Whatever happened to personal responsibility? When did we start blaming everything and everyone else but ourselves for problems? I found a gem the other day, and come to find out that it’s not the lack of service, it’s not all the time we spend on the internet posting our opinions, it’s not because we forgot just who our clients are and what our customers actually want. And it certainly can’t be because our clients are capable of doing what we do for a living on their own through the likes of web sites called Travelocity, Orbitz, and Expedia.

No, it’s none of that. What it all boils down to is none other than Travel Weekly. Who knew?

Interesting that after a years worth of hammering suppliers to choke out the pariah of untrained and uneducated Yahoo’s to little or no avail, (Royal Caribbean, Perilo, and Celtic Tours were the only three that headed the pleas.) we now move to the media outlets and industry publications to what looks like a new desperate attempt, begging if you will, to stop promoting these blasted MLM’ers who are ruining their business.

It’s not the first time suppliers have turned their back on the traditional travel agents, suppliers need the business, especially in this economy. Speculation that it was the suppliers fault stemmed from the ASTA who took a stand against MLM back in 2005 going all the way to the FTC. The blame fell squarely on the backs of suppliers after their attempt fell flat. Today, the largest cruise line in the world has teamed up with the largest Travel MLM in the world to promote gift certificates to increase sales for both the cruise line and the agency in the 4th Quarter.

A battle that I can only guess critics have resigned themselves to finally let go of.

Now that some have moved past the fact that suppliers just aren’t going to listen, the focus now turns to trade publications as they blast away at one of the most prominent and respected industry publications in the industry, Travel Weekly.

What was thought to be a fluke back in 2007 when YTB suddenly appeared on the pages of Travel Weekly’s Power List at #35 was dismissed as being nothing more than recruiting fees by those who needed to forgive Travel Weekly for their grave error. When news broke later in the year concerning Royal Caribbean’s termination of YTB, the company and its founders were suddenly catapulted to the front pages of just about every travel publication on the market. Most by the way praised the RCL move, as it was believed that this would be the first step in the avalanched of suppliers who would now agree that Travel and MLM’s are in fact a bad mix.

Instead of an avalanche of suppliers, what was found was more media coverage for Kim Sorensen who was named one of the 33 most influential in the travel industry and when you compare that to just 3 suppliers who sided with PATH, most everyone can see how lopsided that slap in the face was.

To add insult to injury the media coverage by Travel Weekly didn’t stop in 2007. While many critics speculated that Travel Weekly had “seen the light” and the nightmare of all this free publicity was now over, not only did Travel Weekly yet again document sales of $414.5 million in travel sales for YTB, but informed the masses that this speculation of “fees” were unfounded. No, the editors took the time to inform and educate critics when they stated that they check “numerous times” and $414.5 million are in fact “travel sales” not the “fees” that were being pitched.

Dag gummit!

I guess the final straw for these agents was Kim Sorensen being named to Travel Weekly’s Virtual Leisure Summit this fall. I could also speculate that this one name brought in a good number of participants who would have never given this new virtual summit a second thought if it weren’t for a name like Kim Sorensen being attached to it. Now I don’t know this for a fact, but I have to wonder just how big the smile were on editors faces over the frenzy this one name created all over the internet. If you know anything about marketing and media, they LOVE people and circumstances that go against the norm. That’s what makes it newsworthy. (I just listened to an audio from Joe Vitale, AKA: “Mr. Fire” yesterday that eluded to this very subject.)

If you find something that works, you keep doing it. A big reason why Kim will be participating in the upcoming “Preview 2009” December 18th and 19th. It’s got people talking all over the internet once again, as the article above pitches the show, and the buzz has also prompted Mark Murphy, President and CEO of Performance Media Group a competing publication to mention both YTB and Travel Weekly in its own publication.

What’s unfortunate is that Mark, like most who’ve never been involved in Network Marketing simply perpetuates more myths about the industry. He’s obviously unaware that A.L. Williams is no longer A.L. Williams, but now Primerica. Nor did he realize that this form of sitting across the kitchen table helped A.L. Williams gain the number one spot in Whole Life Insurance for 7 straight years.

Even sadder, and I see this all the time from ignorant (not stupid) people who don’t know any better. This use of the 2007 Income Disclosure Statement is almost always documented to show that all YTB does is recruit people into the business. I’ve yet to see any outsider realize that this document actually contradicts the very myth their trying to promote. Those I speak with who’ve heard this myth suddenly realize that this fear about everyone recruiting is inevitably washed away when they see that only 20% of the company actually recruits a single soul.

