Tuesday, September 23, 2008

They Just Don't Get It

Here is an excerpt from the Biz Report from last week. All day TRAVEL training and the best they can come up with is 9 directors (recruiters) and "several" RTAs and 2 vendors--one of which is not even about travel?

As my son might say....WTF?
All Day Travel Training
Saturday, September 27, 2008 -- Sacramento, California
9:00 am - 5:00 pm
Red Lion Hotel, 1401 Arden Way, Sacramento, CA 95815 (916-922-8041)
Meeting Room: Martinique
Tickets available at the door. For more information call 775-336-9360

Link to order tickets for the Saturday event: http://traveltrainingsacramento.eventbrite.com

Guest Speakers:
Andy Cauthen, President, YourTravelBiz.com & COO, YTB International, Inc.
Level Four Director Andrew Lakey
Level Two Director K.Ross Johnson
Level Two Director Kevin Fitzgerald
Level One Director Mike, The Travel Guy
Level One Director Dan Neitz
Level One Director Jon Myers
Level One Director Shawn Dougherty
Level One Director Charlie Fulton

Several RTA guest speakers who have been very successful selling travel will give their tips along with many vendors including:
Joe Jarvies - Shanghai Spring Tours
Colin Slade - How2Trainer






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36 comments:

  1. John;

    Maybe you should have gone to the ASTA show in Orlando. They had a couple of courses on Blogging for Beginners.

    That blue is hideous!

    You DID notice where this is being held BTW. Right in the heart of California, just for the AG. ;-P

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  2. Blue is changed...it was the color of choice of YTB.

    I did notice it was in CA and I wonder if this is just more of YTB's ego showing through. You see how well it worked when they thumbed their nose at IATAN and TICO.

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  3. Really's comment in itself just proves how arrogant the rest of them are probably acting.

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  4. Is this really a story today John? I mean, come on... why not talk about the PhocusWright article? Debunk that one or at least do something, like insinuate that Coach paid for it or something!

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  5. I'm sure whomever attends from the AG's office will have a very good time.

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  6. Are you talking about this one?

    Are Travel Agents Destined for Extinction? PhoCusWright—and $110 Billion in Travel Sales—Say Otherwise!
    Landmark study from PhoCusWright presents first definitive market sizing and trends analysis for the traditional travel agency distribution channel.

    Sherman, Conn. USA, April 23, 2008—Some say travel agents are dinosaurs, destined for extinction. A new report from PhoCusWright, the leader in travel industry research and intelligence, proves otherwise. According to PhoCusWright's Travel Agency Distribution Landscape: 2006-2009, the travel agency distribution channel represents a large and dynamic opportunity, accounting for nearly US$110 billion in sales, or 41% of all travel booked in the U.S.

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  7. No eddie I was talking about this one...

    6 Online Travel Myths Unmasked at PhoCusWright Analyst Forum

    Myth #1: The number of online travel buyers in the U.S. is declining. In fact, that number is on the rise, as documented in The Consumer Travel Trends Tenth Edition recently published by PhoCusWright Inc. In 2007, approximately 70% of online travelers (that is, adults who have taken a commercial air trip and stayed at a hotel for leisure in the past year, and used the Internet in the past 30 days) bought travel online, compared to 63% in 2006.

    PhoCusWright dispelled this piece of misinformation-and debunked five additional online travel myths-at its first-ever Analyst Forum, held September 10 in New York City.

    In addition to the misconception that online travel buyers are declining, The PhoCusWright Analyst Forum corrected these five other online travel myths:

    Myth 1. The number of online travel buyers in the U.S. is declining. In fact, that number is on the rise, as documented in The Consumer Travel Trends Tenth Edition recently published by PhoCusWright Inc. In 2007, approximately 70% of online travelers (that is, adults who have taken a commercial air trip and stayed at a hotel for leisure in the past year, and used the Internet in the past 30 days) bought travel online, compared to 63% in 2006.

