Below is the report from a TTA (Ann Ruhman, CTC) who attended a CRTA training class this weekend. No further comments from me are needed as this report speaks for itself. Remember, if you like the post, please click on the Digg button at the bottom. Thanks Ann!
A TTA in CRTA Training
31May2008
Yup. You read right. I, a 28 year travel industry veteran with my CTC, went to a CRTA training. Why? I suppose I felt that what many YTBers said, that I couldn’t understand what YTB was all about because I’d not been to a meeting, was true… And to be very honest, I wanted to see how many times I heard “Make money while you sleep.”
So where to start. The first thing that surprised me was that they did not have anyone sign in. I would have thought they would want to capture that info. The training was to start (according to the official info) at 8am. There were about 15-20 there at the time and we found out that the 8am start was a typo, it really started at 9am. So one of the Directors said he’d do some training just for us. Training, as in, how to present the opportunity. How to talk to people so they would be open to hearing about YTB. I must admit, a very smooth, appealing presentation. He did touch on one thing of interest to me, reasons for joining YTB. He said the 3 top reasons were:
- Receiving commissions/discounts on personal travel (about 85%).
- Tax benefits of a home business.
- Money (the network marketing side).
When the official presentation started at 9am (and about 60-70 people), they had 6 Directors there, including a celebrity RTA, James “Bonecrusher” Smith, who was making the rounds of the CRTA trainings. Each Director took a turn giving parts of the presentation (which truthfully drove me nuts). Keep in mind while reading this that this training was being done by Directors. Directors don’t become Directors by selling travel, but by recruiting. Now, someone did tell me that the “RTA Certification Class” was not travel training. So what was it? According to the agenda, it is composed of 2 parts – training on YTB Travel Network (agency side), and training on YourTravelBiz.com (network marketing side). This training is required to apply for CLIA (which leads to Fams and discounts) and to qualify for certain bonuses. It also costs $149 (although one can audit it as many times as one wants). So what was covered? Company structure, word of mouth advertising, ATM – Automated Travel Marketing (essentially the Steals and Deals email newsletter – collect those email addresses since you need to prove “pursuit of profit” for the IRS!). What they sell (vendor participation). They went through a few examples of commission earned on packages. Last Minute Deals. What is in the RTA’s back office (Travel Portal) – forms, commission tracking, how to submit a service ticket, etc. One director during this emphasized how RTA’s were to simply point clients to their website, not get involved in booking for the client. So far, so good, right? Well, then we get into how to submit a claim form for commissions when a vendor is booked directly (what happened to pointing to the website and not getting involved with booking for clients?). They also mentioned that if booking directly with vendors, they recommend the RTA purchase E&O (but no real explanation as to what it was or why other than a very simple example, nor did they mention being covered by YTB). And of course we then have to mention the Power Team bonuses. One thing I did find amusing – there is a $5000 bonus available to the CRTA when a Power Team enrolled RTA earns $5000 in commissions. The best way to earn that bonus? Recruit a TTA (“selling travel is what they do!”). Haha. I’d have been a hot commodity in that room had they known… But back to training. Next? Qualifying for travel agent credentials – CLIA. Now I have to give them credit. They did emphasize that the CLIA card was not a discount card and that RTAs were to conduct themselves professionally. Further, they did say at different points in the presentation (about 3 times), that RTAs were not to be soliciting business or recruiting at industry events, on cruise ships, at hotels, on FAM trips… Credit where credit is due. However, they did make a point in saying that the CLIA tests were open book, so don’t worry about it.
Now the good part. “Travel as an Insider.” Examples of group bookings where the RTA and spouse went free. FAM trips and how to find them (YTB back office, Mailpound, FAMtastic, directly from vendors etc). How to book FAMS (“Enjoy yourself!”). (I found it interesting that they do have an “Inspection Form” they are to fill out.) Making your own FAM. Requesting benefits from vendors (phone and face-to-face). It was emphasized that now that you have a YTB travel agency, you are a travel professional and entitled to these offers and discounts. Very brief mention of travel training – they have videos on how to book individual vendors and vendors have their own training. Mention was made of YTB University and how there was a 30 year industry vet who was putting training modules together for YTB (I assume they were talking about Marc Mancini). But that seemed to be more an “Oh, BTW” type thought. They talked about the RTA Support System and that RTA Certification was “The BEST way to get basic travel training and the BEST way to learn the business.” [Ummm, what travel training? Maybe the part about how to ask for a discount?] No mention was ever made about the lack of IATAN, or vendors that they cannot book.
