serious agents. The solution is to stiffen the requirements for all incentives to travel agents. Of course, there are those suppliers that feed on pure greed for a sale and allow consumer affiliates to book travel and provide commissions. ( It's called "commission rebating" or throwing manure against the wall to see what sticks). It's OK for the suppliers but not the travel agent to rebate commissions. Suppliers who really care about the travel professional would not advertise on the MLM websites or display at their "smell the money" conventions. A supplier does not need to terminate the MLM agency, they just need to toughen up their requirements as to who sells their products and who goes on a FAM.

The following companies are either MLMs, card mills or financially troubled host agencies. If you know of others please let me know and I will add them to the list that will be printed twice monthly. If you find that I am incorrect in listing one of these companies, I will do a retraction in the following issue.

A-1 TRAVEL-VACATION.COM
ALL TRAVEL and CRUISE CENTER, INC
AMERICAN TRAVEL BUREAU
AMERICAN VOYAGER TRAVEL a/k/a GRAND VOYAGER TRAVEL
CASH CARD WORLDWIDE, now known as TRAVEL REACTION
COASTAL VACATION CLUB
CRUISE TO CASH
GATEWAY ASSURANCE SYSTEM
GOLDRUSH GETAWAYS
EE TRAVEL BENEFITS
GLOBAL TRAVEL INTERNATIONAL
FUN TIME VACATION CLUB
GAZOOBA TRAVEL
GT TRENDS formerly PRT TRAVEL
HOLIDAY PLANNERS a/k/a INFINITE FRONTIERS and formerly AMERICAN VOYAGER, not to be confused with Holiday Planners , Branson, Missouri.
INTELETRAVEL(terminated by IATAN)
KE TRAVEL
JOIN CRUISE TO CASH
PROTRAVEL NETWORK, not to be confused with ProTravel International
TRAVELBRIDGE
TRAVELOGIA already cooked
TRAVELSTAR (JOYSTAR)
TRAVELWIZE a/k/a CYBERWIZE
TRAVERUS
ULTIMATE CHOICE TRAVEL
WORLD VENTURES TRAVEL
YTB INTERNATIONAL (Terminated by IATAN, RCL and Perillo Tours). YOUR TRAVEL BIZ, YTBCARS, YTB TRAVEL NETWORK and REZconnect TECHNOLOGIES operate as separate companies under YTB International may not be affected by the terminations. For example, Vacation Central, under Rezconnect is not affected.

I have only heard of three agency terminations by RCL effective November 9, 2007. They are YTB, GLOBAL INTERNATIONAL and JOYSTAR. I understand RCL reinstated Global. IATAN terminated 4 agencies, two of which are YTB and Inteletravel. If you know of others please let me know.

ALL THE ARTICLES I WRITE ARE GENERATED FROM MY OWN PERSONAL RESEARCH. THE OPINIONS EXPRESSED ARE MY OWN AND IN NO WAY REFLECT THE OPINIONS OF ANY OTHER INDIVIDUAL, COMPANY, ORGANIZATION OR EVEN MY MOTHER TO WHICH I MAY OR MAY NOT BE CONNECTED.

May 21, 2008

HAS THE MAINSTREAM TRAVEL INDUSTRY GONE SOFT ON THE MLMs/CARD MILLS?

During 2007, IATAN and Royal Caribbean Cruise Lines initiated steps to combat the growing problem of issuing credentials to consumers in order that they may receive travel agent benefits and selling travel and earning commissions, another form of commission rebating and the misuse of their logo.

IATAN terminated accreditation with at least two of the alleged MLMs/card mills and promised more terminations would be forthcoming. RCL also terminated three alleged MLMs/card mills and has since reinstated Global International, one of the oldest card mills still in business. A great deal of media press was put out with much discussion about the MLMs/card mills including interviewing a few of the MLM/card mill executives. All these executives pretty much said the same thing. Remember, Sargeant Schultz of the old "Hogan's Heroes" TV series? His favorite expression was, "I see nothing, I hear nothing, I know nothing." Apparently, those words are still used today by these MLM executives. I'm now wondering if these words are being practiced by much of the travel media, suppliers and organizations.

We are well into 2008 and have heard nothing further from IATAN, RCL or, for that matter, any of the mainstream suppliers. Is it because they have been threatened by those scarry words, "anti-trust violations?", is it apathy which most travel agents also suffer from or is it just a lack of interest? After all, revenues take the number one seat with these folks just as it does with any for profit business. It's not just about profits and putting back a little; it is 100% about profits.

I have always believed that one in business must give something back to those who kept them in business in the first place; In this case, the travel agent or travel professional. Travel professionals sell the products that keep us all in business. When the real travel professionals begin to disappear, there goes our bread and butter. When I use the word "disappear" I mean becoming less recognizable by the average consumer as a travel professional. The MLMs/card mills and some other so-called "host agencies" are simply recruiting consumers to sell travel without the proper training and doing it by the thousands. Today, these consumers or hobbyists far outnumber the serious travel professional. Suppliers continue to reward these consumer hobbyists with commissions (a form of commission rebating) and other travel agent benefits. It kind of reminds me of our government today believing a total global environment is the answer to everything. The introduction of untrained and unmotivated travel agents into the world of the trained travel professional is like the outsourcing our goods and services to countries using cheap labor. You receive an inferior product in return most of the time, in this case, untrained consumer travel agents selling the supplier's products.

