Archive for the ‘Travel Agent Issues’ Category

Could Carnival’s Price Increase Be Good News?

Monday, March 1st, 2010
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I had this scheduled for Friday, but with so much attention on our good friend Andy Cauthen, I decided to bump this back until today.

That being said, this may not be “news” for many who follow the industry closely, but I still wanted to offer up how I perceive this news. For those of you who know poeple who always look at things in a negative light, you might consider making a push to contact these people now, before Carnival’s 5% price increase goes into effect on March 22nd.

According to Carnival’s Press Release:

Carnival Cruise Lines is reporting record wave season bookings, with strong reservations activity for 2010 departures.  As a result of the strong booking volumes, a general price increase will be implemented effective March 22 for all summer sailings in June, July and August.

For the period of Jan. 1 through Feb. 21, 2010, bookings were at unprecedented levels for the line’s 22 ships which operate three- to 15-day voyages from a variety of convenient North American home ports.

Carnival President and CEO Gerry Cahill said, “We’re seeing significantly increased volume as consumers are taking advantage of the incredible value that a Carnival cruise provides. And while pricing hasn’t fully recovered to 2008 levels, we are increasing prices and will implement an across-the-board increase effective March 22.”

He said that the price increases will vary by departure date but will be up to 5 percent.

Cahill attributed the record booking activity to a wide range of factors, including strong travel agent partner support, targeted marketing initiatives, itinerary enhancements and the wide variety of close-to-home departure points.

Wave season typically runs from about mid-January through early spring and is traditionally the busiest, most important booking period in the cruise industry.

Carnival Cruise Lines is the largest and most popular cruise line in the world, with 22 “Fun Ships” operating voyages ranging from three to 15 days in length to The Bahamas, Caribbean, Mexican Riviera, Alaska, Hawaii, Panama Canal, Canada, New England and Europe.

Carnival also has two new ships on order — the 130,000-ton Carnival Magic, which is scheduled for delivery in 2011, and a sister ship set to debut in 2012.

For additional information on the Carnival vacation experience, contact any travel agent, call 1-800-CARNIVAL or visit carnival.com.

###

If by chance you’re thinking to yourself that I’ve lost my marbles over a price increase being “good news” you’ve missed some very key components to Carnival’s message.

Bookings are not only up, but at unprecedented levels. Yes, Carnival made many moves over the last year that helped attract customers, and I don’t want to discount how that played a major role. Cruise customers have seen some very attractive prices in the industry over the last year to 18 months, which some say they’ve not seen in over a decade. Now that the economy is turning around, travelers are once again booking vacations for the upcoming summer season. Because demand is high, the prices therefore go up.

To me, this is another sign that the travel industry is on the mend and it’s good for everyone who works in this industry.

I remember talking with George Dooley this summer before the Convention and the interview we had together. We were talking about how it took one and a half to two bookings to make the same amount of commission in years past because of the lower prices to attract customers. Our total number of booking was in fact up in 2009, but we didn’t reach the same level in commissions from years past due to the lower prices. We worked harder for less money.

It’s good to see prices on the rise again in that regard.

Could the price increase backfire on Carnival? Possibly – but even with a 5% increase, the lines pricing is still below other cruise lines who offer the same itineraries. What’s going to be interesting – or something to look for – is if other lines follow suit. I’m sure Cruise Industry is at least considering a similar move, and those that are showing the same unprecedented levels certainly will announce a price increase in the near future. Those that do, will be the ones to watch as the industry leaders showing the strongest bookings thus far in 2010.

For those that want the bargain basement prices, still have time over the next couple of weeks. If you have some loose ends and quotes out there now, as we do with Carnival, you’ll want to follow up with those people before March 22nd. That is, if you want to offer value to them as an Agent.

Take this as a sign that the industry is following right along with the economic recovery we’re seeing in other sectors – and recovery certainly is good news. Demand is up, and people are looking to take vacations this year.

It’s a much needed “wave” of revenue the industry needs right now.

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

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Doug & Ronda Bauknight
Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker
Phone: 678.458.5812
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No Place Like Home

Friday, October 2nd, 2009
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I read an interesting article this week that I wanted to share it with you. Before I reveal the source of the article, I’d like you to read it in it’s entirety. It highlights many of the benefits of owning a home based business including income opportunities, tax benefits, personal growth, and risks.

