A Virtual High Five To Pilgrim Tours

While Pilgrim Tours is a relatively small company specializing in pilgrimages for the past 20 years, in November 2007, they established a policy regarding the card mills and specifically name YTB and Global Travel International. We have alluded to this policy in this blog in the past, but never re-published it.

So, just to be clear, here is one more company that refuses to deal with YTB or GTI and I applaud Pilgrim Tours for their insight and for their commitment to professionalism in the travel industry. While it has taken a while for supplier to come around, they slowly are and I am sure that Pilgrim Tours is pleased to be included with the likes of IATAN, Royal Caribbean Cruise Lines, Perillo Tours, Azamara Cruise Lines, Qantas Vacations, Celebrity Cruise Lines, A Plus Tours, and Norwegian Cruise Lines. Slowly the suppliers are coming around to the realization that doing business with an MLM is bad business. Granted, it is business, but the suppliers are beginning to see that it is not the business they want!  To Pilgrim Tours, I say "THANK YOU!"

Pilgrim is getting an alarming number of calls from prospective travel agents who have purchased memberships and/or travel cards from companies such as YTB, Global Travel International, etc..  They use the company IATA number from the agency in order to get a discount or rebate on their own travel.  We also have travel agencies who encourage clients to do all the research on a tour, choose the tour they want and then call their agency for the reservation.  If the client has already done the research, the agency will then rebate some of the commission back to the client.

Pilgrim's classifies the above situations as unethical practices that undermine the travel agency commission system.  We will not support these practices and discourage honest people from buying into any form of this activity.

Does Pilgrim Pay Referral Commission?
Pilgrim Tours pays commissions to travel agents who refer clients to our product line and help the client through the quotation and booking procedure. Commissions are normally paid only on our Christian Retail Tour Products.  We also give commissions and small group net fares to tour operators and approved CLIA agencies that wish to promote our Christian Tour products.  It is our policy to not give commissions to agencies if the client has first been quoted by a Pilgrim agent.  We appreciate very much the work that professional agents do if they initially deal with clients, but we only pay commission under this condition - no exceptions.  Pilgrim also does not pay commission on clergy or industry discounted fares.

In order to receive commissions from Pilgrim Tours, your agency must be a valid travel agency that is not involved in rebating in any form.  If you are interested in applying for our "Qualified Agency" status, please fill out the form at the following link.  Click Here

YTB Forgot To Give Endless Journey The IATAN Memo

Apparently YTB has not spread the word about the loss of their accreditation with IATAN. Endless Journey Travel is apparently as clueless about YTB as they are about the travel industry in general. And judging from their RTA number, they are a relatively new addition to the YTB ranks. I wonder why YTB is not telling them the whole truth? Please extend warm wishes to the newest member of the D.A.D. And considering you are in Sacramento, CALIFORNIA--you may mow be changing your name to John Doe 79!

You surely must be ignorant and arrogant to think YTB is some illegal pyramid scheme and will simply go away because some within the traditional travel industry wishes so. YTB will continue to train and educate its sales force, and agents and will continue to build relationships with its vendors and customers. The travel industry does not solely belong to self proclaimed overseers, and surely the time has come for these truths to become self evident. I am proud to be network marketing professional and I have earned my CLIA credentials and working on my IATAN, of which several of our agents have already earned. Who do you think is now the #1 re-seller of Carnival Cruise Lines? Those who see a paradigm shift such as that, which YTB represents, have four choices: Ignore Ridicule, Oppose or Embrace. It is clear which you chose.

IATAN Seems To Be The Card Of Choice

Travel Weekly is reporting that Outrigger Resorts will now be requiring an IATAN card upon check in for any industry rates. But for those that are not cardholders, they can take their specialist course and qualify, but they will require references from other suppliers that verify individual productivity.

They are not interested in using a CLIA card as an identifier since it is not automated. I suspect also because of the loopholes afforded amateurs to obtain the card.

According to an Outrigger spokesperson, determining who was qualified at check-in is a problem for Outrigger and many of its competitors. Wonder why?

Kudos to Outrigger. If possible, my Hawaii business lies with them!

Ouch!

