Do you remember the outrage a year and a half ago when the CEOs of Ford, Chrysler, and GM flew to Washington, D.C. in private jets to ask for $25 billion in taxpayer money to avoid bankruptcy? Not that selling off private jets would have covered the $25 billion these guys were asking for – but it would have been a nice start.

It’s unfortunate that we see this kind of arrogance and greed in the Corporate world. Millions of people were laid off from thousands of companies while big wigs like these CEO’s live in the lap of luxury. You saw very little about any CEO taking a pay cut during the turmoil this country went through during the latter part of 2008 and 2009. Instead, they cut out the jobs of average American’s while keeping their pay and perks intact.

Most CEO’s have a lucrative bonus plan in place – including the Founders of YTB. The difference between our Founders and the CEO’s of other companies is that Coach, Scott, and Kim’s bonus is based in part on the performance of the company. Some based on pay or salary, while another chunk is based on stock options. Unlike other CEO’s or companies (like the Big Three in Detroit) our three founders forfeited 355,000 shares in options each of the last two years because the company didn’t meet the performance goals they wrote down to achieve that would trigger each bonus.

In case your wondering – that’s called accountability.

While there were some riffs about the forfeiture of options from critics, I would have loved to see the outrage over actual shares being awarded. It’s one of those “damned if you do – damned if you don’t” scenarios we enjoy from Zealots who flip flop depending on how it furthers their own agenda.

Regardless of which side of the fence you sit on, the fact is our Founders aren’t the type who take big pay days when the company isn’t performing as promised. The buck stops with them so to speak – which goes back to their AL Williams days as “Reps”. (Not to mention its just good business.)

To further illustrate our Founders desire to create a healthy, viable company they’ve restructured their compensation based on overall performance rather than acting like the fat and happy Executives we see in traditional corporate models. The company announced the new pay structure in a press release on Tuesday:

In order to ensure the Company continues its best practices related to executive compensation, YTB is transitioning to a performance-based incentive compensation program. Effective for the 2010 fiscal year, certain Company executives are entitled to incentive compensation if the Company achieves growth in the number of Business Owners at fiscal year end compared to the beginning of the fiscal year; if the Company meets or exceeds certain financial objectives established at the beginning of the fiscal year; or if the executives meet or exceed certain personal or departmental financial and budgetary objectives established at the beginning of each fiscal year.

Nothing like taking personal responsibility and holding yourself accountable for the overall health of your company now is there? If our Founders and Executives don’t perform to acceptable standards – they’re not paid that handsome bonus other CEO’s are paid. Instead they created an incentive to meet or exceed goals which could compensate them above and beyond their previous pay structure.

Because YTB is a public company obviously all this was filed with the SEC and you can find details of the new compensation package along with a breakdown of objectives that are now required from the Executive Team. Compensation now rides on and includes the growth of business owners (or IBC’s), cash flow and available cash on hand, bottom line earnings reported to stock holders, and other discretionary objectives for each department.

Based on the Press Release that was issued – and the terms of the new compensation that were filed with the SEC – simple logic would have you conclude that the Founders and Executives are at the very least willing to do their part for the overall health of the company.

That being said – not everyone who read the filing was able to comprehend or discern what went down. In a very comical and incredibly bizarre “Google Alert” – some jack ass laid claim that our Founders could be getting ready to resign after landing a sweetheart deal.

I’m not kidding – our self-proclaimed “YTB Expert” thinks you can quit (or resign) AND collect severance to boot. His focus – a two year deal that’s structured under the old compensation package that he claims will enable Coach, Scott and Kim to ride off into the sunset. While they haven’t resigned (yet) according to this dolt – we all need to be cautious of this severance stipulation.

Typical.

For the record, the clause he didn’t “copy and paste” on his blog stated otherwise:

Accordingly, a beneficiary under no circumstances would receive any payment under the Program if he left YTB without good reason or was terminated for cause.

It’s not that a clause like this is really necessary. Can you imagine walking into the Boss’s office sitting yourself down and stating “I’d like to resign – what kind of severance can you offer me?”

You’d either be thrown out and most likely fired “with cause” (for being stupid) or suffer the brunt of company jokes for years to come. (Again – for being stupid.)

