Monday, December 31, 2007

Anything Special Happen to YOU This Year?

I've been doing a lot of thinking and reflecting this week while up in Pittsburgh about this past year. I can’t say it’s been an easy year, there have been many challenges this year, and after considerable reflection, I think “challenging” is a very appropriate word when describing my experience with YTB this year. To see and hear all the negativity concerning a company I admire, respect, and love the way I do, has been very difficult. Part of my struggle has been between my heart and my head. My heart tells me that I should be lashing out to defend all the negativity. My head and logic however tells me not only would lashing and mud slinging be of little use, but it’s not the proper way to fight ignorance. “Ignorance” is another choice word for me this year, and there is a difference between ignorance and stupidity. There are a lot of people whom I’ve come to know who are extremely intelligent, but merely uneducated about our particular business model. I also find that much of what YTB has done in a positive light has either been “ignored” or taken completely out of context.

Network Marketing or MLM in general has a stigma associated with it for a lot of people. There are plenty of broad and liberal strokes used to generalize MLM. For some, it’s visions of easy money. For others, it’s loosing thousands of dollars and being stuck with pile of product in your garage that you’ll never use. Others are convinced that in order to make it big, you have to hit up family and friends. Of course, they will all tell you “NO” because they all know someone who’s died in a cult like the
“Peoples Temple” and don’t want to drink the Kool-Aid.

Any look or consideration of treating this model like any other traditional business is completely foreign to most.

That’s not to say that there have not been considerable advancements with YTB in technology, operations, and recognition that have really put YTB on the map this year. There are plenty of people out there who believe that the recognition we've received; especially in the last quarter of 2007 have been the wrong type of recognition. Recognition is recognition, and I have to site a
quote in Travel Weekly back to the beginning of the year by Coach, when he commented about all the critics out there who think YTB is nothing but a card mill and/or pyramid scheme.

"You beat that by proving yourself. We just keep doing the right thing."

I've seen throughout this year, YTB doing the right thing. A press
release was posted a few weeks ago commenting on some of the advancements we’ve made. Gone are the days when everyone was talking about YTB filing for bankruptcy, and we now have total revenue for the nine months ended September 30, 2007 of $95.9 million. (For those of us smart enough to invest in company stock by the way now have 3 times the amount of shares.) Gone are the days of having nobody except “our own” quoting how much travel we actually book thanks to Travel Weekly ranking us 35th largest travel agencies overall for 2006. Gone are the days of not making any impact in the industry after having YTB International President, J. Kim Sorensen, named by Travel Weekly as one of the 33 most influential people in the travel industry. Gone are the days of just a recruiting machine with our "sail-a-thon," booking more than 12,000 passengers in less than 24 hours. Gone are the days that we don’t have any training available for our RTA’s when we rolled out "YTB E-Campus", designed by Dr. Marc Mancini, one of the travel industry's most highly respected speakers, educators and consultants. I would also add gone are the days of YTB Rep’s and RTA’s running around unchecked and unaccountable with our membership to the DSA and a code of ethics.

Most who oppose our company will readily bring up a vendor or two that are now gone, namely,
Royal Caribbean and industry Accreditation. To put those events into perspective, I think we might need to look ahead into 2008. While I don’t have any type of crystal ball in front of me, there have been policies, procedures, expansions, and technologies put in place that just may shed some new light on how poor that move really was back in October. YTB will require travel booking production before issuing a credentials card. (RTA or CLIA) YTB agrees that card mills (companies that sell credential cards with a minimum of any professional commitment or training,) are a problem in the travel industry, and standards must be upheld. Among those standards emphasized by YTB:

· A comprehensive, travel-specific education and training program to ensure the professionalism;
· Encourage travel suppliers to make industry perks available based on agent productivity;
· Avoid issuing agent ID cards that are designed to mislead travel suppliers;
· Incentivize agents to take additional training from associations and travel suppliers for further professional growth;
· Establish a policy that agents should not attempt to solicit or recruit at industry functions or FAM trips;
· Follow all compliance guidelines for direct sales of the Direct Selling Association;
· Focus on generating travel commissions through a significant volume of travel product sales;

I also have to wonder what the effects of our expansion into Canada and Caribbean Islands Q1 2008 will do to increase Travel Sales. YTB has double its production in both RTA web site sales from 60K to over 135K in 2007. YTB has already doubled our Travel Commission by the third quarter from $7 million in all of 2006 to $14 Million as of September, and doubled our gross sales from $226 to $550 million. (By the way, $550 Million should place YTB in the Top 20 overall for the Travel Weekly 2007 Power List.) And for those that are concerned about how YTB “gleans” numbers from suppliers to “validate” our sales numbers; that will be taken care of in March when our
SAP NetWeaver® technology platform goes live as the software solution best able to support the company's growth strategy.

