Travel Agent Show Recap

Earlier this week, I had the opportunity to attend and exhibit at the Baltimore Home Based Travel Agent Show & Conference. All in all it was a good show and some good quality vendors. I was disappointed that Denyse and I did not connect as I would have loved to hear her impression of my challenge to her.

I asked Denyse to simply approach a variety of vendors and without identifying her host, just begin a conversation about YTB. I did, and the result was as expected--they feel YTB is a necessary evil. (Those are my words and not theirs) Many of the smaller niche suppliers were unaware of YTB.

I spoke with many YTB people and many are very happy with the program, but there were also many there whose purpose was to find a new host. I know for a fact that 4 RTAs signed up with Travel Planners at the show. One RTA that I had had a very contentious email fight several months back, actually hugged me and said I was right all along and she was done with YTB and her four friends who were in YTB are going to be getting out as well. To be honest, as she was coming up to me, I was not sure what to expect and hoping for a kick to my good knee! To Nia, if you are reading this--thanks for your honesty and for the hug. For the record, I do not hug and kiss men as some others may.

I did not see any YTB Police presence. If they were there, they were well undercover and likely not doing their job. There were no green t-shirts, and at the travel events (classes, meal functions, trade show) there was no recruiting. But up near Einsteins Bagels, a Rep was running what amounted to a three card monte game. He had his laptop open and was showing the presentations--he was surrounded by other Reps and RTAs all hanging on his word and agreeing that it was the best investment anyone could make, etc. Then he offered to to pay for a CLIA membership to anyone that signed up under him before the end of the show. Granted, this was not at the show technically, but it was in a high traffic area where those attending the show (and the NeoCon conference as well) would pass to get to the classrooms and ballrooms.

Which brings me to the point I made yesterday about the huge loophole for CLIA and their membership. This YTB Rep was offering to pay $399 for a membership because he earned much more from having the downline. The new RTA then needs no training, no enrollments in the ACC or MCC program to obtain the identification card. This loophole will not work in a SOT state (MD, VA, DC, NJ, and DE are not). CLIA acknowledged this loophole but felt that few RTAs would pay the additional $399 to become members.

Let's take a look at getting a CLIA card the right way through YTB, the loophole way, and Monte's way:

Option 1: Attend FCT at a cost of $149. Take a CLIA exam online at a cost of $30. Enroll in the ACC or MCC program at $65. Apply for the identification card at $49. Total cost is $293.00. Now keep in mind, in order to maintain this credential, you need to complete the ACC or MCC program which include numerous courses (additional money), numerous ship inspections at your expense, several personal sailings at your expense, and actually selling. Without knowing the details, the cost of these extras is probably close to $2500 at a minimum.

Option 2: If you are in a non SOT state, open a business checking account and pay CLIA $399 for an agency membership. Apply for the identification card at $29--it's a reduced price for the first two cards. Total cost is $428. Yes it is more, but there are zero requirements at this point. Yes you need to renew it annually, but renewals are discounted. And if you are in it for the perks (as most are) one reduced rate sailing would more than pay for the membership and the card. And if the ACC requirements are $2500 you can renew CLIA for nearly 7 years!

Option 3: Let Monte pay your $399 and you fork over the $29 for a card. Total cost $29

I had the pleasure of overhearing many of the questions being lobbed at CLIA at their booth and one I heard a lot was, "What forms do I need to fill out to get the free cruises/discounts?"  No inquiry on the requirements, what CLIA does, the training, the changes. Mostly about how to get the perks. A Traverus member even argued with the CLIA representative that he indeed did have a CTA because he bought the Traverus website.  I am still at a loss why The Travel Institute allows that to go unchecked. There was another argument from a current CLIA cardholder that was very upset about the production requirement for her to renew the card through YTB. The end result was she was told to "suck it up and sell some cruises".

