THE MLM's AND CARD MILLS, A REAL THREAT TO TRAVEL PROFESSIONALS by Peter Stilphen, MCC

The network marketing companies (MLM's/card mills) are simply bad for the travel industry.  Most of them lose money, change their names often and use the age old tactics of lies and deceit to sell their programs.  They are not into selling travel as a serious profession but, rather, into having the naive consumer recruit others into the program with promises of great wealth as well as selling other products such as cosmetics, vitamins and now used cars.  Their affiliates are generally poorly trained and pose a burden to suppliers and the integrity of the travel profession.

The situation won't be solved by people like me writing articles about these folks.  The situation requires the individual travel professionals, the organizations, CLIA and the suppliers doing their part.  This can be done without fear of reprisal from the MLM's and card mills.  We would be simply stating our position and offering basic information about the travel MLM/card mill industry.

There are some people that don't feel there is a problem with the integration of the MLM's and card mills because the only reason we all exist is so the supplier can sell their products.  The more people selling their products the better for all.  There is at least one problem with this thinking.  When you allow anyone to sell a supplier's product, you take the risk of someone misrepresenting the product because the individual is not properly trained to represent that product.  This creates a huge burden and potential liability for the supplier who works with poorly trained agents.  Usually that agent only cares about the sale and potential commission.  In the long run the supplier will be hurt.  In addition, the more consumer travel agents out there seeking travel agent benefits, the more burden it places upon the supplier.  The real problem is that continuing on this road erodes or dilutes the role of the professional agent.  The so-called consumer travel agent or referral agent is growing at a much faster pace than the legitimate travel agent which will hasten the above results.

I have been writing about card mills for several months now along with comments about them on my website for the past two years.  As one single voice we can have an impact.  Here are my recommendations.  I'm sure you can come up with others.

   *   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?

   *   Host Agencies need to develop "newbee" 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.

   *   Organizations such as PATH, ASTA, ARTA, NACTA, OSSN, NACOA and TPOC need to have a basic awareness program explaining both sides of the travel agent distribution system somewhere on their website explaining the differences between an MLM and entering into 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 regard to the qualifications of travel agents required to take advantage of their benefits as well as establishing a company policy regarding 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.

I believe ARTA with its proposed TRIP card will impose higher standards for obtaining their photo ID cards.  Unless IATAN, CLIA, TRUE and TRAVEL SELLERS increase their standards, they will be left behind.

Keep in mind one important fact.  This is not about travel agents losing benefits to the MLM referral agents.  This is about continuing and growing the serious travel professional, enhancing our integrity and showing the consumer they can rely on a true travel professional.  The MLM referral agents are presently growing at a much faster pace than the serious agent and if left unchecked, will seeriously dilute our professional travel status.

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

   *   AMERICAN TRAVEL BUREAU

   *   CASH CARD WORLDWIDE aka K & E TRAVEL

   *   CERTRAV.NET

   *   CERTIFIED TRAVEL SERVICES

   *   COASTAL VACATION CLUB

   *   GLOBAL TRAVEL INTERNATIONAL

   *   GT TRENDS formerly PRT TRAVEL

   *   HOLIDAY PLANNERS aka INFINITE FRONTIERS and formerly AMERICAN VOYAGER, not to be confused with Holiday Planners, Branson, Missouri

   *   INTELETRAVEL

   *   JOYSTAR now called TRAVELSTAR and formerly ADVANCED REFRIGERATION

   *   PROTRAVEL NETWORK, not to be confused with ProTravel International

   *   TRAVELOGIA already cooked

   *   TRAVELWIZE aka CYBERWIZE

   *   WORLD VENTURES TRAVEL

   *   YTB INTERNATIONAL aka YOUR TRAVEL BIZ, YTBCARS, YTB TRAVEL NETWORK and REZconnecTECHNOLOGIES

The comments and opinions written above are my own and not those of my company or any organization, of which, I may be a member.

Comments

[mj]

Great Blogging - Please keep up adding to the list of travel MLM's and card mills.

Also how about providing a list of suppliers that allow the card mills to operate by dealing with them - what are we going to doo about them???

