Bailing on Agents
I picked up on a story Monday that I thought might be a good topic for today’s post but didn’t realize how timing would play out with President Obama speaking to the Nation last night. I’ve got to admit, our new President is one of the most eloquent speakers I’ve seen in some time. I can appreciate a well delivered speech when I see one and he needs to get Congress on his side when he submits his tax and spending plans to Congress on Thursday.
Last week, President Barack Obama signed the sprawling $787 billion economic stimulus package into law, saying it will help the struggling U.S. economy but warning that the recovery process will be challenging. I would agree with the warning, because it will end up costing over $1 Trillion when it’s all said and done. (It needs to be paid back, you realize that?) The Market reacted to the news by selling off and savvy investors realize how much this bailout will hurt when it’s time to pay it back.
Right or wrong about this stimulus package being good or bad, bailing out America seems to be a hot topic these days and there are large numbers who appear to want a piece of the action, including the ASTA. I don’t know if you saw this editorial cartoon in Travel Weekly the day after the inauguration, but it spoke volumes about how demanding and desperate this industry is. I’ve had it up to here with all this talk about how everything is fine and things are “great” when actions certainly don’t provide a very good foundation to those statements. With all the victim talk we’ve read about day after day, the mud slinging and spin on the “issues” with Travel MLM’s, Agencies either downsizing, or disappearing overnight, and involuntary bankruptcy filed by Agents themselves things aren’t as rosy as some claim. Things have gotten so bad for the industry that after decades of fighting to keep banks out of the industry, all of the sudden Agents are willing to look the other way.
And now we find out that the ASTA DID have it’s hand out for part of the $787 billion to stimulate there struggling model once again.
“The inclusion of a direct lending program in the House-passed version of this bill raised hope among ASTA’s small business travel agents,” said Chris Russo, ASTA president and chair. “Sadly, Congressional negotiators, meeting behind closed doors, chose to remove the direct lending provision mere hours before the bill was complete. Whatever small cost savings they achieved came at the expense of the small business community.”
In a letter sent last week, Russo asked President Obama to call for the swift passage of legislation to expand the authority of the Small Business Administration to lend directly to small business owners.
Based on what I heard last night, they’ll be given another shot at even more money to be spent by this new administration next year.
But I have to ask why the ASTA even needs this money in the first place when everyone is telling me that business is better than ever? Some certainly know how to talk the talk, but when it comes to walking the walk we get this? Very odd don’t you think?
The ASTA is still pitching (or promoting) how important they are to the Travel Agent community after this failed attempt to help the industry while even they admit that “the brand damage from the old days when ASTA was perceived as too political”. The ASTA claims agents need an “attitude adjustment” (finally, something we can agree on!) but Agents need the ASTA to help them.
To be fair, I have seen a couple of issues they’ve been helpful in over the last year, but apparently it’s not enough for the majority of the Travel Agent community to shift their perceptions concerning how this organization can help them. Honestly, I’ve come to the conclusion most of these agents who don’t join are just more comfortable about complaining than they are about effective change, so this plea by the ASTA in this article will fall on deaf ears. In addition, most agent don’t truly understand what leverage can do to benefit them. Instead, most ridicule the concept and poke fun at it being only an MLM concept.
It is however comforting to see that even the ASTA is having difficulty getting their message across to a group who believes they know better, and not willing to change their flavor of Kool-aid, because it sounds too much like MLM.
Maloney said that ASTA now has some 200 Premium members and 4,000 Core members, a number that he said “we can grow,” if agents are aware of the range of services they can get from ASTA for “77 cents a day” – the per diem cost of annual Core membership.
This “.77 cents a day” is taken directly from MLM, (or so they think) and it doesn’t play well. Instead of seeing the benifit, they reject this concept because most have been trained to. (It’s also called brainwashing.)
Time will tell if this industry wakes up and pulls ITSELF out of this funk they’re in. I see people everyday who are making smart choices and even sacrifices today that will pay off for them in the long run. I promise you’ll see a good number of people who will come out of this extremely wealthy because of it.
