UPDATE: It’s a miracle!! The witch is not dead. Actually – I think the proper word right now would be “irritated”. (By yours truly.) Within two hours of posting this – our boy John pulled up a month and a half old rant he never bothered to publish to save face. (Hell, even my wife warned me that what would happen.)

Not too upset. He’s supplied some of the best content and some really great laughs over the years. Based on his history, and the outdated rant, I see no evidence that will change.

~~~

Honestly, I never thought this day would come. I’ve run into my share of zealots and cynics over the years, but have never seen the likes of anyone so obsessed and disturbed as the “Coach” of the Anti-MLM Travel crowd. By default, anyone in YTB would know that person to be John W. Frenaye. One of the most arrogant, confused, and condescending dolts I’ve ever witnessed during my tenure with YTB.

I first caught a glimpse of John’s irritation with YTB back in 2007 with an article he wrote using MSNBC as his platform. It was his last article for MSNBC. You can only imagine how unamused the editors of MSNBC were with anyone “double dog daring” folks like John did for that soap box article. His last rant on MSNBC however was only the beginning of the type of outlandish and eccentric stunts pulled over the next 3 to 4 years of a one man battle to rid the industry of Travel MLM’s.

A few short months later John showed up as a commenter on our blog in an apparent attempt to educate me on his “issues” with Travel MLM’s. I still remember the coy attitude and the intimidation tactic – as if he had it all figured out. It was to become a trademark of the almighty Frenaye. At the time however, I did see John as both a challenge and an opportunity to correct not just misconceptions and misrepresentations the industry had about MLM – but bold face lies about our people our Founders, and our company.

I’ll always give anyone the benefit of the doubt. Call it an asset or a fault, but I did befriend John because I did agree with a few minor points and issues that needed to be cleaned up in our industry. One of those issues being a love of travel and service to others. Perks in our industry known as FAM’s are a privilege and a tool to sell more travel to paying customers – not a right simply because you call yourself a “Travel Agent”. MLM is a business, not some discount program or get rich quick scheme.

And that’s how our discussions began.

When it was my turn to clear the air that nobody actually paid for the opportunity to recruit others, or that gross travel sales were actually 4 to 5 times the amount of travel website sales – that’s where we ran into problems. See, John, like so many other zealots who think they’re the bees knees find it difficult to communicate, learn, and educate themselves to find a resolution. I suppose the reason for this is that if they actually did – there wouldn’t even be an issue. Zealots need controversy in order to maintain their charade.

I don’t know if you’ve ever seen the movie Network. It’s a 1976 film that takes a cynical look at TV networks exploits that stars a very deranged ex-TV anchor. The film has one very famous quote that I’m sure you’ve heard of: “I’m mad as hell, and I’m not going to take it anymore.“

That’s John Frenaye in a nutshell. What John saw in YTB at the time, was the biggest – baddest Travel MLM out there. Remember, nobody was able to do what YTB did – they all folded before YTB Travel came along. Sure, other Travel MLM’s were a nuisance and frustrating – but since they were so short lived – they weren’t any real threat.

YTB was a different animal all together – it had legitimacy attached to it. Carnival Pinnacle Awards and listings smack dab in the middle of Travel Weekly’s Power List aren’t something Travel MLM’s are even capable of doing in the eyes of an anti-MLM zealot. And because YTB was morphing into a host agency powerhouse, the only thing John could do was go on a rampage for the next couple of years, finding (or fabricating) any issue he could dream up to shame YTB into submission.

I can’t complain too much because he gave me some fabulous content to show how you should never just walk – but run from zealots like John if you want anything close to sanity or the truth.

Some of my favorites include:

• An amended Class Action suit John dubbed was “powerful” yet was thrown out of court just days later for being “redundant, immaterial, impertinent, or scandalous matter”. (Boy – does that shoe fit huh?!)
• The claims that Candi May couldn’t possibly be a legitimate Travel Agent, or had been courted by Carlson Wagonlit only to find YTB as a better alternative.