CLIA Close This Loophole

It was just brought to my attention that CLIA has a gaping loophole in their new requirements for the identification card.  This is the policy for 2009 and the bold emphasis is mine:

Please remember, prior to submitting your application for a 2009 CLIA photo ID card, the following qualification requirements must be met:

1. The individual agent or agency management must be affiliated with an active CLIA travel agency holding 2009 membership. Please encourage your travel agency to join or renew their CLIA membership early to avoid any delays in your application processing.

2. ID Card applicants will be required to complete and pass the exam for at least one annual recurrent CLIA live training seminar or CLIA online training program not previously submitted prior to applying for their 2009 cards.

3. 2009 ID Card applicants are required to be enrolled in, or to have achieved a designation (ACC, MCC, ECC, ECCS) in CLIA’s Cruise Counselor Certification Program.

4. In recognition of the owners and managers of CLIA member travel agencies who manage the agency business but are not necessarily front-line sellers of travel, each CLIA Travel Agency is entitled to a management allocation of no more than four CLIA ID Cards for which the above Certification qualification is not required although annual CLIA recurrent training is necessary. Promotional codes to facilitate this management allotment are available to CLIA travel agency management via e-mail confirmation with online membership renewals and within the 2009 CLIA membership kit sent to the agency upon membership renewal.

As this relates to YTB, they have "upwards of 117,000" independent business owners that would qualify according to point 4 above. So for $399, any RTA can join CLIA as an "agency" and receive 4 identification cards.

Since YTB claims that $149 will get you CLIA Application APPROVAL, I wonder if they are not indeed subsidizing this.** As they have lost the ability to market the perks (IATAN, production requirements, and the new CLIA requirements), perhaps they made a business decision to move the training online behind a firewall, charge $149 for it (although once production costs have been recovered there is no real cost), and then subsidize the balance of a CLIA membership (not an ID card) for the RTAs that take the class.

** YTB Corporate is not subsidizing this, but I do know for a fact that some resourceful Reps are indeed doing it. From the HBTA show this week, a Rep was holding a "recruitment session" outside the Einstein Bagels kiosk at the Convention Center--he was not recruiting on the floor or approaching anyone, but like a 3 Card Monte game on the street corner there was enough buzz to generate a crowd. Well sure enough, he was offering to pay anyone "full CLIA dues" to get the ID card if they signed up with him before the end of the show. More details on the show to come!

YTB's New Presentation

YTB launched a new presentation on all of their marketing sites last week. I watched it and it is a great presentation and I suspect that it will lure in a lot of people. They touched the hot spots--failing economy, bank failures, job losses, etc.

They showed a graphic of an upswinging stock chart--not sure whose it was.

They featured a lot of the Royal Caribbean ships in the video as well. Has there been a change since Kim's demonstration of tap dancing? Does the new marketing guy (who apparently made this video) realize that YTB cannot sell them?

Absent was all of the promise of riches and perks which is a good thing and they really did focus on selling travel. Now if they might be a little bit more forthcoming and let the prospect know how much they could earn it would be better. There was no mention of recruiting, but there is another video highlighting that--just click on the "Take A Look At YTB" link.

They also touted the $226M and $414M in travel and they said that those numbers represented travel sold "through their websites". And we know that is not true because according to Travel Weekly, the RTAs (both personally and through their websites) only sold $211M last year.

But it is another step in the right direction. Did it go far enough to call off the dogs that are suing them? Doubtful. I see this like a rapist that is caught red handed and now before trial claims that becasue he promises to not do it again and has not done it for a while he should be set free.

What do you think? Go to www.ytb.com and click on "Company Presentation".  Let's discuss!

A Contradiction

I keep reading about all the fortunes to be made with MLM and travel. Even the comments in yesterday's post brought out claims of $100K (revised down to $75K) worth of travel sold by an RTA.  Despite what the public record shows, it seems everyone is making tens of thousands of dollars each month. If this is the case, why is it that these same people all seem to favor Barack Obama in the upcoming election? If you look at the two tax plans, the folks in the MLMs should be supporting McCain.

