HOMEBASED TRAVEL AGENTS BLOG

WHAT IS WRONG WITH TRAVEL AGENTS?

I have been reading lately from both the travel media and Expedia about their travel agent sign up program. The new program, like most travel affiliation programs, provide commission levels that aren't fit even for an MLM referral travel agent. I cannot understand why any travel agent professional would even consider signing up for these ridiculous programs. There are plenty of travel agent booking sites that are available that offer fair commissions. What is even worse, some of these affiliation sites do not require you to have any travel agent credentials. In addition, these same affiliation sites, especially the mega online agency programs, will probably capture( steal) your clients as you book them.

My word of advice to the travel agent professional is that they stop holding the hand that keeps on slapping them down. They really need to avoid working with those suppliers who will steal your clients, play games with your commissions and are not really interested in anything that recognizes you as a travel agent professional. I avoid doing business with those who have bitten me at least once. For example, Delta Airlines who was instrumental in eliminating your commissions has Delta Airline Vacations. The only reason for anyone doing business with these people and the others like them is because you are trying to serve your client's needs, which must come first. Otherwise, seek out alternative suppliers who haven't hurt you in the past.

Why not send a letter or email to your cruise line President asking him or her to be transparent with their "Non-Commissioned Fares" (NCFS). It's really not a big deal for the cruise lines to be honest about this. Why not report on Facebook or other social websites, suppliers who have wronged you if you can substantiate it. The bottom line is if travel agents continue to "let things slide" because they feel they can't fight the "big guys" are doing an injustice to themselves and their fellow travel professionals.

I know being pro-active as a travel professional can make a difference in the long run. I know my rhetoric over the years has made some differences. Can you imagine if a couple thousand of us became more active? It would make a difference

ARE HOST AGENCIES TRANSITIONING?

During the seven 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. Too often 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.

Most of us know what happened as a result of the infamous JoyStar failure and the coming failure of YTB and its ever changing business model. Many of the suppliers who did recognize these business models didn't really care about the consequences these agencies would have on both suppliers and travel agents. Greed was the primary motivator in hanging on to these companies. We all know that "pure greed" is never the answer. It has a tendency to bite you in the butt when you least expect it.

The Host Agency, which did begin as a "renter" of travel agent credentials has certainly come a long way in the past 7 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 staple of today's legitimate Host Agency business.

All Host Agencies claim to be number one or the best. They offer more programs, 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, agent friendly technology and marketing programs, honesty and integrity and just doing what is right for your affiliates. All this adds up to a superior Host Agency.

Many 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 and credit card fraud. 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. Many multi level marketing companies also provide a travel agent photo ID card allegedly giving the holder access to deeply discounted fares or rates.

The affiliates of the MLM/card mills or Referral Travel Agents as they are commonly called, originally numbered in the hundreds of thousands. There's an MLM affiliate party coming to your neighborhood soon, if it hasn't been there already. However, in the past two years these numbers have dwindled considerably. The consumer considers the MLMs 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 I was the original founder of an organization known as PATH. PATH was created to represent the legitimate Host Agency. However, in recent times it has become a reactive organization as opposed to a pro-active representative of the successful Host Agency model. Despite relative inactivity, PATH remains as the only organization serving Host Agencies. Please also remember, although there are good Host Agencies as members of PATH, there are other equally good Host Agencies that, for their own reasons, choose not to join PATH. Coral Sands Travel, America's Vacation Centers and CruiseInc may be the most notable.

I know it is very difficult, especially for newer travel agents, to know where to find good, stable Host Agencies. One site to check out is www.choosingahostagency.com or go to my host agency website at www.americashostagency.com where there are a great many links for you to get straight forward answers. You can also ask me personally about any Host Agency and I will give you a truthful response at [email protected]. I won't even try to sell you on Coral Sands Travel.

The comments and opinions written above are my own and not those of my company or any organization.

WILL THE FAT LADY SOON BE SINGING FOR YTB?

Written by Peter Stilphen, ECC, who predicted JoyStar's demise 4 years before it happened.

YTB, the multi-level-marketing darling of at one time 150,000 thousand referral and pseudo travel agents. Now under 50,000 along with many travel suppliers will soon feel the same hurt and chaos others did when the bankrupt Travelstar/JoyStar went down in 2008/2009. I know many travel agents and suppliers were hurt badly when JoyStar went down. Fortunately, over the years many JoyStar agents did heed my advice and moved on leaving those not so smart loyalists with lost commissions at the end.

We are now in a second scenario with the largest of the MLM/card mill operations, YTB, about to take the plunge. Recent high interest borrowing of short term money, the sudden resignation of its, COO, CFO, VP of Training and a couple of directors have signaled the end is near, very near. Their stock is around 3 cents. This is all the same scenario as prior to JoyStar's collapse. I have read that the Federal Department of Justice may be looking into illegal activities. You can read more details in John Frenaye's column in the quick link section below.

I cannot emphasize the importance of anyone doing business with YTB, that they first check the facts and recent goings on with this company and make a decision. Time, in my opinion, is of the essence to both travel agents and suppliers.

Please keep in mind that all multi-level-marketers and "card mills" are in serious trouble as it is impossible to sustain a profit with just commissions from the sale of travel. I'm sure the YTB, COO and VP realized this as they moved over to a non- travel MLM known as Vollara. The economic conditions also play a good part in weeding out these people as it exposes their weaknesses. MLMs must continue to create their pyramid schemes, sucker greedy consumers into joining their network and selling "get rich quick" worthless websites which comprises over 75% of their business. MLMs do not belong in the travel business period.

Those YTB agents and remaining suppliers who are still procrastinating, "WAKE UP." as it may already be too late.

WILL IT SOON BE OVER FOR YTB? Written by Peter Stilphen, ECC who predicted JoyStar's demise 4 years before it happened.

YTB, the multi-level-marketing darling of thousands of referral and pseudo travel agents along with many travel suppliers will soon feel the same hurt and chaos others did when the bankrupt Travelstar/JoyStar went down in 2008/2009. I know many travel agents and suppliers were hurt badly when JoyStar went down. Fortunately, over the years many JoyStar agents did heed my advice and moved on leaving those not so smart loyalists with lost commissions.

We are now in a second scenario with the largest of the MLM/card mill operations, YTB, about to take the plunge. Recent high interest borrowing of short term money, the sudden resignation of its CFO and a couple of directors have signaled the end is near, very near. Their stock is around 4 cents. This is all the same scenerio as prior to JoyStar's collapse.

I cannot emphasize the importance of anyone doing business with YTB, that they first check the facts and recent goings on with this company and make a decision. Time, in my opinion, is of the essence to both travel agents and suppliers.

Please keep in mind that all multi-level-marketers and "card mills" are in serious trouble as it is impossible to sustain a profit with just commissions from the sale of travel. The ecomomic conditions also plays a good part in weeding out these people as it exposes their weaknesses.. MLMs must continue to create their pyramid schemes, sucker greedy consumers into joining their network and selling "get rich quick" worthless websites which comprises over 75% of their business. MLMs do not belong in the travel business period.

Those of you who are still proscrastinating, wakeup as it may already be too late.