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Doin' It Right!

Finally!

I have been waiting for someone to make this move, and it finally happened. It’s not surprising that our star is Carnival Corporation, AGAIN. I feel it’s important to review just a bit, and set this up for all those concerned. If you recall,
Royal Caribbean in a “bold move” (?) terminated its relationship with YTB back on November 9th. No notice, no warning, not even a phone call. Just a simple letter from then Sr. Vice President of Sales, Lisa Bauer, who effectively played the roll of airline stewardess as she said “Bah-Bye” to 4 Agencies sinking more than $23 Million in revenue for the company in 2007.

I’ve never really understood this move, and for the life of me still can’t grasp why any company would toss any business overboard. However, I also agree that it’s their company and they are free to do business with
whomever they choose too. More importantly, for me at least, this move in no way effectively addressed the real issue at hand.

So what was it about Carnival that was so different? How did they respond to the issues and controversy swirling around concerning “card mills” and Travel MLM’s who abuse the FAM privileges that ARE designed for those that actually support the industry?

They now
require a minimum of 5 bookings with them in a 12 month period in order to be eligible for a FAM. Imagine that? Everyone involved in this industry needs to support and sell their product BEFORE being able to take advantage of a reduced rate with them.

How do you like them apples?

What this so effectively does is eliminate the abuse yet save the account for future growth and obvious profits. Is it any wonder why they are called “The Most Popular Cruise Line in the World”? Because they’ve so effectively and succinctly addressed the real issue, they are able to keep all business avenues open.

Now comes the real question…

Will other suppliers and vendors see this in the same light as I do? Will they see this as an effective alternative to closing the door on impressive numbers from a bunch of part time Referring Travel Agents? Can they have their cake and eat it too?

My bet is that the Traditional Agents will not see this as an effective move. Like most, it’s either black or white, it’s either /or. And we can’t forget those that are so closed minded and just want Travel MLM’s gone, shut down for good. I do know of some however, who do believe we may be able to co-exist and may agree that this is a step in the right direction.

While I do not believe this closes all the issues, and there is still more work to be done. This IS a good move for all concerned, and most certainly a step in the right direction to as we like to say “legitimize” the industry.

Way to go Carnival!

Are the other suppliers listening?

PS – While looking for a picture to post with this post,
I found this, and came very close to using it. I decided not too, but thought is was hysterical and wanted to share it with all of you anyway. Too funny!

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I too think it is a step in the right direction (the Carnival move, not the Hillary move). And as Arnie Weissmann said at one point, it may very well end up that YTB will drop the MLM aspect and become a legitimate host agency.

You cannot deny that a good portion of the recruitment and sales pitch is on the perks. Now that the perk is no longer available, the inability to earn an IATAN card, and YTB's own tightening of their CRTA program--all of a sudden makes the RTA program a lot less desirable for the masses.

Again, there is no denying that a high percentage of RTAs do not sell anything. Now without IATAN, without RCCL, without Carnival unless you sell 5 cruises a year--spending the money for the discounts turns out to be not such a good deal anymore.

And from the way I read the Press Release, deposits do not count--it is sailed and PIF cruises, so in order to travel at a discount going forward, a RTA will have had to have sold 5 cabins in the PAST year.

I agree--a move in the right direction for those that sell travel. Honestly, I see this as another hurdle for YTB as a company operating in their current model.

I came SO close to posting Hillary on here, but agree that would have been a BAD move.

I know both you and Arnie believe that in order to survive some companies drop the MLM portion, but that’s a myth John. Arnie use to work for Fuller Brush back in the 70’s and just because he wasn’t “required” to recruit anyone, doesn’t mean the company dropped it. He still had someone upline who made money from his efforts, and he could have built a team if he wanted to. To this day, Fuller Brush operates an MLM model.

I have plenty of RTA’s in my organization who don’t want or have to recruit a single soul. They are in this because they want to sell travel, not travel agencies. You can do one the other or both. Has always been that way, and always will.

Selling Cruises ONLY was what attracted me to the company, then I started to drink the Kool-aid.

Now look at me.

I do agree with your comment and positioning however that spending money just for the discount is not a good deal. I never thought it was appropriate to begin with, but I believe you understand that.

What I’m pleased with and what I want to bring to the forefront John is this:

There was a much better way to handle the issue of the FAM abuse going on in the industry, and I applaud Carnival for finding a solution instead of focusing on the problem like Royal Caribbean did.

I would also like to point out that all this does is raise the bar a little. I have copied and pasted our current requirements here:

“Book only two cruises (two cabins) at regular fare for your customers and you’ll be qualified to take another discounted cruise.

In order to book a discount cruise on Princess Cruise Lines you must have sold a minimum of FOUR (4) regular rate cabins on that cruise line. Holland America requires a minimum of FIVE (5) previous bookings of regular rate cabins to qualify.

All Reduced Rate cruise requests must be made through the corporate office of YTB Travel Network. Please submit your request to reducedrates@ytb.com for verification. Any reduced rate requests made directly to the vendor risk cancellation (penalties may apply).”


YTB has had that policy in place for as long as I can remember John and we’ve more than doubled in size in 2007. While I do agree that it matters what they are “sold”, they do find out what they bought, and must abide by what YTB stipulates not a Power Team Leader, Sponsor, or Director.

I also know that you were fairly impressed with the hurdle we had with Royal Caribbean and we will certainly have a directive from the company on how to handle this small issue as well. While I have not had time to check, I do know that most I know with me in the company are not only pleased, but up for the challenge.

PS - You DID notice who I used for the "thumbs up" pick didn't you?

Long live Cowher Power!

(Unless of course he goes to Washington.)

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