A Light at the End of the Tunnel?

While YTB ramps up to sell more cruises in a day than have ever been sold in one day on November 8th, one of the leading industry trade journals sheds some additional light on what it is to be YTB.

Arnie Weissmann, Executive Editor at Travel Weekly, wrote a column a few weeks ago about YTB and how they were good for the industry with their fresh blood. Now, after an avalanche of email on the column, Mr. Weissmann is seeing that the fresh blood, may indeed be blood that is being drank at the local YTB revival meeting.

I won't go into it all, but today's column is very telling. Perhaps the last paragraph is the most important. The MLM model will not survive in travel and perhaps YTB ought to concentrate on the 1% of their agents which are decent producers.

As I have said before, we are not opposed to ANYONE coming into the industry that can produce and is actively involved in marketing travel. The issue is when one purchases their way into the business and expects to reap the rewards and perks for $449.00.

PS: We also think that talking to a supplier while on the "throne" and flushing it is a bit tacky as well. That is what mute buttons are for on phones!

So Confusing

I don't want to give the impression that YTB is the only MLM company out there in the travel business. They are probably the largest, and from what I can see the most vocal. They are also publicly traded, so they are also a little more "in front" so to speak.

But, each one of these MLM companies has their own little tweak on the program. They all tout the discounted travel, and more often than not the marvelous compensation package. This package (for most) will never materialize.

Here is a Coastal Vacations "video". It apparently was recorded off of a television by a camcorder so the sound is way off and the clarity not so good, but if you watch, take note of how confusing the compensation program is as well. They are all similar--equally confusing.

Even the Upline Exaggerates!

This is from a YTB Rep that reportedly has a sizable downline. He is the founder of therightmlm.com and this is what he has to say about joining YTB. I will highlight the key points in bold and orange and not worry about the spelling.

We are proving, to the tune of over a billion dollars in
travel sales thus far in 2006, that they will buy from you!!

Not only can you make a great income on the travel commissions. You will also receive two sets of travel agent credentials which will allow you to travel as an insider with perks and courtesies that are reserved for travel professionals!

And when you tell others how they can travel as an insider and save money on there taxes with their own home based business and they Join YOU GET PAID!

Now, I am not sure how large this guy's downline is, but I have to assume it is sizable since he has been in the program for several years and has been quoted in numerous press releases from YTB. Again, the emphasis here is selling the website and the business opportunity (which is not an issue at all--just don't claim to be selling travel). The lure is 2 sets of travel agent credentials (CRTA and CLIA?) and the ability to get paid when you convince others to join. As for the exaggerations--over a billion dollars in travel "thus far" in 2006!

MythBusters! MLM Pricing Advantage--Busted!

I have read all these blogs about how great the pricing is for the MLM companies and so much less expensive than any other venue. So I decided to check it out. Took a look at some airfare to MBJ from BWI on 11/22/07 for 7 nights.

DL953 departing at 705am connecting via ATL on DL683 arriving 113pm
DL682 departing 213pm connecting via ATL on DL 728 arriving 1015pm

Here is what I found:

1. $387.00 (my best pricing)
2. $387.00 (Hotwire)
3. $387.00 (Priceline)
4. $391.96 (Expedia)
5. $394.01 (Orbitz)
6. $396.06 (YTB)
7. $397.96 (Travelocity)

Looks like YTB priced second to last! Now this is not a huge sampling, but I encourage others to check it out and post what you find in the comments.

It seems that at best, the MLM pricing will be equivalent to the other methods. Professional travel agents have known that for a long time. We can always match the Internet, and often times beat it. But when you add our service, the value lies within the professional travel agent, not one that merely rents a web site.

The MLM Attitude Emerges

This post is from a blog for a YTB agent named Regina Osei. She explains how she would hate to do what travel agents do, yet has no problems accepting the perks. Granted, she does indeed claim to be booking travel, but I have my doubts as exaggerated claims are abundant all around! The emphasis in the excerpt is mine.