There have been many twists, turns, and surprises concerning YTB in 2007. I firmly believe that YTB shocked the Travel Industry with our ranking in Travel Weekly, while at the same time Royal Caribbean shocked us. Of course both events pale in comparison when you take into account that John Frenaye and Doug Bauknight consider each other friends. Yet, the world hasn’t stopped or come to an end as we move into 2008. YTB may never overcome ignorance and some who drink the pyramid and card mill Kool-Aid, and that’s their choice. We may also never be able to own up to the high standards of those who have come before in the Travel Industry, and that’s our choice. If there is one thing I’ve learned in my years with YTB (now finishing up my third year) it’s this. Everyone has their own perspective about who YTB is and what YTB does. My job isn’t to convince anyone, it’s only to inform and educate. The choices you as a critic or contributor make based on this information are yours.

One last word comes to mind concerning 2007 while we move into 2008 and that word is “
resolve”. Now that YTB is on the map thanks to all the attention we’ve gotten from critics and contributors alike, 2008 should be another defining year because of YTB’s resolve to do keep doing the right things. I once heard a very wise man state something many years ago. I’ve run into him since several times and he keeps reminding me…

"If it aint true, don't say it.

If it aint right, don't do it" ~ Coach

Thank you all who have been reading this year…I’ve truly enjoyed being able to share with all of you and it’s been a real honor to have so many from both sides of the fence both visit and comment.



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Tuesday, December 25, 2007

Look What Santa Brought Me!!!!

I must have been a very good boy this year...Santa just brought me a brand new laptop! It's amazing how Santa was able to pull this off at the last minute. I didn't find out till yesterday that my old laptop was basically toast. (Motherboard and CPU died.) So we are back in business just as soon as I get my old information off the old laptop hard drive and on to this new one.

Here's to YOU getting everything you wanted this Christmas!

Thank You Santa!

PS to John Frenaye - You got your wish...Game on for 2008!

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Saturday, December 22, 2007

The Gift...

My kids are out of school for the Christmas Break. I had taken them to McDonald’s yesterday afternoon to run off some steam, and took the laptop with me to finish up on very comical Press Release type spoof on Coach showing up at the St. Louis Rams vs. Pittsburgh Steelers game on Thursday night. For those of you who don’t know, Coach grew up just outside of Pittsburgh on a tomato farm and while he does own season tickets to the St. Louis Rams, he is still a die hard Steelers fan at heart.

Thursday night while watching the game myself on NFL Network, the cameras panned the crowd to show all the Steelers faithful who showed up at the game. One of the camera shots was in fact Coach, front row and center with his Steelers garb. Part of my spoof was that he was going to send our
Pro Bowl Players to Honolulu, Hawaii, via our Two Fly Free program. While nobody was actually interviewed I did quote Coach as saying “I’m just so proud of these young men, I can hardly stand it.” (For those that know him the way I do, you know that’s exactly what he would say!)

I had other quotes from Coach such as tying his Tomato farming into how hard these Pro Bowl Players worked to get where they are. One stated, “You start the season during Training Camp, and you work hard, and you work hard and you don’t realize what you’re laying the ground work for.” I went on to spoof, “Now these fine young men are enjoying the fruits of their labor with a free trip to Hawaii…WOW!” (Is that not Coach?!)

So where is this gem? It’s still in my laptop and I don’t know if I’m going to be able to get it out. I came home ready to post it, and when I opened the laptop up, it wouldn’t boot up. My right arm has just been amputated and I don’t know if I’m going to be able to get it back. I’m sure it will, but the timing of it going down NOW will extend how long it will take for me to get it back up.

The family is heading up to Pittsburgh today for a week with my side of the family on a new piece of property they just bought. Some 30 acres of farm land by the Airport complete with a Gator, (A John Deer not the animal.) a few chickens, a horse and Lama. Yes, we are driving, as we do every Christmas due to all the presents and luggage that needs to be lugged up there. I might be able to work on it Sunday or take it to the
Geek Squad for service while there but you’ve got this holiday right in the middle of the week, that I know they won’t be working on my baby no matter how important this problem is to me.

By the way…my wife seems to feel that I’m over reacting and I need to take a break. For the record, I would be just as upset if she went down.

In closing…I would like to share the topic of THIS post finally.

A few weeks ago, John Frenaye and I were exchanging e-mails on a topic I can’t recall. (Nor can bring up since it’s saved on my broken computer.) During the exchange, John had mentioned that the next time he’s in Atlanta we should hook up for some drinks. I responded with the fact that I would love too however, alcohol has not been part of my life for some 18 years now. I’ve been clean and sober since October 15, 1989. That however, would not prevent me from having a drink with him, just as long as he didn’t mind my new drink of choice.