You might be wondering if this idiot wrote this out of desperation or due to sheer stupidity. While I’m certainly not a mind reader and I hate having words put in my mouth (like he does with me) I’m pretty certain that this zealot thinks we’re the suckers due to the growing number of YTB’ers (including myself) that make it into his “Dumbass Den”.

In his own arrogant and self-righteous way, our lack of intelligence can’t possibly uncover the obvious error because those in MLM aren’t smart enough. We’re beneath the almighty professionals who pick – poke – and pry at anything and everything our company does.

On the other hand: If you think Coach, Scott and Kim have even the slimmest chance of quitting and having the Board of Directors approve a single dime of the two year severance package that was written – you DO belong in a “Dumbass Den”.

Likewise, for those who are reading up on the internet about ZamZuu or YTB at this time – go back to Tuesday’s article and the statement that John is helping us weed out those that aren’t intelligent or responsible enough to uncover fact or truth. Seriously – If a big old red flag doesn’t come up warning you that nobody gets a severance package when they resign – how could they even be considered a viable prospect?

See my point?

Are his statements ridiculous, absurd, bizarre? Sure they are – that’s what we’ve all come to know, but not quite love about John. But trust me, there’s no way you’re going to convince an arrogant pompous ass like John Frenaye that he’s wrong. His ego is just too big and overpowering to allow anyone to knock any logic or sense in that brain of his. (That – or there’s just not enough room down there.)

At this point, the best you can do is smirk (or laugh out loud like I did) and be thankful and grateful that you’re not as desperate (or stupid) – nor are you likely to run into anyone who is because John’s pretty much got a lock on weeding out any bottom feeders for us.

Instead, turn it around and be thankful. If for nothing else – for ability to read and comprehend the English language.

Then you can move on and be thankful that our Founders are willing to do what it takes to provide a viable, profitable, and respectable business opportunity for those of us who see things for what they really are.

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Do You ZamZuu?

Remember the group of ambulance chasers who followed California’s play with a class action law suit of their own just days after Jerry Brown made his bold attempt to topple what he called a “gigantic pyramid scheme”?

We all know by now how successful California was in shutting YTB down.

In June, the court ruled that the groups initial class action “failed to provide sufficient factual allegations” concerning those who were not Illinois residents. The group has re-filed once again and “corrected their deficiency” by amending the first filing to give it a go once more. The first filing did not have standing to sue because the plaintiffs brought their case under the Illinois Consumer Fraud and Deceptive Business Practices Act. In addition, after spending over one hundred hours pleading and arguing, counsel for the ambulance chasers realized they had framed their clients relationship and argument with YTB incorrectly. The new suit now holds claim that the relationship between YTB and RTA’s are under consumer laws, (business-to-consumer) even though the RTA-YTB relationship would typically be viewed as business-to-business.

Do words like “failed”, “corrected”, “deficiency”, “amending”, “incorrectly”, and “realized after 100 hours of arguing”, give you a warm fuzzy concerning the counsel that is representing this group?

After admitting so many errors in the first filing, it appears that Counsel is just as clueless about the Network Marketing Industry as our critics who have been yammering about pyramids and scams for years. They may have even sought advise from the likes of Robert Fitzpatrick, Jon Taylor, and heaven forbid, John Frenaye. (After Wednesday’s post, you know what a huge mistake that would be.)

The suit filed back in August of last year went after the same four executives California did, Lloyd Tomer, Scott Tomer, Kim Sorensen and Andrew Cauthen. The new filing has added a smorgasbord of other names and companies to include two former board members, Timothy Kaiser and Clay Winfield, as well as their companies, Meridian Land Company and Winfield Development. The list also includes Beryl Martin, the printing company owned by Sorensen and Tomer, and while none of the defendants have been with YTB since October 2008, our new co-CEO who just joined back in April, Robert Van Patten has also been named in this new plea.

We’ll call it what it is: a shotgun approach.

Counsel certainly didn’t get any help from the plaintiffs in this action concerning YTB’s marketing model or opportunity. When we looked at the list of Plaintiffs in the filing we found an average of eight months worth of experience with the company. Two gave up in just four months, and decided playing the role of victim was a much easier option to make the millions they were after when they signed up.

