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The Royal Shaft

I just saw this in Travel Weekly and wanted to make sure all of you are aware of this.

Remember back in October when Royal Caribbean said they were only going to support the traditionalists? I wonder what the 472 Agencies currently at 16% are thinking about RCCL now when they find out their potentially in jeopardy of dropping below 16% because Royal Caribbean is raising their sales quotas to maintain the commission levels these “supporters” currently enjoy?

In the Travel Weekly report it gives an example of an Agency now having to pull in another $500K in sales, otherwise Royal Caribbean is going to cut their commission starting in 2009. (The example being $1 Million in sales to $1.5 Million in sales.)

For these small time Agencies who are already suffering and finding it harder and harder to compete with market share this is a huge slap in the face to the supporters of PATH and other organizations who convinced them that terminating MLM’s was going to fix the illusion they have about why things are so bad for them.

I guess not.

I have to wonder at this point if these Traditionalists are owning up to the promises THEY made to Royal Caribbean to support them.

In another Travel Weekly Report it’s documented that Carnival is still making more per berth than Royal Caribbean, and while I don’t know if this switch to supporting Traditionalists is tied directly to these numbers, it has been mentioned before from the Traditionalists that they increase sales, and add bigger profits as a whole in the industry.

Again, guess not.

It’s also noted that Growth Fund threw overboard some 4,270,000 shares of RCL stock on Friday May 30th, which may or may not have been related to reports of this news circulating. My guess is however that this move is more related to RCL shares hitting new lows than any “Agency Issues”.

There is already speculation that other cruise lines will follow Royal Caribbean’s lead on this and up the commission thresholds for everyone, and quite honestly I hope they do. It should weed out some of the underperforming Agencies who are just barely hanging on and make more room for the likes of YTB who’s already been documented to book some $13 Million with Royal Caribbean when the faucet was turned off late last year.

That’s the collective power we have as YTB. It’s also a big reason why only a few suppliers have actually dropped us. Money talks and with $414.5 Million booked in 2007 YTB is well on it’s way to dominating this industry, just like it was promised back in 2001.

I’ll devote more time to this later on in future posts but I wanted to shed just a little light at what I’m currently working on. While the following quote was printed back in September of 1999 and it did talk about another shift in the industry concerning the airlines, I think this quote could ring very true if the speculation does come to fruition concerning commission thresholds in the future.

“"When I entered this industry ... I realized that the strong would survive, and strength -- many times -- equates to size," he said.


"If you have five or six million dollars in sales or less, you are not going to get the attention from the [Cruise Lines] that you need to survive."


If it’s killing you as to just who said that, you can find the original quote here. (It may surprise you as to just who it is.)

Hold on to your hats, it’s getting a little windy up on the lido deck! ;-p

If you’d like to keep up to date with all the latest news, acquisitions, and developments with YTB feel free to sign up for my FREE Newsletter. Just like here, it’s loaded with links and documentation for you to share with clients and prospects alike.

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Wow! Thank you for sharing that article. This article illuminates who John Frenaye is.

John Frenaye is and has been in direct competition with the Internet Travel Companies from the beginning.

No wonder John Frenaye has extreme hatrid for the Internet travel mlms.

This is earth shaking news to me I compare to the day I discovered the reason why Islam's hatred of Biblical Christianity resulted in the terrorist bombing of the twin towers in New York City.

You are having a great week Doug!

Keep up the good work!

For these small time Agencies who are already suffering and finding it harder and harder to compete with market share this is a huge slap in the face to the supporters of PATH and other organizations who convinced them that terminating MLM’s was going to fix the illusion they have about why things are so bad for them.

Joining a consortium is the answer. Strength in numbers as you say.
I, for one, do not believe that MLM's have any impact on my revenue. The 'impact' of MLMs is to cheapen the role of the travel agent in relation to the consumer and supplier. You will not 'dominate' the industry - you will destroy it. And destroy yourselves while doing it. We'll rebuild, if necessary, without you.

This may only be the first step of many aimed at leveling the playing field as RCCL was one of the first to do, when they introduced their No Rebating of commissions policies a few years ago.

Many believe that the next step will be for RCCL to track sales at the agent level and put commission percentages on a per agent basis. They already have the technology in place to do this.

Rod;

Yep, “Power in Numbers” and that’s exactly why John and the others are so concerned about what YTB is doing. He’s made comments about the small percentages each of us do, but he fully understands what YTB collectively can do.

And that’s the concern.