    Myth 2. More and more online travel shoppers use supplier sites than online travel agencies. While this belief is widespread in the travel industry, it is simply untrue, according to PhoCusWright, the travel industry research firm. In terms of popularity, online travel agencies are making a comeback (source: The PhoCusWright Consumer Travel Trends Survey Tenth Edition or "CTTS10").

    Myth 3. Travel agencies are experiencing a resurgence as travelers return to traditional purchasing channels. Not so. In reality, even many formerly exclusive offline buyers are migrating online for travel shopping and buying, according to CTTS10.

    Myth 4. The next generation of travelers prefers to do everything online. The truth is, less than half of what 18-28 year olds spend on travel is spent online, according to The NEXTgen Traveler(TM) report, jointly published by PhoCusWright and Ypartnership.

    Myth 5. Social networks and travel reviews have the greatest influence on travel decision-making. The NEXTgen Traveler(TM) report reveals that while social media is widespread, destination Web sites and online travel agencies are favored by nearly half of next generation travelers during the travel shopping process.

    Myth 6. Online travel markets need high credit card and Internet penetration to succeed. The structure and ambitions of the travel marketplace are even more important drivers than infrastructure. Case in point is India, one of the most dynamic online travel marketplaces today, where roughly 98% of the population does not use credit cards or have access to the Internet.

    The sold-out Analyst Forum provided attendees with a clearer understanding of the realities of the online travel marketplace, offering facts, figures and insights for strategic planning and decision-making, especially as attendees find themselves engaged in 2009 budget planning.

    "Nobody wants to make strategic errors based on bad information," said Lorraine Sileo, vice president, research for PhoCusWright. "Through this Analyst Forum, we were able to educate attendees about online travel myths and the realities in consumer behavior and to paint a picture of the new distribution landscape so that they can better assess their channel partners, such as travel agencies."

    PhoCusWright's Analyst Forum will continue to take place on a quarterly basis in New York City featuring research and analysis on a variety of travel, tourism and hospitality topics.

    Date Listed: September 18, 2008

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  8. So, 70% of online travel shoppers - not 70% of all travel shoppers - book online.

    # 3 is exactly opposite of what is happening with my agency.

    #4 - I would not have thought that to be true.But I do have a lot of University students as customers.

    #6 is interesting. How many of your customers pay you with cash or checks? Many of mine do.

    Ain't the internet great!

    Maybe we could get Phocuswright to do a study of YTB vs Expedia, Travelocity, Orbitz, Priceline, Cheaptickets blah blah blah and see the figures.

    Or maybe Firemedic Travel would like to go up against Eddies Travel and see who's bottom line looks better.

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  9. On the other hand is this article that says the exact opposite, http://www.cruiseindustrywire.com/article34298.html

    So, who do you believe?
    Article Text Follows:

    Where Have All the Online Travelers Gone?

    The number of travelers booking online is down. What's up?

    This year US travel sales booked online will reach $105 billion, up 12% from 2007.

    eMarketer forecasts that US online leisure and unmanaged business travel sales (including airline, hotel, rental car, vacation package, intercity rail and cruise) will reach $105 billion. Furthermore, from 2007 to 2012, sales will increase at an 11.6% average annual rate.

    Even though online travel sales are growing, fewer travelers are booking their trips online.

    "The fact that fewer travelers are booking online is not due to economic concerns-online travel bookers are an affluent demographic-it is caused by frustrations related to the planning and booking capabilities of online travel agencies," says Jeff Grau, senior analyst at eMarketer and author of the new report, US Online Travel: Planning and Booking. "This, in turn, is spurring a renewed appreciation for the expertise and personalized services offered by traditional travel agents."

    In other words, online travel sites are steering customers back to offline travel agents-a complete turnaround of what has been happening in the category for the last decade.

    "Not so long ago industry observers cast traditional travel agents as has-beens," says Mr. Grau. "Perhaps this has helped them to focus on what they do best: provide travel expertise and personalized service."