While you can take this “Top Ten” list and fit it into just about any home based business, it’s clear from the very beginning of the article that the author is speaking of a home based “travel business”.

Take some time to read this article and I’ll be back at the end, to enlighten you just who this intelligent, articulate and successful author is.

Enjoy!

ruby_slippersAs the economy continues to top the news, along with the constant doom and gloom that the media projects for the travel industry, some home-based agents may wonder what the future holds for them. However, judging by the number of calls that I get each week from people who are excited at the prospect of getting into the travel business, I would have to say that our future is bright.

It certainly is refreshing to see new agents discovering the benefits of running businesses out of their homes. If you’re looking to get out of the rat race, to spend more time with family and friends, and to live a more balanced life, a home-based business may be the right decision for you. Here are 10 reasons why it pays to work from home.

Personal freedom. If you’re used to spending hours in traffic every day to and from work, some of the most exciting advantages to starting a home-based business are your newfound freedom and the retrieval of lost time. The average American spends 348 hours each year commuting, according to the U.S. Federal Highway Administration. With a home-based business, you have those extra hours to regain control of your personal life. Plus, there are no bosses, no dress code, no set work schedule and no office politics. All you will need is personal drive, discipline, marketing and time-management skills.

You get to keep the money you make. It’s a simple principle: The harder you work, the more money you can make. Your earnings potential is directly proportional to your performance, so you don’t have to wait for a raise or a promotion. You’ll also save money on gas and food. Preparing lunch at home is more cost efficient and offers a nice break in your work day.

Increased opportunity. With so many corporations and industries in slumps, starting your own home-based travel agency means you can create your own income-producing opportunities. Good job prospects can be scarce in some industries, and promotional opportunities within major companies are also shrinking. With many workers now opting to take early retirement packages, becoming a travel agent is an excellent chance to take a passion for travel and turn it into a second career.

Less risk. Running a travel business from home takes much less startup cash than starting a storefront business or even a franchise location. Since there are no inventory or products to purchase, and the business is located where you reside, you don’t have the additional monthly expenses of rent or utilities.

Tax advantages. There are a number of tax advantages to having your home and office under one roof. Check with your tax advisor to see if he or she recommends deducting operating and depreciation expenses on your home as business expenses. This can be a percentage of your mortgage, property taxes, insurance, utilities and/or the expenses of household maintenance.

More time for friends and family. This is especially important for parents of school-age children. You can see the kids off to school and on most days be home when they return. Also, if someone is sick, it’s easier to leave your desk at home than in an office.

Less stress. It’s a little less stressful to juggle the demands of work and family when you know you can stay home to care for a sick child and generally make appointments according to your own set schedule. Also, you can schedule new appointments on the same day as other events on your calendar. For example, if your weekly networking meeting is on Tuesday, set as many other appointments on that same day, even if it’s just a trip to the dry cleaner.

Opportunities for professional growth. Being your own boss gives you the chance to wear a lot of hats: sales director, marketing professional, strategist, business development manager and more. This gives you experience with all aspects of running a business.

Increased productivity. Now that you no longer have to budget time and energy for commuting or a succession of useless meetings, you should have a lot more time and energy to make your business a success.

A creative outlet. Your home-based agency can be an opportunity for you to give birth to your passion and create a money-generating opportunity. You can try out new ideas, take risks and run the business in exactly the way you want.

Now if this sound like a big MLM pitch, you could be right. Not only have I written about many of these subjects here over the years, I’ve seen several ads and articles that relate directly to MLM promoting the same features, advantages, and benefits of running your own home based business with YTB. (Or other MLM Business)

But before you go writing this entire article off as some lame MLM pitch to get you to fork over a bunch of money to an MLM opportunity, or think the tax benefits and income opportunities are somehow misleading or deceptive, I’d like to introduce you to the source and the author of this wonderful piece.

Anita Pagliasso is not only the author of “No Place Like Home” found in the September issue of Agent @ Home, but is also the author of a book called, “How I Made a Small Fortune as a Home Based Travel Agent“, which includes a CD that contains Anita’s tool box for Home Based Agents loaded with forms, letters, disclosures, disclaimers, and templates for the Home Based Agent. In addition to her articles and book, Anita is an Executive Board Member of PATH (Professional Association of Travel Hosts) and also hosts a very informative web site surrounding the Home Based Travel Business called Ticket 2 Travel.