• Courtney Speed – 4 months
• Kwame Thompson – 4 months
• Grace Perry – 5 months
• John Stull – 6 months
• Faye Morrison – 11 months
• Jeff and Polly Hartman – 18 months

Surprised? Not me.

I got a call yesterday afternoon from a client who debarked in the port of Miami with his family of three. He called to tell me that I was right, a five day was too short, and he’ll be booking a seven day with me just as soon as he can. Of course, I’ve been with YTB for four years, not four months. So it’s not surprising that this group who “dabbled as a travel agent” for an average of eight months were not as productive. I think back to my first year, and remember how slow bookings were. But I was also new to the industry, and spent a considerable amount of time learning, not selling. What I did sell was from pure passion about a product I loved.

I found a couple of humorous concepts in the filing which I’d like to share with you just to show how ridiculous this new suit is.

The claim states that BandBVacations.com is not a business that sells products or services. Since YTB strictly controls my actions, they are the ones who are selling the products and services. Therefore, the call I got from my client from Miami apparently was routed through the home office and not directly to me. According to the claim, everything goes through the home office in Wood River. I couldn’t get the call, couldn’t book the cruise, and won’t be seeing the commission since I’m an “agent of the travel agency”. I don’t offer a 100,000 ton cruise ship product, YTB does. The service of an excellent vacation to the Caribbean, also YTB’s.

Poppy cock! My clients don’t even know who YTB is, but they do know Doug and Ronda with BandBVacations.com, and Illinois will have a tough time finding anyone who has a better relationship with someone at the home office over any one of our RTA’s.

As an RTA I’ve made a net profit from travel sales, but the suit claims that this is impossible for most, if not all, RTA’s. I would agree that that it would be impossible for any RTA who spends less than six months in this business. But to say it’s impossible for the 25th Largest Seller of Travel in the Nation with $425 million in gross product and services sold, and a net of $27.9 million is a farce. I know the margins in the industry stink, but that’s not because it’s an illegal pyramid. Unless of course you want to call Carnival, Pleasant Holidays, Disney, Sandals, and Holiday Inn a scam. (I will agree however with a growing number about United and American Airlines.)

I’d would assert that a number of RTA’s have figured out how to make a profit, including yours truly. Instead of complaining about it, why not find someone who is making a profit and learning how to do what they do?

And finally in a very strange twist, while the suit claims that we don’t sell a product or service. (In order to make it sound like a “pyramid scheme”) The suit deducts and supports it claims that it’s impossible for RTA’s to make money selling travel in the following mannor.

(You’re going to LOVE this…)

YTB Defendants marketed and sold products to the travel purchaser market generally. As of 2007, YTB was considered the 26th largest travel agency in the United States, and their market share continued to grow. YTB Defendants directed their operations at the travel purchaser market generally by marketing and selling their products and services, such as airline tickets and cruise packages, to the public at large. Moreover, YTB Defendants’ illegal pyramid scheme injured both their travel agency competitors as well as travel consumers. YTB Defendants stole market share from brick-and-mortar travel agencies, putting many out of business. Moreover, by eliminating their competition, YTB Defendants increased the cost of travel for travel consumers at large. As such, Defendants’ illegal pyramid scheme was directed at the travel consumer market generally, effected the consumer market and otherwise implicated consumer protection concerns.

Give me a second here…I have to dry my eyes.

Do you see what they’ve done here? By taking the products and services away from us, (the RTA) the suit slaps YTB Corporate with not only defrauding consumers, (our clients) but Corporate is solely responsible for Cruise Value Center closing, Liberty Travel layoffs, and the Joystar bankruptcy. They all sold a product and service that YTB not only took away, but YTB is now increasing the cost of that product or service to these consumers.

Picture Ron Head or Coach here when I say “WOW!”

Come to think of it, this IS filed with the courts now, so this idea that YTB is putting Travel Agencies out of business has to be true right? (Nah…it doesn’t cut the mustard when John Frenaye pull that stunt, so why should it with me.)