    Customer dissatisfaction with online travel agencies (OTAs) stems specifically from unfriendly booking engines and navigation tools.

    With few points of differentiation, OTAs have a hard time building customer loyalty and have driven travelers right into the open arms of traditional travel agencies-and new online competitors.

    "Mired in old technology, the OTAs have failed to keep pace with a newer and more innovative breed of travel Websites built around user-generated content," says Mr. Grau.

    Online travel communities are emerging to carry the torch of innovation.

    "In addition, a new breed of matchmaking travel sites is bringing traditional travel agency talent online," says Mr. Grau. "Sites like Zicasso and Tripology help travelers to exotic locales find travel agents tailored to their interests and needs."

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  10. "Or maybe Firemedic Travel would like to go up against Eddies Travel and see who's bottom line looks better."

    My dad's bigger than your dad! Geez eddie.

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  11. Could someone please explain this to me???

    If the folks at YTB really believe that travel agents are a thing of the past, then why are so many of them trying so hard to prove that they really sell travel? Why are they now offering classes on travel, instructed by vendors? Why do so many YTBers come on this board and try to convince us that they sell travel too? Why do you have websites and blogs with names like "travel pro" and "vacation machine"?
    YTB and contridiction- A great mix!

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  12. Well Steve, not sure the date of your article but if I were like the bitter TTA's I would use that article too. However this article makes several claims without any real numbers to back it up.

    "Even though online travel sales are growing, fewer travelers are booking their trips online"

    Where are the facts to back that up and how is it that online travel sales are growing but fewer are booking online? I thought there was a decline in the industry and it was the networking travel site's fault.

    I will say that I have never had a customer tell me my website is not user-friendly. Just the opposite.

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  13. One thing...

    PhocusWright can do all the research they want, but when travel agents book ONLINE using airline websites, or even Expedia/Orbitz if necessary, it doesn't tell Phocus that a travel agent booked it. Its booked as the traveller. SO AGAIN..Travel Agents are part of the equasion when lumping in travel booked online.

    My office is doing just fine, and the last time I looked Amex and Carlson were still booking BILLIONS in travel. So hope and pray all you want, travel agents - REAL ONES - are not going anywhere.

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  14. Also as someone pointed out that a lot of the GDS applications are now web based and yes, those do count as being booked online.

    Firemedic, you said:
    I will say that I have never had a customer tell me my website is not user-friendly. Just the opposite.
    Of course no one have said anything. Have YOU looked at your own website? Show me where there is a method to contact you. They could not complain if they wanted to!

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  15. PhocusWright is a travel research organization that gathers and publishes detailed reports - for a subscription fee. In other words, they publish these article abstracts to encourage you to purchase the full report to get the full data set - so they get paid for their work.

    Add another to your list of TTA's that are having a record sales year - mostly because I embrace and use the internet for my business - and not fear it, like the RTA's seem to think we do. I have clients booking with me from around the world!

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  16. Uh fireman, My sales figures have nothing to do with my Dad. Is your Dad one of your downline? Okay, then we can compare my sales figures against you and your Dads if that's what you'd like. Your online vs my storefront.

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  17. Kate - "Could someone please explain this to me???

    If the folks at YTB really believe that travel agents are a thing of the past, then why are so many of them trying so hard to prove that they really sell travel? Why are they now offering classes on travel, instructed by vendors? Why do so many YTBers come on this board and try to convince us that they sell travel too? Why do you have websites and blogs with names like "travel pro" and "vacation machine"?
    YTB and contridiction- A great mix!"

    First of all Kate, we know that we could talk till we are blue in the face and it wouldn't make a bit of difference to you guys. Those of us that have this masochistic need for a daily does of TTA bitterness come on here. (sigh).

    We sell travel. We don't sell it exactly the way you do. You believe your way is the best way and only way. We don't believe that and we are still selling travel. (I know I am wasting calories typing this but....). I believe in the end your bitterness will have been futile. But don't let that stop you!