I got to ask…do you see any real difference between what you’ve seen on this blog or in my Newsletter and what’s in this particular article? Can you find anything in this article that you can’t find in YTB or another general MLM? (Taking the “travel aspect” out of the equation of course)

Makes you wonder why Anita gets a pass and MLM’ers get all this flack about being misleading and deceptive doesn’t it?

Keep this article handy next time you see another emotional outburst about the benefits of owning your own Home Based Travel Business.

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

PPS - Subscribe to the Just Picture It Now RSS feed, (including e-mail) for all the latest posts and updates found right here!

Doug & Ronda Bauknight
Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker
Phone: 678.458.5812
Learn How To Become A Travel Agent

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PhoCusWright says “Online Traffic and Conversion Doing Well”

Wednesday, September 23rd, 2009
12
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Our friends at PhoCusWright have come out with another report revealing that monthly traffic and conversion for travel websites is up in almost all travel categories in the second quarter of 2009, compared to the same quarter of previous years. (Air being the only category that’s down – no surprise there.) Each area showed increases in traffic during the first half of 2009 compared to 2008 and 2007 when the company researched Online Travel Agencies and Travel Suppliers.

pwlogoAccording to a PhoCusWright Press Release, the month of June revealed that visitors were strong with year-over-year growth. Almost all categories were up such as cruise lines – up 19 percent and hotel chains were up 13 percent.

“The reliance that consumers have on travel Web sites has not weakened one bit,” says Carroll Rheem, director, research at PhoCusWright in a press release. “Online channels are attracting, engaging and inspiring travelers who recognize that this year is actually a fantastic time to take a trip. Consumers are certainly spending less, but they are not giving up travel, nor are they turning away from the Web sites that offer them the selection and convenience they value.”

There are also signs that Online Travel Agencies and Supplier Web Sites are enhancing their ability to convert online shoppers to actual purchasers.

Don’t get too excited however, there are still a considerable amount of people who visit but don’t purchase according the report. (It’s what PhoCusWright calls “leakage”.) Online Travel Agencies are lagging behind suppliers, who are doing a better job of converting visitors into purchasers over their Online Travel Agencies counterpart. However, the average of actual purchasers is growing in both segments as consumers get more comfortable with the ease and convenience of shopping online. Monthly online conversion rates ranged from 20% for a car rental supplier to 0.2% for cruises booked via an Online Travel Agency.

Online travel agencies have shown a slight increases in hotel and car rental visitor volume in the first half of 2009 compared to 2008 and 2007. The only category to show a decline in traffic from 2008 through 2009 for Online Travel Agencies was air – which is down 15 percent. Still, air conversion has increased significantly over the same time period, according to the PhoCusWright report.

“The online travel ecosystem now supports a diverse variety of transactional and informational sites—each playing a role in how consumers research, shop for and purchase travel,” adds Rheem. “For example, we found that visitation to planning and review sites drives dramatic differences in hotel conversion rates. Understanding the intricate relationships that connect all travel sites is essential to setting the right strategic path.”

Don’t know if you noticed or not, but our September Trip of a Lifetime Sweepstakes has a survey attached to it to find out more about our customers. This ability to collect data gives YTB an edge in finding product and destinations our customers care about, which in turn can convert online shoppers to actual purchasers based on providing products they’re actually looking for.

Technology – Ain’t it grand?!

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

PPS - Subscribe to the Just Picture It Now RSS feed, (including e-mail) for all the latest posts and updates found right here!

Doug & Ronda Bauknight
Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker
Phone: 678.458.5812
Learn How To Become A Travel Agent

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Down To Earth…

Friday, September 4th, 2009
11
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I like people I can relate to. Heck, who doesn’t? It’s hard even listen to someone who constantly talks down to you like they’re somehow better than you are. It’s my belief that people read this blog and subscribe to my newsletter because I’m an average guy. I can be very serious, but I also like to have fun. I’m also very thorough in documenting what’s written with third party sources to reference. 

I’m also human. I’ve made my share of mistakes. When I fall short, I admit it, fix it, and move on.

I’ve written about my good friend Candi May several times here and over the last few years we’ve become great friends. When you have your own ringtone on my iPhone, you know we talk quite a bit. (Actually, I wish she’d call me more, case I love that ringtone!)

