Thursday, August 7, 2008

So, Does YTB Really Want To Sell Travel?

The Attorney General has claimed that YTB does not sell travel.

So I was doing a little bit of research on-line when I came across the most interesting question that was posed by none other than a YTB member named Angelo. I copied and pasted the question directly from the message board in order to avoid any sort of misrepresentation.

“OK, here is a tough question. Please give me a straight answer, not the company line. I trust you guys.Our leaders are our directors right? So why is it that in a "Travel Company" you do not have to sell travel to become a Director?Let me explain. I can sell $1 million in travel in a year. And sell no travel stores. So I am a master at selling travel, yet am nowhere near being a director of a travel company.So why not have two sets of directors? One set for the Travel side of things and One Set for the Marketing side?There is no one I could go to, that is top tier to let’s say, discuss sending 100 people to China for the Olympics. Or a Director that is plugged into the major vendors we work for. Like Carnival or NCL or Princess.”
Now, we’ve all heard YTBers say things like “Oh, we sell travel. Why I’ve sold $100,000 this year myself.” Or, “I book groups all the time.” Or, “look at my cocaine white Bentley I bought with all the money I made selling travel.” But if YTB is really a travel company, and didn’t deserve to get the boot from IATA, Royal Caribbean, and others, then why is it this company in no way rewards their members for selling travel? Have you ever heard of a travel agency that doesn’t reward its staff for selling travel? Am I the only one here that is confused by this? Maybe one of the suppliers could help me understand this better.

P.S. Angelo, if you’re reading this, please go to ASTA or OSSN and find a real host agency!



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12 comments:

  1. I will post quickly before I run out for the day...but there IS a travel director. You get all the same benefits as the marketing director. You need to accumulated 24k in travel comissions in a 12 month period and maintain that.

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  2. Oh and one of those benefits is a fully paid for health insurance a PPO with blue cross/blue shield no questions asked, no preexisting conditions.

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  3. Thanks Josh, and while that is somewhat admirable, it is virtually unattainable. Your posting here might indicate to the AG that it is a perk of selling travel.

    But put it into perspective.

    $24K in commissions equates to a total $40,000 in commissions received. $40K in commissions received is approximately $400K in sales.

    Now how many agents in YTB are Directors under this program?

    ANd if they are selling $400K why not affiliate with a host that earns higher commissions and pays them more? After all at those numbers they would be serious. Maybe it is because the two companies are NOT separate and they make more money selling the program to others?

    This "perk" is just like the Fast Start thing they did earlier this year. Nearly impossible to attain if at all.

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  4. Well as you know health insurance is very expensive. We actually have someone on our team who had been "traditionally" in the biz prior to joining YTB. He switched over. He was making an 80/20 split before. However, he was paying about 1500 for insurance

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  5. I think saying that level is nearly impossible to attain is stretching the truth John. I can see someone doing $400K in sales.

    Now, the question you raise about why they would WANT to do that under YTB when there are so many more lucrative places they could do those sales is a fair one. They could give themselves a 33% raise simply by being with a host that gives an 80/20 split vs. 60/40.

    This is the first I have heard about the "Travel Director". Is there any documentation for this? Do the Travel directors get bonuses like the Marketing Directors? Inquiring minds want to know.

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  6. Clarification: in the context of YTB it is unattainable. I know agents that will do four and five times that in a year.

    But my point is that there may be one or two in YTB that have reached that level of sales. Out of 138,000--not too bad I guess.

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  7. How many levels of Director are there? How many different ways can they get a bonus?

    Does the same type of rewards program exist if you are just selling travel?

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  8. I went back to the ytb.com website and re-read the Compensation Plan document to find out about RTA Director's. There is nothing in the compensation plan whatsoever regarding that. In fact, there is nothing that I could find on the ytb.com site that describes how the RTA's get paid. No information on commission split or anything. I guess we know what YTB is really selling.

    Another interesting thing is the link to join YTB on the main site. If you try to click on it, it says "Feature not available at this time". Perhaps that is because you need to join under some particular REP.

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  9. Well for crying out loud! Isn't that exactly what I said when I went to CRTA training?

    Directors don't become Directors by selling travel.

    But the bigger question is, did anyone answer Angelo?

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  10. Hi. Been reading your blog for awhile. Good info. Got into YTB for the MLM op (the money seems so lucrative), and the travel angle was the most attractive of all those I had seen out there...wasn't interested in legal, financial, or juices. I actually thought I'd make a ton of money at this. I pushed it hard for awhile, sold $2500 and made $13.50. But I did make $150 in recruiting. I know MLM's work nicely for heavy hitters, but perhaps, after getting a real taste of what it takes to be more successful in MLM's (I do respect the hard work it takes) I've found that I'm more interested in the travel aspect.
    I have a question. You mentioned ASTA and OSSN, and I will look into those. However, when looking into the travel business, I came across World Choice Travel. They look a lot like YTB's stuff. I was told in the recruitment meeting that Travelocity asked to be a part of YTB. But I see that anyone can get a WCT site for free...weird (I also wonder how other RTA's would feel about this). My question is, is WCT any good? I can build my own site and save the $500 and $50/month if I go this route and then I won’t have to beg all my friends to join a MLM while enjoying the “real” perks the travel industry may have to offer.
    Thanks for your input!

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  11. Contrary to what YTB and the rest tell you, you don't have to be part of an mlm to work as a home based agent. Go to these websites for info and then find a legitimate host agency

    http://www.hometravelagency.com/

    http://www.homebasedtravelagent.com/index.htm

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  12. VacationMachine...sure you can sign up for WCT and market yourself that way if you like. However, know that the entire transaction is handled by Travelocity.You (as far as the industry and the suppliers) are out of the picture and do not exist.

    So, you cannot call a supplier and request a change to a booking, and more importantly, the supplier cannot tell how much your produce for him. You are limited to the suppliers Travelocity chooses to work with as well. Kayak just dropped American, so if they drop someone you sell a lot of, you are out of luck.

    IF you are interested in consulting and actually selling travel, find a host or even go it alone if you like. Many hosts today will provide you with a customizable shell site for clients to book ( and you get the credit), training, and a support system for both you and your clients.

    A personal opinion about online booking--the loyalty of an online booker is far less than a typical client. If they see your price, they are likely to shop it around at other sites--it is too easy and price--not service or the relationship--will drive the sale.

    Most legitimate agents have online investigating and some have online booking, but very few sales are made that way. Most are made on the phone, email, or in person and based on the relationship. I have had online booking capability for some vendors for about 8 years now and have received less than 10 bookings. Most of my clients (and yours will likely differ) prefer the human touch.

    But in the case of YTB, you have to ask about their online booking situation. Over a year, their 138,000 agents booked $211 million of travel. That is $1500 a piece. Taking aside that it is likely their OWN travel for a moment....realistically that is once travel booking. It earned YTB $150 and the RTA about $90 for the year. And this is supposedly the #26 agency in the country--so their online booking really is not doing so well either!

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