Travel agents are the most apathetic group I have ever encountered; with some exceptions. Its the younger professional in his/her 20's, 30's and 40's that should be speaking out as they will be around a lot longer than most of us older duffers. They need to work together to safeguard their future as travel professionals. Normally, the best way is to ban together and join an organization that will speak out for them and not just offer a little product /destination training and a few FAMS. OSSN, NACTA and STARS have the best opportunity to do real justice for its travel agent members. The older organizations, namely ASTA and ARTA, have done nothing for us in recent years and are mainly controlled by people who prefer the status quo. The only exception being ARTA's creration of TRIP, a travel agent indentification program which stands for higher standards. I believe every independent travel professional should seek out the pros and cons of OSSN, NACTA and STARS. Join one of them and become an active member.

Yes, mainstream travel is soft on the MLM/card mills and other questionable host agencies. When one can no longer determine a travel professional from a consumer travel agent it will be too late. We need to clean up our act, improve standards in the way we operate our business and work to improve the image and standards of our travel agent professionals.

NOTE: IATAN recently won a decision over YTB concerning the use of the IATA, IATAN name and logo. I hope IATAN will check out the list of "bums" below and terminate all of them if they are in violation. It's obvious CLIA supports these businesses and has done nothing. I hope we have at least one organization with the "chimes" to do the right thing. One final comment. If the new Travel Retailer Identification Program known as TRIP is accepted by all, they will cause great harm to IATAN and CLIA unless they themselves improve standards. The "cash cow" will be coming to an end for some of these travel agent ID sellers.

EXPOSING THE MLMs and CARD MILL AGENCIES-

This section appears and is updated on a monthly basis. I think it's always good to know who these vultures are that prey upon the travel agent or consumer. The vultures are the companies only and do not reflect upon the few serious travel agents among them. I do not address why these serious travel professionals belong to such trash, however, it is their business and their decision.

The companies listed below are either an MLM or a card mill. Some are both. I just cannot understand why some suppliers support the 95% of these MLM affiliates when they are just consumers trying to discount their vacation. Some suppliers will say they support these companies because they can't separate the consumers from the serious agents. The solution is to stiffen the requirements for all incentives to travel agents. Of course, there are those suppliers that feed on pure greed for a sale and allow consumer affiliates to book travel and provide commissions. ( It's called "commission rebating" or throwing manure against the wall to see what sticks). It's OK for the suppliers but not the travel agent to rebate commissions. Suppliers who really care about the travel professional would not advertise on the MLM websites or display at their "smell the money" conventions. A supplier does not need to terminate the MLM agency, they just need to toughen up their requirements as to who sells their products and who goes on a Fam.

The following companies are either MLMs, card mills or financially troubled host agencies. If you know of others please let me know and I will add them to the list that will be printed twice monthly. If you find that I am incorrect in listing one of these companies, I will do a retraction in the following issue.

A-1 TRAVEL-VACATION.COM
ALL TRAVEL and CRUISE CENTER, INC
AMERICAN TRAVEL BUREAU
AMERICAN VOYAGER TRAVEL a/k/a GRAND VOYAGER TRAVEL
CASH CARD WORLDWIDE, now known as TRAVEL REACTION
COASTAL VACATION CLUB
GATEWAY ASSURANCE SYSTEM
GOLDRUSH GETAWAYS
EE TRAVEL BENEFITS
GLOBAL TRAVEL INTERNATIONAL
FUN TIME VACATION CLUB
GAZOOBA TRAVEL
GT TRENDS formerly PRT TRAVEL
HOLIDAY PLANNERS a/k/a INFINITE FRONTIERS and formerly AMERICAN VOYAGER, not to be confused with Holiday Planners , Branson, Missouri.
INTELETRAVEL(terminated by IATAN)
KE TRAVEL
JOIN CRUISE TO CASH
PROTRAVEL NETWORK, not to be confused with ProTravel International
TRAVELOGIA already cooked
TRAVELWIZE a/k/a CYBERWIZE
TRAVERUS
ULTIMATE CHOICE TRAVEL
WORLD VENTURES TRAVEL
YTB INTERNATIONAL (Terminated by IATAN, RCL and Perillo Tours). YOUR TRAVEL BIZ, YTBCARS, YTB TRAVEL NETWORK and REZconnect TECHNOLOGIES operate as separate companies under YTB International may not be affected by the terminations. For example, Vacation Central, under Rezconnect is not affected.

I have only heard of three agency terminations by RCL effective November 9, 2007. They are YTB, GLOBAL INTERNATIONAL and JOYSTAR. I understand RCL reinstated Global. IATAN terminated 4 agencies, two of which are YTB and Inteletravel. If you know of others please let me know.

ALL THE ARTICLES I WRITE ARE GENERATED FROM MY OWN PERSONAL RESEARCH. THE OPINIONS EXPRESSED ARE MY OWN AND IN NO WAY REFLECT THE OPINIONS OF ANY OTHER INDIVIDUAL, COMPANY, ORGANIZATION OR EVEN MY MOTHER TO WHICH I MAY OR MAY NOT BE CONNECTED.

May 02, 2008

YTB INTERNATIONAL'S ATTEMPT AT CREDIBILITY BACKFIRES

Turkey Icon

YTB International, the most dispicable in my opinion, and largest multi-level-marketing travel company and card mill thought they had one more in the bag on its quest to be more credible. YTB had elected Bob Dickinson, retired CEO for Carnival Cruise Lines to its Board of Directors along with a local, non-descript politician from Florida. There was a good compensation package in place for the new Board Members. However, Mr. Dickinson, remaining loyal to the many travel agents who have supported him over the years, declined the Board seat.

YTB International, in recent months, has been trying to gain more acceptance and credibility with the mainstream travel industry. They have hired well known and respected Marc Mancini to write training programs, purchased a retail travel agency in Canada and most recently attempted to recruit one of the best known cruise executives.

