Tuesday, April 1, 2008

MLM & Aloha


Someone brought up a good point to me yesterday with the news about Aloha Airlines. How is the MLM crowd handling this? Certainly there are people flying Aloha who had the misfortune of purchasing tickets from one of the "agency in a box" firms.

I know what the traditionalists have done and will continue to do. I also know how the online biggies are handling the issue, but I wonder how the MLM agencies are handling it. What are the clients hearing when they call the toll free number provided? What are the clients thinking? Are they getting what they paid for...or just saying Aloha to their vacations?

57 comments:

  1. John said....CERTAINLY there are people flying Aloha who had the misfortune of purchasing tickets from one of the "agency in a box" firms.

    Well, we at YTB have finally made the dent. It is now certain that we sell travel. FINALLY!

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  2. Well, YTB increases (supposedly) travel sales from $226M to $414M in a year-- 83.79%

    But increased the number of "agents" from 59K to 131K--119%

    Seems that the travel sales are not keeping pace with the recruitment sales to me.

    But more to the point, what are you doing about Aloha?

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  3. What's your point? We are obviously selling travel and Aloha is one of the airlines we can sell. Pretty simple "ya moron!"

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  4. I think the question that was posed is "since rta's aren't really travel agents, what are they doing to assist their clients that were stranded by Aloha?" ya moron!

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  5. Oh I know the answer to this...the RTAs are sending back to the website to book with another airline! I bet that is the answer!

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  6. Of course your numbers are accurate but what they indicate is not what you represent. Yes, the number of agents has increased during 2007 at a percentage higher than that of the travel bookings, but, when people start their own business there is a period of time before selling the product. I nkow that sounds odd but look at it this way....If someone gets into the business because they want to plan a summer group cruise and they joined in October 2007, they will likely not post any pending sales until January or February.

    For me personally, I joined in October 2006, went to a CRTA in November, had business cards printed up, discussed some strategy with with power team leader and didn't begin telling people about my site until I felt comfortable with the knowledge of the business. I made my first travel sale on my site in March 2007. There is a lag.
    Now, with the Aloha thing, I don't have the answer at the moment because I don't have any customers facing the issue. I will look into it from a YTB standpoint. I just wanted to respond to you poor numbers analysis.

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  7. Online biggies????
    Like travelocity? Where they have a link at the top of their page that lets their travellers know that a few other carriers will "help out". So, the customer will just have to call other airlines and find out. Of course they could click on the customer care link. Again, JOHN your gripe should really be with booking online instead of with an agent as opposed to MLM instead of with an agent.

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  8. Travelocity, Orbitz, and Expedia are all proactively contacting people. They also have a link on their site in case they have not been in touch.

    What is YTB doing? Do you have a link on your site?

    So my argument is valid--what are you doing?

    ANd I venture to say that other anonymous poster had no clue there was an issue with Aloha. DO you?

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  9. I spent a good 2 hours re-accomodating and reissuing e-tkts yesterday for Aloha clients. They didn't have to call us, we called them. They were all set by that point. Do your clients have to call to make the change themselves, or are you notifing them? That is a part of your responsibility as an agent. Telling them to call the carrier is not the answer.

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  10. Well I knew that Aloha was ceasing to do business. Many United flights have Aloha as the partner carrier. But, if you booked online you still need to contact the carriers for change. All travelocity, orbitz, expedia can do is call however, most of the time people don't even enter their phone numbers when they book because they don't want someone calling them out of the blue. I have had several friends who are now my customers ask me if they have to enter a phone number into the system because their telemarketing calls increased after doing it through travelocity. So, if I had some clients who had reservations on Aloha I would call them because I know them. I, have also advised those on my team to contact their customers that have Aloha tickets.

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  11. I don't think many at YTB know that Aloha closed the doors before take off. Clients will have to call Aloha and rebook...or the TO. It will make a nice addition to their holiday....hours on hold. Then, more hold time rebooking or getting refunds. One of the more glamerous sides of traveling like a pro.

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  12. You don't have a valid number for the passenger? I thought it was a requirement in the booking process for all online sales. Are you saying the pax doen not want to be contacted for situations such as this? hogwash. What you are saying is it's the pax responsibilty to handle the problem once the sale is made, not yours.

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  13. "So, if I had some clients who had reservations on Aloha I would call them because I know them. I, have also advised those on my team to contact their customers that have Aloha tickets."