I've been in this business for about a year and a half. It has been the best experience! I love everything about it. It gives me the opportunity to earn on so many different levels and in so many different ways. And though I do respect the jobs that travel agents do, honestly, I don't want to do what they do. I spent several days recently at the Sandals resorts with several travel agents, and to listen to them talk about their "jobs", I'm just not interested in that for my family. The levels of travel booking that I do for my clients works for me and for them. I enjoy booking group cruises, etc. and I do so, but I wouldn't even want to do that fulltime. I definitely do not want to search for and write airfare tickets, etc. Plus, just earning money via my websites (we have about 7 that produce additional streams of income) while I am sleeping is phenomenal. Lastly, because I also am very engaged in the network marketing side of the business, the perks (bonuses, etc.) more than compensate for my not being a professional travel agent. And yes, I do enjoy being able to work both sides of the business AND enjoy the best of the travel industry perks and benefits as well. I think we have the best of both worlds.

I am going to bet this woman was one of the ones that received under $60 for July!

Vicki Loves Travel Agents?

Well, apparently Vicki Freed's blog has raised some questions from the agents that support Carnival as well as some MLMers. In her blog, (well mostly in the comments, so scroll down) she says that Carnival supports many models of travel agents and that YTB and the MLM model is one of them. The hard questions have remained unanswered. Like "Why are the MLM agent models allowed to get top tier commissions when loyal agents that have supported the supplier for years have to fight to get a lower tier commission?", and more. Take a look at the comments and let me know what you think. Post your own and see what Vicki has to say. She is outstanding at replying and getting back to you!

One part of her comments discussed the enthusiasm of the YTB crowd at a recent show. Well, I say that most people that pay to go to shows (and we ALL do) go with an upbeat attitude and are excited and enthusiastic. After the show, we are ready to conquer the world. Some of that sticks, and some of it dissipates. But I looked at the agenda to the conference YTB held in St. Louis in August, and in looking at the classes, it appears that only 17% of them are devoted to the sale of travel. The document is 4 pages long and very small print, so I have only looked at one page but of the 34 classes offered on that single page, here is the breakdown:

• 23 (67.6%) were devoted to YTB and building the business opportunity, self esteem, downlines, etc.
  
• 2 (5.9%) were a combination of travel and YTB
• 3 (8.8%) were in Spanish and I don't speak it
• 6 (17.6%) were about travel

All but the travel classes were led by YTB directors. These are the men and women at the top of their game (pyramid). The travel classes were led by representatives of what appears to be 4 vendors.

The Flight Plan has all the details. You judge for yourself! Download it and read it and see.

EDIT NOTE: Per a comment, I stand corrected. Vicki Freed was not in attendance at the St. Louis show in August and the agenda of the show that Vicki did attend was more focused on travel sales than the annual convention in August. I have edited this post accordingly.

A Sign of the Times?

The message was found on the home page of a travel site. The message seems very clear to me. As to the Carnival stop sell, I suspect that it is a result of Carnival's unpublished support of the MLM agents which was posted in the comments section on the blog Vicki Loves Travel Agents.

While I understand ANY company's desire for revenue, you always need to look at your business. No offense to anyone in the financial or fast food industries, but when I go to my broker, I expect a certain level of expertise and a certain level of professionalism. I do not expect that level when I go to McDonalds. Maybe the bar is being lowered in terms of Carnival's expectations from their sales force.

We have been specializing in personally-escorted motorcoach tours since 1981! Our full service travel division specializes in cruises, family vacations, and Las Vegas escapes.

What you will find on our site: General information on a few current specials, information about our company and how to contact us. We would be pleased to provide a quote for you.

What you won't find on our site: No automated booking engines, no business opportunities for sale. We believe in providing professional, personalized service to our clients.

Please note that we do not sell Carnival cruises.