The problem with YTB and the other MLMs of this world is that their focus and revenues are not based upon earning travel commissions. About 20% of their revenue is from earned commissions while the rest is about signing up referral agents and selling websites that don't draw flies. The MLM world is very different in that management is generally made up of smooth talking "con artists", used car salesmen (YTB also sells cars) and former snake oil salespeople. You just need to do a little research on these people to see how they talk about the MLM industry and each other. The serious travel agents who started with YTB are moving to the legitimate Host Agencies because the commissions are higher, the costs are lower, the training is consistent and there is support.

It is unfortunate CLIA is a major supporter of these MLMs just because it brings in revenue and damn the real travel agents and their dedicated work.

My research of the MLM plague has resulted in dividing MLM players into the following categories.

1) Those smooth talking "con artists" etc, as mentioned above, who have no conscience when making statements as to the wealth building promises using their plan. These are generally the MLM's management who make most of the money.

2) The next tier are those who came into the game afterward, but see much wealth ahead of them in creating a team with their own identity and often their own website. They also have no conscience and prey upon their family, friends and anybody who will listen. Some of them do make money from selling business opportunities but it is generally short lived.

3) This group are the real suckers and are sold a dream based on hype, deceit and lies. Their predator, from 2 above, relies on the individual's own greed to sell them. These people last a very short time after running out of families and friends to sell. They also have no conception of operating a business.

4) From group 3 above you have a small group who are really only interested in becoming a travel agent. These are the ones who eventually see past the BS and seek out more legitimate sources or a Host Agency in which to pursue their ambitions of being a successful travel agent. This is the group the legitimate travel industry desires.

EXPOSING THE MLMs, CARD MILL AGENCIES AND OTHER DANGERS TO THE TRAVEL AGENT

This section appears and is updated on a monthly basis. I think it's always good to know who these vultures are that prey upon the travel agent or consumer. The vultures are the companies only and do not reflect upon the few serious travel agents among them. I do not address why these serious travel professionals belong to such trash, however, it is their business and their decision.

The companies listed below are either an MLM,a card mill or some other atrocity. I just cannot understand why some suppliers support the 95% of these MLM affiliates when they are just consumers trying to discount their vacations. Some suppliers will say they support these companies because they can't separate the consumers from the serious agents. The solution is to stiffen the requirements for all incentives to travel agents. Of course, there are those suppliers that feed on pure greed for a sale and allow consumer affiliates to book travel and provide commissions. ( It's called "commission rebating") It's OK for the suppliers but not the travel agent to rebate commissions. Suppliers who really care about the travel professional would not advertise on the MLM websites or display at their "smell the money" conventions.

The following companies are either MLMs and/or card mills or a combination thereof. If you know of others please let me know and I will add them to the list that will be printed twice monthly. If you find that I am incorrect in listing one of these companies, I will do a retraction in the following issue.

A-1 TRAVEL-VACATION.COM
ALL TRAVEL and CRUISE CENTER, INC
AMERICAN VOYAGER TRAVEL a/k/a GRAND VOYAGER TRAVEL
CASH CARD WORLDWIDE, now known as TRAVEL REACTION
COASTAL VACATION CLUB
GATEWAY ASSURANCE SYSTEM
GOLDRUSH GETAWAYS
EE TRAVEL BENEFITS
GLOBAL TRAVEL INTERNATIONAL
FUN TIME VACATION CLUB
GT TRENDS formerly PRT TRAVEL
HOLIDAY PLANNERS a/k/a INFINITE FRONTIERS and formerly AMERICAN VOYAGER, not to be confused with Holiday Planners , Branson, Missouri.
INTELETRAVEL(terminated by IATAN)
KE TRAVEL
JOIN CRUISE TO CASH
JOYSTAR
( ADDED DUE TO FINANCIAL CONDITION) PROTRAVEL NETWORK, not to be confused with ProTravel International
REAL ADVENTURES>BR> TRAVELOGIA already cooked
TRAVELWIZE a/k/a CYBERWIZE
TRAVERUS
WORLD VENTURES TRAVEL
YTB INTERNATIONAL (Terminated by IATAN, RCL and Perillo Tours). YOUR TRAVEL BIZ, YTBCARS, YTB TRAVEL NETWORK and REZconnect TECHNOLOGIES operate as separate companies under YTB International may not be affected by the terminations. For example, Vacation Central, under Rezconnect is not affected.

I have only heard of three agency terminations by RCL effective November 9, 2007. They are YTB, GLOBAL INTERNATIONAL and JOYSTAR. I understand RCL reinstated Global. IATAN terminated 4 agencies, two of which are YTB and Inteletravel. If you know of others please let me know.

ALL THE ARTICLES I WRITE ARE GENERATED FROM MY OWN PERSONAL RESEARCH. THE OPINIONS EXPRESSED ARE MY OWN AND IN NO WAY REFLECT THE OPINIONS OF ANY OTHER INDIVIDUAL, COMPANY, ORGANIZATION OR EVEN MY MOTHER TO WHICH I MAY OR MAY NOT BE CONNECTED.

April 02, 2008

SO YOU WANNA BE A HOME-BASED TRAVEL AGENT

I read lots of articles about the Home-Based travel agent in addition to working closely with them as CEO of one of America's well respected Host Agencies, Coral Sands Travel. ( Sorry, I couldn't help the commercial ). I can come up with many serious and laughable thoughts which I will share with you. I even plagiarized some work of others because I'm not the sharpest knife in the drawer and I want to make this a interesting discussion.

I will begin by saying that all home-based travel agents are not the same. They range from those agents coming from the "brick and mortars" to the newbie who wants a second income and all those agents in between. There are full time, part-time and no-time home- based travel agents. I do not separate them for this article as it would take up too much space, but you will get the picture.

Working at home can break up your marriage, alienate your kids and the family pet and do irreparable harm to your social life. Now with that understood let's discuss why you would have created this situation in your life in the first place.

The very first thing anyone deciding to set up a travel business in the home should ask themselves these questions.

