I thought that might get your attention… ;-p

I’ve got a couple of questions.

I’m wondering if Carnival has a chance in the next couple days to get the word out about their new sales requirements for FAM’s to those of us in YTB? I’m also wondering what most of YTB will think of Carnival for making this move after our Top Producers enjoy a cruise with them for free. I couldn’t tell you if this has ever been done before, and I imagine that it probably has, but I’m wondering how often Carnival or any other cruise line reserves and entire ship for one company?

Wow…I have a lot of questions today, don’t I?

I spend a lot of time reading comments and posts on forums, message boards, and blogs and I find some of the positioning about what Carnival announced on Wednesday about their new requirements concerning FAM trips. For some reason, everyone who opposes the YTB business model thinks (in general terms) that Carnival is “putting the screws” to YTB for making this move, “turning up the heat” if you will.

Chaaa…right!

What Carnival is doing is trying to let the rest of the travel industry know they hear and understand the issues that Traditional Travel Agents have. For good reason too, Vicki Freed was hammered so bad on her Blog that she had to remove all comments from irate Travel Agents who condemned Carnival for supporting YTB and other Travel MLM’s. The problem is that Carnival knows exactly who and what YTB is. Not only has Carnival awarded their Pinnacle Award to YTB for the last three years in a row, but Carnival was also the company who came to YTB’s aid back in November to help prove to the rest of the industry that YTB sells travel.

Guys, they threw Travel Agents a bone, and they can chew on it all they want. Like I said in my last post, Carnival figured out a way to have their cake and eat it too. The issues are not either/or, and there is a way to have both.

I have to wonder when some will wake up and smell the coffee. They need to open their eyes and look at what just transpired. Can they not only see support Carnival gives YTB or the supporting documentation Travel Weekly and Modern Agent have provided with quotes about MLM’s producing impressive numbers for suppliers? Even long time opposition to YTB Travel Trade now understands the impact of YTB and our growing sales numbers.

Some also believe this is the beginning of the end of the impressive recruiting numbers that YTB has been producing, more than doubling our sales force from 60K to over 135K in 2007 alone. Little do they know, (or simply ignore) that YTB has been laying the ground work for what’s currently going on for months.

Back in August, at the National Convention, the Coach’s Birthday Bash was announced. While the contest does reward our top Power Team Builders, that’s only HALF of the ship. The other half of the ship this weekend are top Travel Sellers with our company. Winners of Travel sales were based on the number of bookings (double occupancy) for all cruises, tours, and vacation packages booked. Air, car, and hotel were ONLY included in the total if all three are booked together. No other combinations of air, car, and hotel applied.

Other Travel related programs introduced back in August included:

- In addition to our Directors who build teams, now any RTA who earns $25,000 in travel commissions in a 12-month period will qualify for fully paid health insurance with Blue Cross Blue Shield. Commission level must be maintained to continue to receive this benefit.

- Effective January 1, 2008, new requirements were placed in order to qualify for a YTB Referring Travel Agent credential card. RTAs joining as of January 1, 2008 must sell a minimum of $1,500 in travel before applying for the RTA credential card. ($2,500 for CLIA requirements)

- Fun & Travel Magazine was introduced as a twice annual publication all about TRAVEL! (And ONLY Travel) This magazine discusses travel trends, features preferred vendors, and reviews the hottest travel destinations.

- RTAs were also introduced a new opportunity to sell a one-year subscription in a Two Fly Free program for a $300 fee. This will allow for free airfare from select cities when purchased in conjunction with a 7-10 night hotel stay (intern
ational destinations are also available).

Many also don’t realize that YTB already had it’s own requirements in place for FAM’s. Any RTA who wanted a FAM trip with Carnival, or any other cruise line, needed to abide and follow the following company requirements.

“Book only two cruises (two cabins) at regular fare for your customers and you’ll be qualified to take another discounted cruise.

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Finally!

I have been waiting for someone to make this move, and it finally happened. It’s not surprising that our star is Carnival Corporation, AGAIN. I feel it’s important to review just a bit, and set this up for all those concerned. If you recall, Royal Caribbean in a “bold move” (?) terminated its relationship with YTB back on November 9th. No notice, no warning, not even a phone call. Just a simple letter from then Sr. Vice President of Sales, Lisa Bauer, who effectively played the roll of airline stewardess as she said “Bah-Bye” to 4 Agencies sinking more than $23 Million in revenue for the company in 2007.