On August 3, 2007, Michael Brent sold 16.650 shares of his YTB stock:

3-Aug-07 16,650 YTBLA.OB Sale at $8.48 - $8.48 per share.
(Proceeds of about $141,000)

On October 1, 2008, Michael Brent sold 16, 667 shares of his YTB stock:

1-Oct-08 16,667 YTBLA.OB Sale at $0.60 per share.
(Proceeds of $10,000)

This is the stock of a company that:

• Claims they are poised to take over the travel world
• Is supposedly ranked #26 according to Travel Weekly
• Is facing a $25M lawsuit from the California Attorney General
• Is undergoing an investigation from the Illinois Attorney General
• Has seen a rapid exodus of RTAs and Reps
• Has lost their IATAN accreditation
• Has been "fired" by several vendors
• Has many complaints from the BBB
• Is mired in all sorts of insider deals
• Paid $6M (or maybe it was $8M, or maybe it was $2M) for a foam statue that no one wants
• Encourages deceptive recruiting, or at least looks the other way--Seligman anyone?
• Pays their average RTA slightly more than $100 a year
• Pays their average Rep less than $100 a year
• Collects 74% of their income from recruiting
• Claims they are not a pyramid scheme
  

Hmm..did I forget anything?

Fair And Balanced

Fox News claims they are fair and balanced. I like to think this blog is as well. We present facts, backed up by documentation and we are willing to make corrections when we make an error. Of course there is a great deal of opinion as well.

Speaking of opinion, the publisher of Travel Research Online has a very fair and balanced opinion piece on how the industry has arrived at the place we are today. Certainly the MLMs are an issue and they are called out. But are they the cause of the problem? Not at all.

We have said that the suppliers and associations are the ones that have allowed the problem to get out of hand. We have said that the suppliers and associations are the best suited to fix it.

Mr. Earls tends to agree and in this piece entitled "A State of Disarray", he challenges the industry suppliers, the industry associations and the industry at large to get their act together and police themselves

Uhm...Excuse Me Coach? I Have A Few Questions

NOTE: This post was intended to run on Tuesday, August 5, 2008. But now that the Convention is over, it is still appropriate and I wonder if any Reps or RTAs might have had the gumption to ask some hard questions.

To those that are headed to the Convention later this week and are seriously interested in selling travel, I offer these 14 questions for Coach.

1. Are there any plans to have the Certified Referring Travel Agent Training (CRTA) classes taught by anyone with some certifiable travel experience?
2. What is happening to my clients who are traveling August 6-10 since YTB has shut down the home office to allow all employees to come to St. Louis?
3. Do you feel that $8 million was really necessary for a 3 day centerpiece?
4. Why is the donation of Lady Liberty now in the hands of Beryl-Martin? I thought this was great publicity for YTB.
5. How many RTA websites are there right now in YTB? Kim was unable to figure it out with Nadine Godwin, I figured you might know.
6. Will Dr. Bob Seligman be addressing the convention?
   
7. Is it true that you, Kim, and Scott are the owners of Beryl-Martin Printing?
8. Of the reported 22,000 in attendance, how many Reps and RTAs (not spouses, guests, families and friends) are there?
9. When will we be able to concentrate on selling travel and being recognized as a legitimate company? It is tiring having to defend YTB all the time and Kim said he was working on "legitimizing" YTB last year. How is that coming along?
10. What are your plans for credentials now that IATAN has refused to grant us accreditation and it seems like CLIA is upping the requirments significantly?
11. Are there any plans to offer a more competitive commission split to be comparable to the majority of the host travel agencies in operation?
12. When will our finances be up to snuff to be admitted to one of the Big Board exchanges?
13. What really happened with Bob Dickinson?
14. What really happened with Ted Lindauer?
    

While these are somewhat tongue in cheek, each question does indeed pose a legitimate concern--or at least ought to pose a legitimate concern for anyone who is serious about doing business with YTB.

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!

IATA-2 MLM-0

Seems that IATA is sticking to their guns when they pull someones accreditation. First YTB appealed and the IATA Agency Commissioner told them to get packing. Now it seems the Commissioner has told 10 Travel to not let the door hit them in the ass on the way oput as well.