I doubt it will be because of a handout or bailout, it rarely is.
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Tags: American Express, ASTA, Home Based Buisiness, Travel Agent Issues, Travel Trade
February 25th, 2009 at 10:01 am
Uhm, ASTA was not asking for money for themselves or for any specific agencies. They are a trade organization and part of their job is to lobby for their constituents. Most agencies are small businesses; and yes, some are in trouble. So it is wholly appropriate for ASTA to write a letter or otherwise lobby for the inclusion of relief for “small businesses”. I am sure the American Restaurant Association, The Auto Parts Stores Association, The Mom and Pop Deli Association all wrote similar letters.
Is it your esteemed opinion that small businesses are not worthy of any benefit from the stimulus package and that all proceeds ought to go to Wall Street, Detroit, and big business?
February 25th, 2009 at 2:38 pm
Personally, I think Detroit should file for bankruptcy, and all the Government is doing is delaying the inevitable. They’ll be back for another handout because this bailout does not force them to change. Look at some of the airlines. Bailed out after 9/11 and they’re back for more…
As for the little people. Three and one-half years after Katrina there are still 17,000 former New Orleans living in hotels and motels. They’ve been there for 42 months .. and just can’t seem to find a way to get out and get their own housing. Not only that, but there are still another 8,000 people living in temporary housing who can’t claw their way out as well. How would YOU define these people? Sterling citizens? Worthy?
President Obama just gave them another 60 day extension after 42 months of free housing via a Government bailout.
If you can’t pull yourself up and get out why should the Government do it for you?
I’m a big fan of self reliance, not independence on something or someone else bailing me out. Trust me, it hurts at times, but after it’s all said and done, I’m a much better and far more capable person for owning up and just doing it.
February 25th, 2009 at 2:54 pm
“I’m a big fan of self reliance, not independence on something or someone else bailing me out. Trust me, it hurts at times, but after it’s all said and done, I’m a much better and far more capable person for owning up and just doing it.”
Really? Are you kidding me? You have judgements against you all over the place for not paying your bills. For you to make a statement like that shows what a total hypocrite you are. In the famous words of Travellingmom, “You is broke!”
February 25th, 2009 at 5:42 pm
Exactly what I was talking about when I said that sometimes it hurts. It’s difficult to “man up” and take responsibility at times for mistakes you have made. Nor is it comforting to see a bunch of people who make assumptions and plaster it all over the internet attempting to personally slander you.
We’ve both learned recently that does have a way of backfiring, doesn’t it?
I was advised to cut all the credit cards off, and was warned suites would happen by council. It was a choice I made so I could resolve the revolving credit door and settle the debt. I have every intention of paying what I owe while keeping the banks in check. (A tough job with some of the stunts Creditors and Attorney’s pull.) Some have been settled, another has been dismissed and overall it’s not easy or pleasant. Doing so however will not only preserve my credit, but I’ve learned a valuable lesson concerning financial responsibility.
A hypocrite would have thrown up their arms and filed bankruptcy, or asked for a bailout.
For the record, I’m not proud of what happened, but after it’s all said and done, my credit will be in tact, and there will be a tremendous amount of satisfaction that I personally paid off every penny I owe. While you use it as an embarrassment for now, I’ll use it as an example to help others in the future.
Much like my drinking some 20 years ago. Not proud of that, but today, I’m sober and have valuable relationships with friends and family and a well respected member of the community. And like this battle, many are inspired by my testimony of overcoming drugs and alcohol.
February 25th, 2009 at 6:35 pm
Doug,
NMH needs you to not pay those bills and be responsible the way you are so that he can be right in his opinion about you. If you somehow rise above him you leave him behind. Just like the quote from a mentor of mine that says “People blame others because of their inability to change themselves.” As long as NMH and his friends can see you as “hypocrite” (and they will spend hours and hours looking for evidence for that so that they can be right) then they don’t have to focus on themselves and take any responsibility. They get to feel better about themselves but what they don’t realize (or don’t care to realize) is that it’s self deception. They don’t see the people they disagree with as anything but all those names they label people (hyppcrits, liars, scum…..). They don’t see the fathers who’s kids adore them, or the mom’s who’s family cares, or the people that have the hopes and dreams just like them.