Next good part. The tax benefits of having a home based travel biz. “Everything we discuss today is legal, ethical and supported by current IRS statutes.” Steve, the CPA, was standing in the back and would take questions later… They talked about meeting the 4 IRS requirements for entertainment deductions, mileage logs, business deductions. Personally, I thought they were being very free and easy with what could be considered deductible. A mention was made of a local RTA who built a home theatre with a 120 inch plasma TV that he gave presentations to people in…. Legal? Maybe. Definitely stretching. I hope all those new RTAs have good tax people. I also was given the definite impression that all personal travel could be considered tax deductible too. But I’m not a tax accountant.
At this point (12:30pm) we were done with YTB Travel Network and broke for lunch (not provided by YTB). I broke for home. I was so overloaded with personal and professional conflicts at this point I just didn’t think I could handle another 2-3 hours listening about “the opportunity.” So many red flags. So many things to think about. Things like:
- If I’ve paid $449 for my “agency,” and $49.95 per month after in fees, why am I paying another $149 to learn how to use it?
- How can paying for a website make you a “travel professional” and therefore “entitled” to benefits offered in the industry?
- How does pointing someone to a website entitle you to a commission for “selling” travel?
- How does one justify calling themselves a “travel professional” when one freely admits that they are not in the business to sell travel?
- And why do YTBers (or any MLM agent) refer to themselves as referral agents, insisting that they “just refer clients” to their websites, when they obviously contact and book directly with suppliers? If they just pointed to a website, there would be no way for them to claim a commission from a supplier they booked directly.
- Do any really understand what it means to be an Independent Contractor? This was never touched on. When a Director asked the crowd “What’s the name of your travel agency?” Most shouted back “YTB!” Not the name they chose for their “agency.” This would be critical in understanding E&O as it applies to YTB and the IC, as well as when dealing with suppliers.
- I just about popped when I heard that ridiculous claim about “over 208,000 B&M agencies have gone out of business in the last 8 years.”
- And yes, I heard “I can make money while I sleep.”
On my way home I thought about these things. I have never denied that YTB could be an excellent entry into the biz. The website, while simple and cookie-cutter, is fairly easy to navigate. The back office seems to be sufficient to track bookings and commissions. The issue is that selling travel takes a back seat to the network marketing. People are NOT getting into YTB Travel Network to sell travel, but for the industry discounts and commission back on personal travel. They also know that the real money is in YourTravelBiz.com. One Director mentioned that if someone asked you whether YTB Travel Network was “one of those pyramid scams,” you can say NO (no mention of YourTravelBiz.com). But when breaking for lunch, another Director told everyone “When you come back, you’ll learn how to REALLY make money…” I know that it is constantly thrown out that YTB is 2 separate businesses. You can participate in one or the other or both. However, the 2 businesses, while technically separate, are inextricably linked, no matter what anyone wants to tell you. YTB Travel Network would not exist as it is today without YourTravelBiz.com. YourTravelBiz.com is pyramid and without YTB Travel Network would be toast. And this CRTA training (essentially required by YTB) is training for both. Go back to what I learned in the beginning – the number one reason for getting into YTB Travel Network is for the commissions/discounts on personal travel. Now, since the REP position is free, who’s not going to sign up for that too? The fact that you can recruit 6 people and get your monthly website fee reimbursed as well as your CRTA training reimbursed is added incentive for being a REP. And remember, Directors don’t become Directors by selling travel. So are we selling websites and taking advantage of discounts offered by suppliers without any intention of actually selling the product to a third party? I would have to say, yes. One woman sitting in front of me said she had signed up 3 days ago. 3 days and she’s a professional travel agent. Why did she join? “To get discounts off the cruises I take, the hotels I stay in.” The crowd applauded.
