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?

John 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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After looking around the internet the last few days, I’ve come to the conclusion that not much has changed since I went off on my Super Bowl run. While it was nice to get away, move off in another direction, take a break and actually enjoy myself, I see that some are still stuck in a rut. While there is always something going on in this industry, there are certain people you can count on for dragging their feet, kicking and screaming bantering about the same ol’ same old.

If you’ve been following the industry with me, we know how much turmoil is going on in the industry right now. Sure the economy has a lot to do with some of the issues going on and only the strong will survive. (Some might even thrive in this environment.) Back in November Liberty Travel decided to close a number of it’s poor producing Agencies, and while it’s CEO is adamant about leaving on her own terms, Cathy Pelaez will resign at the end of the week. Mid November Cruise Value Center closed it’s doors overnight, leaving cruise customers without a lifeboat to rescue them. And Friday will also be the last day of full operation for TripTailor and Vacation 59, as Sabre closes it’s wholesaling business.

US Airways posts a $220 million loss, Continental reported a loss of $96 Million, and JetBlue lost $49 million. Car Rental companies are being sued after filing bankruptcy and with the credit crunch slashing new car orders. Royal Caribbeans profits fall 98%, and Starwood drops by 46%.

Joystar is yet another black eye in the industry these days after it’s Agents file a petition for “involuntary bankruptcy”, and cruise lines have to fight courts in order to switch bookings to other Agencies so the agents can actually get paid. And while both myself and Travel Weekly wrote about an agent who broke into IHG system, stealing more than $163K in hotel bookings, we find yet another North Carolina Agent who stole some $512k from NCL, and $70k in chargebacks from Blue Sky Tours.

So what’s the problem you might ask?

Isn’t it obvious, it’s MLM.

It never ceases to amaze me how some people can be so obsessed about an issue that they can’t gain a proper perspective of the entire industry. MLM is the only model that has any type of issues like we have referenced above and if they rid the industry of this pariah, everything will be hunky dory once again. Depending on their mood, or possibly what position suits them at the time, they will either proudly accept or deny the role of “MLM Expert”. If challenged or called out by someone such as myself about how little they know, they deny it, as referenced in the comment section of my ariticle concerning IHG last week.

“I never professed to be an expert except in my own travel business.”

I have no idea who John is trying to kid here. He’s been attempting to tell me how things are since October 2007 here on this blog, while both myself and time has now shown that his comments some 16 months ago were certainly proven wrong. Along the way, we’ve seen posts like “Black Gold”, and one of my favorites from the industry itself, “The Cookie Jar”. And through it all, he just keeps coming back for more embarrassing moments while his followers hold him up in honor and appear to be proud of his antics of flipping the bird to Christians, and having links to other blogs with explicit titles and a niche subject matter concerning animal intercourse.

Pure class if you ask me.

What’s even more astounding is how blind the industry is concerning how clueless, foul and dirty this man is. As sad as it is, the industry does consider him an expert. I have not yet decided or figured out if the industry is either proud of his antics, or just so desperate about their own situation, that they simply look the other way whey he strays out of bounds like he does. (Based on what I’ve come to know about cynics and zealots, I tend to favor the latter.)

I’m only aware of one blog, board, or forum that John doesn’t have something to say about either YTB or MLM. That one forum would be WAHM and based on the subject of Work at Home Mom’s, I’m thankful that he at least knows his sexual orientation. However, the rest of the internet is fair game for this snake as he slithers all day long from site to site, and posting and promoting his hideous blog. This promotional tactic of linking back to his blog he uses, is ridiculed as sleazy when someone like myself would do the same, but for him, he’s obviously above reproach since his cause if more important than mine or YTB’s.

And now, oddly enough, just after denying his self proclaimed expertise, he’s elevated his own mind to writing about the MLM model in both TRO and getting his buddy George Dooley to post an article in Travel Agent Central. The basis of the article is not an actual warning about supporting MLM’s but the “hidden costs” of dealing with MLM’s.

It’s a been a topic of conversation for some time and try as they may they keep on promoting this bogus notion that YTB costs them money. The problem with this idea is that one of the sheep that follow John actually works with a supplier that’s offered on YTB’s booking engine. What’s comical about this relationship is that the employee that works for Pleasant Holidays calls himself “No Moron Here” but he keeps on contradicting what John is attempting to promote. It’s fun to read and I wrote about what his employer has told him in the past about his own misconceptions and fears about our company. We got a glimpse of what suppliers are actually saying behind closed doors some time ago. For as much whining this guy does about MLM’s he was told point blank that he didn’t have a say in who his employer does business with.

“The MLMs don’t bring in enough business to worry about them.”
“We don’t treat them the same way as our traditional agencies.”
“We will take their bookings (money) and supply them our product.”
“Stop worrying about them.”
“You are not to discuss the MLMs with the agents or agencies.”

Since his misconceptions have been cast aside, he lowered himself to forming relationships with other zealots who are just as clueless, angry and bitter as he is. The problem however, is that once again, he’s given incredible insight concerning the truth about supplier and MLM relationships. Take a look down towards the bottom of the comments section and what this employee from Pleasant Holidays wrote.

I guess a buck is buck and when they don’t have to put any money into YTB, they can still scrounge a few bucks off the so few bookings you morons place.

So while John attempts to convince everyone that YTB costs suppliers money, a supplier himself provides a rather unique Freudian slip and let’s the cat out of the bag that suppliers don’t hire YTB, suppliers don’t provide Co-op advertising to YTB, and suppliers only pay YTB for what YTB produces. That’s my friends is a model that suppliers NEED in an economy such as this, and the smart suppliers that actually get that concept such as Carnival Corporation, Globus, Trafalgar, MSC Cruises, Apple Vacations, Disney, and many other preferred suppliers reap the rewards of our business model. I can’t remember the last time Pleasant Holidays was even mentioned in a Travel Compass, a training call, or at Funshine. They do sit on our site, but nobody pays any attention to them because nobody from the company is promoting their features, advantages, and benefits. In all honesty, how much would it cost the company to get on a conference call the we provide, or hop in front of a camera for a video that we produce?

But no…they would rather spend thousands with a bunch of struggling Agents who demand co-op dollars in order to promote them with no guarantees of any return of their investment, when one call, or webinar would drive traffic and sales to help thier bottom line costing them virtually nothing.

I know this type of promotion from John frustrates many of you in YTB with the false claims and misrepresentation of our company and our model. I don’t know why he does it either, but you have to take it with a grain of salt, and be thankful that the truth about our model is known by the suppliers that not only understand our model, but support us. For those who don’t, they end up on the sidelines like NCL and eventually end up looking for answers somewhere else, when the diamonds in the rough are right under their noses.

Some may never get it, but with the Convergentware upgrade released late last year, some already have and many more will realize very soon just how powerful our model really is. As YTB continues to expand this solution to cruises, tour opperators, and other offerings with direct connections, trust me, thier eyes will be wide open and there will be very little anyone can do to promote otherwise.

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