I’ve never really understood this move, and for the life of me still can’t grasp why any company would toss any business overboard. However, I also agree that it’s their company and they are free to do business with whomever they choose too. More importantly, for me at least, this move in no way effectively addressed the real issue at hand.

So what was it about Carnival that was so different? How did they respond to the issues and controversy swirling around concerning “card mills” and Travel MLM’s who abuse the FAM privileges that ARE designed for those that actually support the industry?

They now require a minimum of 5 bookings with them in a 12 month period in order to be eligible for a FAM. Imagine that? Everyone involved in this industry needs to support and sell their product BEFORE being able to take advantage of a reduced rate with them.

How do you like them apples?

What this so effectively does is eliminate the abuse yet save the account for future growth and obvious profits. Is it any wonder why they are called “The Most Popular Cruise Line in the World”? Because they’ve so effectively and succinctly addressed the real issue, they are able to keep all business avenues open.

Now comes the real question…

Will other suppliers and vendors see this in the same light as I do? Will they see this as an effective alternative to closing the door on impressive numbers from a bunch of part time Referring Travel Agents? Can they have their cake and eat it too?

My bet is that the Traditional Agents will not see this as an effective move. Like most, it’s either black or white, it’s either /or. And we can’t forget those that are so closed minded and just want Travel MLM’s gone, shut down for good. I do know of some however, who do believe we may be able to co-exist and may agree that this is a step in the right direction.

While I do not believe this closes all the issues, and there is still more work to be done. This IS a good move for all concerned, and most certainly a step in the right direction to as we like to say “legitimize” the industry.

Way to go Carnival!

Are the other suppliers listening?

PS – While looking for a picture to post with this post, I found this, and came very close to using it. I decided not too, but thought is was hysterical and wanted to share it with all of you anyway. Too funny!

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I’ve gotten plenty of calls, e-mails, and a few comments on my Blog about John Frenaye’s latest posts with claims that YTB is all about industry perks. While I can understand why he’s upset about this, and to a point he’s rightfully upset with us about this issue. It’s been a closely guarded secret in the industry for decades and for a company like YTB to announce to the world how the industry works is upsetting.

He’s even gone as far as directing us to a couple of presentations (found here and here) that explain how FAM’s work and what we as “Insiders” can take advantage of. While I personally don’t use these presentations, I’ve known about them for quite some time and I’ve even had them forwarded to me on several occasions for my review.

I’m going to attempt to be as far and as partial as I can about this issue because I happen to like John and we’ve developed a good rapport even if our introductions to each other were on totally opposite sides. I also happen to believe that to a certain extent he has a right to be upset. What we are exposing as a company has been closely guarded by the Traditional Industry and it’s very unsettling to have anyone divulge insider secrets such as these.

I also believe his positioning that YTB and these presentations about the FAM’s and perks are highly exaggerated. In both presentations, the presenters express what FAM’s are which are as follows:

“Many resort areas, cities, tourism boards, properties and vendors offer deeply discounted trips to Travel Agents to Familiarize them with their location. These trips are offered as “Perks and Courtesies” to Travel Professionals at the sole discretion of the host and are usually limited in availability.”

In both presentations, the presenter clearly states, (as I do) that these same properties do this in hopes that you will refer your friends and family to these properties. One of the presenters also went as far (as I do) that these same properties will not kick out a full paying fair just to put YOU in at half price, but if space is available, these properties would much rather get something rather than nothing by letting you as a Travel Professional stay at a reduced rate.

Our industry has been a buzz over the events of this last week. The Association of Retail Travel Agents (ARTA) has successfully put the screws to Royal Caribbean International with a petition to make them choose between their collective group of an estimated 700 (and growing) Brick and Mortar Agencies or the handful of Multi-Level Marketing companies who sell travel via internet web sites. News came out on Wednesday in a Travel Daily News article with quotes from Chairman Barry Richcreek applauding Royal Caribbean’s decision to terminate it’s relationship with “a scheme which denigrates the stature and role of the legitimate travel retailer.