The more and more I hear of IATA taking a stand on defending their brand!

Bravo IATA!

Another Site Picks On YTB

We have already determined that the MLM crowd does not like Robert FitzPatrick because he speaks opposite of what they have been told. That alone does not make his opinions and arguments invalid.

Last week, FitzPatrick released an interesting analysis on, you guessed it, travel and MLM. As with this blog, FitzPatrick has focused on YTB. As I have said numerous times, it is not YTB in particular, but the MLM model. YTB just bears the brunt of the force due to their size, their braggadocio, their publicly available information, and most likely their exaggerated claims,

As with Peter Stilphin, I completely agree with his assessment. But, here we have a professional that is NOT in the travel industry who is a world wide expert on network marketing and he offers an opinion that is, shall we say less than glowing. Some of the key points Mr. FitzPatrick presents include:

The key issues then are these:

• If the real business is about recruiting, the travel industry has been invaded by a fake travel business.
• If the scheme is an endless chain, nearly all consumers who join the scheme will lose money and the public has been misled by a fake "business opportunity."
• If whatever "travel" revenue the company generates is coming from the agents themselves, then the scheme is merely disguised as a "direct selling" business. It is in reality a pyramid scheme, using travel services, sign-up and website fees as the means for laundering pyramid money transfers.

The answers to most of these questions are clear and verifiable. According to YTB's filings with the SEC, 73% of all its revenue came from the $500 up front and $50 monthly fees. Another 10% came from selling the "agents" marketing materials and courses.

Only 14.5% of YTB's revenue came from commission on travel services that were sold.

Do the agents "sell" travel services to real customers or just buy from themselves? YTB does not disclose this. However, the SEC filings reveal that the mean average commission payment to YTB reps from travel services was only $44 a year. This tiny average payment would make sales to anyone other than themselves or immediate family unprofitable. Much anecdotal evidence also exists that YTB "agents" are in fact just consumers "buying for and from themselves".

Is YTB a viable business opportunity for consumers?

YTB also answers this question with numbers posted on its website, however, as with other MLMs, the data may not be clear to the average consumer. A little analysis reveals the following devastating facts:

• 0.37% of the total number of reps (1 in 300) got over 70% of the total commissions.
• The top 4% (4.037) of the Reps received 96% (95.66) of all Commissions
• The bottom 81% of the chain got no commissions at all.
• The bottom 96% (95.57) received a mean average commission of $13.91 per year or $0.27 cents per week.

When this data is merged with the information that YTB submitted to the SEC in its latest annual report for 2007, it reveals that only 14% of all commissions paid to the reps came from selling travel. All the rest came from enrolling other "agents." The mean average payment to all the sales reps was $310, but only $44 of this came from travel services sales. All the rest came from recruiting. And 96% of all commissions were transferred straight to the tiny group of promoters at the top of the YTB pyramid.

In summary, almost no YTB reps earned any money from selling services and nearly all the commissions that were paid for travel sales were transferred to the top based on YTB's pyramid pay formula - a money trap for consumers.

Pretty much right on the money I would say!

What Is YTB's Favorite Color?

Hint: it's the color of their first quarter financial report which was released yesterday.

Here are the similarities to the annual report filed a little bit ago:

• Website sales and fees account for 79.5% of total revenue
• Travel commissions account for 12.5% (no real surprise there)
• Marketing income is 7%
• Miscellaneous is 1%

Pretty standard stuff.

On the expense side:

• 58.7% of the money earned went to the rep side of the business
• 9% of the money earned went to the travel side of the business --but they sell travel ;) ...really!

A comment that really stood out for me was that the training and marketing income DECREASED 10.5% over the previous year same quarter. Yet the number of RTAs (the guys who need training) INCREASED 67%. As I have been saying, they may offer training, but the adoption rate is dismal. There are currently 138,814 RTAs out there today.

Which brings me to the huge increase in the number of people that are bailing out on YTB. Last year, for the entire year, YTB had 66,910 RTAs quit the program. This is a simple calculation on page 12 of the report. Number of RTAs at the end of 2006 plus the number of websites sold minus the current number of RTAs. That gives you the number that bailed. They lost 5,575 RTAs per month last year!

