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?

I’ve worked in several different industries throughout my adult life. I spent the vast majority of that time in the radio industry from the early 80′s to the mid 90′s. I also spent time in the Golf industry, and later in the Security and Home Automation industry before I found YTB. I quickly realized that each industry has it’s share of bickering and finger pointing. Every industry has it’s share of people who do nothing but start rumors either to discredit or get a leg up on the competition.

If you combine all the years I spent in the other industries, it doesn’t hold a candle to what I’ve seen in the Travel Industry in the 4 years I’ve been involved with YTB. The backstabbing, the ranting and raving, and the accusations that are thrown around in this industry is like nothing I’ve ever experienced.

I have to hand it to the Traditional Travel Agents, they are an extremely passionate group. Please don’t take that as any form of admiration however. Any type of admiration turns very sour when the passion is as misguided and so dysfunctional that you see grown adults belittle and scorn each other in public forums. Because all they do is bicker the industry is left fragmented and unorganized. Travel MLM’s have come and gone for over a decade now. The industry has been outraged over the MLM model and Card Mills, but because nobody can agree with one another, Travel MLM’s are not only still around, they’ve gained considerable traction in the industry.

I was looking over the data I have on how people find this blog earlier in the week. Several search terms popped out at me for consideration for an article. Before I had an opportunity to research the story, a “Google Alert” came last night that put all the pieces together in one very well written article in Travel Agent Central.

In the article Peter Stilphen, an industry advocate, seems to be convinced that OSSN (Outside Sales Support Network) now caters to the MLM industry and has said so publicly in an open letter. OSSN of course denies the allegation and is going to great lengths to shut Mr. Stilphen up. OSSN has even gotten legal counsel involved to contact Mr. Stilphen numerous times to confirm the allegations with documentation and facts. Typical of most critics however, Stilphen has ignored the request for verification. What this has boiled down to is nothing more than an “Am not” – “Are too” type of argument that once again is being played out in the open for everyone to see.

Why am I not appalled over this type of conduct? Because I’m sorry to say it’s more the norm than it is the exception. Once again, instead of promoting solutions, benefits, or guidelines that have been a real sore in this industry for well over a decade now, we have more bickering and finger pointing.

Once again…we have to ask…”How’s that working for you so far?”

I’ve read numerous times that Travel MLM’s give professionals a black eye. When you look at something like this, you have to wonder why some don’t look in the mirror and realize that professionals are doing a fine job of punching themselves and providing plenty of back eyes of thier own.

I’m not a member of OSSN, but I have gotten updates and e-mails from this organization for years. They’ve been beneficial to me in as much as to provide information about industry trade shows and supplier training that educate and enable me to be more productive in the travel industry. While there have been many offers to join the organization, thier policies prohibit anyone involved in MLM’s from joining. While they do offer a “TRUE” credential, I can’t justify switching to anther host simply to carry a “TRUE” card. For someone like myself, CLIA offers the best training and accreditation now that they’ve upgraded and enhanced thier program. As we’ve learned however, even an organization like CLIA isn’t immune to the fighting and bickering going on between “professionals”.

The last time I wrote about Peter Stilphen was well over a year and a half ago when Royal Caribbean decided to pull the plug on YTB. At the time Peter was on the Board of Directors of an association called PATH. With Peter’s urging, PATH convinced Royal Caribbean that they needed to terminate it’s relationships with Travel MLM’s and Card Mills. To this day, we’ve only been able to verify two agencies that have ever been terminated by RCL while over a dozen other Travel MLM’s are still in good standing and booking with the cruise line. One of the agencies terminated being Joystar and the other being YTB.

Worked out well, don’t you think?

Although Peter has been a very outspoken critic of both Joystar and YTB over the years, I really don’t pay much attention to him personally. He’s simply lumped into the mix of outspoken critics who buys into the social “meme” I wrote about on Wednesday. He is however, one of the longest tenured critics surrounding Travel MLM’s that I know of. He and Bill Alverson (CEO of the now bankrupt Joystar) started the rumblings over a decade ago when Bill started the first Travel MLM called TravelMax. (Also long gone.)

Back in March I picked up another open letter to the industry from Paul Henderson of ProTravel Network, who has also grown tired of finger pointing and the bickering in the industry which adds further proof that the industry has no clue how to resolve the issue of industry credentials. Because the industry hasn’t been able to come up with guidelines, anyone associated in the industry is fair game when it comes to pointing fingers. Peters most recent crusade to eliminate “cards” has him yelling at OSSN now, an association that’s promoted by PATH by the way.

I honestly can’t tell you if the industry is ever going to get along with each other. I find it a real shame that an industry which evokes so many good memories and emotions for it’s clients in the form of vacations and exotic locations, has such a difficult time finding it’s “happy place” when it comes to communicating and getting along with each other. I’ve never seen such enormous ego’s, and so many experts in all my life. For me, it’s another reason why I stick with YTB.

You would think that some of these old dogs would wake up and learn some new tricks after so much time spent doing what they do with no answers or resolutions in sight. Unfortunaly that’s not my call or within my control. Because of the suppliers and clients I spend most of my time with, the professionals end up being a nessasary evil in the industry that I simply endure while learning, growing, and making my own way in the travel industry.

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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?

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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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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I happen to be out of town, (without internet access!) but enjoying the Holiday with family none the less. I decided to schedule something for today before news became old news next week. First and foremost however, I hope everyone had a wonderful Christmas, and although at the time of this writing, presents are still wrapped under the tree, by the time this is posted and you are reading, I’ll be enjoying gifts my kids had made for me, and of course finding what Santa brought.

That being said, don’t think for a second that there isn’t something to talk about over this extended Holiday weekend.