• When CLIA slapped John with his hands in the cookie jar over claims that CLIA was playing favorites with YTB and not abiding by the rules set for all agencies.
• The church parsonage which Coach Tomer and Chris donated to a church – which John conveniently spinned into a “lease”. (The idiot even provided the court documents himself to show it was a legitimate donation.)
• The perfect “Gotcha” turned sour. An outdated 32 year old law in Rhode Island which John dug up that required all Agents to be bonded. That is, until John brought attention to it – and instead of enforcing it, Rhode Island repealed the outdated law.
• And of course we can’t forget John’s hopes and the dreams that were dashed in both California and Illinois shutting YTB down and ending our existence all together.

I’ve lost count how many times we were warned that Coach, Scott, and Kim would ride off into the sunset. The warnings of bankruptcy. How the stock was being manipulated. And the ultimate dream – how YTB would get out of the travel industry all together.

Aside from being proven wrong and outed for outlandish and false claims so many times over the years – probably the straw that broke this dolts back was the revelation that John really wasn’t the saint he claimed to be was made public.

Look – nobody’s perfect and we all make mistakes. Lord knows I’ve made my share in my lifetime and so has YTB. The key difference between someone like me and a company like YTB is that we can at least acknowledge we’re not perfect and either make amends and/or correct the mistake.

And it’s that type of acceptance and humility that enables me to keep writing here and YTB to keep selling travel during events like we had last night with Sandals.

John, on the other hand has apparently moved on. While his charade and escapades will be documented on the Internet forever, like the comments section that he was once so proud of haven’t been updated in almost a month. Best I can tell, he’s found another hobby with yet another startup and another site called Eye On Annapolis. It has nothing to do with travel or MLM’s thank goodness. It’s more like a city beat type thing and frankly – I’m pulling for him that it works.

I honestly don’t know if John will ever come to terms with the MLM model. A good portion of these types of Zealots never do because emotion often overrides logic and common sense. In that same vein however – logic never changes like emotions do and that’s why MLM and Direct Sales has survived for more than a Century.

Letting go of a three or four year obsession however is a step in the right direction. The daily rants and spinning have finally come to an end for both John and YTB. The end of another chapter in our journey together in an industry I still love and respect – both MLM and travel.

John’s relevance in the travel industry started to erode with his “double dog dare” in 2007. It’s been a very slow and arduous process over the years. I’m not going to speculate his escapades are completely dead like the Wicked Witch of the West (although it’s a fun title) but the further we get away from this type of behavior the better off the travel industry as a whole will be.

It’s a bad mix nobody really needs.

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I enjoy Trade Publications. I subscribe to a variety of publications in both electronic form and in traditional print. I’ve always enjoyed reading and learning about the industry, and have promoted learning as much as you can about any subject that interests you. There has never been a time in our history when so many mediums are available for someone to learn and develop a skill or a trade.

I’ve enjoyed the way suppliers and trade associations have embraced training, enabling me to learn about the industry. From seminars and webinars; from a training call or port of call via ship inspections, the variety of ways to learn and develop in this industry is abundant.

I’ve seen many changes within the industry over the last several years when it comes to doling out credentials in the industry. I’ve also supported the upgrading of requirements for FAM eligibility from both suppliers and associations.

One thing that hasn’t changed much are the Travel Agents who think they “own” the industry.

I was walking home with the kids and my neighbor on Thursday and we stopped in the culdesac to chat a bit longer. While talking, I opened up my mailbox to get the mail with my monthly issue of Travel Agent Magazine in the mix. I typically look forward to each and every publication and wanted to see this months “cover”. When I saw the cover, I smirked, shook my head and commented “Good grief”.

My neighbor who was standing in front of her mailbox ask me what the comment was for, and I held up the front of the publication to show her. She asked “What’s that all about?” and I simply commented that the man in the mask…is supposed to depict someone like me.

She laughed and asked “That’s suppose to be YOU?!” and I responded, “No, not me specifically, but someone like me because of the company I work with.”