The point here folks is to show you how absolutely absurd this new filing is, and this is a second swipe at it after the first attempt needed to be amended. If you want to buy into this crap, I’d have some serious reservations about how much common sense you actually have. This entire claim is nothing more than a fishing expedition to save face for those who wouldn’t take that time to learn a craft that frankly is very easy to talk about. And because it’s easy to talk about, simply opening your mouth and telling someone that you sell travel will give you the same shot as Travelocity when they see some Roaming Gnome on TV.

And to the Plaintiffs in this case, the quote is NOT “punt”, it’s “try, try, again”.

Idiots.

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Do You ZamZuu?

In all the years I’ve been cruising, I have never seen prices better than they are right now. What’s even more amazing is that when fuel surcharges hit about 9 months ago, prices were never higher. So why the HUGE drop?

Simple…supply and demand.

I’ve known for years, (even before I ever got involved with YTB) that there are certain times of the year that prices are better than other times of the year. For example, starting in August, through November you can find by far the best fares going to the Caribbean. A couple things happen starting in August that cause sales to slump. One is the school year starts, and most families have already taken their summer vacation, but more importantly for the Caribbean is hurricanes and the fear of being stuck in one during a cruise.

What most people don’t realize when it comes to hurricanes and cruise ships is that Lines keep a very close eye on what’s going on, (they do have all the modern amenities to track weather patterns) and can steer clear of any danger. We were in the Caribbean during Hurricane Lenny in 2000, and again during Hurricane Francis in 2004. Both times, we were diverted away from harm, and during Francis, we ended up out at sea for a couple extra days before is was safe to come back in.

Can you imagine? Stuck on a luxury cruise liner for 6 days with nothing to do but eat, sun, swim, massage, and gamble at the craps table? I use this video all the time for anyone who thinks their going to be rocking uncontrollably out at sea during a hurricane. People just don’t realize that the likelihood of being stuck in one are slim to none.

Today, just in case you haven’t heard, the media has been screaming for some time on how bad the economy is. Again there is fear that is keeping people at home instead of going out and enjoying a vacation. But because people are staying home, cruise lines, resorts, and hotel rooms are empty. I have team members in Vegas, and I was also listening to the radio a couple days ago. The airport is barren, with a small fraction of the traffic flying in and out of there than there was even 6 months ago. Las Vegas, rates are down in some cases more than 50 percent. Some of those four-star Las Vegas hotels that used to go for $200 to $250 are in the $80 to $120 range.

I was putting my newsletter together this weekend and wrote about Trafalgar who is offering 2009 Europe vacations at unbeatable round trip airfares to Europe starting as low as $459 per person (plus tax) for 56% savings!

Even Disney is offering gift cards or they throw in 3 extra nights with the purchase a 4 night stay. DISNEY!

The entire industry is offering deals in an attempt to intice people to come out of thier homes, and I’ve got to say, the smart ones are starting to take notice of the value that is out there right now. Vacations and trips that were totally out of reach a year ago are starting to fit into budgets and some (not all) are starting to pull the trigger.

Some deals are just too good to pass up, and I’ve been able to talk to clients who are starting to plan, at times more than a year from now to take some trips that are within reach financially. Other times, like my neighbor who asked about Disney just 4 months ago and found it too expensive, is now looking at the 7 night package for the price of 4 with her family. (It pays to have client profiles on file folks!)

I’m even looking at packages for desinations that were always places we wanted to go, but with prices so low right now, the timing couldn’t be better to start putting them on the books and saving thousands.

Opportunities never go away, they simply go to those who are smart enough to take advantage of them. For those of us in the Travel Industry right now, you’ve got some of the best deals out there right now.

With this hurricane concerning the ecomomy out there in the media, it’s your job to help clients understand the reality of the situtation. What thier being told isn’t nessasarily true, and the timing couldn’t be better to take that dream vacation and save thousands in the process.

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Do You ZamZuu?

Remember the rumor late last year that a MAJOR supplier was going to send notice to a MAJOR MLM/Card Mill that they will be parting ways January 1?.

While a name was not mentioned, you certainly know the drill.

Who could it be?

Is the cookie starting to crumble?

Are suppliers beginning to see the light?