I knew this refreshment made quite an impression on him, and I’m surprised actually that he hasn’t written a piece on it for syndication on MSNBC yet. (No LA Times or Chicago Tribune for me?) However, yesterday, after returning home with the kids, I found a small box at the front door via the postal service. It was from none other than John Frenaye?! After discussing our options, we decided not to call the boom squad, but did remove the children from the room before opening this box.

Much to my delight and amusement, it was a Christmas card from the Frenaye’s with a small gift inside.

My drink of choice,
Kool-Aid!

I wish to extend my sincere thanks and appreciation to the entire Frenaye family for this kind and thoughtful gift during this season of giving.

Way too funny! Yet very appropriate!

Merry Christmas!



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Thursday, December 20, 2007

Things That Make You Go "Hummmmm"

I posed the question in my last post as to how YTB ends up "costing suppliers money". I've since found out that the problem is that YTB does not give suppliers their money's worth. Which I would consider constitutes some sort of monetary investment into YTB. Either way, there is a very large outcry in the Travel Agent Community that YTB is paid top commissions from suppliers for simply "referring" people to a web site. Many smaller Agencies across the country simply can not produce the volume that 136,000 collective RTA's produce and they feel it extremely unfair that we as an individual YTB RTA producing a small fraction of what they produce, are paid several commission points higher than they are.

Personally, I will freely admit that I would be upset as well. I've actually been on the "short end of the stick" in another industry as a Regional Manager, and simply could not compete with one or two of the giants in that particular industry. In order to get the business, I either had to provide some sort of price match, reducing my margin of profit, or create a level of service to my clients that they felt warranted the extra cost to them.

In both cases, profit margins are created based on volume. While I was able to move our buying levels up several levels with my former company, I was never able to reach the highest levels these giants reached based on the product I and my sales team were able to move. With YTB, I've noticed that most all of the supplier commissions have actually increased over the years, based on quotas and the volume of product YTB has been able to achieve as our level of RTA's increase.

Bottom line is this: YTB has EARNED those commissions. As a company, YTB books a ton of travel with these suppliers.

In addition, YTB does not receive any type of co-op dollars for advertising with any of the suppliers we work with. Many suppliers such as Sandals will help defer advertising costs to an Agency to help them promote their particular product. This type of investment works well with many Agencies and builds Agent loyalty to actually sell supplier product and services. If you were to ask what type of return on this investment a supplier would expect, I wouldn't have the first clue, honestly. Any risk of loosing money on such an investment with YTB is none existent with our model however.

We're all familiar with the Roaming Gnome right? How do you think everyone knows about this goofy munchkin? Because Travelocity pays millions in print, TV, and radio advertising each year to put that character in front of you. I've heard all kinds of numbers as to just how much Travelocity spends per day or per year, and while it's in the multiple millions, it's unimportant exactly how much. It has been stated that companies like Travelocity, (Orbitz, Expedia, Priceline.com) spend at least 60% of the revenue they generate in commissions, back into advertising to acquire more travel customers.

Back in 2005, Priceline.com came to YTB and offered to pay us a commission on everything we booked with them. Now why would they offer to pay a bunch of untrained, unqualified, unregulated bunch of Yahoo's in YTB commission instead of relying on someone like William Shatner?

The answer is simple, they don't pay YTB until after the travel has been sold and therefore control their cost. Priceline pays nothing for our "word of mouth" advertising, and 100% of the money paid to YTB is for actual product sold. You can't guarantee that type of return with any other form of advertising. Not even to Captain Kirk.

In the background during this time, WorldChoice also partnered with YTB for Hotels. (A division of Travelocity) When the contract was up with Priceline.com a year later and it was time to renew, a bidding war irrupted between the two company's as to who would be the "default vendor" of choice. Worldchoice ultimately won out the bid and YTB's relationship with them has been stronger than ever since winning the bid.

Suppliers and vendors pay no advertising, co-op dollars or marketing for YTB to sell their product, paying only for what is actually booked and consumed. But they're being told they aren't getting their money's worth?

I've been given examples from the other side, either through comments or personal e-mails why YTB paying these top commissions to us doesn't work. John gave an example of the nonexistent gas jockeys who use to pump gas. The majority of the lions share was paid from actual gas they use to pump. Or Geico paying local agents a small percentage of the commission for insurance for policies made on line.

John also gave a very good example about Sandals who offers an affiliate program. The local Bait N Tackle shop can put a Sandals Banner on their site. If a Bait N Tackle client clicks on the banner, it tags the source and the booking is handled by Unique. Just like YTB. The difference is that the Bait N Tackle Shop gets (and he's going on memory here so it may not be exact) 1% of the commissionable rate. THAT is the difference.