I told her of the issues Travel Agents have had for years concerning “card mills” and downright phobias regarding MLM’s and what we have presumably done to disgrace, embarrass, and ruin their reputations as “Professionals”. You wanna know her reaction?

“And that’s their answer?”

Yep, afraid so. I went on to tell her about forums and blogs these “Professionals” hang out on to discuss all the wrongs, all the injustice, all the problems they can think of on a daily basis. How at one time I had befriended some of them, and because I’m not willing to change host agencies or simply get out all together, I’m now an outcast and seen as the man in the mask. (And then some.)

“How does that make you feel?” she asked. I thought about it, for say… a nanosecond, and replied with “How’s it suppose to make me feel?” I went on to ask a couple of more questions, like how someone I don’t even know, or more importantly doesn’t know me, should own any feelings one way or the other? I asked if she see’s any connection to me and the man in the mask. Do I look and act like that to her?

She thought that was a strange question based on the look on her face, because we happen not only to be neighbors, but friends. To think an article or even this cover will cancel out years of friendship does sound a bit over the top. I’ve heard that if you join and MLM that you can kiss your family and friends goodbye, because you have to hound them about joining the MLM you’re involved in, (any MLM) and they eventually get fed up with the constant badgering and eventually disown you.

It’s been over 4 years now, and I’m still waiting for THAT shoe to drop.

It’s not that I haven’t heard story after story about MLM’s destroying friendships and families. There are those who can’t fathom being unemotional or unattached to an attack like what’s depicted in the picture. Family especially, would want to protect those they are closest too from being “stained” in this way. I might be the same way when I was far less secure about my own abilities and worth.

But I have to wonder, why after all this time, all this energy, all the “talk” about how bad things are, just why a professional publication would even think that an article like this is a good idea. What some in our industry have categorized as “card mills” have been around for over a decade now, and the industry is only a small fraction closer to resolving this so called problem and embarrassment than they were back then.

There have been suppliers, (who by the way are the ones who grant these FAM’s and perks not the Agents or Associations) who have taken a stand in some form or fashion. Sandals for example, was one of the first I can think of who would provide a complimentary night or nights based on production. Doesn’t really matter which host you’re associated with; if you produce, you’re rewarded. The concept isn’t much different from a frequent flier program, which provides anyone who supports a particular airline is granted perks like free airfare. It’s also why I like the Carnival requirements that came out a year ago January. A minimum of 5 full paying cabins (double occupancy) are required, BEFORE you’ll be considered to partake in a FAM with them.

But for some reason, that’s not good enough for some, as you can clearly see in the comments section of the digital format of this cover story. There are those who simply can’t get over their own hang ups about “their” industry to see that someone is there on a FAM because they earned it. We’re participating in an industry seminar with them because we have a desire to learn. We join in on a summit because we want to expand our knowledge.

Instead, they snub their nose at the supplier because they welcome anyone who produces, regardless of what Host Agency, or so called “card mill” they may be associated with, as if the supplier would even care who they consider “worthy”.

We’ve run into the same problem most recently with Debbie Maier and Mailpound. Ms. Maier took the time to come to a Red Carpet Event to roll out a new private labeled e-marketing site for YTB to help our company promote and sell more travel to our clients. While the site does have a listing of FAM’s associated with it, the main purpose of this site is to enable Travel Agents to send out promotional e-mails and marketing materials to clients to actually sell travel. When she came to the Home Office she was, and I quote, “completely – blown – away” over the passion YTB has for this industry.

And because she now provides this service to YTB, and has seen first hand that YTB is a real travel company, she and her company have now been black listed. There are “Professionals” who are not only promoting that other agents send her an e-mail that “they know” who she’s working with, but if any of the e-mails or comments are like the ones I’ve seen…she’ll need to shower after being vomited on by this outspoken and obnoxious group of “legitimate agents”.

That’s the game plan, to make life as uncomfortable as possible in the hope that they just throw in the towel because the backlash isn’t worth it.