The same unsubstantiated and bogus claims and speculation that’s simply thrown out there to cast doubt. You would think a former journalist would know how to confirm information with a “reputable source“, but that’s not important when you need to squash a company and a business model you don’t agree with.

Turns out the rumor of a major supplier cutting someone in this industry off was true. But it wasn’t YTB.

Sorry.

If there’s any rumor or bad news going around the Travel Industry, YTB seems to always pop up as the one who it’s got to be about. If someone hears about downsizing, it’s got to be YTB, not Liberty Travel. If a company is rumored to disappear in the middle of the night without warning, it’s got to be YTB, not Cruise Value Center. If someones not paying their Agents, it’s got to be YTB, not Joystar.

While all three of these agencies have lawsuits pending in court, who is everyone is talking about?

YTB.

I guess it’s true that dogs don’t bark at parked cars.

Most recently the hope was that if a supplier is going to cut anyone off, it had to be YTB. o supplier was named a few days ago after a dot was left missing, (Omitted from a list along with dozens of other suppliers we do business with) which conveniently justified pinning the supplier where they wanted, on YTB. Even after myself and others questioned the validity, the rumor persisted, until it was finally squashed by the supplier themselves.

Now there’s a novel idea, instead of guessing, ask the source. Who knew?

News confirming the supplier/agent rumor came late afternoon first by phone, and then confirmed by a trade publication that Carnival has cut off Joystar in this absolutely hideous and embarrassing chain of events.

Because Bill Alverson has a ties to a failed MLM back in the 1990′s, you can bet your bottom dollar that this will somehow give MLM a black eye. For the record, I never considered Joystar an MLM, it’s just not the same structure, and I don’t know if anyone would be able to accept that it management that runs a company into the ground, (think Enron here) not a model.

For the record, Carnival is not terminating Joystar because it’s a “card mill”, Carnival is doing what right for the Agents who booked their clients with the cruise line. Joystar has not and is not paying it’s agents their commissions owed them. Those who were with Joystar and now with another host can move future bookings, if they have not been paid in full, to the other host “upon written authorization of the traveler”.

I’m still attempting to put together a legal liability due to an involuntary bankruptcy petition that was filed on January 2nd. From what I understand the liability in this “involuntary bankruptcy” could land on Carnival if they continued to accept bookings from Joystar. If true, (and I’m still attempting to verify at the time of this writing) we could see other suppliers follow Carnivals lead terminating Joystar from future bookings. “Involuntary Bankruptcy” is not all that common and I’m sure there are links out there, but I don’t have the patience to understand “legal talk” right now.

Just don’t be surprised if you see more suppliers make this move.

Because I’ve written about Liberty, Cruise Value Center, and now Joystar issues in our industry, I’ve received both e-mails and phone calls from former Liberty Travel employees, Cruise Value Center clients, and now Joystar Agents who simply don’t know what to do. Clients with Cruise Value Center are the easiest to direct, as long as they have a booking number, but Liberty Travel and Joystar appear to be in a real quandary right now. What’s frustrating for me is that very few seem to care. These Agents, especially Joystar, have had income suddenly cut off.

Agents with Joystar have been without commissions since September and are struggling right now to come up with the money to fight for what’s owed them. If you’d like to help or if you are one of the Joystar agents that are owed commissions, you can find information here.

Maybe it’s time to start looking at and taking care of some of your own?

Author’s Edit: It appears that Norwegian Cruise Line has also ceased doing business with Joystar as just reported in TravelPulse. Effective immediately, “The company will no longer accept new reservations from Joystar or any of its affiliated agents,” an NCL spokesperson said. “NCL will continue to service existing Joystar reservations booked prior to Jan. 5, 2009.”

In another developing story, Wheel of Fortune has also gotten into the mix after a sister company of Joystar, VacationCompare.com, failed to provide the prizes to Promotion Consideration, who arranges prizes for game shows like Wheel of Fortune.

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Do You ZamZuu?

I’ve been amazed; surprised actually over the amount of traffic I’ve been getting over both the Liberty Travel layoffs and Cruise Value Center shutting down without notice. For weeks I’ve seen both these searches add up to what are now top search terms for traffic to this site. The buzz on the internet from various boards and forums has been surprising to say the least.