Anon;

So which Consortium will be “recruiting” you?

Mitch;

By the time what you say “may” happen, YTB will be able to dictate to whom ever they wish that our Agency will be considered a collective group. “If” Royal Caribbean needs YTB to step in and start promoting cruises for them again, I’m sure something like what you are talking about will be addressed.

Let’s just hope Royal Caribbean survives long enough to make that happen. I’m not going to speculate that they won’t make it out of the huge funnel they’ve created for themselves, but from an investment standpoint, Royal Caribbean is a sinking ship, and if “Traditionalists” don’t get on the ball to bail them out, there won’t be any cruises to book.

What you are going to see happen is more and more suppliers are going to cut commissions and probably start off with the MLMs. They might pay a referral fee only, which is all a RTA deserves. Of course I know you won't agree with this but it's going to happen eventually. If you don't think so, you might want to remove your rose colored glasses. Even the TTAs know what is around the bend and it's not that rosy. Only the strong will survive and YTB won't be one of them.

I am already a consortium member and they have already have an agreement with RCCL to keep commission levels as they are now.

I didn't have to be recruited.

so where were you 10 years ago? Are you still in the same mind set as you were then? Times and the biz change, don't you agree?

The least you can do is cut and paste a quote correctly. There was no mention in the article about cruise lines. That was a Doug fabrication to make his point.

I guess you had to read about the RCCL deal in Travel Weekly--I don't suppose you got the letter did you?

And yes, I do thikn it is going to get down to an individual agency level. Mind you that since you are independent and not employees you are all "agencies" so it will level the field somewhat. I imagine the workaround that will be to have YTB book all travel themselves. And they are probably in a good position to do so since they are already capturing ALL the information from your websites and because they (not you) own the client information--by contract.

Now Doug, you have told me time and time again how you are not recruiting and selling travel. How are you going to survive in a 10% world where you are only getting 60% of it?

And what the article in TW did not address is the override. You see, with my agencies we can keep the override just as with YTB, the overrides for all sales go directly to Coach and Scotty!

Thanks for the additional publicity, but I am not sure using some quotes from almost a decade ago prove any point you are trying to make. If anything else, they still hold very true today.

And Rod--my "hatred" for internet travel mlms has nothing to do with them selling travel and everything to do with the sleazy way they operate and denigrate the industry. In your biblical terms--how do you feel when someone takes the Lord's name in vain? Kinda pisses you off doesn't it?

Doug,

I've got my finger on the one thing that has the most capability of stopping YTB from reaching its goals: It's the pride and presumptious attitude that is prominently visible throughout the company. In fact, if someone asked me if I could change one thing about YTB, what would I change?

My number one answer is I would change the presumptious and proud attitude of the majority of everyone in this company. This issue is so serious for many reasons. 1) No one knows what tomorrow holds; therefore, no one should presume YTB is going to dominate the travel industry. No one should presume as Coach said in his own words on a Coach's Call last June, "We are going to beat them all". 2) Comments like these are incendiary and spark negative impressions of the company from both, contemporary and rival companies (other sellers of travel).

If I would change one thing in YTB, I would suggest people use less incendiary comments like:

1) YTB has a goal of being the largest travel company in the world by the year 2011.

2) YTB has a goal of being the number 1 booker of travel in the world by June 2010. Instead Coach said, "You give us about 3 more years and we ARE going to be the number one booker of travel in the world".

3) YTB's goal is to have our travel bookings rise 300% this year and the next year. Instead Coach said "YTBs travel bookings ARE going to rise 300% next year and 300% the next year."

4) Doug, today you posted "Money talks and with $414.5 Million booked in 2007 YTB is well on it’s way to dominating this industry, just like it was promised back in 2001."

Who gave YTB authority to make promises like that? No one. YTB has no power to keep promises of what's going to happen tomorrow much less years from now.

Why does YTB even need to be talking about dominating the travel industry today? That's very arrogant and incendiary.
Is that the kind of image YTB wants to bring on itself: Arrogant and incendiary?

Hey, if YTB ever grows to be several million RTAs strong and are able to dominant the travel industry more power to them, but why brag about something that is out of their direct control (the future). This goes far beyond speculation. It's called pride and presumption and both those are sins by a biblical standard.

http://www.biblegateway.com/passage/?search=James%204:14;&version=9;

http://www.biblegateway.com/passage/?search=Proverbs%2016:18;&version=9;

http://www.biblegateway.com/passage/?search=psalm%2019:13;&version=9;

Let’s just hope Royal Caribbean survives long enough to make that happen. I’m not going to speculate that they won’t make it out of the huge funnel they’ve created for themselves, but from an investment standpoint, Royal Caribbean is a sinking ship, and if “Traditionalists” don’t get on the ball to bail them out, there won’t be any cruises to book.