Based on a webinar that I know happened last week, there may be more of this kind of tactic coming from this group. The same day YTB was promoting Princess Cruises, (a Sail-A-Thon to sell full fair cabins, not FAMS) another group was planning how to get more of these types of “cover stories” out there to media outlets to warn the public about the masked men and women who are involved in what they’ve deemed to be undesirable Host Agencies. I know that these Associations are the be all and end all for some, and there have been Agencies associated with many of them to add credibility. (We saw how well that worked out, didn’t we?)

While I was invited to this little gathering with these very prominent and important people and associations in the industry, I declined the offer. I asked the question of how this type of behavior would make me a better person, a better Travel Agent, and a better Leader, but like most of the questions I ask, they were left unanswered. (Ignored was more like it.)

They are welcome to do what they do, and I’ll do what I do. That’s promoting a rebroadcast of the Princess Sail-A-Thon this afternoon at 4:00 pm Eastern to sell more cruises. It’s far more productive, supports the hand that feeds me, (and them) and helps bring the truth to light.

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I wrote on Monday about Paul Henderson, who like me is getting just a little tired of the nonsense filling our in boxes, and the witch hunt that’s going on in our industry right now. There are those who believe that we as a group of MLM’ers can not call ourselves “Travel Agents”. The reality of the issue however is that not one association or group has been able to outline for us what type of qualifications are necessary to provide us with the proper definition or qualifications to be considered a “Travel Agent”.

IATA enables you to carry their card with a paid commission level of $5000. CLIA just upgraded their qualifications with training and a minimum of 25 cruise sales.  Others have their own hoops to jump through such as a business license, or an approved host that you need to align yourself with.

Yet we are still left without one clear definition as an industry that everyone can agree on (or at least reference too) to become a real live “Travel Agent”.

Over the last couple of years YTB has made many changes in order to legitimize it’s model in the industry and become a respected member of the industry. We’ve listened to and responded accordingly. Some call it “reactionary” and that’s okay, because it’s the first step for some in noticing that changes ARE being made. Before any of this mess erupted back in October of 2007 with Royal Caribbean terminating it’s agreement with YTB, during a Funshine “Travel” Trade Show no less, YTB rolled out E-Campus, a course designed by one of the industries leading educators, Marc Mancini. YTB also revamped it’s certification program to First Class Training, and with that, changed both the level of commission percentages, and qualifications to book directly with vendors with it’s First Class Training Program. When you enter the industry with YTB you are an Affiliate, and without the proper training via either YTB or an indsutry associations no title of “Travel Agent” is bestowed upon you.

In addition to training, the company has made numerous changes in the way it actually books travel and helps customers secure the services we offer. The Convergentware upgrade with direct connections to GDS, suppliers and vendors has eliminated the need to “glean” numbers, and since we have enough staff now to handle our own calls in our expanded Home Office, the primary number in the help section is now directing customers to our own support center instead of pawning the responsibilty off on vendors.

In addition to the changes YTB has made, we’ve seen changes from suppliers such as Carnival Cruise lines, who implimented a minimum booking policy in eary 2008 before enabling anyone to enjoy a discounted cruise with them. We’ve also seen changes from Assoications such as CLIA who now requires not only training but actual production in order to have the privilege of carrying their card. While I’ve heard of rumblings of a loophole with this, YTB as a company, nor do I support or promote such a loophole.

This above snapshot of changes should provide for many that both YTB and the industry is serious about being a player in this industry. I for one am pleased with the response both the industry and the company has made. There are a select few however who either don’t want to talk about the issues or are incapable of communicating effectively what the real issues are.

I was amused this morning to find a comment, which I approved. In a very roundabout way, this TA finally got to the bottom of his issue after several days of comments and an entire post yesterday.

The real phobia for him and for the rest of this small group is “recruiting”.