Candi is also one of those down to earth individuals you can relate to. There’s no arrogance, false fronts, or an ounce of bitterness in this person to make you think that she’s somehow attempting to con anyone. Yet, she, like me, Coach, Scott, Kim, and some of the other better known names who have the guts to show up on the internet as real people are scorned and ridiculed on a daily basis by a very small group, with this illusion that we’re out to deceive and mislead the general public.

After this years Convention, there was a bizarre twist from a “professional travel agent” with this this idea that Candi stood in front of the Convention crowd and deceived everyone that she learned how to “travel like a pro” while in YTB. The anger and scorn it generated was incredible, especially when you see the the actual video and what was really said at this years Convention.

Which ironically, we now have.

Now, if you can stomach it, go read the emotional outbursts from the “traditional side” of the fence, and then watch the demeanor of one of our own. Compare her speech with the tangled mess that was trumped up from the other side and then ask yourself…”who would I rather work with?”

There’s really no question in my mind who I’d enjoy working with more. (And also learn more from.) There’s also no question who’s desperate and who’s secure in who they are and what they do. Mind you, Candi has never had any desire to lash out in an attempt to defend who she is and what she’s accomplished. No need when you compare the two sides.

However, I’m going to step to the side here, and let you be the judge. Make your own choice on your own who you’d pick to be mentored by in this industry. Afterward, if you’d like to find out more about this incredible lady, you can read more about her on her new blog.

Makes no difference to me, cause I’ve already made mine.

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

PPS - Subscribe to the Just Picture It Now RSS feed, (including e-mail) for all the latest posts and updates found right here!

Doug & Ronda Bauknight
Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker
Phone: 678.458.5812
Learn How To Become A Travel Agent

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Jumpin’ G Hosephat!

Tuesday, September 1st, 2009
12
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If finally happened. I woke up this morning and checked my blog stats only to see “Steve Mencik linked here saying, “Provide me documentation of just one Host, one Age …”

duelIt appears that someone finally had the guts to stand up and discuss an issue that I’ve been asking the industry to respond to for a month now. Congratulations. However, since Steve (the author of the post) doesn’t know how to link properly, we’re bringing the challenge I offered up to the industry, called “Open Mic” night” back up. If you came here from No Travel MLM’s, you would have found an article on Brian Tracy, not the challenge. I know how easy it is for our critics to get sidetracked with irrelevant and scandalous matters.

In addition, I find it interesting that we already have one of the infamous excuses from the other side and change to my challenge. Personally, I take issue with that because I didn’t ask, nor am I looking for excuses. I asked about solutions from other Hosts.

Steve has thrown one of the major benefits for him and other Travel Agents out the window for one of two reasons. One, because he, like everyone else can’t grasp YTB’s two distinct business models. Or two, because he knows that the insurance offered to TSO’s is an offer no other Host has. Therefore, the insurance issue is thrown out the window because he wants to mix the two opportunities.

Tisk – tisk – tisk.

Rules are rules guys, and YTB’s Medical and Life Insurance is a very distinct advantage of the TSO (YTB Travel Network) compensation program that I can promise no one else is able to offer. YTB has offered this benefit for two solid years now, exclusive of the Director program from YTB Marketing. Because no other Host has been able to figure out just how to do this with independent contractors we’re told it can’t be done?

Don’t think so.

The Medical and Life Insurance offered by YTB Travel Network does not require the recruitment a single solitary soul in order to obtain the Insurance. Period. The process of mixing both our Director Program and our Travel Agent Program not only a lame excuse but a cop-out so they can appear to have somewhat of a level playing field.

Sorry gang, but no can do on throwing it out the window. Since a “Travel Agent” would not be required to become a Director, (i.e. recruit a single person) and the insurance benefits are granted strictly via annual travel commissions of $25,000 or more, and not recruiting, the insurance stays right were it is.

To clarify further for everyone here are the commission contracts and the levels that anyone, including Steve, can achieve as a TSO with YTB Travel Network.

Travel Commission Structure
60% Complete First Class Training
70% Complete all E-Campus Modules
80% $25k in earnings* in one 12-month period
90% $50k in earnings* in one 12-month period
100% $100k in earnings* in one 12-month period


*Excludes shopYTB commissions. (Remember we only need “Travel Agents” here.)

*Upon reaching the 80, 90 or 100% commission level, Site Owners will receive company paid group health insurance as well as one-time bonuses of $2,500, $5,000 and $10,000 respectively.