The Cruise Value Center abrupt closing has more clients searching for answers which shouldn’t be a shock, since there were only some 65 employees affected in this closure. The majority of people who are in panic mode right now are the thousands of clients who have booked cruises through CVC who are wondering if they’ve just been scammed.

Unfortunately, for those who recently booked a cruise with Cruise Value Center they may not have a boarding documents coming to them. A report I found said that CVC never paid $2 million to $3 million in cruise fares to the cruise lines. That’s a hefty amount of money to be…well, sunk.

Liberty Travel on the other hand is more concerned with “their own” and I can’t even begin to count the number of people who feel they’ve been wronged in this whole ordeal.

Which begs the question, what do you do when your company cuts your pay or lays you off? You file a lawsuit of course! Yep, looks like Liberty Travel has gotten themselves in more hot water. This isn’t the first time Liberty has faced charges of unfair labor standards. They’ve already settled for $2.76 million, with $413,571 awarded to 245 travel agents from Liberty Travel offices across Pennsylvania. Another Class Action suit filed on behalf of 564 Liberty Travel agents, who will receive $42,500 each as compensation for their efforts.

Now I’ve been told that the traditional arena doesn’t have these kinds of problems. Suits because you feel you’ve been ripped off or scammed don’t happen to “legitimate agencies”. (Liberty is a Top 10 Agency according to Travel Weekly by the way.) Nope, lawsuits of this nature are strictly reserved for the likes of Travel MLM’s. The Traditional arena would NEVER have someone call them a scam, or even worse, actually file a lawsuit against them.

It doesn’t take much for anyone in this country to go out and file a lawsuit. While I realize all the focus and attention for some is how the Network Marketing industry leaves people high and dry. For the “average Joe”, they want something more stable, more secure. I have to wonder how the people caught up in the following list now feel about how “secure” their jobs were.

I’d try to call them to find out and report on it, but the problem is…I just don’t know where to start.

• CitiGroup 53,000
• Whirlpool 5,000
• Pepsi 3,300
• Xerox 3,000
• HP 25,000
• Goldman Sachs 3,260
• Chrysler 1,825
• Merck 7,200
• Sun Microsystems 6,000
• Yahoo 1,500
• Ebay 1,600
• Lehman Bros. Thousands
• Bear Sterns Thousands
• Enterprise 200
• American Express 7,000
• Circuit City Thousands Bankrupt
• DHL Express 9,500 Bankrupt
• Delta Airlines Thousands
• General Motors Thousands
• Ford Motor Co 2,260
• Starbucks 13,000
• Motorola 5,600
• Fidelity 1,300
• Mattel 11%
• Atlantis 800
• Morgan Stanley 19%
• B T Group 10,000 (Britain’s largest phone company)
• YUM Brands: (Pizza Hut, Taco Bell) Hundreds
• Las Vegas Sands Casino 11,000

I’ve got to ask, does it look to you like this myth of getting a good education and finding a job to go work for look all that secure to you?

For some, this might be the first time that they’ve been cut back or laid off. They’re the lucky ones. I’ve been involved with two companies in my career that have either been shut down or gone bankrupt in the past. I’ve also seen dozens of my co-workers laid off due to downsizing or cutbacks.

And some have the gall to tell me that Network Marketing is flawed. Doomed to collapse. I’m sorry, but going back to work for someone else who can hand me a pink slip whenever they feel they need to just doesn’t feel all that secure to me. My future and my income shouldn’t be determined by someone else.

I’ll be very happy to take that responsibility on thank you.

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Do You ZamZuu?

Would it surprise you that the most viewed news article last week in Travel Weekly was YTB’s new franchise model? (As well as the most e-mailed story of the week.) What seemed to be flying under the radar last week due to all the YTB news was the second most viewed story of the week concerning Royal Caribbean budget cuts.

According to sources mentioned in Travel Weekly, RCCL was looking to cut payroll by 10% and asking staff to reduce expenses. A Credit Suisse Bank analyst confirmed that Royal Caribbean would also implement “broad based, shore side expense reductions of up to 25%”. If you’re thinking “layoffs” you’re right on the mark as a Miami News Station made the “Royal Proclamation” late last night that the Miami based company handed out some 300 Royal Letters in pink Monday afternoon with 100 positions already vacant totaling 400 job cuts.