I don’t know if the ASTA was actually informed by the FTC about these recruiting fees back in 2005, based on how their pitch fell flat. I suspect the facts will come to light for everyone once again via California that it doesn’t cost anyone a dime to recruit new members into YTB. Some of our critics already know this as they may be counted in the 2008 Income Disclosure Statement as making squat. But that’s yet another story for another post for 2009.

In the meantime, well enjoy the press and the talk about YTB as it continues to make headlines and front page news for going against the norm and creating its own entity in the travel industry.

Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker
Phone: 678.458.5812

Learn How To Become A Travel Agent

Book Your Travel & Vacations With

Are you as tired as I am over all the trash talk about YTB’s stock? Honestly, I’m sick of it. It’s as if YTBLA.OB is the only stock out there that’s down in the dumps. You’ve got to be hiding out in a cave somewhere not to realize that the markets overall are…well, in the toilet.

While the market has many running in fear, others are banking on the fact that the market will eventually turn in an upward trend. Most people would think someone would be crazy to actually be buying stock these days. Yet, that’s exactly what many of the super wealthy would have done in order to make their fortune. It’s times like these that would explain why Warren Buffett bought a considerable amount of stock at the end of the third quarter. (And if you’re thinking he sold a bunch, think again.)

The “Average Joe” simply can’t stomach what’s going on right now. That’s why we’re seeing the selling frenzy that we are, and also why critics appear to be focused on YTB’s stock specifically. It helps give the perception that the company is in dire straights and won’t last. Our third quarter numbers did a significant job is dispelling those rumors after their release. While there is a considerable amount of excuses following YTB’s profitable quarter, it did cause some of the most hardened critics to actually state that the numbers actually turned out better than they expected.

I would assume that’s why the focus has been shifted so quickly to the stock. It’s the one thing critics can point to that doesn’t look all that rosy, nor is bouncing back. The picture they’re painting is as if all other sectors are doing just fine, and it’s only YTB that’s having the difficulty holding on to its price. (Even with a profitable quarter.)

This attempt to spin the stock got me thinking how YTB compares to other stocks, more specifically, the travel sector since YTB of course knows nothing about travel. (Even after our 8 year run in this sector and being named in Travel Weekly’s Power List the last two years.)

By no means do I claim to be some type of stock expert. Far from it. But anyone with a pulse should realize that the markets, even after the election, continue to tank.

After pulling up various stocks to compare with YTB’s I started noticing that the broad brushed picture being painted isn’t what our critics claim it to be. (Big surprise, I’m sure.) Nor did any one sector in our industry lead in the categories I checked. About the only sector I was not able to check thoroughly at this time were other Brick and Mortars. (Most according to the Travel Weekly Power List are privately held.) I also tried to pick stocks that most everyone would know, even if you’re not “in” the industry. (Hogg Robinson Group, being probably the one exception.) Since there were so few public Brick and Mortar Agencies, I did use both American Express and Boeing who do own “Agencies” but obviously have diversification which neither look to either help or hinder their performance over the last year.

Here is an overview of the industry representing Airline, Cruise, Brick and Mortar, and On-line Agencies.

YTB (as noted by the blue dot) ends up pretty much “average” compared to the other stocks in the industry. Since there are so many in this sample, I’ve taken each industry and broken it down into segments for ease of reading.

Our first sector is how YTB compares to the Airline Industry. Companies are color coded and YTB will remain blue. Companies sampled with YTB are Continental, Delta, US Airways, and Northwest Airlines.

Next is a one year snap shot of Brick and Mortar Travel Agengies, which include American Express, Boeing, and Hogg Robinson Group.

Would a one year snap shot of on-line agencies look any better? Take a look at how YTB compares with Expedia, Priceline, and Orbitz.

And our last sector is the cruise industry as we take a look at both Carnival and Royal Caribbean.

After looking at this again, maybe Royal Caribbean should be the one in red…

So what gives? Why all the focus and fuss over YTB’s stock when obviously YTB appears to be on par with all the other companies in the market?

Because that’s what critics do. It’s something for them to talk about to give the perception that the Network Marketing business model is flawed or inferior to what they consider a tradition business plan. It’s all about perception to add fear and doubt about your choice in the industry.

They want you to go back to something more “legitimate” or “secure”.

So let me ask you. When it comes to the stock market, which one of these stocks above look to be more secure to you?<-->

Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker
Phone: 678.458.5812

Learn How To Become A Travel Agent

Book Your Travel & Vacations With

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/.

PS - If you’d like to keep up to date with all the latest news, acquisitions, and developments with YTB feel free to sign up for my FREE Newsletter. Just like here, it’s loaded with food, water and sunshine to grow your YTB business.

Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker
Phone: 678.458.5812

Learn How To Become A Travel Agent

Book Your Travel & Vacations With

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