Let's look at the first quarter of 2008. At the end of the year in 2007, they had 131,065 RTAs in the program. During the first quarter of this year, they added 30,893 (which incidentally is an 8% drop in recruiting from 2007) websites, which should effectively bring them to 161,958. However, they only currently have 138,814 RTAs. That means that in the past three months, 23,144 RTAs have dropped out of YTB. That is 7,714 per month or a 38% INCREASE in drop outs.

My speculation on why?

• Loss of IATA
• Loss of RCCL
• Continued bad publicity from RTAs scamming people
• Lack of qualified travel leadership
• The Olympic debacle
• The 2 Fly Free debacle
• The Piccolo debacle
• name your own debacle

OK--YTB reporters, start your cotton gins! Spin spin spin. Hint--don't try the "well we wanted to lose money and RTAs" line--it did not work when IATAN shot you down a second time, it won't work now.


PS: I forgot to mention that they posted a NET LOSS of $3.5 MILLION.

Eye Am Rilly A Vary Goode Travell Agent.

For months travel agents have been making the argument that these untrained RTA’s are ruining the credibility of our industry. And each and every time this comes up someone starts spouting off about how YTB has Marc Mancini and CLIA and the RTA’s are getting training, blah, blah, blah.

What no one seems to get is that these untrained, uneducated are destroying the reputations of agents everywhere. The consumers and the press don’t know the difference between an RTA and a TTA, so when these stories are reported in the press it makes all of us look bad.

The “agent” who abused the trust of over 60 high school seniors couldn’t even spell the destinations that the cruise was stopping at!

If I were in YTB, I would be embarrassed beyond belief at this point. Do you really believe that you can be successful in the long run with a company that is doing nothing to prevent things like this from happening? And please don’t tell us that YTB is going to make it right by settling up with the students. As long as they allow anyone, “from Yale or Jail” you will continue to have these problems, and it will continue to have a negative impact on your ability to get people to join your downline as well.

Another vendor, APlus Tours, has dropped YTB due to this incident. Are you going to claim that you don't need them either?

Is Hickory A Done Deal?

A little bird just told me that Coach and Scott are meeting with the Executives of Hickory Travel Systems this morning and may be finalizing a deal.

It remains to be seen what form of deal it is. One report was claiming YTB was acquiring Hickory Travel Systems and I heard another that said YTB was looking to utilize some of the technology that Hickory has developed.

My guess is that this may be a shopping trip for a new IATA number. Stay tuned, story developing!

An IATAN Rehash--Let Me Get This Straight

Late yesterday afternoon, I got my daily dose of travel news from Travel Trade where they discussed the failure of YTB's appeal for the return of their IATA number. When I began to really think about this, I have to laugh.

Back in October of 2007, IATAN was THE credential to have according to YTB. It was all over their recruiting material and everyone was looking to have the IATAN card for the free and discounted travel.

November rolls around and YTB gets tossed to the curb by IATAN and Royal Caribbean. The response from YTB is "we don't need no Royal Caribbean or no stinking IATAN."

January 2008 enters the picture and it seems that the provisional license to sell travel in Canada is predicated on having an IATA endorsement. Well all of a sudden, "maybe we do need that stinking IATAN". But that does not seem possible because Scott Tomer ran his mouth off saying that IATAN tossed them because YTB was a competitor of IATAN. So they bought a travel agency. But it seems that they were unaware that the IATA numbers are not necessarily transferable.

February 2008 finds YTB hiring a big gun travel lawyer Al Anolik to plead their case for reinstatement to the Travel Agency Commissioner. Wow, YTB must be beginning to understand that IATAN is kind of a big deal.

Late March and early April, YTB is convinced that if they maybe buy a travel company in the US, like say Hickory Travel Systems, the Travel Agency Commissioner will HAVE to see it their way and give them back their number.

And here we are to April 16th. A no go. It ain't happening. The Commissioner completely held up the original ruling.