This is one of the funniest things I have heard. You think RCCL is on less solid footing than CCL? And you really think that having the boil on their ass called YTB removed in November has hurt them? Wow, you are seriously in need of a prescription refill.

You have demonstrated exactly how clueless you are when it comes to the industry of travel. You may know all about self help books and recruiting, but travel-0--very little. And speaking of recruiting, I see Johnny boy mentioned you were still in Coach's Corner. Is that true? Or were you all of a sudden promoted to Director in Dallas even though you did not qualify after 3 + Years?

Hmmmmm, seems I struck a nerve.

You kids can argue and speculate all you want about what you think is “going to happen”. None of you know Bo Diddley (RIP) on how to document a thing or how to look at documentation accurately without twisting or manipulating something.

John, I laughed out loud about your comment about not quoting you accurately. Very funny coming from the “Quote Master” himself.

Just to set the record straight, I did comment that you were originally talking about the airline industry, but the [emphasis] was mine. ;-p

Insider, let’s not talk about me, let’s try to stay on subject. Or don’t you have a witty comeback for the stock hitting all time lows and a Growth Fund tossing 4 Million shares of RCL stock overboard?

Not to worry, I’m quite use to the insults and boorish behavior from you “Professionals”. I still get all kinds of dribble from Martha who thinks she’s keeping me abreast of what’s really going on and how I lie and cheat people out of money. Poor girl has no idea what I was handed tonight.

Boys and Girls…I’m just getting started.

You forgot to mention that I also call you a coward and not just the fact that you weasel people out of money with your lies. See Doug, you can bring me up in your bog and remarks all you want, but you won't post mine because you're a coward. You're also a very confused coward about the industry. YTB is nothing more than a wart on a huge ass. Hum, that sounds just like you except you're more a a huge wart on a huge cowardly ass.

Only a few more days until your promised info on Candi. I'm getting up early to read that one. I'll be especially interested in seeing the names of her 3 agencies in print. I'll be very interested to see her awards documentation. All of this has me dizzy with anticipation.

BTW, what were you handed tonight? I know, I know, a huge check from YTB for about $200 for a month's work. That's a real bonus and enough to support a family of 4.

Keep at it and someday you might actually make it to director before YTB goes under. Then what? I know...You can become another MLM greaseball. By the way, did you ever have a real job?

See? Told you how "Professional" you all are.

Makes one wonder who the wart is. ;-P

You may want to read some of your own "documentation":

"Shares of Royal Caribbean Cruises Ltd. slumped to a new 52-week low Friday as a Goldman Sachs analyst removed the cruise operator from his "Conviction Buy" list, citing escalating fuel prices."

Ive been reading the drevel that has been spewing out of the mouths of these so called traditionalists about a close and dear friend of mine.

To be honest it makes me sick.....This Freynaye character has alot of room to talk....If he aint lying about somethin hes covering it up.....You people make me sick......

So I have decided.....Ive got $10,000 US that says Candi is who she says she is......Money on the wood makes the bettin good .....Its time to put up or shut up!

BTW Ill take mine in YTB stock!

Doug come on now. Commissions have changed many times over the 18 years alone that I've been in this industry. Has it effected some, yes..but alot of us have survived. To say that some will go under because of it now, doubtful. See when the airlines did it, it shocked many, but most adapted. They specialize in certain areas, offer other services etc to make up for the losses. If RCCL or any other cruise line does what they say, then yes, we will adapt again. Who is it going to hurt, the smaller agency's..and companys like YTB, because like John said, you are technically all individual agencys, and if they calculate on that, you may be in trouble. My office is part of CWT, but that doesnt mean CWT will get a big chunk of comm, it means my AGENCY will have to qualify..and we will.

I agree with Rod on the one point he made..the top comment for many reasons, I will bite my tongue about because the swear words swilling around in my head wouldn't be lady-like. The constant comments about YTB being the #1, king of the world, taking over the industry, selling 1 billion dollars etc..are what irks me. I always invision Dr. Evil from the movie everytime I read it. Do you hear Amex/CWT/Expedia etc bantering on about such things? No. Why..because when it doesn't hold true they won't look like fools.