And you wonder why I’m insulted? As a supplier I’d be incensed.
For the traditional travel agent, the selling process includes qualifying the product to the client, the actual sell, service up to and including the actual travel and even follow-up after the client returns. For the MLM “travel agent,” service means pointing the client to a website for self-service. No qualifying, no assistance, no follow-up. Once the sale is made, any problems are directed back to the vendor. I think, why do the suppliers put up with this? They are paying out good money for what? I could see paying a referral fee. But why would a supplier pay up to a 16% commission, and have to service the booking themselves? Is the incremental business they get really worth it? It makes no sense. Then I get mad. As I said, I’ve spent 28 years in this industry, have had my CTC for 20 years because I recognized that it was the highest form of “certification” I could get. I do not ask for FAMs and discounts from suppliers to go on vacation. I don’t ask for upgrades. “Travel as an Insider”? It’s been years since I’ve traveled on a non-revenue airline ticket. The last time I asked for an agent rate at a hotel was in 2005. In many ways I feel I’m treated like dirt by suppliers. And I’m not alone. But I enjoy what I do and I’m told I’m good at it. So why am I mad? READ… MY… LIPS. Because the suppliers could put a halt to what is happening. By paying commissions to these MLM businesses they are enabling the problem. Do you not see that you are being taken advantage of? CLIA, especially, should be ashamed of themselves. As a trade association supposedly working for the betterment of the industry, they should be keeping better company and have higher standards. I applaud those suppliers who have put their foot down.
Are traditional agents without guilt? By no means. Yes, we have our bad eggs. We have those agents that put all their relatives on the IATAN list. We have those that only go to trade shows for the freebies. We have further exacerbated the problems by not encouraging some sort of universal licensing/certification in order to be in business, which makes saying “I’m a travel agent” as easy as hanging out a sign. There are a proliferation of trade associations all claiming to work for the agent, but most fail to do what most of us think they should be doing – that of educating the consumer of the value of working with a professional agent. Too, there is much apathy on the part of agents with regard to these travel MLMs. “Not my problem.”
Are the RTAs to blame? No, to a point. How can you blame someone who has no clue how the industry works? For those who have signed up with YTB (or any other MLM) and have been serious about learning the business, they are soon disenchanted with the emphasis put on recruiting. They, in many cases, move on to a traditional host agency. For those who find the MLM part of the business more alluring and are good at recruiting, the promise of YourTravelBiz.com riches keeps them in, and they take advantage of their status as “professional travel agents” with YTB Travel Network for their personal travel. Any incremental business from family and friends is simply icing on the cake. And for those who are professional MLM jumpers, who wouldn’t be attracted by not having to have a garage full of product? This is a huge plus for those in MLM. Are there some who have successfully integrated the 2? Yes. But they are in the minority (and I’m talking tiny), and I still question whether their priority is selling travel and servicing the client, or recruiting. The ones who are to blame are those at the top of the pyramid. Their obvious priority is YourTravelBiz.com, since they have no travel industry experience, surround themselves with MLM experts and move from one travel debacle to another.
But back to the CRTA training. I cannot say that anything I heard or saw changed my opinion or feelings about YTB. The focus, regardless of what people say, is recruiting. I saw this without even staying for the official network marketing part of the meeting. The “travel” part of the meeting was not about how to sell travel, but focused on the commissions and perks, with a little recruiting thrown in. Does YTB have a place, or niche, in the industry? With changes, yes, I believe that they could fulfill a spot. An entry into the business, which is sadly needed. But it’s doubtful that those changes would be forthcoming.
I would strongly encourage suppliers to attend a CRTA training to see for themselves what YTB is all about. If you come to a different conclusion, so be it. But at least you’ll not be able to say you weren’t warned…
I did sort of feel sorry for the 70% in the room who wouldn’t be around next year… But remember, Directors don’t become Directors from selling travel.