It’s really sad. To see people that operate daily on the hopes on the fall of others is really sad. And as long as they don’t have to look into the eyes of those people and actually see themselves, they can continue being deceived as being somehow better or more deserving. “They are the same but I am different”.
I appreciate you Doug for being open and honest about your past. Vulnerability is one of the best signs (in my opinion) of a leader.
Just some of my thoughts.
February 25th, 2009 at 8:25 pm
Thank you Medic.
Like I said, I could have skipped out with bankruptcy, but didn’t want that stigma. While paying an escrow account right now to make one payoff upsets the banks, I was upset at the hike of 26% interest rates. So I took responsibility and control, sought legal counsel, found a solution to satisfy my debt, and save my credit rating when complete. (Not to mention be done with this issue in a fraction of the time.)
People like Moron show by example how classless people can be, and by bringing it up reflects more about him than it does about me.
I’ll learn from this and be debt free when it’s done, and he’ll still be a Moron.
February 26th, 2009 at 10:59 am
This whole thing is insane; on one hand, you justify what you have done and on the other criticize the business world. You have done exactly the same thing on a much smaller scale.
February 26th, 2009 at 4:01 pm
So you’ve deducted that I filed bankruptcy and am living on welfare?
Boy you really are a strange bird Spectator…
February 26th, 2009 at 5:13 pm
You know, I always try to look out for the best in people, but your responses really test that sometimes.
I did not deduct you filed bankruptcy, you said that above for goodness sake. What you did however is work with someone to cut a deal with your creditors to avoid paying high interest rates. As a business person, I applaud you for not filing for bankruptcy.
Any one reading this knows interest rates don’t suddenly creap up over night to 26% unless an entity is not paying financial obligations.
Your comment again: (So I took responsibility and control, sought legal counsel, found a solution to satisfy my debt, and save my credit rating when complete.)
So again, on one hand, you justify what you have done and on the other criticize the business world. You have done exactly the same thing on a much smaller scale.
If you where a person who gained critical mass I could completly understand where your article was coming from. But for someone who admits financial issues, your article makes no sence to criticize when your doing the same thing large companies are doing but on a smaller scale.
February 26th, 2009 at 5:15 pm
I would be willing to bet that Specator and NMH have things they are not proud of but would doubtedly let anyone know about it in their current state of being. However, as stated before, as long as they can hang on to the belief that they are different then they can feel better about themselves.
February 26th, 2009 at 8:25 pm
I couldn’t agree more Medic,
Take a look at what Spectator said, “Any one reading this knows interest rates don’t suddenly creap up over night to 26% unless an entity is not paying financial obligations.”
Fact of the matter is that Credit Card companies were on financial skids long before this “crisis” came about and they play all kinds of dirty tricks to trip people up. The list is too long to elaborate here and now, but I do have an article here which will help educate anyone who cares to find out the truth. (As opposed to knowing everything already.)
I have rights and I was tired of the tricks, so I took control, and took on the responsibility to eliminate the debt.
Today, I pay in cash not credit. Nor will my kids be paying for my sins of our past. When the time comes for a new home or a car, because of what I have accomplished when this is done will restore the high score the credit cards attempted to destroy.
February 27th, 2009 at 6:33 am
Trust me Doug–our grandkids will be paying for the sins of the current generation for many years thanks to this wonderful new stimulus bill!
February 27th, 2009 at 7:47 am
I couldn’t agree more. Scary isn’t it?
(Our grandkids, not that we finally agree on something. ;-P)
April 20th, 2009 at 7:00 am
[...] envy”, which is what this is all about anyway, Agents praise a bailout for themselves, which was finally passed after a second push, but it’s pointed out as nothing more than greed and wasted expense when it comes to the [...]