I don’t know why it took so long or why he needed to go off on a tangent about Delta Airlines being the first to start cutting commissions in 1995, or that online companies such as Travelocity, Orbitz, Expedia and Priceline have call centers to support their initial design of self service booking. My guess is that he needed to show how smart he was and attempt to point out how little I know, thus disqualifying me as someone who is worthy of recruiting anyone into the industry the right way. If he feels that works for him, I have no problem with it, but he could have saved himself a couple days of ranting and badgering, and needless reading by me and just come right out and told everyone that he can’t stand the recruiting aspect and we need to dispose of it in order for him to personally accept me or YTB into the fold of brethren.

I suspect however that he certainly feels better now that he’s been able to vomit on two separate blogs.

Now that he’s fianally been able to get the real issue of the matter, he’s asked me to participate in a webinar that’s coming up at the end of the month. While I’m not sure if he’s cleared this with those who initially set this puppy up, but regardless if he actually has or not, I politely declined the offer to join the group and have chosen to participate instead in a Sail-a-thon with Princess Cruise Lines later that evening.

Be that as it may, I have to wonder why he feels this would benefit me or anyone else in the Travel Industry resolve the issue of “qualifications” and finally be considered a “Travel Agent”.

Here’s the outline of this little seminar and you tell me if this looks like it’s designed to talk about qualifications or if it helps the industry resolve the real issue here.

Card Mills.  Instant Agent Programs. MLM Travel Companies.  These entities spring up relentlessly, convincing consumers that anyone can be a travel agent. Card Mills disparage the professionalism of traditional travel agents and misrepresent industry “benefits” as a reason for joining.

Too often, travel agents are left without the tools necessary to successfully educate consumers and market effectively against the Card Mills.

No longer.

Join Richard Earls, publisher of Travel Research Online, in a webinar that will turn the tide by providing traditional travel agents with effective strategies, press releases and marketing tools to educate their clients on the fallacies of the card mill phenomenon.

You will receive materials after the webinar that will assist you in combatting Card Mills in your own communities.

A panel of experts will assist travel agents with arresting the Card Mills in their tracks.

By the way…the emphasis here is not mine, it’s theirs. This seminar is nothing more than the “witch hunt” that both Paul Henderson and I both abhor. Why on God’s green earth would I have any interest learning how to spew negative propaganda about a company that I support? There is nothing about this recruiting message that talks about the issue of qualifications, training, or customer support to enable me to be a better travel agent.

What it does appear to teach however is how belittle me in press releases, marketing tools, and seminars. (Something that I’ve grown quite accustom to, and expect as a rebuttal to what I write here.)

Oh Joy!

According to some, I’m the one who doesn’t offer “value”, and I’m being ridiculous for not wanting to spend my afternoon rolling in this very large pile of horse dung.

I do find it serendipitous that while this group of professionals attempt to educate the world that all we do is focus on recruiting so anyone can be one of these Travel Agents, the lead company they will be talking about and slandering is actually doing what they should do…selling travel and supporting the hand that feeds them.

Now there’s a novel idea!

I’m sorry gang, but I have to state for the record once again. I don’t find this “get together” the least bit productive, or see how it answers any of the issues we talked about on Monday.

The answer is still “no thanks”.

But that just me.

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I wanted to post something on Friday concerning Travel Weekly’s Preview 2009 and one presentation in particular. Before I did however, I wanted to make sure that what I thought I heard and my notes from the presentation were in fact accurate. So I decided to hold off until I could listen in again with the On Demand feature which is available for the next 90 days.

It shouldn’t be that big of a guess that the one presentation I was interested in was Thursday’s “What Proves You are a Travel Pro”. Questions were asked by agent groups looking for answers from association heads about – you guessed it, “credentials” as they explored just who should be recognized as a travel agent, and who shouldn’t be.

The presentation was kicked off with a brief presentation by Bob Sharak from CLIA, Kelly Chiusano from OSSN, Scott Koepf from NACTA, and Bert Rivero from IATA as they clarified their roles in the industry.

