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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Do You ZamZuu?

A couple weeks ago, I warned about how bad Royal Caribbeans 4th quarter numbers would be. The morning I wrote it, the financials had not been out yet, but later that day we came to find out fourth-quarter earnings tumbled 98 percent. No big surprise as the entire industry is struggling in this economy, but when you combine it with poor business decisions it’s clear that those decisions are starting to catch up with them. Terminating entire agencies, upping commission thresholds for others who they’re suppose to be supporting, combined with the mega ships they’re building and can’t afford has the company cutting back in other areas that has many either concerned or just downright upset.

Having someone like me miffed is one thing, but when you get an entire state upset over how you conduct your business is another. The 49th state in the Union, who happens to be celebrating it’s 50th Anniversary of Statehood this year is now “worried” over Royal Caribbeans decission to take an entire ship out of circulation starting 2010. Serenade’s removal next year will decrease tourists by 42,000 passengers, and is estimated to drop revenue by some $55 million.

I can’t think of another destination that is more pristine than Alaska. Every client I have ever booked for Alaska has come back with comments of breathtaking views and once in a lifetime experiences. Other than the Caribbean it’s the most popular destination we sell at BandBVacations.com. With Alaska’s 50th anniversary this year there are more folks than ever looking at this destination for their family, even with the drastic time change (here on the east coast) and the higher cost of this cruise experience.

So why would Royal Caribbean drop Alaska?

Taxes. (A $50 per passenger tax that was put into effect back in 2006.)

One company’s loss is another company’s gain. Princess is the cruise line of choice not only passengers, but it’s been voted Best Cruise Line in Alaska by the readers of Travel Weekly magazine. (The last 5 years no less.) Princess has introduced a special new lineup of cruisetours that offer passengers the extra convenience of roundtrip travel from Seattle and due to the economy, unprecedented low fares. These new options make planning an Alaska land/sea vacation easier than ever by including all travel once the passenger gets to Seattle, including airfare between Seattle and Anchorage, as well as a free stateroom upgrade.

“Since 2009 is the 50th anniversary of Alaska’s statehood, this is the perfect year to visit the 49th state,” said Charlie Ball, president of Princess Tours. “And with these special cruisetour packages, we’re making a visit to the heart of Alaska more convenient than ever. All our passengers need to do is plan their travel to and from Seattle. We take it from there, so visitors can simply enjoy this incredible opportunity to visit Alaska’s top attractions, including Glacier Bay and Denali National Park.”

The new Alaska Wilderness Sale cruisetours include the line’s famed Voyage of the Glaciers sailings between Vancouver and Whittier — featuring calls at Ketchikan, Juneau and Skagway with daylight cruising of Glacier Bay National Park and the 16 glaciers of College Fjord. Passengers can choose departures on either the 2,670-passenger Diamond Princess and Sapphire Princess or the 1,970-passenger Coral Princess and Island Princess.

In addition, passengers will enjoy Direct to the Wilderness rail transportation right from their ship to the Denali area, giving them extra time in the heart of Alaska’s wilderness. Cruisetour options include two nights at Mt. McKinley Princess Wilderness Lodge and one or two nights at Denali Princess Wilderness Lodge. The packages also include an overnight stay in Seattle.

Princess’ 2009 Alaska season runs from May 9 to September 14, and features a total of 130 Alaska sailings — including the signature Voyage of the Glaciers sailings, Inside Passage routes from Seattle and San Francisco, and a small ship experience on 14-day Connoisseur voyages to some of the state’s less-visited ports. In addition, Princess will again take more passengers to the ice-filled wonder of Glacier Bay National Park than any other line, with 81 cruises scheduled for this season.

I can’t think of a better time or way to visit Alaska. The low fairs, combined with the states 50th anniversary makes it a win win for anyone looking for a trip of lifetime.

As a side note, I’ll be somewhat out of touch with this blog the next two days. I’ve been invited up to the YTB Home Office for a Directors Meeting Tuesday and Wednesday and from the looks of the schedule, along with flying up and back, I don’t know how much time I’ll have to dedicate here. (In other words, don’t look for comments to be posted until late in the evening.)

You can be assured that most of what will be discussed will be found in this weekends Newsletter. Of course, I’ll update what I can here for everyone, but as you know, most of what myself or YTB puts out is taken out of context and twisted into something it’s not, so be sure to check here or via our newsletter to get the facts from someone who was actually there. (Remember one of my favorite quotes: “Don’t believe a word you hear unless you can verify it on your own to be true”.)

It will be good to see and be around so many friends again, some whom I’ve not seen since the National Convention this past summer.

Hope to see you Thursday!

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Do You ZamZuu?

You know…it’s Super Bowl Week. I had every intention of posting Super Bowl stuff all week because the industry has been very quiet as late. Does the industry not realize my intention for the week?

Sigh…I guess not. ;-P

So, you’ve probably heard by now, and may be a little puzzled over Norwegian Cruise Lines (NCL) and YTB Travel Network (YTB) who have ended their relationship. I actually knew this was coming, and may be able to shed some light on not only why this happened, but fill in how this industry works. I found out last week the day it happened and have already done some research concerning this crazy industry. I only remained silent to see if there would be any type of “news” on this subject. While I knew it would eventually come out into the open, there are others who claim to be well connected in the industry and I set a timer to see how soon any of them would catch on.