So, what was the response from YTB? Well, let me quote Al Anolik:

The decision is actually a victory for YTB. We are using the code and can use it because we got it from ARC. IATA cannot control a YTB in the US that is fully accredited by ARC. We quit using the IATA symbol a long time ago. We are are going to continue business as usual and as for flashing the IATA card. we won't have any IATA symbol on our cards. IATA cannot interfere with our relationship with ARC and if they did, they wil have an antitrust suit.

Wow, so it seems like YTB is back to the "we don't need no stinking IATAN" again! And it seems that Mr. Anolik may have drank the kool aid in the YTB cafeteria because only YTB logic can somehow say that losing a legal challenge is exactly what they wanted. I wonder if that is the tactic they would use if the FTC, SEC, or the IRS came after them?

So what is it guys? Is IATA something you want or not? Seems like you wanted it for recruiting. Seems like you wanted it enough to hire an expensive attorney to go get it for you. Seems like you wanted it enough to buy an agency in Toronto. Seems like you wanted it enough to open negotiations to purchase Hickory. But your attorney says that the denial of the IATA number is really the victory you all sought in the first place.

Wow, that is almost as clear as the compensation plan!

YTB's Appeal To IATA: DENIED

This just in from Travel Weekly. It seems that IATA is one of the few organizations in the industry to stand behind their convictions. YTB has been denied any reinstatement. I suspect that this will drastically impact their Hickory acquisition and quite likely affect their Canadian operations.

April 16, 2008

By Nadine Godwin

YTB Travel Network won assurances that the company can continue to use its IATA numeric code as an ARC-approved agency, but it did not win reinstatement at IATA.

YTB had challenged IATA's termination of the agency before IATA's agency commissioner for the U.S. The commissioner, James Johnstone, found that YTB had "lent, subcontracted to or hired to a third party" its IATA numeric code and that IATA had taken "the appropriate step to enforce its right in the code."

Johnstone cited an IATA exhibit in which YTB told its referring travel agents (RTAs) that their ARC/IATA number identified them "as an industry professional allowing you to become eligible for potential perks, preferred pricing and other courtesies."

On the other hand, the commissioner said there was "no issue" on the matter of YTB's option to continue using the same numeric code as an ARC agency. He cited an IATA memorandum issued on April 10, which stated IATA was not claiming that its termination of YTB's accreditation "results in any impairment with respect to its ARC accreditation."

Therefore, YTB can use its ARC number but not with any reference to IATA, and the agency is no longer eligible for any IATA products or services, said the commissioner.

Also, YTB was directed to immediately cease using the IATA codes, including in connection with any ID or other credentials, and to immediately recall all IDs or credentials that include the IATA code. YTB also was directed to immediately cease using the IATA trademark.

YTB's attorney, Al Anolik, said YTB had already ceased using the IATA trademark on RTA cards and elsewhere.

What Comes With A Hickory Acquisition? Not Too Much.

On April 1, there was a funny April Fool's prank started by a colleague of mine and I picked up on it and posted that YTB was being acquired by Travel Acquisitions Group. A few days later, in a press release, YTB announced that they were seeking a company to purchase. Through some investigation I posted that the intended target was Hickory Travel Systems of Saddle River, NJ.

This will be an interesting acquisition , if it ever takes place and I wonder what YTB would get in the long run. I spoke with a mid-level colleague at Hickory and the word of YTB is spreading like wildfire. While the company will not comment specifically, I was told that on March 25, 2008, Scott Tomer and The Coach spent an entire day in Saddle River behind closed doors. I cannot say it was them with 100% certainty but I was told it was "a guy in a Hawaiian shirt and an older man wearing a YTB polo-type shirt". Toss in the fact that their jet filed and flew a flight plan from St. Louis to Teterboro, NF (6 miles from Saddle Brook) and I think we can all figure it out. Employees were told of a possible acquisition on April 8th, but no one officially named names.

But, Hickory has a long history in the travel industry and is composed of, get this, Traditional Travel Agents. Nervous agents. Agents who are frantically putting resumes out on the steet and actively looking for jobs. These same employees have seen Hickory picked apart over the years and recently lost Travel Leaders to TAG (ironic that the April Fool's prank involved TAG as well huh?).