Now to be fair, I think I first stated that this next quote came from John when we first met here on my Blog. He has since told me that this was not his comment. This statement does however happen to be thrown up in our face by many a "Travel Agent".

"Why would I want to be YTB to earn 60% commission of 13%, when I now earn 80% of 16% and higher? Stupid. Ya'll keep drinking your Kool-Aid."

See how that works? They tease that we only make 60% of the commission, while they make 80% when it services them. But complain that it's not fair we make that commission and we don't deserve it because we don't service our customers the way they do. It's one of those "Catch 22" comments I find all too often from those that oppose YTB or MLM in general.

Maybe the Bait N Tackle shop should leverage itself and become an RTA with YTB? It's not the 80% these Professional get, but it's a far cry better than 1%.

Just part of the things that make you go "Hmmmmm".


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Tuesday, December 18, 2007

How To "Spin" a FAM...

I've gotten plenty of calls, e-mails, and a few comments on my Blog about John Frenaye's latest posts with claims that YTB is all about industry perks. While I can understand why he's upset about this, and to a point he's rightfully upset with us about this issue. It's been a closely guarded secret in the industry for decades and for a company like YTB to announce to the world how the industry works is upsetting.

He's even gone as far as directing us to a couple of presentations (found here and here) that explain how FAM's work and what we as "Insiders" can take advantage of. While I personally don't use these presentations, I've known about them for quite some time and I've even had them forwarded to me on several occasions for my review.

I'm going to attempt to be as far and as partial as I can about this issue because I happen to like John and we've developed a good rapport even if our introductions to each other were on totally opposite sides. I also happen to believe that to a certain extent he has a right to be upset. What we are exposing as a company has been closely guarded by the Traditional Industry and it's very unsettling to have anyone divulge insider secrets such as these.

I also believe his positioning that YTB and these presentations about the FAM's and perks are highly exaggerated. In both presentations, the presenters express what FAM's are which are as follows:

"Many resort areas, cities, tourism boards, properties and vendors offer deeply discounted trips to Travel Agents to Familiarize them with their location. These trips are offered as “Perks and Courtesies” to Travel Professionals at the sole discretion of the host and are usually limited in availability."

In both presentations, the presenter clearly states, (as I do) that these same properties do this in hopes that you will refer your friends and family to these properties. One of the presenters also went as far (as I do) that these same properties will not kick out a full paying fair just to put YOU in at half price, but if space is available, these properties would much rather get something rather than nothing by letting you as a Travel Professional stay at a reduced rate.

Both presentations present FAM's as an "Industry Tool" to familiarize yourself with the property so we can talk intelligently to clients about the property. One of the Presentations done by James Prewitt (Level 3 Director and one of the GROWING number of Circle of Champions with YTB) even points out YTB actually sells Carnival Cruises, earning their Pinnacle Award the last 3 years in a row.

John's statement concerning both Presentations that "YTB is selling them as if they are a guarantee." is simply his perception, and clearly false. (Sorry John.)

I stated in a previous post last week, that it's clear that John's issue about discounting is not solely YTB's. It was noted in an this article that Mr. Kelly with MyCruiseBookings.com did a little ghost-shopping of his critics posing as a prospective client with an offer from another agency for a discounted cruise, and in every case these agencies were willing to offer a 10% discount. I've been to enough seminars and supplier trainings to know that this is a HUGE problem for suppliers, and it's not limited to just YTB.

John and others also need to keep in mind that the $226 Million in Travel Sales was gleaned from the same suppliers he's now trying to pitch with his new found documentation. While his numbers don't jive with what he finds from us concerning the SEC filings, these same suppliers and vendors numbers don't jive with what he's trying to tell them about all the "FAM's" YTB actually takes advantage of.

John and the other Travel Agents out there that are reading this Blog, I'm going to try to appeal to you as a business owner and as someone who understands big business. It's not about FAM's, it's about volume. I'm not saying that we don't need to concern ourselves (YTB) with the way these FAM's are being presented, because I DO understand your concerns, and I do believe that less emphasis needs to be placed on the industry perks and more about running a Travel Business. It a valid, noble, and very ethical point.

I want to direct you to the middle of Johns commentary and a question poised to the vendors.

"Does Carnival tell its employees that they can take a 50% discount at WalMart? Does Collette Vacations market their product and offer a discount on Hallmark Cards? Do Apple Vacations, NCL, and the others dictate the level of discounts for OTHER companies? Hell no! So why are you allowing it now?"