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  18. Firemedic--as the title of this post indicates, you just don't get it.

    ALl over the internet you see claims and stories of how YTB is here to put TTAs out of business. How the TTAs have lost 80% of their business. How there were 400,000 agencies that closed all because of the Internet.

    YTB claims to harness the power of the Internet and marry it with travel. A concept that was most certainly NOT pioneered by YTB or even EAB.

    So if the Internet is all that. And as Don Bradley told me in the recruiting meeting that in a few short years, there will be NO TRAVEL AGENCIES in the country and everyone will have their own private YTB Booking engine. Why is it that YTB feels the need to make weak attempts at training their people?

    One side of the mouth says...go to my website and book. THe other says they want to be an agent and work with clients. Some say YTB does not compete with TTAs, yet they offer training that makes them think that they do?

    See it is very confusing. The only thing it appears that YTB is sure of is that there are over 100K people foolish enough to continue to send in $50 a month in order to earn $39 a year.

    And as long as that continues, Coach, Scott and Kim will be happy!

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  19. There is a HUGE difference between online SHOPPERS and online BUYERS. If I had to make a guess, I would guess that over 90% of my clients SHOP online (as in, do research) before they BUY with me. The minority that don't shop online are oldeer and not computer saavy.

    Actually the largest segment of clients that I have are college students, and for their major trips (i.e. other than flying home for holidays) they don't book online, even though they may do a lot of research online.

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  20. Why is saying the truth considered to be 'bitter?' Cause YOU don't like it?

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  21. "See it is very confusing. The only thing it appears that YTB is sure of is that there are over 100K people foolish enough to continue to send in $50 a month in order to earn $39 a year."

    A totally ignorant statement the the anti-YTB blogger himself.

    YTB's travel sales are up and the commissions paid are up.

    The average home business owner can re-classify personal expenses as business expenses and will save an average of $5000 per year on their tax liability.

    Only someone like you is "foolish enough" to not understand home business tax law.

    Millions of people in the U.S. have a home business.

    Millions more are looking.

    YTB is a excellent choice for those people looking to start a part-time home business.

    Low startup and monthly costs.

    No inventories, no long-term contract.

    A great product to sell versus selling $50 bottles of juice.

    A little anti-capitalism going on there, John?

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  22. How long until the IRS cracks down on you for taking business expenses that you are not entitled too, especially those who are only making $39/year and are showing a loss on their books?

    Many of us work from our homes and know plenty about home business tax law.

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  23. Mix and YTB--an ignorant mix....

    You said:
    YTB's travel sales are up and the commissions paid are up.

    Why don't we just sit tight for now and table the rest of the bullshit you posted and see how your first comment pans out. The end of the quarter is upon us and YTB will release the numbers in November.

    Sales up? Over what? As of June, you were trending to about 200M in travel sales. That means there is a $800M to go to make that billion mark.

    But let's wager a bit and look at the 3Q 07/08 numbers. I suspect they may be up a bit, but not significantly and by nowhere near the percentages you have seen in the past.

    Reminder 2Q Site Sales were up (over previous year) 43% And 2Q travel commissions were up 50% over previous year.

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  24. Joe-

    Your ignorance is showing about the IRS.

    Looks like you subscribe to the other version of the IRS (I'm Really Scared)

    The IRS looks for 2 things:

    1) Pursuit of profit.

    2) Keep proper records.

    You have to work your business with an honest pursuit of profit and keep accurate records.

    Not a hobby . . . a business.

    And YTB qualifies as one . . .

    Whether you like it or not.

    I was audited a year ago and it included my YTB business as well as income from my traditional business.

    My CPA represented me.

    Sorry Joe . . .

    Passed with flying colors.

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  25. How does one pursue something that does not exist? And how does one explain that to an auditor from the IRS?

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  26. "Why don't we just sit tight for now and table the rest of the bullshit you posted and see how your first comment pans out."

    John Frenaye:

    I can guarantee you that YTB's travel sales and commissions paid will be up in 2008 over 2007.