1. Do I really enjoy selling and helping others with their travel plans?

2. Do I have the love of travel, the motivation and desire to make this business a life long career?

3. Am I a multi-tasking and organized person?

4. Am I willing to divorce my spouse, put my kids up for adoption, and euthanize the family pet? If you answered yes to at least three of these questions, you should consider a career as a home-based travel agent.

Now that you have the ingredients as to the type of person it takes to start your business, let's look at where in the house would you set up shop. It's not the kitchen table, it's not next to the TV set, it's not next to where the kids scream most of the time and it's not next to the cat's litter box.. Ideally, it's a separate room that is not being utilized. More often, it should be space in the quietest area of the house, maybe your bedroom, where you can shut the door and work sanely.

The next most important consideration is your computer. If you have an old Packard Bell, that won't work, or if your computer is more than 3 years old, that could be a problem. The operating system should be XP business or professional. Never Vista Basic. I don't really care about any of the Vista programs yet. The XP Professional is my first choice if I can get it. Naturally, there are lots more ingredients that you need. There are plenty of sources where you can find this information. I just don't have the patience to make you a list right now.

Obviously, there are many steps you need to take on the way to making yourself a valuable travel professional. For example, should you remain fully independent or go with a Host Agency? Which CRM program should you use? Where should you go for training? Which organizations should you join? How do you market yourself? The list goes on and on but these are some decisions you must make. Find someone you feel comfortable with as a mentor and who still has their head on straight in this business and do hold on to them. Marry them if you can. I would be pleased to recommend ideas from a private email but I can't marry you.

Some email addresses drive me crazy. New agents believe it's OK to use the old chat room handle. For example, addresses like puppydogeyes@aol.com or tarzan3452@yahoo.com aren't very business like. Get yourself a travel domain and email address if you want a better chance to have some credibility.

Should you bring clients to your home? Unless you want to take the chance of the dog peeing on their leg or the kid throwing his toy at the client, I would recommend that you meet at the client's home or a quiet coffee shop. Starbucks would be good. No loud restaurants and no lounges unless you have other ideas.

Another problem with operating your business at home is the sheer loneliness. I am also home based and experience loneliness at times. My remedy is to either pick a fight with my wife or go out and feed the raccoons. I find it healthier to do my raccoon thing. Join an organization like STARS where you can chat in their discussion forums. I don't want to be biased, therefore, you might also try OSSN or NACTA, not as good but very acceptable.

Since you're home-based you have a tendency to not get dressed in the morning and hang out in your PJ's. I don't recommend this. You should go to work at home dressed pretty much the way when you were working outside as you did when you had an outside job. I'm assuming it was an office type job and not a cook in a restaurant or a circus clown.
I can't leave this article without mentioning training. Training means different things to different people. To a new home-based person it may mean sending your dog to obedience school or potty training for your child. In the travel business it means learning about the travel products you want to sell, the many destinations, how to be a better salesperson and so on. Training for the travel agent is a career long requirement and not reading a "How To" book or attending an MLM cult rally.

One final jab at the MLMs. There is no such thing as a "Home- Based Referral Agent". You are either a real home- based travel agent booking travel yourself or simply an "order taker" trying to fool your friends into thinking you are a travel agent.

Now that I have shown you how to succeed in the travel business, is that job at Wal-Mart looking a lot better?

February 20, 2008

WHY YOU SHOULD JOIN AN MLM/CARD MILL

A Few Reasons Why You Should Join an MLM/Card Mill
holding money

I have always received email from the YTB folks complaining about my negative views concerning the MLMs and card mills. Well, today I have decided to write an article with a positive title. I hope you like it. I realized that there were so many reasons to join an MLM/card mill that I had to make a list. They are not listed in any particular order.

  • I want to receive commissions for booking my personal travel. I don't have time to be a travel agent.
  • I enjoy getting my friends and family to join my MLM so I can earn referral fees and discounts from my monthly website fees.
  • I fully enjoy deceiving my friends, co-workers and outright lying to them therefore, my MLM is the only way to go.
  • My MLM tells me all the store front travel agencies are closing and flocking to my MLM as a home based travel agent.
  • My MLM is breaking all sales records. I'm unclear about the bottom line, but that's not important.
  • I can receive a CLIA photo card by just taking and passing an easy online course.
  • My MLM is the greatest Host Agency because I trust everything they say.
  • I don't need much training to join. I just need to pay some fees to my MLM.
  • While I sleep, my website is earning lots of cash for me.
  • I can sell other products like used cars through my MLM.
  • I enjoy checking into a hotel where I present the front desk person my phony IATA photo ID or CLIA card in order to obtain a travel agent reduced rate. I just laugh all the way to my room.
  • I love attending national travel agent conferences where I can flood the rest- rooms with my MLM literature and give out flyers to unsuspecting agents in the hallways that say, "Travel agents travel for free. Join (MLM) today".
  • I enjoy going on Seminars at Seas because it's a cheap vacation.
  • I always wanted to join a cult. I know of no other cults (MLMs) that have Team Captains where I create more scams under my MLM banner; freeing the MLM from accepting blame for anything.
  • I just love those MLM conventions that attract 5000 of my closest MLM friends. The inspirational speakers remind me of those old time religious revivals where the evangelist tells us what GOD told him. The only difference is the evangelists are the management staff of the MLMs perpetrating another mountain of lies with actual cases of wealth building confirming their lies. I just love these conventions as they inspire me to go out their and find more suckers.
NOTE: I told you the title of this article would be positive. I neglected to mention the content.