Now, I want to direct you to a new program YTB has with Sprint, Staples, Dell, and Tom Tom. It's called the "RTA Advantage". Based on YTB's shear size of 136,000 RTA's these companies are offering us discounts of anywhere from 10% to 29% off services they offer. Based on your reasoning that YTB is costing vendors money by offering us Top Commissions why would a company like Sprint offer up to a 29% discount if it's going to cost them money?

The same reasoning should apply to them as well shouldn't it? Should Sprint, Dell, Staples and Tom Tom cut YTB off based on the fact that it costs them money to do business with us? Why sell at a 10% to 29% discount to YTB when you have a gazillion other people in the market using Sprint, Staples, Dell and Tom Tom paying full price?

Before I divulge the answer to this question, I'd like to hear some of your responses. I'd like to know just how and why this practice from any supplier, (Travel or Otherwise) is just bad business costing them money.

Should be interesting...


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Thursday, December 13, 2007

YTB Partners For Exclusive 2008 Olympic Tour Packages...

I'm really pressed for time this morning, and just found out about this at the last minute. I made an earlier post this morning, but wanted to get this news out, so I'm just going to copy and paste the Press Release. Guys, this is HUGE, and while I need to verify what the commission percentage is, from what I understand, it's the LARGEST commission percentage I've ever seen in the industry from anyone!

Enjoy, and more commentary to come!

- Alliance May Provide More Tours Than Any Other Travel Agencies -

WOOD RIVER, Ill., Dec. 12 /PRNewswire-FirstCall/ -- YTB International, Inc. (OTC Pink Sheets: YTBLA - News; "YTB" or the "Company"), a provider of Internet-based travel booking services for travel agencies and home-based independent representatives in the United States, today announced an exclusive partnership with Shanghai Spring International Travel Service to market and sell tour packages to the 2008 Summer Olympics in Beijing, China. The packages will be available from YTB beginning on or before January 11, 2008.

In an effort to provide more tours to China for the 2008 Olympics than any other travel agency, YTB and Shanghai Spring International Travel Service, the largest privately owned travel agency in China, will offer exclusive 7 to 11 day tour packages and tickets for the Summer Olympics in August 2008. Through this strategic partnership, YTB's Referring Travel Agents (RTAs) are positioned to benefit from Shanghai Spring International Travel Service's dominant position within the Chinese market, and pass these savings on to their customers. YTB's customers will recognize value not only in terms of cost savings, but also in terms of the exclusive access to sold out events, attractions, and hotel accommodations.

"We are excited by our partnership agreement with Shanghai Spring International Travel Service, and welcome the challenge to become the largest tour provider to the 2008 Summer Olympics. Our RTAs have the resources needed to rise to this challenge, and we are confident that we will be able to provide our customers with the most professional service at the most competitive rates," stated J. Kim Sorensen, President and CEO of YTB Travel Network. "The Olympics remain the preeminent sporting event of our time, and serve as a major draw for travelers around the world to visit new destinations, and to enjoy live competitive sports. We look forward to providing our customers the opportunity to partake in history, as China holds its first Olympics."

The YTB and Shanghai Spring International Travel Service Tours will include round trip air to and from China via Los Angeles, Four Star accommodations including tips, baggage fees and taxes, daily meals, guided local tours, and admission from two to four Olympic events based on package and event preference. In addition, the YTB and Shanghai Spring International Travel Tours will also include safety insurance for visitors to China.

Shanghai Spring International Travel Service was founded in 1981 and started Spring Airlines in 2004, and currently operates eight aircraft traveling to 28 destinations in China and will be adding nine new airplanes to the fleet by 2009. The company is currently the only travel agency that owns and operates an airline in Asia.

"We chose YTB International because we wanted to work with the best Internet travel agency in the U.S. and one that would have access to thousands of potential customers," said Jenny Hu, Deputy General Manager of Shanghai Spring Tours. "YTB's high standards and great reputation, combined with their innovative business model, made partnering with them an easy decision."

Shanghai Spring has successfully purchased event tickets more than six times the number of any other purchasing agent or travel provider worldwide. In addition, Shanghai Spring has also reserved more hotel accommodations than any other agency to date.

To get more information on YTB's Olympic packages, e-mail travelinquiries@ytb.com.

About YTB International

Recognized as the 35th largest seller of travel in the U.S. in 2006 by Travel Weekly, YTB International, Inc. provides Internet-based travel booking services for travel agencies and home-based independent representatives in the United States, Puerto Rico, and the US Virgin Islands. It operates through three subsidiaries: YourTravelBiz.com, Inc., YTB Travel Network, Inc., and REZconnect Technologies, Inc. YourTravelBiz.com division focuses on marketing online travel agencies through a nationwide network of independent business people, known as 'Reps.' YTB Travel Network division establishes and maintains travel vendor relationships,
books travel transactions of online travel agents (RTAs, now numbering over 135,000), collects travel commissions and pays sales commissions. Each RTA sells travel through a personalized Internet-based travel website. The REZconnect Technologies division builds online reservation systems for suppliers within the travel industry. For more information, visit
http://www.ytbi.com/investor.