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On Tuesday I posted about some of the YTB upgrades from last weekends Funshine Trade Show in Orlando. In this post I commented that as a result of the tremendous group volume YTB is generating for Royal Caribbean Cruises, our own YTB Travel Network staff will begin processing group reservations for Royal Caribbean. The Home Office staff will be using the same systems as the Royal Caribbean group desk, but will be able to give RTAs more personalized service.

Imagine my surprise today when I found out through Rod Cook’s site MLM Watchdog that The Association of Retail Travel Agents (ARTA) have been pushing major travel vendors like Royal Caribbean and state legislatures to cut off travel agent cards for MLM Companies. Rod is Pro MLM and while I respect what he’s done for Network Marketing industry as a whole, he’s been slightly off mark when it comes to Travel MLM’s. Rod, as always was nice enough to post a link to the finding which I have to admit, I was VERY interested in.

According to the Travel Daily News Article The Association of Retail Travel Agents (ARTA) applauded the announcement by Royal Caribbean International (RCI) that it will terminate relationships with multi-level marketers (MLMs) which provide travel agency credentials and identity cards to consumers for the purpose of becoming would-be “travel agents.” Barry Richcreek, ARTA Chairman was also quoted as saying in the report “”This announcement by the RCI family of cruise lines is welcome news from a respected supplier to curtail the growth of the MLM/Card Mill business, a scheme which denigrates the stature and role of the legitimate travel retailer.”

Two words come to mind: “Good Grief”

I wonder if Barry would welcome the news that YTB International, Inc. who markets booking engines and Travel Agency opportunities through MLM just strengthened their relationship with Royal Caribbean the weekend before in Orlando Florida? (Hint: Probably not) What the ARTA, led by Mr. Richcreek has failed to let go of are the days when a “legitimate travel retailer” was actually needed to book a airline ticket, hotel room, car rental, or Royal Caribbean cruise. Based on Travel Weekly’s published numbers in their 2007 Power Listover $40 Billion dollars were spent via the internet with on-line travel agencies. Out of the Top 10 Travel Agencies on this list, 4 were not a brick and mortar travel agency, but instead, conducted business on-line. (You may have heard of them, Expedia, Travelocity, Orbitz, and Priceline?)

Now that technology has made it possible to give you, me, or anyone the opportunity to sell these same services, the ARTA is up in arm’s with claims that the only reason any of us would want to join such a company would be “to procure questionable travel agency credentials and attempt to portray themselves as legitimate travel sellers” simply to get the discount they have been enjoying for decades.

In the years I have been involved with YTB, I can appreciate to a certain extent what the ARTA is trying to accomplish in regards to what are known in this industry as “Card Mills”. Knowing some of the Travel MLM companies that have come and gone over the years, and even a few that are currently starting to take shape in our industry, there are certain Travel MLM’s in our industry who promote the “Agent Discounts” and “FAM” trips without producing the retail sales back to vendors like Royal Caribbean. A “FAM” in our industry is short for “Familiarization” in which vendors invite Travel Agents to their property at a reduced rate in order to “familiarize” ourselves with their property. (You can’t sell what you don’t know.) In return for this discounted rate, we as travel agents are better equipped both in knowledge and excitement to promote their property to full paying customers.

What’s been happening to vendors like Royal Caribbean is they offer these discounted rates to certain MLM companies, but are not seeing any return on this investment by these same companies in regards to full paying customers. Furthermore, many of these MLM’s promote their Agency Cards as a “right of passage” to receive these discounts simply by flashing their card. It’s not a right, it’s a privilege and perk given to those of us who are professional and courteous. Even then, there is no guarantee.

Last year when Freedom of the Seas was launched, I had to get on this ship. The problem was, the ship was booked solid through the rest of this year. Royal Caribbean was not about to throw a family overboard just to put our family in at half price. As a professional, I also needed to get on this new ship so I could speak intelligently to my clients about what to expect and what they could do. (And there was a lot to do on this mega ship believe me!) So I booked this trip (a total of 8 full paying customers including myself) just like any other customer and had a blast! (See for yourself!)

With all this being said, you might be wondering why Royal Caribbean would not only give YTB a pass, but actually strengthen their relationship with YTB while at the same time supporting the ARTA?

Good question, and I’m glad you asked!