[Marcus Jones]

Please get your story straight about YTB. They have recently implemented a program effective on 1/1/08, wherein new Referring Travel Agents will need to sell at least $1500 in travel (not their own travel) in order to obtain their IATA card. We have been involved with YTB for 6 months and have made a significant amount of money with travel commissions. We enjoy traveling and also like to help people plan their trips. As such, we have become Disney Specialists. I recommend you do more research regarding YTB before posting such comments.

[antonio]

The online travel industry is a massive money generating machine. The opportunity for the average person to be involved in the travel industry and tap into the abundant wealth being spent every day is exciting! Traditional travel professionals are losing to the online giants. Companies like YTB have made booking travel easy, and personal. The world is changing and so have the habbits of people that buy travel. Online bookings have taken over the travel industry. The trend will continue to grow and grow, which means we will see more online travel agnecies, than fewer. www.ihaveatrip.com

[Joe]

"new Referring Travel Agents will need to sell at least $1500 in travel (not their own travel) in order to obtain their IATA card"

Too bad they don't force them to meet the REAL IATA requirement of $5000 in commissions!

[Luanne]

In case you missed the Professional Travel Agent's no MLM Petition. I encourage those bonafide travel agents to sign.

http://www.petitiononline.com/NOMLM/petition.html

[Shane Clevenger]

YTB Does Require $5000 to recieve your Iatan card. The Iatan card is recieved from Iatan and not YTB.
This has always been the case. If you are in YTB look in your back office bizreports and you will see the people who have achieved their card. Also we have to earn our Iata card as well. We in YTB have to go through all the same required test etc to get your iata and iatan, and it is legitamate as you so called true TA's.
The $1500 requirement is to obtain your RTA card from YTB.
I was a Travel agent for 10 years before joining YTB, so I could leverage my time and build a team of TA's.
This is about one thing and one thing only, and it will happen to traditional TA;s whether or not they knock out YTB or not....they are hurting because the internet and travellers ability to book online at 2am in their underwear.
They can't closed down travelocity and expedia, so they pick the next big thing.....US!!!!
I recommend the book...Who moved my cheese.

[Shane Clevenger]

The more I look at this situation I feel that it could all be called with this old school thing called communication.
If someone were to walk the folks who are petitioning to shut down YTB through the YTB back office it would end.
They would see all the training required to get credientials (same as everyone else), and they would see that we get our Ta, and clia cards from the same source as them. They would see all the travel that is being booked by hard working people making a difference in our company. Look, their are bad people in every industry, including ours.
When I managed a hotel in park city a few years ago, I put up 25 families for free, because a cerified regular TA went out of business and didnt pay us the money the travellers paid him.
I agree we needs to get rid of the roque people out their doing things the wrong way, but we have an infrastructure in place, and training for all the proper requirements. WE are NOT giving people credentials because they pay a fee, they have to earn it, just like everyone else.
This action will not help the problem.

[Jay NaPier]

Generally, companies that are not operating properly go out of business on their own, without a petition.

I know of 2 companies you mention that are good companies that are doing things right. In fact, a group of is went on a cruise and the agency name was right there on our verification tickets for the cruise.

There seems to be some sour grapes here.

Jay NaPier

[Earl Allen Boek]

Listen I'm going to say the same thing I wrote on your BS travel petiton. YTB is not a card mill for starters. Iv'e been with them for several months have no cards or any offered. Your Convetional Travel Industry lost 80 million Travel customers to Orbitz last year. That happened on your watch and John Frenaye, Jr's watch not the MLM industries or YTB. My advise. Take a good-long-hard-look at your own industry before you start attacking ours.

You've got much bigger problems than YTB Travel.

Earl Allen Boek
http://RobertsResorts.Net

[Joe]

"Take a good-long-hard-look at your own industry before you start attacking ours."

This is the reason that PATH was started - to create a code of ethics for OUR industry.

When YTB started selling travel, you became part of OUR industry - and you will need to play by our rules.

Those rules are still be created - and I, for one, am happy in the direction that they are going - obviously, you are not.

[Denice]

I think that you need to do your research before you start listing companies on your web page. How do you know these companies are cardmills? Sounds to me like you can't handle the competition. You make it seem like you care so much about the vendors. Sure you do! It's all about money with you, it's apparent. What kind of person would try so hard to put people out of business? Only a evil person that cared nothing about people only about himself.