*These one-time bonuses are only paid when a Site Owner reaches the 80, 90 or 100% commission level for the first time.

So bring it on kids. Provide me documentation of just one Host, one Agency, one single Brick and Mortar that:

  • Offers 80%-100% commission contracts.
  • Pays cash bonuses of up to $10K when you hit performance levels for travel commissions earned.
  • AND completely covers the cost of your Medical Insurance and provides a $150,000 Life Insurance policy.
  • AND do it for less than $500 start up and $49.95 per monthly overhead.

And I’m not looking for excuses why it can’t be done. Fact is, it HAS been done and it’s not my problem or issue that YTB came up with it first leaving the rest of the Hosts in the dust.

Gang, if you were smart, and I know you are, instead of fighting this, you’d join. $25K a year for a traditional travel agent or anyone else with the experience and knowledge that Steve has would be a walk in the park. I would imagine $100K would also be attainable for Steve and his colleagues.

Unless you can come up with another host who can do all this…you’re leaving all kinds of money and opportunities on the table.

So stop beating around the bush, stop coming up with excuses and provide the documentation I asked for.

Otherwise you’ll get nothing more than – “Thanks for sharing”.

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

PPS - Subscribe to the Just Picture It Now RSS feed, (including e-mail) for all the latest posts and updates found right here!

Doug & Ronda Bauknight
Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker
Phone: 678.458.5812
Learn How To Become A Travel Agent

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Expedia and Hotwire to pay $129 million settlement

Wednesday, August 26th, 2009
17
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A four year old class action lawsuit looks as if it will finally close pending court approval in December to the tune of $123.4 million to be paid by Expedia, and another $5.5 million to be paid by Hotwire. The suit filed back in 2005 came to a head back in June when a Superior Court ruled that Expedia collected a total of $184.4 million in service fees which the company pocketed as “pure profit” from consumers who purchased hotel stays and other travel packages between 2003 and 2006. The judgment is currently the largest award in Washington state history for a consumer class action.

taxesWhen the ruling was handed down back in June, Expedia was quoted that it would “vigorously pursue our rights on appeal“, but changed it’s mind due to the high cost of the litigation and the additional time it would take to appeal. Instead, Expedia was able to deny any wrongdoing in the settlement, and has set aside $19 million for the class action settlement, a low end estimate of the cost associated with the settlement.

The class action case was based on unfair business practices and breach of contract in the way the online travel company paid taxes. Not only did Expedia bundled the service-fee charges with taxes into a single line item, but collected taxes based a higher retail price, when they paid wholesale, thus pocketing the difference.

Expedia’s second quarter profit fell to $41 million, down from $96 million a year ago – a 57% drop.

Although we don’t see much about the hotel tax issue at all on message boards and blogs due to over aggressive concerns concerning Travel MLM’s being “flawed”, the battle over traditional online travel companies has been a heated debate in courts all across the continent.

In June, a Los Angeles Superior Court ruled that Expedia and Hotwire had to pay $35.6 million to the city of San Francisco. A Georgia Supreme Court has also required Expedia to pay the city of Columbus, Ga. a 7% tax on the retail rate of hotel rooms, which forced Expedia and other online agencies to cease doing business completely in the city. New York adopted a new hotel-occupancy tax ordinance requiring that OTA’s remit taxes to hotels based on the net rate, then pay the city an additional taxes for service fees or margins. Also in Canada, an Ontario Superior Court is seeking $47.5 million in damages for violating Canada’s Competition Act and Consumer Protection Act for disguising taxes and service fees.

In all, some 46 city and county taxing districts have filed lawsuits due to this issue.

But what will critics in the travel industry be talking about today? An overly aggressive and unfounded theory about how YTB will run out of people to recruit in some “pay to play” pyramid scheme suit up in Illinois. (An issue that has already been thrown out in a District Court there for being redundant, immaterial, impertinent, and scandalous.)

For those that desire to reside in reality, or have been “taken” by the concealment of service fees by Expedia over the years now have several options according to the Expedia Litigation Settlement Website.

1. Tell them you want a cash settlement (Send me a check)
2. Tell them you would like a credit (To be used on a future Expedia purchase)
3. Object to the settlement (
It was all some big “misunderstanding” and it’s YTB’s fault.)
4. Opt out (You don’t care to receive cash or credit now due.)