February 03, 2008

AN AMUSING and PATHETIC LOOK AT THE MLMs and CARD MILLS

Let's begin by congratulating Carnival Cruise Lines for upgrading their requirements in order to apply for Travel Agent Reduced Rates. It now takes 5 closed sales to qualify for this program. This applies to all and not just the card mills. I'd love to see it spread to their Seminars at Sea and ship inaugurals. So where is NCL, MSC and COSTA, in all of this? The premium and luxury cruise lines don't appear to have a problem with these consumer MLM groupies.

Speaking of my friends at YTB; did you see their reported sales, revenue and operating profits recently? I realize that MLM people are great at deceptiveness and putting a spin on any kind of truth, but their recent report was just plain silly. They neglected to tell you how much revenue was from actual commissions earned. Well, it's about 10% of their revenue. The other 90% is from the sales of websites who can't draw flies and networking fees. They have been shut down by IATAN and RCL thus far. In addition, they are forcing many of the suppliers to increase their requirements for agent reduced rates and fams. This is a good thing as these MLMs aren't the only agencies that have unproductive travel agents.

On another note, it appears the MLMs/card mills are getting nervous as more and more agents and consumers and a few of their own people are beginning to see through their charade. Recently some of the travel media printed an article written by a Washington attorney, who is also allegedly a spokesman for the MLM industry. The article was clearly a scare tactic attempting to create a nervous condition for suppliers and organizations. It mentioned that any group, and it alluded to the host agency organization, PATH, could be in violation of anti-trust laws. What makes this unnecessary news article pathetic is that there is no organization, especially PATH, or any supplier that has expressed an interest in recommending boycotting these MLMS. The answer is not boycotting these agencies but raising the bar by suppliers who provide incentives to the 90% of these MLM affiliates who are only interested in their own personal travel. As I have said many times, MLMs/card mills aren't the only agencies who have these consumer agents. On the flip side, MLMs/card mills have some very productive agents. That is why we recommend increasing the requirements for supplier incentives. Some of these MLMs were shut off because they were in flagrant violation of that supplier or organization's rules. In that case, they should throw the bums out.

Last month I picked on CLIA and mentioned they hold the key to weeding out these pseudo consumer agents. CLIA could make an enormous impact in its service to the real travel professional. They can do it without loss of revenue. I call on OSSN and NACTA to also take a good look at their own photo ID card requirements. The CLIA 3SIXTY conference is coming up soon. Why don't the agents planning to attend this event take the time and voice their opinion to Terry Dale and his staff. You can also email him.

I understand the YTB folks are going into Canada, the Bahamas and Bermuda to recruit more suckers. I hope the respective governments eventually wake up as to how these people sell their alleged services and products. Maybe they will try to get into China. I'm sure China would deal with their shenanigans in short order.

I kind of rambled along this month. However, no one can mistake my true love for these MLM/card mills.

The following companies are either MLMs and/or card mills or a combination thereof. If you know of others please let me know and I will add them to the list that will be printed twice monthly. If you find that I am incorrect in listing one of these companies, I will do a retraction in the following issue.

  • AMERICAN VOYAGER TRAVEL a/k/a GRAND VOYAGER TRAVEL
  • CASH CARD WORLDWIDE, now known as TRAVEL REACTION
  • CERTRAV.NET
  • CERTIFIED TRAVEL SERVICES
  • COASTAL VACATION CLUB
  • GATEWAY ASSURANCE SYSTEM
  • EE TRAVEL BENEFITS
  • GLOBAL TRAVEL INTERNATIONAL
  • FUN TIME VACATION CLUB
  • GT TRENDS formerly PRT TRAVEL
  • HOLIDAY PLANNERS a/k/a INFINITE FRONTIERS and formerly AMERICAN VOYAGER, not to be confused with Holiday Planners , Branson, Missouri.
  • INTELETRAVEL(terminated by IATAN)
  • KE TRAVEL
  • JOIN CRUISE TO CASH
  • PROTRAVEL NETWORK, not to be confused with ProTravel International
  • TRAVELAGENTID.COM
  • TRAVELOGIA already cooked
  • TRAVELWIZE a/k/a CYBERWIZE
  • TRAVERUS
  • WORLD VENTURES TRAVEL
  • YTB INTERNATIONAL a/k/a YOUR TRAVEL BIZ, YTBCARS, YTB TRAVEL NETWORK and REZconnect TECHNOLOGIES. (Terminated by IATAN, RCL and Perillo Tours)

I have only heard of three agency terminations by RCL effective November 9, 2007. They are YTB, GLOBAL INTERNATIONAL and JOYSTAR. I understand RCL reinstated Global. IATAN terminated 4 agencies, two of which are YTB and Inteletravel.. If you know of others please let me know.

ALL THE ARTICLES I WRITE ARE GENERATED FROM MY OWN PERSONAL RESEARCH. THE OPINIONS EXPRESSED ARE MY OWN AND IN NO WAY REFLECT THE OPINIONS OF ANY OTHER INDIVIDUAL, COMPANY, ORGANIZATION OR EVEN MY MOTHER TO WHICH I MAY OR MAY NOT BE CONNECTED.

January 04, 2008

ELIMINATING THE RODENT'S FOOD SUPPLY, A CONTINUED LOOK AT MLMs AND CARD MILLS

This article is not about the four legged rodent and getting rid of him. All of us at one time or another has suffered damage to our yards due to the invasion of such critters as rodents, armadillos or other varmints. They make a mess of our property in their quest for food such as chinch bugs, grubs and other insects. Generally the only way to get rid of these pests is to remove their food source. In the case of these critters it may be some form of insecticide to eliminate the insect.

This plan of attack could also apply to the other rodents or critters we refer to as MLMs/card mills. The food supply in the case of the MLM/card mill operations is CLIA. At one time the card mills used their own agency photo ID cards many times appearing similar to the IATAN card in order to try and fool suppliers who accepted these cards into thinking the holder of one of these cards was a real travel agent. As more and more hotels, car rentals, etc. began to see through this charade the card mills were forced to seek other means for touting cheap travel to consumers. They also needed something that would give them more credibility at the same time. The answer was CLIA.