As for the un-professional comments, the same holds true for your brethern. While you claim to not read Johns blog, I've seen the nastiness, vularity, name calling from your brethern as well..so its not one sided.

I too am anxiously awaiting the "real" info on Candi and her past TTA experience. Then again I
ve been waiting for info on the good Dr and haven't seen any yet. I'll try not to turn blue holding my breath. I just hope that people are not making false claims to be anything then what they truly are in order to recruit someone..because that is truly slimy.

"Royal Shaft" ? "Slap in the face" ?

If that is how you are viewing this news, then you really do have a LOT to learn about the travel industry.

Joe;

Wonder why CCL did not take the same hit then? Out of all the major lines, RCL was the only one downgraded at all, and one would agree they all have the same type of fuel costs, correct?

Judge;

If I can prove she is who she is would you consider allowing me to purchase 10K in YTBLA? ;-P

Lisa;

I like you and you seem to be one of the more “level headed” of the bunch. I’ve seen commission change too in my short time in the industry, but in the other direction. They’ve actually gone up not down.

I will agree that the name calling comes from both sides. The point I'm attempting to make Lisa is that when people don’t have a valid argument or point, they resort to name calling. You very rarely see me call someone a name. (And yes, I have lowered myself to that level too, I’m human.)

I always get a big smile on my face when the name calling and lame comments are directed at me. The more foul and outrageous the better. It’s a sure sign that they have nothing left concerning the subject at hand and I’ve won my point. ;-P

JR;

Based on my response above to Lisa, instead of telling us how little I know, why don’t you illuminate for us just how you perceive RCCL telling 472 Agencies they need to up their threshold after being told that they were getting all kinds of “special consideration” now that ALL the MLM’s are gone.

By the way....

At last count we have 23 Travel MLM’s in the mix. I’ve still only heard of FOUR letters going out terminating MLM’s since the mandate. (One wasn’t even an MLM.)

Anybody want to ask RCCL when they will take care of the others?

A-1 TRAVEL-VACATION.COM
ALL TRAVEL and CRUISE CENTER, INC
AMERICAN TRAVEL BUREAU
AMERICAN VOYAGER TRAVEL a/k/a GRAND VOYAGER TRAVEL
CASH CARD WORLDWIDE, now known as TRAVEL REACTION
COASTAL VACATION CLUB
GATEWAY ASSURANCE SYSTEM
GOLDRUSH GETAWAYS
EE TRAVEL BENEFITS
GLOBAL TRAVEL INTERNATIONAL
FUN TIME VACATION CLUB
GAZOOBA TRAVEL
GT TRENDS formerly PRT TRAVEL
HOLIDAY PLANNERS a/k/a INFINITE FRONTIERS and formerly AMERICAN VOYAGER, not to be confused with Holiday Planners , Branson, Missouri.
INTELETRAVEL
KE TRAVEL
JOIN CRUISE TO CASH
PROTRAVEL NETWORK, not to be confused with ProTravel International
TRAVELWIZE a/k/a CYBERWIZE
TRAVERUS
ULTIMATE CHOICE TRAVEL
WORLD VENTURES TRAVEL

They DID promise all of you they were no longer doing business with this type of model.

Anyone have any updates?

Doug,

No one was told they were getting any "special consideration", don't know where you got that from. Documentation please.

I've been in this business over 11 years, and I've seen cruise lines and other suppliers change commission thresholds when they need to, no one is taking away any "special consideration" - its just business as usual.

If you were a true "travel pro" you would know that.

Why is it I always feel like taking a shower after reading Martha's disgorge?

One wonders why the traditional travel agents on John's blog will not repudiate her comments as unbecoming of a self proclaimed professional travel agent. Perhaps it's because many of the TTA's over there have become an iniquitous group of individuals that don't handle the industry changes all that well.

OleScorekeeper

JR;

If you don’t know what Royal Caribbean has done for you by terminating your competition, maybe you need to find another line of work.

Documentation is all over this blog buddy. I suggest you take the time to update yourself.

Scorekeeper;

Martha just sent me a comment that she doesn’t need to be “professional” on her own time.

She’s got a lot of time on her hands from what I can see. (I’ll be pointing to that very subject in a day or so.)

Doug,

YOU are the one that is implying that RCCL made promises to TTA's, nowhere are any promises ever made.

I try to work with documented facts, not implications, as I thought you did.

If you can show me where RCCL says "we promise"...thought so.

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