Look at this chart from the Washington Post comparing the two.

Unless, the claims might not be as true as they say. Makes one wonder!

Travel Weekly Virtual Summit

Well there was a recap posted on this blog. I know that there were many people on the call, so let's discuss. Did Kim do a good job? Was he honest? Did it resolve any of the "misconceptions"?

If you missed it, the talk is archived here. But if that does not work, try this link and navigate to the Auditorium and then click on the white panels on the stage to get to the last one.

Let's discuss in the comments!

Did CLIA Sell Out? Probably Not!

NOTE: The title has been changed, and this morning I received a response from Jim Smith, CTIE, Director of Marketing for CLIA who offered the following:

Contrary to what was posted on your blog and for the record - when it comes to CLIA certification, membership and all related programs - the rules are the rules for everyone. There are no exceptions.

Jim Smith, CTIE

I thank CLIA for clearing that up, but now I direct my attention to YTB and the misinformation they presented in their Travel Compass.

Being in Washington, DC, you get used to politicians sliding in a little pork for their constituents. I was not expecting it from CLIA however.

According to the YTB Travel Compass (10/23/08) where they overview the FCT training program they slipped and showed a little pork. Apparently, for people that want to get a CLIA card without bothering with all of the pesky requirements like selling cruises, they can do it through YTB for $149--unless you are in California.

The industry praised CLIA on upping their requirments, but now I wonder what the reaction will be when they see this? I mean, it may almost be less expensive to join YTB and pay the $149 to watch the FCT Video and get your credentials than to bother with selling cabins.

And while I felt that the FCT was a small step in the right direction for YTB, apparently it was merely some more smoke and mirrors to grant the perks that they use to sell the program. Now, when I join YTB for $449.90, I get an Affiliate Card and 60%. But by paying then an additional $149, I can get the RTA card that they claim is so valuable, can call myself a Referring Travel Agent, and not have ANY production requirements. As an added bonus, they will throw in a CLIA Card.

I have a message into Terry Dale as this is being posted to verify if this is indeed true, or merely another round of misinformation coming from YTB!

WHAT ARE THE FIRST CLASS BENEFITS I WILL RECEIVE?
There are many travel business advantages given to you upon completion of FCT. They include a new commission structure for the RTA (RTAs receive 70% of the travel commissions paid to YTB Travel Network), direct relationships with vendors, group booking advantages, access to enhanced features in the Travel Portal, CLIA application approval (except in California where production requirements must be met) and more.

and

REFERRING TRAVEL AGENT (RTA): A Referring Travel Agent is an Affiliate who has enrolled, paid for, and completed a First Class Training. An RTA who has accomplished this will receive 70% of the travel commissions paid to YTBTN for travel booked and completed by the RTA's customers and may apply for the "RTA" credential (no production requirements are necessary to reach the RTA designation).

Traveling Mom Has Traveled On

Who knows how long this will stay up on her blog, but it appears that she does not like YTB messing with the way she does business. She has moved on now and apparently YTB is no longer the best thing out there. I wonder what that one recruit she landed thinks?

She now blames Firemedic for the problems and states that she does not understand why YTB is hassling her becasue she "is not making any money"

I need a trip I book it with somebody. Don't need hassle in my life right now. I am an independent person I don't like being told what to do never have especially if I am talking up your business and putting it in good light it is not making me rich. I am so turned off right now and I can't see how I am going to get back into this business because I am still angry about the way that stuff went down about my blog. Call me one week about something and then wait a week and a half later to call me about the same stuff that was on their when you call me the first time. If it was a problem why did you not mention it then. I know why because those reps read NOMLM and SCAM.COM and thanks Firemedic for putting me out there with NOMLM because he found my blog through you who suppose to be for the company. I just had to say my peace now I can move on.