After the overview presentations, the Q&A started with Kim Sorensen who asked the first question to the panel. The question can be summarized in two parts:

With the industry in “a perfect storm” with agents and agencies closing down, what are these associations doing to not only attract but train new blood that enters the industry? Secondly, what type of training, qualifications and documentation should an agency provide for the new blood in order to guide them to obtaining the roll as “Travel Professional”?

We’ve documented here before, fairly recently as a matter of fact, that the industry as it stands is struggling. I’ve written about Liberty Travel closing a number of its locations, and Cruise Value Center closing overnight without warning. Those that are left have resorted to embezzlement, and defrauding airlines to make ends meet. Even the current leader in the Travel Industry is looking for a $3.5 Billion bailout.

Based on what we’ve seen in recent weeks, any illusion that the traditional industry is doing well, is just that; an illusion.

There’s no question in my mind that the industry is in dire need of attracting not only new blood but new ideas into this industry. To be fair, it’s not that the industry hasn’t changed, although it appears to be with a considerable amount of resistance. The industry does eventually adapt. (As I suspect it will with MLM’s.) Scott Koepf did a great job in summarizing all the changes with the age of internet bookings, cruise only agents, and home based agents who were at first frowned upon and met with resistance. Today, these entities are not only accepted, but respected.

The face of the industry has also changed from being viewed as an “Agency” to that of an “Agent”. I’m often asked by Traditional Agents how I maintain any type of bookings with all the negativity critics produce about YTB. The answer is simple; the relationship is with me, not YTB. When clients look to make a booking, they look at me, not my host agency. Pricing, service, and professionalism are a direct reflection on me, not my agency. You might want to read Chris Andersons, “The Long Tail” for better clarification on how our entire capital structure is changing in this way. Another reason why I believe YTB and Network Marketing is on the right track.

Even with this shift in capitalism, Agents and Associations look to be more concerned with complaining and how companies like YTB make them look. More importantly as we’ve heard time and time again, is their illusion that we only get involved to take advantage of industry without giving back in the form of travel sales. The solution for them of course doesn’t rest on their shoulders, but on the suppliers themselves. It’s suppliers who ultimately decide just who they want to do business to produce income and gain market share.

Especially with the current economic conditions.

So how do these Associations help the new person who wants to get involved in the industry?

Bert Rivero (IATA) wouldn’t take any responsibility to ensure agents are trained properly. IATA is designed for those who have already acquired not only the knowledge, but skill set to sell a minimum amount of travel in a calendar year. IATA seems to be more interested in educating suppliers on how much money they’re loosing because of “card mills”.

Bert may need to take a lesson from Gerry Cahill with Carnival, who produced a very sound solution that was brought to light almost a year ago to curb this perceived problem of “card mills” taking advantage of FAM’s without giving back to the supplier. Of course, the relationship between YTB and Carnival has flourished, even with the new requirements, which doesn’t match IATA or the Travel Industry agenda.

Kelly Chiusano was much the same, in that OSSN really doesn’t have a current structure in place to guide, train or educate the new person who enters the industry. It’s up to the host to provide this type of training and education. She did mention that the larger host agencies did have training and education in place to help bring them into the fold and help them become a professional.

It wasn’t until we heard from Scott Koepf from NACTA who I think was the first to really understand the question in its entirety, and does provide both training and continuing education for those of us who aspire to become professionals in the industry. It looks as if YTB may be on the right track now that it has an entry level with Affiliates, Referring Travel Agent, and Travel Agent program in place. Each of the YTB levels produce a better understanding, better commission splits, and enhanced privileges within the industry.

CLIA, was by far the best equipped to answer this question, and Bob Sharak did an exceptional job of explaining how their association works hand in hand with host agencies and individuals to educate and train both the new recruit, but the seasoned professional in the industry. Not only does CLIA provide various training experiences, from on line to more intimate classroom training. CLIA provides various levels of qualifications starting with a brand new Associate Cruise Degree (ACD) along with various Cruise Counselor levels which stars with Accredited (ACC), to Master, (MCC) and even Elite (ECC) levels.