About Shanghai Spring International Travel Service

Founded in 1981, Shanghai Spring International Travel Service has been engaged in diverse business activities, including travel, hotel, flight, conference & exhibition, sports & games, real estate, trade and transportation, etc. Spring International Travel Service is the first ICCA (International Conference & Congress Association member in China. Spring International was appointed as the General Ticket Agency of 2004 F1 Shanghai Grand Prix of China. Persistent and concerted efforts by its more than 3,000 staff members (including tour guides) coupled with entrepreneurship have made it possible for Shanghai Spring International Travel Service to increase its asset value and sales revenue at an annual rate of 30% to 50% in the past years. Since 1994, Shanghai Spring International Travel Service has been doing so well in domestic tours that it has been commended as the No.1 travel agency in domestic tours in the country by China National Tourism Administration for 13 consecutive years. Shanghai Spring International Travel Service has established a network of branch offices in 33 major Chinese cities and 55 retail outlets in Shanghai and the surrounding areas, totally linked up by Internet. Seven overseas branch offices have started doing business in other countries around the world, with the U.S. being the most promising market with the announcement of YTB uniting as their exclusive U.S. partner.


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More Travel Industry Developements...

I had promised to follow up about the interview with YTB Travel Network President Kim Sorensen in Travel Trade within a day or two, and am working on this follow up currently. I found an interesting piece this morning that I also wanted to bring to light. A few weeks ago I posted about Company President, Kevin Kelly with Cruises Etc. who came up with an approach to educate a consumer and help them become independent contractors and sell cruises for MyCruiseBookings.com.

Travel Weekly has done a follow up on what's transpired since this announcement was first made back on November 28th and I wanted to make some observations.

It's important to note that both Norwegian Cruise Line and Royal Caribbean Cruises have severed it's relationship with MyCruiseBookings.com. While Mr. Kelly discussed it's plans with Regional District Sales Managers of the cruise lines, explaining that his concept was to acquire more people to sell their products, because of the barrage of complaints from how this concept was perceived by our Traditional Agents there has been an abrupt about face.

Traditional Agents have inundated both Mr. Kelly and these same cruise lines with nasty e-mails and flat out accused him of not only running a card mill but charged him with rebating and being a Multi-Level Marketing company.

Mr. Kelly, welcome to my little corner of the world.

Like me, Mr. Kelly is overwhelmed with how "abrasive" our Traditional Agent have been. I hear complaints about us YTB'ers being so vocal, but in all honesty, I see far too many examples of our counterparts in this industry being just down right foul and rude. I don't know if anyone has noticed since I last posted about Vicki Freed, and how vile our Traditional Agents have been when posting comments on her Blog, but it got so bad she's deleted all comments on her Blog. I can't speak for Vicki, but I can tell you personally, I was ashamed at how rude and abusive some of the comments were to such a high level Executive.

Other areas of note lately concern the harsh language in the MLM and Affiliates Forum on Travel Weekly itself with several discussions being closed by TravelWeekly.com Administrators in the interest of restoring decorum to the Forum. Most of the MLM type affiliates have been run off on this forum and it's been overrun with "Traditional Agents" who do nothing more than complain, bicker, and cry about how bad the MLM business model is in their view. (It was already closed once, and it looks like it needs to be closed once again.)

This does not exempt those of us in YTB, as John has commented on his Blog, we still have our issues, but I hope that some can appreciate a little better just why I monitor the comments made on this Blog.

From my point of view concerning the MyCruiseBookings model, the only area that may be in question is the rebating issue. It's noted in this article however that Mr. Kelly did a little ghost-shopping of these same critics posing as a prospective client with an offer from another agency for a discounted cruise, and in every case these agencies were willing to offer a 10% discount. I've been to enough seminars and supplier trainings to know that this is a HUGE problem for suppliers, and it's not limited to the Cruise Industry. This spring Sandals made a point of this same issue when they toured the country with their multi-million dollar upgrades to their resorts.

If suppliers are going to crack down on rebating, then it needs to be industry wide. It's a gross injustice that those that are accusing for rebating cruises to clients are doing it themselves, and I can assure you, it is going on, and it is a problem.