Not all Travel MLM’s are created equal. There are very viable, profitable, and respectable Travel Agencies who simply use the Network Marketing model to promote and build their business. How can YTB claim that they are a Travel Agency first and foremost? Anyone looking at any Travel Agency should first verify both IATAN/ARC numbers and also check to see what the gross yearly travel sales are. (Unfortunately, no other Travel MLM can produce gross sales numbers.)

What’s even more revealing concerning Royal Caribbean specifically as why they would not terminate a partnership with YTB is the actual business we do with them. Fully 30% of YTB’s leisure business are cruises and large part of that business are done in groups. I just checked our groups cruise page and out of the several hundred groups with 30 or more cabins being booked at this time I went down half the list and found the first 50 with Royal Caribbean.

Please note:  These are clickable links, but some may expire due to groups being closed and taken beyond November of 2007.

1. HBCU Alumni & Friends Fantastic Voyage
2. Superbowl Party Cruise
3. Friends and Family
4. Re-Union of Friends
5. 25th Garrison Anniversary Cruise
6. 2nd Annual Contours Express Getaway
7. 40 – Anniversary Cruise
8. A Family and Friends Getaway
9. A Siesta Cruise with Tara
10. ACTC Cruise
11. Adams/Karlavage
12. Adorando en Alta Mar con, Hnas Meléndez
13. Amie Jo & Esperanza’s Fiesta
14. B and B’s First Cruise
15. Bermuda Family Travel
16. BJ’s 2008 Fun Fest Cruise
17. Briscoe, Manly, Atcherson, Gross Family Reunion
18. Candy’s Fun Group
19. Chambers Family and Friends Cruise
20. Chanel & Drew Wedding Cruise
21. Cindy’s Group
22. Circle of Friends
23. Claude and Yvonne Anniversary Cruise
24. Clayton Valley 78
25. Cool and Fun
26. Crawford Wedding Cruise
27. Cupid’s Cruise
28. Dayton’s Finest Travel Club Hawaii Cruise
29. Derby 50th Anniversary Celebration (Celebrity)
30. Desert Hills Presbyterian Church (Celebrity)
31. Dockery Family & Friends
32. Donald & Sheryl Stanley’s Super Bowl Cruise
33. Doris Carter 08 Bahamas Cruise
34. Dumas Family Reunion
35. Family and Friends
36. Family Unity
37. Family Unity II
38. Fauntleroy Travel & Friends
39. Friends & Family of Mercedes
40. Fun In The Sun
41. George & Roslyn Group
42. Go Mexican With the Sanders
43. Harrison/Greenhill to Suns Sail
44. Haworth Birthday Group (Celebrity)
45. Hemet Alaska Cruise
46. Hope On The Move!
47. House of Prayer 2nd Annual Men & Womens Conference
48. Hubbard Anniversary
49. ICC New Year’s Kickoff Party
50. It’s My Party

With a list like this, do you really think Royal Caribbean would want to terminate our relationship? I can promise you that Royal Caribbean is looking at the bottom line and they know very well what all these groups of 30 or more cabins will do for their business.

In closing, based on what we have just learned about Royal Caribbean’s relationship with YTB and the group bookings department and all the groups we currently have, I would have to agree with the ARTA Chairman, although he doesn’t realize he’s talking about YTB when he was quoted “RCI has taken a major step today to add teeth to its support for the legitimate travel retailer”

They most certainly have.

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Of all the home-based business possibilities, it’s hard to imagine one that’s more fun or potentially profitable than operating a home-based travel agency.

Not only do you get the enjoyment of sending people off on their dream vacation, but you earn a good commission for selling services that you do not have to actually provide yourself. What could be better than that?

If you’d like to become a home-based travel agent, and enjoy discounted or even free trips for yourself as well, then the following “Top Tips For Becoming A Home Based Travel Agent” will get you started in the right direction.

1. Affiliate with a legitimate host agency that has all of the required certifications.

The most successful home-based travel agents are independent contractors who work with a host agency. You use the host agency’s resources and established relationships to tap into their network of travel vendors and suppliers. It’s important that your host agency has the proper industry credentials and that they have a program in place that allows you to use those credentials in order to establish yourself as a legitimate travel agency.

As a home based travel agent you need certain credentials like the CLIA card. CLIA stands for the International Airlines Travel Agent Network endorses travel agents and provides the IATAN ID card, which identifies you as a U.S.- based travel sales professional.