Not surprising since after yesterday’s closing bell, Royal Caribbean released numbers showing a 34% decline over 2007 second quarter numbers and more information on its cost savings measures. Seems investors have seen this coming for some time as RCL stock has plummeted from $43 per share to a 5 year low of $19.16 per share just last week.

The company announced a significant cost savings initiative that is expected to reduce spending by approximately $125 million annually.

“Too much of our profitability is being eroded by the increase in fuel prices. This is unacceptable and we are evaluating everything we do to find ways to do it more efficiently and effectively,” said Richard D. Fain, Chairman and Chief Executive Officer. “While our brands continue to attract premium prices even in this difficult environment, it is imperative that we find ways to reduce our costs.”

Hey! Here’s a novel idea you’re more than welcome to steal from the current #1 Cruise Line in the World! Looks like Royal Caribbean is in need of even MORE Travel Agent Support to offset these Royal Pink Slips.

But I regress. Instead they are spending Lord knows how much on more Direct Response TV ads “Starring You”!

Unfortunately, Agent support may not be so easy since it was also reported here that Royal Caribbean gave their existing Travel Agent base the Royal Shaft back at the beginning of June by increasing commission thresholds. While I was “told” by the knowledgeable Travel Agent community I’ve come to know and love, that this was no big deal, I found story after story of Agencies feeling truly shafted. Jim Mazza, COO of Oyster Bay, NY-based TRAVELSAVERS urged them to reconsider. He continued to say “we don’t feel that it was in the best interests of the travel agent community.” Mazza was also quoted in another Trade Publication “Given the implications of the current economy, isn’t this the perfect time for cruise suppliers to strengthen, not diminish, their relationships with travel agents?”

Vacation.com’s Steve Tracas, president and CEO expressed disappointment with Royal Caribbean’s move and reaffirmed the value of travel agents to Royal Caribbean and the industry. CEO Tracas also was quoted “This is certainly a conflicting message compared to some of their more recent communications to the agency community.”

One agent, who asked for anonymity, told Travel Trade, “This change is especially punitive to smaller agencies that will be hurt the most. Large producers don’t care about a $1.5 or even a $3 million threshold because they are above that anyway. Many of the literally thousands of agencies that barely make 11% now are dropping to 10% and, no, a few hundred dollars doesn’t seem like much but the psychological size of the cut is huge.”

“The bitterness goes very deep and several producers in the $1 million range that will be affected are already moving share to Princess,” according to this agent.

What ever happened to that promise back in October when Royal Caribbean said they were done with Travel MLM’s and only going to kiss and hug REAL Travel Agents? What happened to the standing ovations all over this country from the Travel Agent community who were behind Royal Caribbean 100% and promised they were going to take this industry back?

Now that Royal Caribbean has been out at sea all by itself the last 9 months they’ve sprung a leak and cries of “Man Overboard!” are being heard down in Miami and the Wichita, Kansas call center.

To be fair, fuel costs ARE a big reason for these cuts, but you’ve just GOT to wonder what a company like YTB, who booked some $414.5 Million in travel in 2007 could have done to help save at least some of these jobs. Remember, our suppliers don’t pay a dime to YTB unless YTB produces a sale. There are no marketing expenses; there’s no Co-op Advertising, there’s just more than 100,000 web sites out there that could be pointing friends, family, neighbors, and co-workers to their ships, which quite honestly are very nice.<
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With a capacity of some 5400 passengers on the new Genesis Class ships being built and on order, maybe bigger at this point isn’t better. Like it or not kids…YTB is the PERFECT model right now to fill up all those new ships they have coming out. You take a look at Carnivals earnings, and now Royal Caribbean’s and despite both having to struggle through the same fuel costs and economic troubles, one has YTB and one doesn’t.

It’s just one of those things that make you go Hmmmmmm.

Royal Caribbean has scheduled a conference call at 10 a.m. Eastern Daylight Time, Tuesday, July 22, to discuss its earnings. This call can be heard, either live or on a delayed basis, on the company’s investor relations web site at http://www.rclinvestor.com/.

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