As to the accusations of MyCruiseBookings being either a card mill or MLM, I see no evidence of either with this model. Again, in my corner of the world, I seen too many examples of people making blanket statements like this without being properly informed themselves about what the terminology actually means. Mr. Kelly makes no claims of anyone in the company holding any type of credentials with the $20 monthly fee, nor is anyone outside of Mr. Kelly compensated for anything other than selling cruises and making a commission.

While Mr. Kelly saw an opportunity to transform a percentage of the 91 million Americans who were already spending $68 Billion on the internet from a customer to a business owner, in an industry segment who has already lost that business to begin with, these "Agents" feel offended and are crying foul.

MyCruiseBookings.com and Cruises Etc in no way intends to undermine the professional travel agent. Instead they are trying to recruit and train a new wave of travel sales professionals. They strongly feel that the cruise travel industry needs a new influx of fresh ideas from the travel agent community to match those of the cruise lines themselves who continue to grow, evolve and thrive; bringing forth new concepts in cruising.

Sound similar to what someone else quoted back in early October?

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Doug & Ronda Bauknight
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Tuesday, December 11, 2007

More Press For YTB!

We have another columnist in our midst who believes he has all the answers and proper positioning when it comes to Multi Level Marketing. In the last few weeks James Gilden has regurgitated an article in the LA Times and the Chicago Tribune with his experience and insight into YTB in particular. Because, Mr. Gilden's piece is published in well respected publications like the LA Times and Chicago Tribune, (and from my understanding to be published as well in the Kansas City Star) Mr. Gilden MUST not only know what he's talking about, but his views and opinions should be taken as gospel.

I have to admit, I came very close to violating one of my own golden rules, which is "Never believe a word I say, without verifying it on your own to be true". In the process of "verifying" this article part of my due diligence was checking into Mr. Gilden's "credentials" so to speak. What's amusing (to me at least) about Mr. Gilden is his focus is on internet Travel specifically and is dubbed "The Internet Traveler". James first began using the Web as a travel resource in 1996, when United Airlines introduced the United Connection software for booking airline tickets online. (About the Writer) His own statistics state the following:

"The number of travelers like you who are booking travel online is staggering – more than 91 million made a travel reservation online in 2005, according to the U.S. Census Bureau. Half of all travelers now use the Internet to buy – not just research – travel, according to a November 2006 survey from market research firm J.D. Power and Associates, up from 46% in 2005. Online travel spending in the U.S. in 2006 will be $68 billion, up about 15% over the previous year, according to comScore Networks."

If anyone should get that Internet Travel is changing this industry, he certainly should.

However, James, like so many others can't get this Network Marketing
aspect of YTB out of the way long enough to take a serious look at why it's not only smart, but potentially lucrative to own your own Travel Agency where these same 91 Million people made travel reservations in 2005.
Because YTB has three dirty letters (MLM) attached to it's name to promote and build our business, these opportunities in Travel couldn't exist for someone like me because the model is not only flawed, but will inevitably collapse on itself.

It was my understanding that the second articles released in both the Chicago Tribune and Kansas City Star were to be a "much expanded" retort on our company. I don't see much expanded, other than a quote or two from one of the most influential in the Travel Industry, J. Kim Sorenson, and it's not all that surprising that our Company President isn't shown in the best light. Why anyone would expect anything more, given the limiting beliefs about Network Marketing in general would be asking a bit too much.

About the only other change between the first LA Times article and the "expanded" article was a note that a former RTA was actually refunded money after giving his YTB Business a short 3 month stint to see if he could get discounts. YTB cerainly didn't have to refund any money to this individual, as it's clearly stated in our terms and conditions he is limited to 5 days in order to be eligable for a no questions asked "refund". I'm not aware of any investment who will refund any money after 30 days let alone 90. If there is...let me know.

John Frenaye made a couple of comments on his Blog about the article(s) and not surprising, he's of the same limiting belief of Mr. Gilden. Apparently no one knows, (including Kim Sorenson) where the $7 Trillion a year number about our industry comes from. (Anyone, who does their own research can find this number in a report from The World Travel & Tourism Council.) This report by the way, is quite extensive and also supports other numbers of interest.

We are also directed once again to look at the company financials comparing revenue from Marketing with revenue generated from Travel. YTB currently has 575 Group Cruises "on the books" for 2008 (minimum 30 cabins per group) and not on our financials until next year when commissions will actually be paid. I've been over this so many times my head hurts from the wall that's put up by those who simply "don't get it".

Side note: I have clients in Germany this week who booked this trip with me in November of 2006. I got a card from them today expressing how much they enjoyed their first night on the Rhine looking at all the beautiful Christmas lights. However, it won't count until it shows up on the Q1 2008 financials when we have some 150,000 RTA's (instead of the 60,000 at the time of booking) who have been paid for Marketing the company, and not selling any travel.