Two or three years ago anyone could obtain a CLIA photo ID card using any CLIA agency member. A couple of years ago someone at CLIA decided to stiffen up their requirements to obtain their photo ID card. Adding a CLIA three hour course requiring a passing grade was their answer. Apparently this new requirement fell woefully short as that was about the time the card mills really picked up on CLIA's easy requirements and ran with it. Today, both CLIA, who is taking in substantial revenues and the card mills who market their card are bringing in affiliates or referral agents by the thousands, most often because of what the card may do for them.

There is no doubt that CLIA is aware of the hurt it is putting on the serious travel professional by allowing anyone who is willing to take a short course and pay a fee to obtain the photo ID card. CLIA itself even works with these MLM/card mills by offering their course to thousands of consumers at one sitting to take the course and apply for the card. I would also think that the many hotels, car rentals, etc. who accept the CLIA photo ID card would be appalled knowing that they are really providing travel agents incentives to consumers.

There is an argument out there in supplier land that some of these so-called MLM/card mills are producing real revenue for some suppliers. Too many suppliers apparently believe that by allowing the card mill consumers to book travel they will generate high sales volume. What they don't provide responses to is why, in the case of YTB they allow 100,000 consumers to apply for travel agent benefits when only 5% of them are doing the real selling of travel and producing the sales volume. The old saying that 20% of the agents are producing 80% of the sales doesn't apply to the card mills. The card mills have 5% of the agents doing 95% of the sales. This alone speaks badly of their business model.

The supplier will also argue that we can't separate the 95% from the 5% because we don't know who they are. The answer is, "you don't have to know who they are." It's a matter of increasing the suppliers' standards of who is eligible for increased incentives as to who is invited on Fams, Seminars at Seas, Ship Inaugurals, and using travel agent reduced fares would be a good start. I also mean a real policy; not one of just words that hopefully will appease people like me. Offering commissions to the 95% of the card mill affiliates who are just consumers is a form of commission rebating and flies in the face of those suppliers who have come out against commission rebating.

It is my opinion that CLIA and the suppliers who support them hold the real key to putting a dent into pseudo and referral agents receiving the perks that rightfully belong to the serious travel agent. CLIA must look past its greed at this continuing revenue source and to do what is right for the travel agents who sell most of their cruise line member's products. Actually, their revenue source may continue simply by increasing the requirements to obtain a card as well as increasing the cost of the card.

I would hope when CLIA does name a new Advisory Board this year, which by the way, is made up of mostly travel agents, they will allow them to voice their opinions and really be an Advisory Board in more than name only. I understand the Advisory Board never meets other than the CLIA360 conference and its just to have cocktails.

I hope that everyone agreeing with my views on this issue will send a copy of this article to Terry Dale, President and CEO of CLIA with their own remarks. I also hope suppliers, particularly hotels would put the heat on CLIA or remove themselves as a supporter.

I am a huge supporter of CLIA with all of their training and education they provide to travel agents. They have great personnel and the best trainers. It's their photo ID program that is the real "dog" here.

I have combined the following section with this article this month. It is my dedicated section to the MLMs/card mills, as well as to the other bad apples that prey upon our travel industry specifically the legitimate home based travel agent, the travel suppliers and the consumers. We will continue our efforts, hopefully with your help, continuing to make progress with removing this growing virus as well as maintaining an updated list of these scoundrels.

The following companies are either MLMs and/or card mills or a combination thereof. If you know of others please let me know and I will add them to the list that will be printed twice monthly. If you find that I am incorrect in listing one of these companies, I will do a retraction in the following issue.

  • AMERICAN VOYAGER TRAVEL a/k/a GRAND VOYAGER TRAVEL
  • CASH CARD WORLDWIDE, now known as TRAVEL REACTION
  • CERTRAV.NET
  • CERTIFIED TRAVEL SERVICES
  • COASTAL VACATION CLUB
  • GATEWAY ASSURANCE SYSTEM
  • EE TRAVEL BENEFITS/LI>
  • GLOBAL TRAVEL INTERNATIONAL
  • FUN TIME VACATION CLUB
  • GT TRENDS formerly PRT TRAVEL
  • HOLIDAY PLANNERS aka INFINITE FRONTIERS and formerly AMERICAN VOYAGER, not to be confused with Holiday Planners, Branson, Missouri.
  • INTELETRAVEL(terminated by IATAN)
  • KE TRAVEL
  • PROTRAVEL NETWORK, not to be confused with ProTravel International
  • TRAVELAGENTID.COM
  • TRAVELOGIA already cooked
  • TRAVELWIZE aka CYBERWIZE
  • TRAVERUS
  • WORLD VENTURES TRAVEL
  • YTB INTERNATIONAL aka YOUR TRAVEL BIZ, YTBCARS, YTB TRAVEL NETWORK and REZconnect TECHNOLOGIES. (Terminated by IATAN, RCL, Perillo Tours and Sports Empire)

I have only heard of three agency terminations by RCL effective November 9, 2007. They are YTB, GLOBAL INTERNATIONAL and JOYSTAR. I understand RCL reinstated Global. IATAN terminated 4 agencies, two of which are YTB and Inteletravel. If you know of others please let me know.

October 19, 2007

DON'T PEE DOWN MY BACK AND TELL ME IT'S RAINING, a Look at the Legitimate Host Agencies by Peter Stilphen, MCC

Host Agencies owe their independent travel agent affiliates 100% support in all areas of the travel business I.e. marketing, technology, training and general business advice.  This does not mean the Host must have its own in-house programs covering all these areas.  Most Hosts outsource one or more of these programs.  In any event the Host must be in a position to either offer or recommend these sources to their affiliates.  Many Hosts, despite their claims as having original programs, offer the same product branded in their name or copy someone else's program and sell it as proprietary.  there is nothing wrong with any of this except a little distortion of honesty or integrity which really isn't necessary.