Like Carnival back in January, CLIA has come up with its own solution to the Agent ID cards with new requirements that include training and minimum booking requirements in order to obtain the privilege of carrying their credentials.

Instead of complimenting and giving CLIA credit for these new requirements, critics (as they always do) tend to twist and create problems within a solution, and are now obsessing over a loophole they claim to have found. Instead of highlighting the loophole from our critics, I would instead suggest that you chime into YTB who will be providing an overview of these new requirements with CLIA on tonight’s “Getting Started Call” with Jeannie Sharpless. This way you’ll be guided with an overview of how to qualify the right way. (If you miss the call, you can find it archived in your back office.)

By following the guidance of both CLIA and YTB, who knows, you too could qualify for that elusive roll as a “Travel Pro”.

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I posed the question in my last post as to how YTB ends up “costing suppliers money”. I’ve since found out that the problem is that YTB does not give suppliers their money’s worth. Which I would consider constitutes some sort of monetary investment into YTB. Either way, there is a very large outcry in the Travel Agent Community that YTB is paid top commissions from suppliers for simply “referring” people to a web site. Many smaller Agencies across the country simply can not produce the volume that 136,000 collective RTA’s produce and they feel it extremely unfair that we as an individual YTB RTA producing a small fraction of what they produce, are paid several commission points higher than they are.

Personally, I will freely admit that I would be upset as well. I’ve actually been on the “short end of the stick” in another industry as a Regional Manager, and simply could not compete with one or two of the giants in that particular industry. In order to get the business, I either had to provide some sort of price match, reducing my margin of profit, or create a level of service to my clients that they felt warranted the extra cost to them.

In both cases, profit margins are created based on volume. While I was able to move our buying levels up several levels with my former company, I was never able to reach the highest levels these giants reached based on the product I and my sales team were able to move. With YTB, I’ve noticed that most all of the supplier commissions have actually increased over the years, based on quotas and the volume of product YTB has been able to achieve as our level of RTA’s increase.

Bottom line is this: YTB has EARNED those commissions. As a company, YTB books a ton of travel with these suppliers.

In addition, YTB does not receive any type of co-op dollars for advertising with any of the suppliers we work with. Many suppliers such as Sandals will help defer advertising costs to an Agency to help them promote their particular product. This type of investment works well with many Agencies and builds Agent loyalty to actually sell supplier product and services. If you were to ask what type of return on this investment a supplier would expect, I wouldn’t have the first clue, honestly. Any risk of loosing money on such an investment with YTB is none existent with our model however.

We’re all familiar with the Roaming Gnome right? How do you think everyone knows about this goofy munchkin? Because Travelocity pays millions in print, TV, and radio advertising each year to put that character in front of you. I’ve heard all kinds of numbers as to just how much Travelocity spends per day or per year, and while it’s in the multiple millions, it’s unimportant exactly how much. It has been stated that companies like Travelocity, (Orbitz, Expedia, Priceline.com) spend at least 60% of the revenue they generate in commissions, back into advertising to acquire more travel customers.

Back in 2005, Priceline.com came to YTB and offered to pay us a commission on everything we booked with them. Now why would they offer to pay a bunch of untrained, unqualified, unregulated bunch of Yahoo’s in YTB commission instead of relying on someone like William Shatner?

The answer is simple, they don’t pay YTB until after the travel has been sold and therefore control their cost. Priceline pays nothing for our “word of mouth” advertising, and 100% of the money paid to YTB is for actual product sold. You can’t guarantee that type of return with any other form of advertising. Not even to Captain Kirk.

In the background during this time, WorldChoice also partnered with YTB for Hotels. (A division of Travelocity) When the contract was up with Priceline.com a year later and it was time to renew, a bidding war irrupted between the two company’s as to who would be the “default vendor” of choice. Worldchoice ultimately won out the bid and YTB’s relationship with them has been stronger than ever since winning the bid.