If you are considering working with a host agency that doesn’t provide you with their IATAN/ARC number, and other required credentials, move on and select one that does.

2. Choose a host travel agency that provides comprehensive training

Even though you are an independent home-based travel agent, you still need professional quality training so you know how to operate in the travel industry as well as what you are and are not allowed to do.

Getting up-to-date on the best places to travel, tourism trends, and how to fulfill the needs of your customer is vital to your travel business. You want to choose a host travel agency that offers comprehensive training and courses on various travel services, products, marketing, etc.

For some host agencies, taking a course or training is necessary in order to be eligible for certain travel credentials. And, although it is not required to book travel, your job will go much easier and you’ll develop more repeat business, if you are well-trained and well-informed.

3. Choose a host travel agency that will help you promote your business.

Don’t choose a travel company that does not offer some assistance with marketing your travel business. The best ones will offer a turn-key website or online booking engine for your clients to use when booking their travel.

Even better are the travel companies that also provide you with automated marketing tools such as auto responders to handle email campaigns and promotions.

You’ll save money, and gain more customers, if you partner up with a host travel agency that provides ready-made templates to print business cards, postcards, flyers, etc. These are all the tools in your marketing arsenal that will help you get the word out about your home-based travel business.

4. Choose a host travel agency that handles ALL of the travel details for you.

Most host agencies handle all the booking and routine travel details for your clients, but what happens if a name is misspelled on a plane ticket or your customer wants a refund? Find out what type of customer support is available and read their policies carefully before you sign on as a home-based travel agent.

At a minimum, look for:

· How long your host agency has been in business and if they are reputable.
· 24/7 telephone support, not just e-mail or web-based.
· Clear and easy-to-understand refund and cancellation policies.
· A track record of speedy resolution to customer service issues.

5. Choose a host travel agency with a fair commission policy.

Notice that money is not mentioned as the #1 thing to look for when you’re choosing a host travel agency. Sure, the commission is important; it’s how you get paid. But the best commission policy in the world does you no good if the host travel company that you choose to partner with is not aboveboard and honest.

Once you have found a travel company that meet the requirements of items 1-4, it’s time to check their commission policy. Here’s what to look for:

· Make sure that you know exactly how much commission you earn on every travel product you offer through your host agency. Be sure to find out if you earn commissions for add-on sales like trip cancellation insurance or lost luggage insurance. The best host travel agency partners pay you a piece of everything you sell.

· Be sure you know what their commission chargeback policy is when a client cancels a trip or seeks a refund.

· Find out at which point your commission actually gets locked in. Is it when the sale is made; when the client debarks on their trip, or when they return?

· Find out how long it takes to get paid. Some agencies pay Net 30, some pay longer. Whatever the payment period is, make sure you can live with it.

6. Choose a host travel agency with the best perks for you

The opportunity to go on a FAM trip is the most appealin
g benefit to travel agents. FAM trips are short for ‘familiarization trips’. These are special trips specifically for the travel agent. These trips are offered by hotels, cruise lines, convention and visitor bureaus, and tour companies.

The intent of the trip is to familiarize the agent with the product or service so that they can then sell the service or product to their clients. By experiencing the product, agents can sell it more effectively.

These trips are either totally free or have a small cost involved to cover the expense of the trip. These FAM trips are offered at a huge discount compared to what it would cost to the average consumer. If your host agency doesn’t offer FAM trips, you should think about finding one that does.

Also, since you will be working out of home and on your own, medical insurance plans or group coverage plans are sometimes offered. Check to see if the agency you are considering has a group plan that you can buy into. Group plans are usually less expensive than buying
medical insurance on your own.

Some final thoughts

Owning your own travel business means you can take advantage of many tax breaks. Deductions are allowed for you initial investment, home office expenses, cell phone and land lines, automobile, computer, fax machine, insurance, and other equipment. In addition, when you travel anywhere in the world, it’s a business expense!

Overall, becoming a home-based travel agent has some major perks and benefits. The important thing is to find a good host agency and become familiar with your product so that you can offer the best travel experience for your customers. Doing this will keeps a consistent flow of repeat and new business coming your way.

Good luck and Bon Voyage!

PS - If you're involved with YTB, sign up for our FREE Newsletter. As a Website Owner or Website Seller, we'll keep you up to date with all the latest news, acquisitions, and developments with YTB.

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