Host Agencies do owe their affiliates honesty and integrity as well as paying commissions on time.  It has become noticeable with our segment that some Hosts are beginning to "nickle and dime" their affiliates in an attempt to become more profitable.  A major part of the reason for this is because, as the segment has become more competitive, more Hosts believe that they need to offer better deals to attract affiliates.  This has created a "musical chair" effect with the experienced travel agents as many of them wander from Host to Host for that extra 5% commission.  The whole scenario makes no economic sense.

Another reason for the added fees by Hosts is because of the various programs they promote.  An example of this is the offering of a 90/10 commission split with zero startup, zero monthly and zero renewal fees.  Unless the Host has another way to bring in revenue, the program is doomed to fail.  Host agencies will remain in business as long as their business model and programs remain economically feasible.  Once a Host begins to add fees particularly without notice, I would question why and look at what is happening to the business model.

I mentioned above that some travel agents play the "musical chair" game with Host Agencies.  The reasons are not always for better commissions, but rather, a very small percentage of agents are using this opportunity to scam the Host and the consumer by utilizing unlawful credit card transactions.  The Hosts most affected by this are the ARC appointed Hosts.  ARC appointed and probably all Hosts should begin to request background or credit checks.

As the Host Agency segment continues to evolve, I'm sure there will be some merges, shake ups and unfortunately, even some failures.  Today it is vitally important that any travel agent, new or experienced, do their due diligence when seeking a Host.

If you are already working with a Host Agency, look for the following warning signs and ask tough questions of your present Host.

  • A sudden change in their business model without an explanation that makes sense to you.
  • Charging you for new fees much like a bank without proper notice or explanation.
  • Commissions that are paid more than 60 days after the client's trip was completed.  There are some vendors that don't pay the Host until 2-3 weeks after the trip.  Many hotels and small suppliers are just slow in paying out commissions.  Determine if it's the supplier problem and not the Host's problem.  Don't jump when a commission falls through the crack.  We all make mistakes.  It is the same consistency of slow paying by your Host to watch carefully.  Most Hosts pay out commissions within 30 days of receipt of same from the vendor except individual cruises that may be paid earlier by the cruise line but held by the Host pending last minute cancellation recalls.
  • Sudden and frequent changes in your Host's personnel should raise a red flag.

Ask your Host how they handle unclaimed commissions.  Ask about their policy regarding paying out earned commissions even after termination.  If you have earned commission, you should receive it even if you left that Host.

There are many profitable Host Agencies out there that operate their business with honesty and integrity.  As in any business or industry there are the "bad apples."  the better ones hang out at www.path.travel.

September 18, 2007

SOLUTIONS TO COMBATING THE MLM/CARD MILLS AND OTHER BAD APPLES by Peter Stilphen, MCC

I have decided to dedicate a section of my newsletter to the MLM's/card mills, as well as to the other bad apples that prey upon our travel industry specifically the legitimate home based travel agent distribution system and their travel suppliers.  We will continue our efforts, hopefully with your help, until we start making some progress with removing this growing virus.

I am dedicating this section to how we can reduce the MLM/card mill and network marketer influence as well as maintaining an updated list of these scoundrels.

POSSIBLE SOLUTIONS

  • CLIA has become a powerful force in the re-emergence of the MLM/card mill in recent years.  Some card mills have replaced their own IATAN look-a-like photo ID cards with the CLIA card to give them more acceptability and credibility.  If CLIA would upgrade their photo ID card requirements, it would force the non-serious agents to either obtain more training or get out.  This works for both sides of the travel agent distribution system.  On the MLM side it would deter the easy distribution of these cards.  Where is the CLIA ADVISORY BOARD on this subject?  Aren't you all travel agents?  CLIA's photo ID card is its only blemish on an otherwise great organization.
  • Host Agencies need to develop "newbie" training programs and start accepting new travel agents.  Coral Sands has been doing this from day one and it can be profitable.  The Host Agencies need to create a workable program for developing new agents.  At this time, the vast majority of new agents are joining the MLM's/card mills and receiving poor training and picking up some bad selling habits.  We need to provide better choices as responsible Host Agencies.
  • Organizations such as PATH, ASTA, ARTA, NACTA, OSSN, NACOA and TPOC need to provide a basic awareness program explaining both sides of the travel agent distribution system somewhere on their website.  They should explain the differences between an MLM/card mill and the "legitimate" travel industry.  This can be done without infringing on Federal laws and nasty letters from the MLM attorneys.
  • The suppliers, especially the large cruise lines, the all-inclusive resorts and a few tour companies should re-examine their policies in regards to the qualifications of travel agents required to take advantage of their benefits as well as establishing a company policy concerning untrained agents.
  • Individual travel professionals should write, e-mail or telephone their membership organization, preferred suppliers and CLIA expressing their opinions.  If enough of us participate someone will listen.

The following companies are either MLM's and/or card mills or a combination thereof.  If you know of others please let me know and I will add them to the list that will be printed twice monthly.  If you find that I am incorrect in listing one of these companies, I will do a retraction in the following issue.