Suppliers and vendors pay no advertising, co-op dollars or marketing for YTB to sell their product, paying only for what is actually booked and consumed. But they’re being told they aren’t getting their money’s worth?

I’ve been given examples from the other side, either through comments or personal e-mails why YTB paying these top commissions to us doesn’t work. John gave an example of the nonexistent gas jockeys who use to pump gas. The majority of the lions share was paid from actual gas they use to pump. Or Geico paying local agents a small percentage of the commission for insurance for policies made on line.

John also gave a very good example about Sandals who offers an affiliate program. The local Bait N Tackle shop can put a Sandals Banner on their site. If a Bait N Tackle client clicks on the banner, it tags the source and the booking is handled by Unique. Just like YTB. The difference is that the Bait N Tackle Shop gets (and he’s going on memory here so it may not be exact) 1% of the commissionable rate. THAT is the difference.

Now to be fair, I think I first stated that this next quote came from John when we first met here on my Blog. He has since told me that this was not his comment. This statement does however happen to be thrown up in our face by many a “Travel Agent”.<
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“Why would I want to be YTB to earn 60% commission of 13%, when I now earn 80% of 16% and higher? Stupid. Ya’ll keep drinking your Kool-Aid.”

See how that works? They tease that we only make 60% of the commission, while they make 80% when it services them. But complain that it’s not fair we make that commission and we don’t deserve it because we don’t service our customers the way they do. It’s one of those “Catch 22″ comments I find all too often from those that oppose YTB or MLM in general.

Maybe the Bait N Tackle shop should leverage itself and become an RTA with YTB? It’s not the 80% these Professional get, but it’s a far cry better than 1%.

Just part of the things that make you go “Hmmmmm”.

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RTA #24635

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.

From day one, YTB’s goal was to become the number one Travel Agency in the industry. That goal was created by three men, J. Lloyd Tomer, AKA: Coach, his son Scott Tomer, and J. Kim Sorensen back in 2001.

Fast forward a few years to the summer of 2007 and we see that YTB starts popping up on the radar in a publication called Travel Weekly in what’s known as a Power List, and the industry was given a glimpse of what a Travel MLM can not only accomplish, but how quickly it is rising. What was written off as a joke by many of the traditional travel professionals in the industry suddenly becomes a major threat.

Thursday (below) I posted on the news the Royal Caribbean has terminated it’s relationships with Travel MLM’s which by our “professionals” are deemed nothing more than “Card Mills”. Knowing what kind of numbers YTB is producing, and being able to verify more than $13 Million in sales with Royal Caribbean by YTB in the first 9 months of 2007, I boldly stated that there was no way Royal Caribbean would terminate the YTB relationship. They simply wouldn’t throw that kind of money out the window.

While it certainly looks like I have egg on my face due to news and events of the past 24-48 hours, and I certainly missed the mark on my theory that Royal Caribbean didn’t want to alienate over 100,000 RTA’s who were pointing people to their ships, I’m gathering information currently that certainly supports that our “Travel Professionals” not only know what YTB is doing, but these same professionals are taking dead aim at yet another major threat to their livelihood. Make no mistake, YTB has their attention and history has taught them from lesson’s they have learned from the Airline industry in the late 1990′s, and the growth of on-line travel agencies during the turn of this current century, that another major threat is on the rise.

And Royal Caribbean is caught in the middle of the cross fire.

As much as I am dieing to spend the day collecting information and linking to facts to support these statements today, oddly enough, I need to head to a YTB Certification Class to help train hundreds of new YTB RTA’s here in Atlanta on how YTB sold $226 Million in Travel in 2006, and more specifically $13 Million in Cruise sales with Royal Caribbean our first 9 months of 2007.

In the meantime, one word comes to my mind…”Irony”.

While our “professionals” over at the ARTA are giddy over the news that their collective efforts have scored what appears to be a major victory, this story is far from over. And because this story has peaked the interest of so many in the industry between the “Brick and Mortar” vs. “Click and Order” I have some really juicy content for the next few posts.

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