    So let me see if I understand - are you telling your clients to call the carriers to see if they can get their Aloha tickets honored? Or are you telling them to get back on-line and buy UA or HA tix? Please tell me that you are servicing the client and making those calls on their bahalf and getting them re-accomodated? Oh wait, this is YTB we're taling about - the company that tells clients to call the airline directly!

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  14. Well part of the service I provide (and charge a fee for) is to take care of this sort of thing before the client is even aware. I have a few dozen clients flying inter-island this Summer and Fall and those booked on Aloha were all re-accomodated on Hawaiian yesterday. THEN I called the clients and informed them that they were already taken care of.

    CTA in MD

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  15. "Well, YTB increases (supposedly) travel sales from $226M to $414M in a year-- 83.79%

    But increased the number of "agents" from 59K to 131K--119%"

    That's very intereting. If one reads the report, they are very careful to say that the $414M is the total value of all travel related services. Hmmm...

    Yet later, they report their total revenue is $141.3 million - that would be the total amount of money the collected ... it is obvious that this is in very large part from the monthly fees as otherwise it would be over 30% in commissions in travel sales..

    Even mor interesting is that their total net revenue is $3.2 million - very, very low given VAST number of RTAs! All three Agencies I have worked for in past 12 years had higher net revenue than that last year - and their employee numbers are 3, 35, 17!

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  16. Total net revenue 3.2 Mil?????

    Total net PROFIT is 3.2 million

    There is a huge difference as profit is revenue minus expenses.
    Please show me on paper where your company with 3 employees SHOWED a profit of more than 3.2 million.

    You see, if you understand accounting........well never mind...you don't

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  17. Oh but I do understand the accounting. What youdon't undersand is the power of Agents to move market. The point here is that YTB is not as profitable when you look at the number of people supposedly working. and you're absolutely ridiculous to think that three people can not do that much business - the only work they do is travel for political campaigns and Congressional Offices - you can't imagine the amount of travel dollars that goes into air for one Senatorial Campaign or Presidential. Just stop and think about the Agency that is chartering the candidate's plane and the Agent who is booking all the advance travel through the primaries and campaigns.

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  18. How do you have $414M in travel sales and only $20M in commission? Something does not seem right there.

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  19. $20M in PAID commissions. A significant portion of the commissions from the sale of $414M had not been paid to YTB in 2007. YTB can report what they SELL, yet can only report what they are PAID.

    Were all of you TTAs PAID in 2007 for all of the travel that you SOLD in 2007? I think not.

    Not exactly rocket science here.

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  20. Okay commissions PAId in 2007, Say for sales from 6/12/06-6/12/07. Thats still very little for 131,000RTA's. Seems to me a lot of YTB's RTA's are not selling anything. But we knew that.
    GO WEBSITES! You're correct. Not rocket science.

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  21. Eddie,

    1st -- Your statement above is not glamerous.

    This one is glamorous:

    Be sure YTB is not satisified with the large number of RTAs who are not actively selling travel. YTBs increasing opportunities for travel training is improving that. I attended a YTB weekend event in Dallas, TX last Saturday with CLIA, Collette Escorted Tours, Trafalgar Tours, and American Destinations providing travel training.

    I know. I know. I cancelled my YTB RTA business so why would I attend YTB travel training? The answer is I'm networking and because I'm still following and researching YTB to know if in four months I want to go back in the YTB business. I see no reason why I shouldn't if YTB is legally functioning in all aspects of the travel business. I attend YTB events because I am prospecting for the person who is deserving to be my sponsor. I came back home from the training a lot more knowledgeable about selling travel. I am positive as long as YTB exists, travel sales statistices are going to continue to rise and the number of RTAs getting involved in selling travel is going to continue to rise.

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  22. And now, from Wall Street, a quick time out.

    04/01/2008 1430EST
    BULLETIN
    YTB STOCK HAS SHOT UP TO 1.98.
    EARLIER INDICATIONS PREDICTED
    THE VALUE OF THE STOCK TO HIT
    $2.00 PER SHARE BY MID-SUMMER.
    ANALYST ARE LOOKING VERY CLOSELY
    AT THE PINK SHEET WONDER AND WILL
    COMMENT BY THE END OF TRADING
    TODAY AS TO IT'S FUTURE EXPECTED
    PERFORMANCE.

    This has been a special report from the VWX Newswire Press.