  • AMERICAN TRAVEL BUREAU
  • AMERICAN VOYAGER TRAVEL a/k/a GRAND VOYAGER TRAVEL
  • CASH CARD WORLDWIDE, now known as TRAVEL REACTION
  • CERTRAV.NET
  • CERTIFIED TRAVEL SERVICES
  • COASTAL VACATION CLUB
  • GATEWAY ASSURANCE SYSTEM
  • GLOBAL TRAVEL INTERNATIONAL
  • FUN TIME VACATION CLUB
  • GT TRENDS formerly PRT TRAVEL
  • HOLIDAY PLANNERS aka INFINITE FRONTIERS and formerly AMERICAN VOYAGER, not to be confused with Holiday Planners, Branson, Missouri
  • INTELETRAVEL
  • KE TRAVEL
  • PROTRAVEL NETWORK, not to be confused with ProTravel International
  • TRAVELOGIA already cooked
  • TRAVELWIZE aka CYBERWIZE
  • TRAVERUS
  • WORLD VENTURES TRAVEL
  • YTB INTERNATIONAL aka YOUR TRAVEL BIZ, YTBCARS, YTB TRAVEL NETWORK and REZconnect TECHNOLOGIES.

ALL THE ARTICLES I WRITE AND ESPECIALLY THE MLM'S/CARD MILLS THAT I LIST ABOVE ARE FROM MY OWN PERSONAL RESEARCH AND THE OPINIONS EXPRESSED ARE MY OWN AND IN NO WAY REFLECT THE OPINIONS OF ANY OTHER INDIVIDUAL, COMPANY OR ORGANIZATION TO WHICH I MAY OR MAY NOT BE CONNECTED.

ARE HOST AGENCIES ON THE RIGHT PATH? by Peter Stilphen, MCC

During the four years I've been involved with the Host Agency segment of our travel agent distribution system, I have seen many Host Agencies come into the picture; each one with a different business model.  I've made it my business to learn as much as I can about Host Agencies because that's my business, they are my competitors for the most part and I can also learn from them.  Once in a while I see business models that I know won't work in the long run and those are the ones that will eventually affect the payment of commissions to their affiliated agents.  I generally speak out about them because a sudden demise of any Host Agency will have lasting effects on all of us.

The Host Agency, which did begin as a "renter" of travel agent credentials has certainly come into its own in the past 5-6 years.  It's business model now offers a myriad of programs, technology tools, marketing programs and Internet sites for members containing all sorts of training, booking engines and other travel agent bells and whistles.  The above has become the staples of today's Host Agency business.

All Host Agencies claim to be number one or the best.  They offer more programs and higher commission levels. But when it comes right down to it, it's what each one offers in the form of camaraderie with their affiliates, the individual support levels, honesty and integrity and just doing what is right for your affiliates.  All this adds up to a superior Host Agency.

Most Host Agencies do not have "newbie" programs and those that don't are not advancing the home based independent travel agent segment.  We all need to bring in new blood to this industry.  Most Hosts believe it is not profitable to accept "newbies".  That's a total myth.  Of course, you must charge start up fees and even have a lower commission split but we all need to bring in new travel agents.  There are thousands of new travel agents coming into the business but are joining the multi-level marketing agencies because there aren't enough of us offering "newbie" programs.  There is also potential additional liability in bringing in "newbies" but this also can be reduced substantially with the proper safeguards.  I realize the ARC accredited Hosts have unique problems especially with runaway debit memos.  This requires even higher safeguards and even removing the ability to make airline reservations until the proper training is in place.

As in any business, there are the scalawags that hurt the other Host Agencies trying to operate a successful business.  As I mentioned above, there are Hosts whose business model gives away the store, so to speak.  The old saying "I'll make up my losses by doing more volume" won't work either as some Hosts believe and are discovering.  What is the point of growing sales to magnificent heights if the dollars that flow to the bottom line more than evaporates on the way resulting in a deficit.  I don't care if you are a graduate of Harvard Business School, an investment broker or Houdini.  If the bottom line remains a deficit, you must make adjustments or the ship will eventually sink.  I've noticed that some Hosts whose business model I questioned are beginning to "nickle and dime" their affiliates to make up for losses.  At this point it is too late.  The cat is out of the bag so to speak.

In recent years due to the surge of the home based travel agent and the usual search by consumers for cheap vacations, more and more multi-level marketing companies are entering the scene making promises of fantastic commissions, travel perks and discounts that even a real travel agent can't earn and other business opportunities that are more about recruiting others into the program and even consumer booking websites that promise you large earnings while you sleep.

The multi-level marketing companies also provide a travel agent photo ID card such as CLIA's photo ID card giving the holder access to deeply discounted fares or rates.  Many of the MLM's still provide their own photo ID card resembling the coveted IATAN card.  The MLM's have been pushing the easily obtainable CLIA card because it offers more credibility than their own issued card.

The affiliates of the MLM/card mills or Referral Travel Agents as they are commonly called, number in the hundreds of thousands.  There's an MLM affiliate party coming to your neighborhood soon, if not already.  The consumer considers the MLM's as Host Agencies not knowing there is another side of this travel agent distribution system and the legitimate Host Agency.

It is imperative that successful Host Agencies unite and define themselves.  A couple of years ago an organization known as OATH was founded.  During the months following the birth of OATH and due to the input of many Host Agency executives, OATH evolved into PATH, Professional Association of Travel Hosts.  Today PATH comprises 23 of the finest Host Agencies and is still growing.  These Host Agencies are the "who's who" of the travel industry and can be found at www.path.travel.com.

There are the naysayers out there who don't believe there should be a code of ethics and standard practices for Host Agencies or are just waiting around for the final verdict on this new organization.  PATH has arrived and with its present 8600 member Host Agency affiliates, the suppliers are beginning to take notice.

PATH is not just about practicing ethics; it is about enhanced training and education to its affiliates and improving communications between the suppliers, Host Agencies and its affiliated members.  Without organizations like PATH, outside elements such as the rise and influence of the MLM's will devalue the purpose of the legitimate Host Agency as well as the travel professional.  We need to define ourselves through PATH.  Additional information about PATH may be found at www.path.travel.