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THE REAL "SKINNY" ABOUT THE CARD MILLS | |
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ASTA defines a card mill in part as, "Those businesses that sell deceptive identification cards, sometimes accompanied by a package of worthless training materials that falsely identify the purchaser as a travel agent. These cards are represented as enabling the holder to obtain discounts, upgrades and/or commissions reserved by travel suppliers for professional travel agents who actively promote the supplier's services. Consumers who purchase this ID card are actively deceiving the travel supplier as to the cardholder's true status."
Royal Caribbean describes a card mill as a business, "selling ordinary consumers access to benefits designed for actual agents." They go on to say that card mills are "a growing and troubling trend within the travel industry and provide many negative effects including negative consumer experience and devaluating the knowledge, experience and expertise that legitimate professional travel agents provide their clients everyday," to name a few.
Card Mills are not necessarily MLMs or multi-level- marketing agencies although many MLMs are also card mills. For example, Global Travel International and Prestige Travel provide photo ID cards but are not MLMs. YTB on the other hand is both an MLM and a card mill. JoyStar (TravelStar) began as neither but eventually evolved into an MLM only.
We will be addressing only the pure card mills in this article. Many of you, especially suppliers, may ask, "What is so terrible about card mills?" My response to a supplier would be, "Why would you want to provide benefits and discounts to anyone with a photo ID card who really doesn't care, in most instances, about selling your product?" My response to a professional travel agent would be, "Do you want consumers and hobbyists taking advantage of the perks you work hard for or are unable to go on a FAM because some pseudo agent got there first?"
The phony photo ID cards sold by these agencies have really been hurting hotels and many suppliers planning a FAM to further promote their products. Fortunately, many operators are taking steps to reduce this problem including the cruise lines. Too many suppliers are over anxious to sell their products and will cater to any agency that would produce a sale for them. Such a supplier is not looking down the road because by condoning the card mill practice, it is diminishing the value of a professional travel agent. If the real travel agent is treated on the same level as everyone else we would wind up with untrained travel agents, together with the additional scams that would result. It is incumbent upon the travel supplier to help maintain a healthy and knowledgeable sales force by weeding out these pseudo agents.
In any event my real focus will be on the photo ID card agencies and the "travel like a travel agent" benefits they heavily advertise. Our first exposure will be Global Travel International from Maitland, Florida.
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EXPOSING THE CARD MILLS, THIS MONTH, FEATURING GLOBAL TRAVEL INTERNATIONAL. | |||
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Now that I have provided a little background with regard to card mills, I will focus on one of the oldest and largest card mills, Global Travel International from Maitland, Florida.
Randy Warren, a co-owner with Michael Gross was quoted as saying, "Who's to say who is a travel agent and who isn't when there are no requirements for becoming one? The company (GTI) will give travel agent credentials to anyone who is at least 18 years old and antes up the necessary fees." This was all said in a New York Times interview in 1999.
GTI, as it is more commonly referred to, began in business around 1994 and claims to have well over 35,000 affiliates. In addition to the photo ID card (See an example recently copied from one of their affiliate's websites at the top of this article), GTI offers referral fees getting others to sign up. Not quite an MLM scheme but nevertheless, a scheme to recruit more agents. Another giveaway is, like MLMs, GTI sells other products than just travel. They have some sort of shopping club and jewelry sales on their websites. Of course, they don't sell used cars as does YTB.
GTI's business model hasn't grown significantly over the past few years. They had over 30,000 affiliates by the year 2000 but haven't netted much of an increase since then. My opinion is that their business model is outdated because in the last few years consumers and travel agents have become more savvy. Competition from todays legitimate Host Agencies and the huge influx of the MLM model has also bitten into their business.
A GTI affiliate website located at www.becomeatravelagent.com/why.htm depicts what GTI is all about these days despite comments from the founders that they operate differently. Insiders, former employees at Global, claim employees are trained at "bait and switch" tactics concerning their many available programs. The former employees also mention that aggressive collection procedures are employed by the company. For example, if an affiliate fails to notify GTI of its intention to terminate its relationship, GTI will aggressively chase down that affiliate for its fees. Most Host agencies won't enforce this provision. Aggressive debt collections and "upselling" non-travel related services such as the shopping club are the norm at this company. GTI has been the recipient of many complaints, some of which included their highly aggressive recruiting policies and misleading advertising practices. The BBB has recorded 210 complaints over the last 36 months with 38 just in the last 12 months.
GTI is currently listed as a Host Agency in Travel Trade's published list of suggested Host Agencies. Their websites also indicate they are members of CLIA, IATA, and ARTA. GTI has added training features such as their agent boot camp. As does the MLMs and other card mills GTI charges a fee for training when most hosts provide it for free. As long as GTI promotes its photo ID card to consumers, uses overly aggressive selling and collection tactics, it is nothing more than a "card mill."
It is companies like GTI, JoyStar, YTB and others that have begun to have problems as people begin to see through their very flawed business models.
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MY 2009 PREDICTIONS AND HOW I DID FOR 2008 | |||
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Here are my personal predictions for 2009.
- 2009 will be a better than expected year for travel especially to those agents who keep and apply the positives.
- Three more Host Agencies will go out of business.
- Several Tour Operators will not see the end of 2009 along with one cruise line.
- The Shrimp Lady will marry Oscar
- My Red Sox will be back as World Series champions.
- 2009 will be YTB's final year along with a couple more of these scoundrels.
- I will win 2 arguments with my wife. One more than last year.
- I will not win a Pulitzer prize as a writer. ( I hope I spelled that correctly.)
Here were my 2008 predictions and how I fared.
MY PREDICTIONS FOR 2008.
1) A mega Host Agency will go bankrupt leaving their independent agents out in the cold. (I was right with JoyStar.)
2) Romney and Clinton will oppose each other in the Presidential race. ( I wasn't even close)
3) YTB will add another 50,000 consumer pseudo referral travel agents putting more burden on "do nothing about it" suppliers and further reducing the value of the serious travel agent. ( Actually their numbers were down as consumers are finally catching on to their scam)
3) The TV show "24" will continue to be my favorite if Keifer Sutherland can keep out of jail. (OK on this one)
4) CLIA will continue to "rake in" profits from the sale of photo ID cards to multi-level- marketing and card mill agencies unless they develop a conscience. (Half right. They did change the rules making it more difficult for agencies with dubious business models.)
4)The Patriots and Red Sox will again win the World's Championships. ( Close. The Patriots lost in the Super Bowl and the Red Sox lost in the American League playoffs.)
5)There will be at least two more travel agent membership organizations formed in 2008. (Only one National organization, STARS)
6) The Shrimp Lady will be exposed to all as she goes under the care of a shrimp psychologist. (Correct. She visited Dr. Phil as written.)
7) Travel Professionals will unite as never before to try and put pressure on suppliers and CLIA doing business with the card mills who won't attempt to separate the pseudo travel agents from the real travel agents.( Wrong on this one. Travel agents continue to let themselves get beaten up. The latest from JoyStar and the suppliers who wouldn't transfer their bookings.)
8) A well known travel industry leader will change positions in 2008. (Actually there were three, Vicki Freed, Joanie Ogg and Scott Koepf all switched companies.)
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