    In spite of all of the negative press and the hopes for YTB's demise that you are orgasmic about.

    And when the lawsuits are behind us, fasten your seatbelts.

    YTB will be like any other successful company.

    We will make changes where we need to and continue to mature.

    And our travel sales will pass 1 Billion and beyond.

    This year?

    Probably not.

    But we will be up in sales at a higher percentage than most travel companies.

    And that will be a milestone in itself given the challenges that we will have overcome.

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  27. That is nice that you believe that!

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  28. Back to the who books online....this is just one small sample:

    MAST Travel Network, Oak Brook Terrace, IL, has released details of its recent Agency Benchmarking Survey. The results allow MAST’s 172 member agencies to assess their current business situation and to help them form the foundation for future business planning, according to John Werner, president and COO of MAST.


    Among the findings: 90 percent of MAST members use a GDS and are ARC-appointed but do not use the GDS exclusively for booking air travel. Sixty-percent book some air travel on airline websites. Other than direct mail, 74 percent of respondents find radio advertising effective. Eighty-one percent have consumer websites with another 10 percent rolling-out new websites in the next 12 months.


    and, as usual, Mixed is Mixed-up.

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  29. Not ignorance - friends experiences. I have 5 friends who are YTB members who have ALL been audited by the IRS and found to have major problems with their tax returns, all in their home business deductions!

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  30. Actually, I will call BS on all these "audits". Audits are very rare. Perhaps they requested some substantiation but as for audits, I am doubtful.

    Now, if the IRS sees a lot of commonality and decides that YTB (or any other entity) is encouraging the bogus deductions and so forth, they may indeed begin to flag all returns associated with the 1099 and W2s of YTB

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  31. "Not ignorance - friends experiences. I have 5 friends who are YTB members who have ALL been audited by the IRS and found to have major problems with their tax returns, all in their home business deductions!"

    The BS detector just went off!

    LOL!

    You want us to believe that ALL FIVE were audited?

    When the percentages of tax returns that are audited are 1.5%?

    So that means that you have approximately 325
    friends who are in the YTB business?

    That would equate to the "FIVE" who have been audited at 1.5%.

    And each of them have been in YTB for over 2 years?

    I have over 400 RTAs on my Team.

    Besides myself, I do not know of ONE of them who has been audited.

    Kind of cast a shadow on your previous comment:

    "Many of us work from our homes and know plenty about home business tax law."

    Joe . . .

    You qualify for the John Freyaye WTA "Whopper of the Day".

    Hands down.

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  32. Firemedic said, "Well Steve, not sure the date of your article but if I were like the bitter TTA's I would use that article too. However this article makes several claims without any real numbers to back it up."

    The article was from August 2008. I'd have to go back to look up the exact date and I don't have time right now.

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  33. Clarification - all had substantiation requested, as John said, 3 had deductions denied due to little or no record keeping; one received a note/warning about it being a hobby, the last had proper records and no issues.

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  34. Mix said, "Millions of people in the U.S. have a home business.

    YTB is a excellent choice for those people looking to start a part-time home business.

    Low startup and monthly costs.

    No inventories, no long-term contract.

    A great product to sell versus selling $50 bottles of juice.

    A little anti-capitalism going on there, John?"

    I have 3 home businesses, none MLM. My travel company has lower costs than YTB (no startup with my host, and no monthly fees). I also get a better commission split. I have my own consumer booking website powered by Revelex (same as YTB). So, which is better?

    I don't think John is anti-home-based-agent, nor anti-capitalistic.

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  35. Back to the topic of who books online.....I am a corporate TTA and 100% of my clients book online.

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  36. Thank you Autumn. Many of my clients use an online booking portal (supplied by my office) to use for their travellers IF they want to book on their own. We also use a WEB-BASED GDS, I also book mileage tickets with carriers online direct, I also use supplier sites and consolidators, all done online. Nobody wants to take these things into the percentages they all hold so dear.

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