Here’s what you need to be considered and qualify as part of the settlement:

You need to have “made a “standalone” hotel reservation through Expedia between January 10, 2001 and June 11, 2008 and paid a bundled “Tax Recovery Charge” and “Service Fee” in connection with that booking…

and/or

…you made any hotel reservation (either “standalone,” or as part of a “package” including airfare and/or car rental) through Expedia between February 18, 2003 and December 11, 2006 and paid a “Tax Recovery Charge” and “Service Fee” charge in connection with that booking”

A Final Approval hearing will be held on December 1, 2009, at 10:00 a.m. to determine if the proposed Settlement is fair, reasonable and adequate – whether the Named Plaintiffs will receive incentive awards in an amount not to exceed $7,500 each – decide if counsel should receive an award of attorneys’ fees and costs – or Order of Final Judgment and Dismissal should be entered.

While the final chapter certainly hasn’t closed on the subject of unfair and deceptive trade practices, it is however apparent at this point that many have taken issue and given notice over the Expedia issue. We’ll see what comes in the future for YTB concerning the claims surrounding YTB and this nonsense about misleading and deceiving people. While it has returned $125K to consumers in California, it’s a small pittance compared to the $129 MILLION settlement with Expedia.

But as we’ve seen for the past few years, YTB is apparently a bigger threat and far more dominant in the minds of a select few who want to wallow in thier own illusions that YTB is the real problem in the travel industry.

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

PPS - Subscribe to the Just Picture It Now RSS feed, (including e-mail) for all the latest posts and updates found right here!

Doug & Ronda Bauknight
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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Simple Minds…

Tuesday, August 4th, 2009
12
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Last week, I had the pleasure of being interview by George Dooley in Travel Agent Central. What made this even more of an honor was finding out that George is an admitted fan of my blog and my perspective of YTB. I found him honest, fair, and genuinely interested in my side of the story.

George is also a reporter.

Part of the job of any good reporter is to provide both sides of a story. Think Fox News here…”Fare and Balanced”, right? I can’t knock George for providing an alternative view about YTB, but I have to ask why in the world did he have to pick one of the most narrow minded, self absorbed, and damaged critics in the industry to speak for the other side?

cryingJohn Frenaye and I go back for almost two years now, and I can’t tell you how many times I’ve had to correct, clean up, or otherwise call John out for not getting things right. Like most self professed “experts” John continues to take a singular quote or comment and attempt to dazzle the reader with what he feels are important facts and figures in order to distract everyone from what is really going on.

His current response to my article is no different.

John, among other critics, took exception to the fact that YTB grew from $414 million in travel sales, to $425 million in this years Travel Weekly Power list despite all the criticism, mud slinging, and various other issues totally unrelated to the travel industry. (Mind you, both interviews can be found in a “travel publication”.) But as we’ve seen so many times before, we have “travel agents” who can don the cap of Legal Counsel, Financial Auditor, Stock Broker, Travel Supplier, Business Consultant, and Better Business Bureau at a moments notice; all in an attempt to make you look away from the real story and guide you in a direction more in line with their own limiting beliefs.

You need to remember that this is the same guy that said Coach and Scott would call it quits – one who speculated that California could achieve it’s goal of shutting YTB down – that called the amended class action “powerful” – and an individual who forgot to check with Peter Jensen if he was in fact leaving YTB!

If you have this much egg on your face in one month’s time, wouldn’t “tough minded” begin to look more like “simple minded”? I mean good grief, what is it going to take to finally wise up and start living in the real world instead this fantasy land? If it weren’t for the constant reactions to what YTB is doing, he’d be a just some average John Doe without much else to do.

But John has provided some good comic relief through the years and this article is no exception. I don’t know if he’s aware of this, but one of the first points John attempts to make in the article actually links to the “ungainly monster of 39 pages containing 133 paragraphs” that didn’t pass muster under federal standards. We all know by this time how the Honorable Judge Murphy reprimanded Counsel concerning this case for being nothing more than redundant, immaterial, impertinent, and scandalous. But John, the BBB, and various other critics have decided to ignore the reprimand, and still use this failed class action in an attempt to provide a “powerful” message?

If it works for you John, be my guest. But the rest of us will more likely side with the Judge who actually knows the letter of the law in this case and called a spade a spade here.