I am not so sure how much is actually left of Hickory, but it seems that YTB may be circling the skies like a vulture to pick up what they can. But, if the employees are actively seeking new employment, what is the attraction? I know YTB is has tried to purchase their IATA accreditation by buying the small Ontario travel agency. Maybe this is just upping the ante? Maybe the loss of IATA accreditation was more of a big deal than they cared to admit?

But, I woudl hope that IATA is a bit smarter than that. After the accreditation does not automatically go along with the change in ownership. Hopefully YTB discovered this in their due diligence (which seems lacking to me considering the fiasco in China), or they likely will be buying an asset with few employees with a travel background and not much else. Just picture it now--it will be a clone of the existing HQ. A big building with very few years of combined travel experience.

YTB and IATAN (again)

The other day, Travel Weekly ran a column about YTB fighting with IATA to get their cancellation rescinded. Now after all the posturing and all of the RTAs and Reps screaming that YTB does not need IATAN and so forth, it seems that management has a different view.

I suspect this about face has a lot to do with their provisional certifications in British Columbia and Ontario. But I also have to question how receptive IATA will be to reinstatement when you hear things such as this:

After labeling the IATAN program "the biggest card mill in the world," YTB said IATA's refusal to let the agency attempt to change practices in order to regain the IATA endorsement was an indication that IATA was trying to eliminate YTB as competition "for being a perceived threat to [IATAN's] monopoly in the travel card industry."

As one MLMer might say, LOL too funny. Now YTB thinks that their issuing their IATAN number to 140,000 people that paid them $449 was not the issue but that IATA felt they were a threat to the existence of the IATAN card. Are the executives at YTB drinking the Kool Aid too? I thought they just served it!

Here is a tip, when you are looking to affect change and you are not in control of it; it is wise to not piss off those who are in a position to affect that change.

So, why is IATA endorsement now all of a sudden such a big deal? Is Canada onto the scheme?

PS: Blog note--yesterday was indeed April 1 and for those TTAs and MLMers that believed the story about TAG acquiring YTB, it was false. The story was created by a colleague who will go unnamed and I applaud him for his creativity and sense of humor. Secondly, I am not ignoring the 10K--I am reading it. Not the most exciting bathroom reading material, but there is some interesting insight to be gained. Stay tuned. After all it is like 125 pages!

Enough Of The Justification

Back in December, I posted 21 things that I still had not learned about YTB. Shortly thereafter, a Coach's Corner Member who hosts another blog, embarked on a mission to answer my questions on a one by one basis. What began as a legitimate effort has morphed into a daily personal attack. When one can no longer adequately debate an issue, this is typically the response. When I began this post, he was up to #13 and had provided no real answers; most are nothing more than regurgitations of previous "answers". Now it seems he has migrated to the latest "get rich from YTB in 30 days program". The blogger notes the lack of comments and then takes that as an indication of a job well done. Not so much.

Once you cut through the fluff, the answers (or lack of them) become evident Here is a sampling:

