If you’ve been reading my blog for any length of time, you probably know by now that I believe that the truth always has a way of coming to light, and two, I never like any type of speculation. You also know that Ronda and I love to cruise, and we got started with YTB because we’ve been telling people for years that a cruise is the best vacation money could buy.

Back when Vicki Freed jumped ship over to Royal Caribbeanit was speculated that “They [Carnival] have a great reservations center and have amassed a huge database of past cruisers on Carnival–and their other brands! The time is right to regain some of the “lost” revenue and go net.”

Now that Carnivals Q2 Earning Report are out showing sales up 17 percent to $3.38 billion from $2.9 billion. But higher fuel prices cost the company 19 cents per share in the latest quarter profits are considered flat. Carnival paid $530 per metric ton to feed its fleet, up from $333 per metric ton last year.

Never the less, Travel Weekly just came out with a report this morning which attributes this gain to “Carnival Cruise Lines CEO Gerry Cahill and his team for deciding to sell more cruises through the travel agent channel. The result has been decreased general and administrative expenses and improved yields.” after Gerry Cahill was named CEO,

So there you have it. Travel Agents are actually saving Carnival money and this notion of “lost” revenue is nothing more than a pipe dream. I’d like to further add that YTB is probably one of the biggest leaders in saving Carnival this money since there is ZERO money spent in Co-Op advertising and support. YTB takes nothing away from Carnival and only pays out what we on our own PRODUCE for them. And since YTB has Pinnacle Awards dating back the last three years, you can be assured that YTB does a significant amount of revenue with Carnival.

So while we have those who speculated that a “bean counter” would go direct we instead find that “Gerry and his team … have really revaluated the [direct sales] program, and the fact is that they have significantly reduced the business from that program,” Arison said. “The result is and will be, at least for the time being, less direct business.”

“The travel agent distribution system has been an effective and efficient distribution system for this company for 35 years, and it got us to where we are,” Arison said. “We clearly believe that we need to continue to support them. They have shown this year that they can give us the yield improvements we need to overcome these higher fuel costs.”

The “other” forecast we were told by those that like to speculate about how much they know about the industry was that “she [Vicki Freed] needs to move to a company that does support travel agents–Royal Caribbean!”

We already know how Royal Caribbean handled this by giving it’s Agents “The Royal Shaft” and upping their commission threshold earlier in the month while at the same time the stock is hitting new 52 week lows and current Analysts are not as confident about Royal Caribbean’s earnings.

I don’t know about you, but I have to wonder with all the new Genesis Class ships Royal Caribbean has in the works, the largest ships in the world, how they’re going to fair without someone like YTB helping them out like we are with Carnival. Not to mention that Carnival is a much better “value” for most consumers, (at least the ones I sell too) and in these economic times why pay more for a cruise?

Looks to me like the new leadership at Carnival is doin’ it right yet again, first with the minimum booking requirements for FAMS, and now this report sends a message to us (YTB) being a major player with Carnival, that they appreciate the business we send their way. If you listened to the training call a couple weeks ago with Carnival’s Regional Vice President Mike Julius, you heard that 40% of our cruise business is with Carnival alone.

Make no mistake, when Carnival makes a statement about “Travel Agents”, they include YTB in this mix.

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Over the last few days, I’ve had some very productive dialog with John Frenaye (at least for me) and I have a much better understanding of the complaints and concerns our group of Retail Travel Agents are having. I have to hand it to John, he’s at least looking closer at our model. Part of problem I see with skeptics and cynics is that there are a lot of pre-conceived notions about what Network Marketing is. While John has certainly not changed his position towards Network Marketing, he has verified that maybe terminating vendor relationships may not be the best alternative.

We shall see.

You like me may have noticed that no other supplier has come up to bat for these Retail Agents. From all the talk and news a few weeks ago you would have thought the sky was falling with what was circling around the internet. It’s been three weeks now and next Saturday will be a month since “The Letter” was sent out to just 3 Agencies terminating their vendor agreement without cause or reason. What’s even more intriguing to me at this point in time is that we only know the location of two of the three letters. The third to this date is still shrouded in secrecy. Seems to be a very smart move on the part of our third recipient at this point.

About the only news of interest to anyone this week concerning any news about Royal Caribbean’s decision is a Travel Weekly article naming PATH and Peter Stilphen as partners in this attempt to separate themselves from Travel MLM’s. For those of use who have been following this story with me, that’s old news however.

While we keep on waiting for the other shoe to drop, we just keep waiting. Why?

A while ago I found an excellent article from Arnie Weissmann who not only understands our business model, but brought up a number of key points. I’ve been meaning to compliment Arnie for his work, and actually did personally, but have not really given his piece the credit it deserves here.

The timing of the Royal Caribbean termination announcement was directly after YTB’s Funshine Trade Show in Orlando, Florida. I’ve personally attended these Trade Shows and find them to be an excellent source to not only meet our suppliers personally, but become better educated in who they are, what they offer, and how to promote their particular product or service. Like me, Arnie picked up on how hungry everyone is for knowledge of our industry and how receptive our suppliers are in working with us. The fact of the matter is, YTB and other models like us do a considerable amount of business with them. A little here, and a little there certainly adds up.

Just this morning I found this gem from Vicki Freed, and in this published article “Freed said she attended YTB’s conference in early October and saw more than 1,000 attendees in each educational forum. “The desire to learn about the travel business was evident even after I spoke to the general session (over 6,000 attendees) when the CLIA instructor followed me on stage and taught niche marketing,” Freed wrote. “No one left the room, and in fact, the overflow ballroom with big screens set up was packed as well. These folks paid for the conference, and there were no free meals or give-aways.”

It is “rumored” that this CLIA training in Orlando with YTB was the largest single group ever to be trained at one time by this Association.

And while CLIA (Cruise Lines International Association) was quoted in Modern Agent this morning, that its Oct. 17 World’s Largest Cruise Night (WLCN) is expected to generate 17,852 bookings, which translate into an estimated $22.3 million in sales and more than $3 million in travel agency commissions it makes one wonder what a single company like YTB could do in one day.

The entire industry generated 17,852 bookings in one day.

Why only 17,852 for the entire industry? Because these Retail Agents are too busy slamming Vicki on her Blog instead of focusing on making money. I called out our own agents here in my last post for being unprofessional. I feel it’s only fair after reading the threats and the down right harassment towards Vicki that someone needs to tell these Retailers.

“KNOCK IT OFF!”

As an entrepreneur, I’ve always been one who looks at solutions, not problems. Vicki clearly gave these agents an opportunity to make money with her, but chose instead to focus on the Travel MLM problem.

Good Grief.

While the tide certainly hasn’t turned by any stretch at this point, it certainly looks like it’s lost any momentum it had a few weeks ago.

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!

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Do You ZamZuu?