Oh well...

We are left to assume that the "average RTA" only earns $82 per year and the following RTA's don't exist because the system is flawed.

  • Tina from Houston, TX. Her total earnings for 2007 are $18,777.88 or an average of $1,707.08 per month for 2007.
  • Ruth & Floyd from Frontenac, MO. Total earnings for 2007 are $12,995.65 with an average of $1,181.42 per month for 2007.
  • Carol from Fort Lauderdale, FL. Total earnings for 2007 are $11,480.89 with an average of $1,043.72 per month for 2007.
  • Lenore from Pearl City, IL. Total earnings for 2007 are $14,044 with an average of $1,276.72 per month for 2007.

So how did I come up with numbers like this? We have another columnist in our midst who actually took the time to ask what the travel numbers are, direct from J. Kim Sorensen himself, Travel Trade senior editor George Dooley. (George by the way is the same Senior Editor who interviewed me back in November.)

That being said, which article do you think might help in regards to helping you make an informed, educated, business decision about YTB? Who do you think might have done a better job in asking questions? Who do you think might be more credible based on what is being reported?

Before you answer, we'll take a closer look at George Dooley's interview from "The Man" himself, J. Kim Sorensen within the next day or two.


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Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker

Phone: 678.458.5812

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Sunday, December 09, 2007

It Is What It Is...

I’ve been doing some reading and have gotten plenty of e-mails, calls, and comments on my Blog concerning the results of the One Day Sale held last month. I’ve notice, and I have to admit personally, that what was actually released to the public about the One Day Sale, was not all that informative. It was extremely short, and lacked clarification as to what “the numbers” actually mean, or how significant it really is that one company booked 12,000 passengers with one Cruise Line in one day.

On November 8th, YTB booked more than 12,000 cruise passengers through gift certificates, individual, and group cruises. Some of the questions that have come up over the last few days include:

  • What kind of dollar value does this consist of?
  • What was the average amount per cruise?
  • How many gift certificates, individual, and group cruises were sold?
  • How many were booked directly off sites as opposed to calling in?
  • How many cruises were sold by one cruise line prior to YTB's One Day Sale with Carnival?
  • Why did it take almost a month to release the numbers?

In my prior post I eluded to Liberty Travel and their efforts in CLIA's World's Largest Cruise Night booking more than 1000 cruises with 200 store fronts across the country. While it's not known exactly how many "Agents" actually work with Liberty Travel, it's my understanding that each store consists of 8-20 Agents per storefront.

Here is what's so interesting to me. Not only doesn't anyone hash over this statement the way they have about YTB, it's not even brought into question. Granted, I understand that Liberty Travel is not only a well respected Agency, but it's been doing business since 1951. A company with this type of time and stature in the industry doesn't have to prove itself like YTB does. I'm simply pointing out how two companies can release almost exactly the same information, (or lack there of) and how each company is viewed. One gets a complete pass, or is considered irrelevant, while the other creates so many questions and is looked at under intense scrutiny and criticism.

Here are a couple of points we need to take into consideration when looking at this One Day Sale. I suppose that some may consider these points nothing more than excuses, and I'm not trying to justify either way, or state that I believe these points are either right or wrong. It is what it is.

  • A sale of this magnitude has never been done by one company before.
  • This sale was put together and executed in about a three week period.
  • Carnival does not report "dollar volume" but by "cruise passengers".
  • Various methods were used to make these sales including gift certificates, YTB web sites, and direct with Carnival.
  • While YTB will implement SAP NetWeaver® technology platform to process and gather information of this type in the future, it will not be implemented until March of 2008.
  • Any monetary sales numbers at this point would be merely an estimate due to both upgrades of gift certificates, or cancellation of bookings.

I'm currently working on a project right now that will help clarify some "averages" in regards to some of the questions concerning what YTB sells in cruises. It's my hope that this project will answer some of the questions concerning an "average" YTB client compared to our Traditional Agents. However, it's a fairly large project that is taking considerable time in putting together. It's the best representation and documentation I can think of when relating to numbers and sales volume.

Again, this may take some time, and my first priority is to my team and my business. It's my hope that it won't take weeks to complete, but I have other more pressing matters to contend with currently. The most immediate being the fact that the #7 jersey is on, the meat is on the grill, chips are sitting by my side, and the face is shaved and prepared for a large Steelers logo in each side of the face in preparation for a 4:15 matchup between the Pittsburgh Steelers and the New England Patriots.

Priorities my friends...priorities.


Subscribe to Just Picture It Now for additional announcements and details!

Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker

Phone: 678.458.5812

Learn How To Become A Travel Agent
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