As it turns out, it took an actual trade publication to announce more than a week later what happened. There really isn’t much fanfare about it, with the exception of a couple of critics who can now pound their chest after a 15 month long battle producing a measly 4 suppliers who have decided that they no longer book with the industries #26th Largest Seller of Travel, which will evaporate all travel suppliers in the year 3025.

You may be asking yourself just why NCL would discontinue it’s relationship? And my response would be, good question!

If you look at some of the news that has come out of NCL lately, they are definitely shifting their focus. The same day I found out about YTB’s relationship, NCL announced an on-line checkin system for passengers, and the next day they announced they would double winter capacity out of New York City. Even yesterday, we found that NCL felt pretty proud of the new Mega Ship being built, but with all that pumping, they never released any news about it’s relationship with YTB, and as of this writing still have not commented on it. (Although I found comments in the trades interesting concerning these three links and announcements.)

There has been some shuffling of late at NCL at the top, with Kevin Sheehan being appointed CEO, and Andy Stuart appointed as executive vice president back in November. Elizabeth Finn also serves as the liaison between NCL and its online and Home Based travel partners as of December. Often, a new executive team likes to make changes, and this was more than likely one.

Another more important issue that I believe was the catalyst that set things in motion was the decrease in commission levels by 40% to YTB more than a year ago. While NCL elected not to renew it’s relationship, NCL’s 40% decrease could have been an attempt to attract attention and salvage something. Unfortunately, that’s not what YTB has come to expect from our preferred suppliers. Even with the reduced rate, either YTB or NCL could have come together to possibly salvage the relationship and promote their ships more aggressively like Carnival, MSC, and Disney has with YTB.

Instead, neither side did much of anything in an attempt to save the relationship, and it very quietly ended.

I can only speak of my personal preference as a business owner and Travel Agent when I tell you that if I had an opportunity to sell a cruise to a client, with the possibility of making 40% more in agent commission over another, who do you think I would promote?

If you’re thinking or being told that either dropping commission levels or upping commission thresholds are new or reserved for certain MLM’s, I can tell you for certain they are not. I reported here on this blog back in June how Royal Caribbean thanked their “dedicated agents” by upping their commission thresholds which caused a huge uproar in the industry.

As a matter of fact, (not the spin or fiction you read about elsewhere) Royal Caribbeans separation from YTB has not been all that beneficial for the cruise line. I don’t know if anyone else noticed, simply because so much attention is spent barking at YTB, but Royal Caribbean’s earnings call comes out today. Barkley released news yesterday and “estimates the company [RCL] would become precariously close to facing liquidity issues”. Hendrix, the financial analyst for Barkley’s also stated in another article that “Carnival must access the debt markets for $1.5 billion in 2009 and 2010, although she said the company is not likely to be constrained by its debt obligations. She said Royal Caribbean, on the other hand, must raise $4 billion in 2009 and 2010.”

That’s a hefty chuck of change, and may be part of the reason why Royal Caribbean continues to slash expenses, cutting their cruise capacity by 1/3 in Alaska.

And because of that news, Royal Caribbean stock fell some 13% yesterday in anticipation of the problems to come.

Suppliers terminate relationships from time to time for various reasons. I’ve written about Joystars issues in recent days and weeks. One of the big names we heard about was the Intercontinental Hotel Group (IHG) and the commissions that were stolen by a Joystar Agent. Just cause to terminate a relationship wouldn’t you agree?

But how many of you know that this same company (IHG) terminated it’s relationship with another company you may have heard of before? Back in 2004 IHG removed it’s inventory from the third largest seller of travel back in 2004. Why did IHG make a move like this? Because like YTB, the industry was crying and wanted to take back the industry. Expedia couldn’t provide the service, they wouldn’t last, and they’re not a “real travel agency”.

Where have you heard THAT before?

So what did Expedia do? They didn’t complain, they didn’t file any suits, they didn’t do anything but walk the walk and prove to IHG and the rest of the industry that they are the a real force in this changing industry. IHG did come to it’s senses and realized the huge market shift Expedia created in the industry. Just a couple years ago both kissed and made up and today IHG and Expedia have a multi year deal.

IHG and Expedia is just one example of how suppliers and agencies fall in and out of love. It happens to the best of them. What I suggest you do however, is model your response the same way Expedia did.

It’s really up to you how you want to respond to it. Me…I’ll just keep doing what I do, and that’s sell travel with literally hundreds of vendors and suppliers through YTB. If you need some help figuring out just who and how many, log into your Travel Portal and click the Agent Booking Resources to see for yourself.

I promise, it will put it all into perspective.

Now back to our regularly schedule Super Bowl XLIII programing. Go Steelers!

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Do You ZamZuu?

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

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

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

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

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

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

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

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

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

Dag gummit!

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

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

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

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

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

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

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Do You ZamZuu?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Do You ZamZuu?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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