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  23. I just read this on another forum...any truth to it?

    AP
    Travel Acquisition Group Acquires YTB
    Tuesday April 1, 7:10 am ET
    By Dan Caterinicchia, AP Travel Writer

    Eden Prairie MN-The Travel Acquisition Group (TAG), a newly formed travel franchise in conjunction with J.P. Morgan helped with the financial backing on acquiring YTB. YTB's Scott Tomer said this was a needed boost for all of our RTA's and affiliating ourselves with a group that only sees growth in the coming years. YTB had some setbacks last year with several cruise lines as YTB was referred to an industry cardmill. Mike Batt (chairman of the board for TAG) said he welcomed the merger. Once we were able to split off from Carlson Companies, we sought travel organizations that would fit our mix with our existing franchise group. With YTB's current 131,000 agents, they will be able to interact with local TAG franchises who will be their hosts on travel transactions. Batt and Tomer both stated that a late 3rd quarter transition should be finalized. The amount of financing wasn't disclosed.

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  24. Well, if it is true that is the end of YTB being an MLM. You will either have to produce and sell travel or hit the pavement. No more selling websites and down lines for you...

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  25. I called HQ and the legal dept said they could not comment on it at this point. So it sounds like it is legit!

    This just goes to show that respected travel companys see the value in YTB as well. What do the TTAs think now that one of their "vaulted" organizations believes in YTB.

    So, the announcement did not happen in February, but...

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  26. Now, that is news.

    rod, yu attending a meeting is not glamerous. sorry.

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  27. If AP has the story why wouldn't HQ be able to comment on it.

    If it is true, bye bye MLM, and welcome to actually having to sell travel to make money. Novel idea.!

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  28. cruising man~Why do you give a rat's ass? You aren't in YTB? And if this is true then it is bye bye to the MLM model.

    As to Coach he is riding off into the sunset on his private jet with all you yay hoos and trailer park trash's hard earned money in his pocket. While you are scraping to get by. Smart man selling in the nick of time because he knows eventually it would have failed. Coach sold you all out! ROTFLMAO at that. Praise be to Coach! He really loves us and cares about us! Praise be to the Lord for sending us a good man like our Coach!

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  29. Sounds like the Tomers have decided to grab the money and run.

    The RTAs who want to sell will end up as IC with specific CWT Agencies - OMG B&Ms!!!! - and the Reps will soon disappear as will the moniker YTB.

    Great Guy, Coach - he's so dedicated to you all that he's eloping .......

    Better sell that stock - it doesn't pay dividends anyway, what will happen when there's no longer a company?

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  30. You guys think they will keep a bunch of uneducated dorks who think they are travel agents? NOT!

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  31. Why did the anon TTA's on this blog fall for the April Fools merger joke? Makes you wonder.

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  32. That's what I said. It's not glamerous.

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  33. Time for a diaper change!!!!!!!

    TYB JUST HIT $2.00!!!!!!!!!!!!!
    YAHOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!!

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  34. "Why did the anon TTA's on this blog fall for the April Fools merger joke? Makes you wonder."

    You guys are really really stupid thinking we fell for that. Bunch of dorks is right. Now go crawl back in your trailers with your bunny slippers you pathetic RTA dorks.

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  35. Oh, but you did fall for it. Go back and read the comments. Hehehehehehheh.

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  36. I wish Aloha going out of business was an April Fools joke. As usual, the YTB folks take fooling travel agents more seriously than the need to look after their customers. You YTB's are a piece of work for sure. Too bad the TAG thing was a joke, but it's on you cause it's obvious no legitimate agency group would ever consider adding a bunch of yahoos like you to their list of competant ICs.
    HaHa on you!

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  37. Hey, where is that director from Florida---that Proud To Be YTB chick--we have not heard from her in a long time! Not that THAT is a bad thing...just sayin'

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  38. You know, this April Fools joke just might be true.....
    Now, nobodys laughing?

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  39. Oh no! Edward is falling for it too! Lots of laughs!

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  40. It's Eddie, thanks. In a way, I wish it WERE true. I would so like it if YTBers were actually legitimate instead of website selling faux agents. But, in reality, the above poster YTBNM is right? Who would want you other than Coach? Actually, he probably doesn't want you either, but he sure does need you.

    My compliments to whomever came up with this. Dare I say, John?