Furthermore, the other link reports that Jerry Brown brought an end to an “elaborate pyramid scheme”, yet YTB just finished up one of the most meaningful conventions I’ve ever been a part of. We now have valuable tools that in years past have proven substantial and something the entire field has been asking for. While John wrote yesterday on his bog that the $6000 guarantee didn’t work, YTB’s RTA numbers soared from 20K to 122K during that program release. If it were me, I’d be more concerned about YTB regaining it dominance, rather than focusing on thinking that it’s over for YTB.

As we’ve heard so many times before the real phobia surrounding YTB is the “Recruiting”. John and others continue to pound this dead horse mixing the recruiting revenue with travel revenue.

“It does not take a rocket scientist to figure it out,” Frenaye said. “Their entire income is based on the sign up fees and the continuing monthly access fees to the cloned privately labeled Travelocity booking engine. For a stark look at the numbers, the TSOs have paid (sign-ups and monthly fees) a total of $283,513,046, or over a quarter billion dollars since 2006 and during that time have earned a total in travel commissions of $39,999,552. Not the greatest return on investment if you ask me.”

Rocket science?

After all this study – all this time, energy and focus on YTB he still can’t grasp that Hotels.com, Trav-Tech, Apple, Pleasant, Travel Impressions, Collette, TicketsNow, and RCI among a host of other suppliers isn’t offered through Travelocity. But he wants you to think that what YTB offers is nothing more than Travelocity to make him and his pals feel better. In addition it’s not YTB’s responsibility for the pour commission percentages producing only $40 million ($55 million to YTB) from over $1 billion in gross travel sales in a three year period. (Based on verified gross sales found in Travel Weekly in 2006, 2007, and 2008) More to the point, John’s upset the he missed out on his free Rep position with YTB, and cashing in on selling “replicated Travelocity booking engines” for a piece of a $200 million pie paid to other Reps just like him.

If you’re going to look at numbers, it’s wise to look at ALL the numbers. By placing $1 billion in gross travel sales in the “travel category”, and $200 million paid in the “Rep Category” those that have figure this out know that evens things out a bit. Or at least know that John’s concerns certainly don’t mix when it comes to pitching the sad, sad story of MLM’s and Travel.

For folks like John, it’s all about the model being flawed. “Very few” as he states make it in this industry, simply because it’s MLM.

One of the fist articles I ever wrote was about Roger Bannister breaking the 4 minute mile. Like Roger’s story, John is telling you it can’t be done. I’m here to tell you that it can. Because people like me, Candi May, Von Nickleberry, Nick Pagano, Rick Ricketts, Jeanie Sharpless, Tim Dominey, and hundreds of others have done it, what gives anyone the right (or the gall) to tell you that YOU can’t? If they’ve proven to be successful, wouldn’t it be wise to followed the same path we have, in order to obtain some level of the same success in this industry?

If you want John to protect you…that’s your choice. But I have to warn you, from experience, he’ll turn on you at a moments notice to slap you upside the head for not doing it exactly the way he wants you to.

John doesn’t see YTB competing favorably as a franchise because Royal Caribbean, NCL, and Perilo have decided not to utilize YTB’s massive sales force. John ignores that YTB is already is competing as a lowly MLM with year over year growth from #35 to #25 in just three years. The question isn’t if YTB’s going to compete, it’s when Royal and NCL decide they need to compete.

But because John and the others have never been able to accept any amount of actual Travel Sales, it perpetuates the myth that YTB is inferior. In order to prove his point he takes the TSO income disclosure statement stored on his own server to lay claim that only one person can make $25k. Maybe he should take the time to pull the PDF again to see that both an Associate at the 60% contract level has earned in excess of $25k, and an RTA at the 70% contract level has earned closed to $27K. Only one has exceed the $25K mark? Fact is, he doesn’t know how many have actually earned over $25K, but it sure sounded good for the purpose of his story. My question is how TSO’s are now encouraged to push from say $20k to $25K to earn the additional 10% contract, bonuses, and fully paid medical and life insurance that I can promise you the “other” hosts would not provide.

If you don’t think a travel professional might be swayed by fully paid medical and life insurance, for the same contract or better, with additional performance bonuses to boot…you’re dreamin.

But as we’ve seen John quoted so many times before “I just don’t get it”?

At least he got that right. But it again begs the question why George had to use this simple mind to react to a the articulate message brought forward during last weeks convention in St. Louis.

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