• I asked about the need for a 12 page compensation plan. He whittled it down to 4 pages and said that the compensation plans of Vicki Freed, Microsoft and BellSouth were also lengthy documents. Well, I would hope so, they are profitable companies and the average employee earns more than the $297 YTB pays their reps on an annual basis. However, he did not address that the document is carefully worded for legal compliance, yet craftily worded to create confusion to those that might fall under its guises. Smoke and mirrors.
• I asked about the $226 million in verified sales. The response was a series of snippets from YTB justifying and legitimizing the numbers. There was no real documentation provided and the closest he came was a quote from Vicki Freed saying that YTB had sold "millions" with Carnival. Sales is a very easy number to come up with for ANY organization. Well, easy for all but one.
• I asked about the de-emphasis on training at the annual convention. The response was he could have spent three days training for travel. Perhaps. But he also could have spent three weeks training on recruiting methods. The travel training classes were, by far, the minority. I did not count them, but if they amounted to more than 25%, I would be surprised.
• I asked how RTAs can collectively pay $79 million into a program and only receive $9.3 million in return on their investment. Again, there was no real answer other than to say that commissions are not realized until travel is fulfilled. Well I am glad that his three year industry veteran status is paying off. Are we to assume them that there is at least $69 million in outstanding commissions? Back calculate that number and you get $115 million owed to YTB. Translated that means YTB ought to be showing sales of $1.15 BILLION this year. More smoke and mirrors.
• I asked about the sale of stock by the executives. The answer was that executives of all companies sell stock. He even referenced some sales by Sabre and Royal Caribbean executives. The difference is that the executives of those companies did not sell the majority of their positions and they were not the founders! The stock has gone from $9.50 to under a dollar in 6 months!
• I questioned the competence of the YTB employees during the cruise sale. The answer was that there was some undisclosed information I needed to provide to unlock the travel mind at YTB. Apparently, they are not allowed to talk unless they are given an active RTA number. But there is a big discrepancy if that number is to be public knowledge or top secret information. Regardless, YTB encouraged people to call to book cruises on one day in November and when they did, they likely were not able to be helped.
• I asked why when Reps or RTAs are questioned or challenged, a standard response is, "you just don't get it"? Well, his response was essentially, "you just don't get it" followed quickly by, "it will come in time". Another top shelf answer.
• I asked about how RCCL and IATAN were "misunderstandings". This answer really baffled me. It was the story of someone locking their keys in a dark house. Then there was discussion about Bermuda, Bahamas, Guam and American Samoa followed by a comment that IATAN was unimportant as was Royal Caribbean. I think that remains to be seen.
• I asked about how airline tickets were booked. More smoke and mirrors. The answer referred back to the dubious Power List once again which showed some ARC sales, but at one point, it was explained that there was another company included on the power list under YTB that should not have been included. Must have been an errant glean. I asked a simple question--whose ARC report do the air transactions get reported on and there was no answer supplied.

There are quite a few more questions to go, but based on the responses so far, I do not hold out much hope for any real type of explanation--so little that I probably will not even bother to check back. I certainly am not entitled to any explanations either. But I do have the right to ask the questions.

Since I refute all of his "answers" as provided; I will likely keep asking questions. Smoke and Mirrors is all that seems to come from this company and their minions--I wonder if that is on the training schedule for this year's convention?

As to the other blog..well he can continue with the circuitous answers, oddball stories and the errant plug for some motivational guru. There will be no dialogue of any meaning on that blog simply because the author has exercised his right to moderate comments and delete those that do not further or agree with his his position. Have there been errors on this blog? Of course and they have been corrected. Have any comments been deleted? Yes--two! One when a RTA made 30 identical comments in succession (all were deleted except the first one) and the other was when a "director" asked me to remove the RTA number of a member of his downline. I am not afraid of the criticism (as some appear to be) and the comments will remain open and unmoderated. Freedom of speech is a good thing.

In closing, just a comment to the RTAs and Reps that are reading this. Put all of the BS aside and ask yourself why you got into this (or any) business? Is it safe to assume it is to make some money? The next question you need to ask yourself is simple: "Are you?" Look at the percentages! They don't lie.

I don't think so, and in the meantime the efforts of YTB, TraVerus, GTI and the others are doing nothing but dragging an industry down while the top pyramid squatters enjoy the fruits of your labors! Think about it!

IATAN Misunderstanding: RESOLVED!

Apparently the misunderstanding between IATAN and YTB has been resolved! It just took some time. From the YTB Biz Report:

NEW CLIA NUMBER: 00632144
YTB has obtained a new CLIA number for ALL travel reservations. RTAs who book travel directly with a vendor MUST use the new CLIA number as it has replaced the old number in the suppliers' database. The new CLIA number is 00632144. Some suppliers may not accept cards with the old number, but may accept a copy of the agency CLIA certificate in conjunction with your ID card. Please contact RTA Support for the agency CLIA certificate to be faxed directly to the supplier. This certificate is available ONLY to suppliers and must be sent from the Home Office.

Seems that CLIA stuck to their policy of issuing a new number for companies that have had their IATAN number revoked. So it looks like there was no misunderstanding at all. YTB apparently violated the IATAN regulations that cover the "improper lending, subcontracting or hiring to a third party of an IATA numeric code by agencies." their number. And now, that number is gone for good.

I am glad someone in the industry has a spine!