[Travlyr]

YTB International is a remarkable company.
Peter, you are using MLM/card mills as if they are somehow the same thing. Either you have not done your research, or you would like to distort the truth.
MLM/Network Marketing is a business model. Card mills sell plastic products. They are two entirely different things.
YTB is not selling plastic. YTB is selling online travel stores to business owners and providing plenty of good training.
YTB International is in the forefront of the industry trends.

[Bill Hoffmann]

Peter,

Really I do NOT believe you care, YTB is NOT after any Traditional Travel Agents customers, we are after Expedia's, Orbitz and Travelocities, the 80 million people that are booking online.
We are an ONLINE TRAVEL AGENCY, not a Travel Agent working from our house booking peoples VACATIONS, if someone wants that I send them to a Traditional Travel Agent.
I want my friends and family travel that they were going to do ONLINE with one of the Highly Advertised sites. PERIOD.
Yet you do not want the truth, it is far easier for you to Curse the Dark than Shed some LIGHT on it!
YTB is not the enemy, why not take all your YEARS of Travel Expertise and help MOLD YTB's model we are NOT after your agents customers.

Thank you

Bill Hoffmann 419.466.6399

[Carolyn]

Please be advised that Holiday Planners, Bransoon, Missouri is the same company as Holiday Planners aka Infinite Frontiers. They are one and the same. Infinite Frontiers is the distributor for Holday Planners. There is also another distributor for Hholiday Planners which is named Precision Adventures. They sell travel club memberships for Holiday Planners as well. Th membership carries with it an Outside Travel Agent contract and includes OTA cards for the purpose of getting discounted travel. All travel is booked through Holiday Planners. The cards are definitely part of the "card mill" scam. No requirement for selling travel is required to obatin the service. Unfortuanately people report not getting the travel discounts they are promised. There are currently over 50 consumer complaints filed with the Missouri Attorney General's Office against these three companies. The connections of these companies can be traced through the Southwest Missouri BBB showing Jeff Brown as a principal in both Infinite Frontiers and Holiday Planners, Branson, Mo.

[Denise Duncan]

Joystar does not give out IATA cards unless you sell 5000 in sales.but since you are giving out the bad ones please give a list of the good ones and who offer on line courses that are legit.

[paul]

What a waste of energy the traditional travel business is exhibiting. It is a simple problem. There was a market shift and you didn't shift. So shift or soon you will be smaller than a knat on a rock. The whole industry has changed. Your Co. didn't. YTB has all the requirements for credentials that the traditional travel business does. It seems that education is your concern on the front page but the truth is you are worried about your business model lasting. And you are right to do so. We shall turn thr other cheek on this one though. The market decides or itself how it will buy travel and you or I or no one else will change that. It seems that they have decided to buy on -line. Good for them. I don't know what you are going to do, but we are going to give the market what it wants

[paul]

oooops I did forget one very important part of this comment... Peter, the one thing that you missed totally is that if someone wants to have a massage they go to a palor. If they want online travel they go online, if they want to go and sit down with someone and get help with their travel plans they go to you. So,,,,,,,,. what is your real problem. The business is what it is, some go online some go else where. I would gladly refer to you if that would help. would it???

[Brian]

Brian and Sarah McCoy offers home based business by selling or marketing xocai products.

[Chris]

I don't see how network marketers can really posse a threat to traditional travel agents if they offer a bad service. In such a case their poor service would become known to the public and they would try to avoid doing business with them.

I believe that the travel MLM industry would grow bigger in the next years and they would get more share of the market from traditional companies.

[Gbg]

Looks like a promising business opportunity. Lots of helpful information.

[ViSalus]

Find this blog to give the lots of information.

[Cash Gifting]

Useful info, the companies away from the limelight are making all the money.

[Extenze]

It seems that education is your concern on the front page but the truth is you are worried about your business model lasting. And you are right to do so. We shall turn thr other cheek on this one thoug

[cheap flights to chennai]

There is also another distributor for Hholiday Planners which is named Precision Adventures. They sell travel club memberships for Holiday Planners as well.

[Mesothelio]

The cards are definitely part of the card mill scam. No requirement for selling travel is required to obatin the service.