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  41. Just saw this and thought I would share it. BSAP Miami: Carnival Cruise Lines and it's subsidiaries announced today that it is severing it's relationship with YTB, aka Your Travel Biz. The decision follows the lead of RCCL. Carnival said that YTB has not given them substantial business and when reviewing the Sale-a-thon YTB sponsored in November, "We found that most of the booking were for their own agents. We strictly prohibit rebating of any kind." Calls to YTB were not returned.

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  42. Martha, your full of crap as usual.

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  43. Anonymous said...

    Martha, your full of crap as usual.

    Well thanks for the compliment, obviously from a YTB zealot. But it was an April Fool's joke. Don't be surprised if it happens soon though. It also proves my point that you can put anything in print whether it be true or not. The YTB and MLM people are famous for that.

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  44. " Cruisin_Man said...
    I called HQ and the legal dept said they could not comment on it at this point. So it sounds like it is legit!

    This just goes to show that respected travel companys see the value in YTB as well. What do the TTAs think now that one of their "vaulted" organizations believes in YTB.

    So, the announcement did not happen in February, but...

    Apr 1, 2008 2:53:00 PM"

    And Tom continues with his bad information and lies ... he is 0 for 0 on all predictions and 'big news" he's had for over a year. Even implies this was his big news anticipated for Feburayr!

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  45. Please do not think I am in the habit of defending Tom, but I believe that post was from someone trying to be Tom--as difficult a concept that is to imagine.

    When the user name in a comment is NOT a link, it is essentially anonymous.

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  46. So seriously now folks, what are you RTAs doing for clients who bought Aloha tickets via your site, or within a package booked via your site? Are you proactively calling them, or leaving them to hang? Are you waiting for the Wholesaler/Expedia (or Travelocity - whomever it is that is that does your air ticketing)to contact the client? Are you telling the client to contact the Wholesaler? What are you doing?

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  47. Martha said, "It also proves my point that you can put anything in print whether it be true or not. The YTB and MLM people are famous for that."

    And you should know a lot about that old girl. Remember when you tried to scam everyone here by posting as an anonymous YTB agent? ;>)
    At least I'll give you some credit for admitting it later on.

    olescorekeeper
    Just Picture It Now

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  48. So seriously now folks, what are you RTAs doing for clients who bought Aloha tickets via your site, or within a package booked via your site? Are you proactively calling them, or leaving them to hang? Are you waiting for the Wholesaler/Expedia (or Travelocity - whomever it is that is that does your air ticketing)to contact the client? Are you telling the client to contact the Wholesaler? What are you doing?

    And you RTAs are ignoring this, why?

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  49. Just Picture it Now! All YTB's alaho pax stranded because YTB does not know how to mediate on their behalf.

    Really guys, stop whimpering about what Martha does or does not post and do something for your pax. Or they might just not be your pax anymore!

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  50. Olescorekeeper, you're right about me always explaining myself and taking credit for my misinformation. I did pose as Sue Walsh just once to show everyone that she was so out of bounds that it was pathetic. According to her claims, she would be owning YTB right as I post this. Anyone who would believe, or slightly believe my post, especially about Scott Tomer taking me up in the jet on my second day as an RTA should have gotten the jist of the post.

    Yesterday I was trying to make another point and include an April Fool's joke. I still believe that about 80% of the people will believe anything they read including the articles about Bat Boy from the Weekly World News that you see in the supermarket lines. Are people becoming more stupid or were they always this way?

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  51. So seriously now folks, what are you RTAs doing for clients who bought Aloha tickets via your site, or within a package booked via your site? Are you proactively calling them, or leaving them to hang? Are you waiting for the Wholesaler/Expedia (or Travelocity - whomever it is that is that does your air ticketing)to contact the client? Are you telling the client to contact the Wholesaler? What are you doing?

    And you RTAs are ignoring this, why?

    Still nothing from anyone at YTB....

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  52. As usual, they care more about themselves than they do the passenger.

    I'm thinking YTB is the Enron of the MLM biz. How the mighty will fall and take all the little people with it.

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  53. I think they have no idea what to do and they are avoiding their clients! What are they going to do now about ATA?

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  54. And still nothing!? Please prove to us that you YTB people actually have a clue as to how to handle this sort of problem.

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  55. http://www.travelweekly.com/Article.aspx?id=171340

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  56. I guess all the stockholders also had air on Aloha? That could be why they're bailing out so fast today!

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