Are you kidding me? This Industry?

While the jury may be out if some made Santa’s “Naughty” or “Nice” list, after what I’ve been reading the last several months, it’s time to bring this “Naughty” Agency to the forefront after a year long hiatus.

Back in October 2007 this blog gained considerable notoriety after tackling the issue head on concerning Royal Caribbean who terminated its relationship with no more than four Agencies. Two of those agencies came to light very quickly and the industry outrage on the internet concerning “Card Mills” came to a head.

Although it’s been documented that Royal Caribbean did in fact terminate four Agencies, Lisa Bauer, VP of Sales with Royal Caribbean at the time, skirted the direct questions asked by Travel Weekly concerning just who these Agencies were. To this day, there has been nothing to verify, although there has been plenty of speculation, any more than two Agencies. That being of course YTB and the other being Joystar.

Other than YTB, I can’t think of another Agency that has been the target of more controversy than Joystar. If you look at the founders history, you’ll get a better understanding to just why, and I did document his exploits with the first Travel MLM (TravelMax) back in the mid 1990’s. It looks as if both Bill Alverson’s and Joystar’s issues have not subsided, but in fact increased a year later.

While you found nothing concerning any new issues on this blog, there has been plenty to write about concerning Joystar a year after being terminated by Royal Caribbean. In addition, no less than three headline news stories broke back in October of 2008 concerning the Host Agency. One, October 9^th, reported that Joystar failed to pay commissions owed to its independent contractors along with laying off 14% of its staff. Later in the month, on October 23^rd, it was reported the CLIA revoked Joystar’s Membership for not renewing its Seller Of Travel License with California. (Although it appears that SOT’s have been made current as well as its association with CLIA.) The very next day, October 24^th, it was reported that InterContinental Hotels Group filed a federal lawsuit against Joystar for claiming more than $163,000 in improper commissions.

And some think YTB has problems?

Actually, that’s what a small group would like you to believe as they obsess over anything they can drum up to cast fear and doubt because they’re convinced the YTB “model” is flawed…doomed to collapse. (Yet the “model” started to take shape over a century ago, and still standing tall.) Part of drumming up anything these poor folks can think of is this notion that after more than a year of inactivity, suppliers will again take up the cause of these Agents and Associations and start terminating relationships with Agencies critics simply don’t agree with moving into 2009.

One of the favorite ploys of critics is not implicating YTB directly, but word posts and threads in a way that gives them an out if egg is then thrown back in their face. Naughty for sure after reading comments, as there appears to be no question just who they hope the Agency is. Just one of the dozens of posts I sent to Santa this year for the “Naughty List”. As they wait to see if the rumor is true with gleeful anticipation, Santa more than likely coaled the entire lot of them for lack of good cheer.

I never like this type of speculation and rumor. It’s far too easy for hearsay like this to come back and bite you when documentation squashes the rumor you’re attempting to spread. Especially when you find out that the rumor started in an attempt to point the finger at one host, was initially about an entirely different host.

It appears the glass slipper that some are attempting to slip on YTB belongs to Joystar.

Agents are using the Joystar community board to voice their complaints. One posting dated Dec. 17 claimed Carnival Cruise Lines was prepared to cease doing business with Joystar if the agency did not make good to agents. When queried about the posting, Carnival declined to comment.

To be fair, there is nothing to substantiate ANY rumor that Carnival or any other supplier for that matter will be terminating anyone. Instead, I would look at the last year and ask just how many suppliers terminated its relationship with any Agency in 2008.

Of course that answer is Zip…Zilch…Nada…not one.

Yet there are some who still want to hang onto this small glimmer of hope that suppliers might come around. If the rumor is true about Carnival terminating its relationship with Joystar, can you blame them? (That would be “No”.) It’s been documented that Carnival believes these Agents, no matter what host they’re associated with are the life blood of their sales force.

But how much would you want to wager, that if Carnival does terminate Joystar because its failed to pay the commissions owed its Agents, the speculation will be that YTB is next in line? It’s what some will do I’m sure in order to restore this whole fiasco about suppliers “getting it” to surface yet one more time. I know that sounds irrational, but you have to understand the anger and resentment that creates such illogical thinking. Just accept that this is another small thread critics reach for in their attempt to pin someone else’s misfortune to YTB.

With the news out Tuesday about Joystar being down to just 5 employees and the thousands of dollars in commissions owed its Agents, I have to wonder if Peter Stilphen, (a pompous and overzealous Joystar critic who’s been plastering both Bill Alverson and Joystar for years) will be having a Merry Christmas this year?

I don’t know if there will be anyone really posting about this over the Holiday’s or into next week for that matter. I guess I’ll have to check and update you when I get back first of next week.

In the meantime, I’d like to enjoy my time with family and finalize some goals I have moving into 2009 while I have some time away from the internet and all it’s trappings.

It will be interesting to see what 2009 will bring, and while there are some who claim to know what’s going to happen, take some time to do what a couple of my favorite mentors have taught me over the years.

“Don’t believe a word you hear, unless you can verify it on your own to be true.”

Which I suppose is one of the reasons why people like this blog so much. Instead of spreading rumors and hearsay about what they’ve heard about or read about somewhere else, without a single shred of documentation to back it up, they come here for documentation and truth.

That’s why I’m on Santa’s “Nice List”.

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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“This economic environment is unprecedented, and our travel agent partners need our unprecedented support,” said Vicki Freed, senior vice president of sales for Royal Caribbean International, in a statement. “Like everyone, they are feeling the pain, and we need to help them through this.”

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!

Learn How To Become A Travel Agent

Book Your Travel & Vacations With

Do You ZamZuu?