One "Royal" Scandal?
First of all, I've got to tell you...I LOVE the internet. I love the way information flows on this puppy. Technology has made it available for anyone to access just about any information and documentation they could possibly desire in this day and age. (Thus the term "Information Superhighway"?) Based on information we all have access too, we could acquire PhD's in just about any field of study we choose. It's all there, you just have to find it.
I read a book last year from Author T. Harv Ecker, "Secrets of The Millionaire Mind" and I also listen to a syndicated talk show host here in Atlanta named Neal Boortz. I'm a firm believer that if you want to be successful, you listen to people who are more successful than you are and do what they do. Both of these successful individuals have told me this:
"Don't believe a word I say, unless you can verify it to be true on your own."
If you're like me, your scratching your head after reading the "In The Hot Seat" Interview with Lisa Bauer, Senior V.P. of Sales with Royal Caribbean International stating that "The Letter" terminating "Card Mills" was ONLY sent to THREE Travel Agencies. In addition, she never names the three agencies.
Secondly, we find another report with Joystar responding to RCCL dropping them, a bona fide Host Agency, hardly the "MLM" or "Card Mill" everyone is talking about in all the doom and gloom circling around the internet concerning the death of Travel MLM's.
No, something just isn't right about how all this is unfolding. Logically, it doesn't make sense to me. If you're trying to cut the legs out of these "Card Mills" by only using one cruise line, three Agencies, and one of them isn't even a "Card Mill", that's hardly the "Shock and Awe" I would expect. Again, something I read about in "Secrets of The Millionaire Mind" was that we need to take "massive action", not some hodge-podge trickle like this.
What was most disconcerting to me was the way Royal Caribbean handled the situation with Bill Alverson, chairman and CEO of Travelstar, Joystar's parent company. In the article it states:
"It took about three minutes for us to learn that RCI had absolutely zero intention to listen to our side of the story or to ask questions we could answer to clear up the matter," Alverson said. "When Mr. Fishkin [President] asked what led Royal Caribbean to this decision, we were told they did not have any particular concern they could identify, that we have never done anything to harm their brands, or hurt them financially, but they were terminating the relationship anyway....When we asked for clarification, we were told by [Lisa Bauer] that she has decided to ‘broaden the definition of what a card mill is' and considers Joystar and our Enterprise members to be one…."
When this "Card Mill" fiasco first broke on October 10th, with news that the ARTA applauds RCI's policy to remove sales relationships from MLMs and Card Mills, I boldly stated that YTB's relationship had been strengthened the week before with news that the home office would handle all the Group Bookings for RCI. In the report listed above Bill Alverson also stated:
"I tipped my hat to Royal Caribbean management as I read their email announcing they were sending termination letters to travel industry "card-mills,'" he wrote. "After all, it was about time suppliers took a stand on behalf of real travel agents."
Like YTB, their relationship had also appeared to be strengthened based on a PowerPoint Presentation given by Royal Caribbean's management to Bill Alverson less than 60 days prior.
So, why the sudden change in heart by Royal Caribbean by not one but now two Agencies who are producing a combined $23 Million in revenue for Royal Caribbean? (Documented sources and reports of $13 Million by YTB, and $10 Million by Joystar.)
About the only concrete information I could gather as to why RCI would terminate Joystar was based on their Enterprise program. Knowing what the Enterprise business model with Joystar employs, I will tell you that it does allow for Sub Agents. Kind of like a mini-Host within a Host Agency in which the Parent Host allows someone to create a Sub-Host for others to help sell travel within this Mini-host. Sub Agents make the majority of the Travel Commissions while the Sub-Host takes a cut. (For those of us in YTB, it's very similar to a Power Team Leader making a 10% override on all Travel Commission produced within your own Power Team.) The Enterprise business model however, only goes one level deep to the Sub-Agent, unlike "Multi-Level" in Network Marketing.
While Affiliations and Organizations are protesting the use of "recruiting", some actually make it a requirement as a member of their Organization that they have a minimum number of these "Independent Contractors" in order to even be considered to be a Host Agency. An Organization called The Professional Association of Travel Hosts (PATH) for example require a minimum of 25 Independent Contractors in order to even join their particular organization.
No, I'm sorry, but there has GOT to be something MORE going on here and enquiring minds like mine want to know! (Thanks for letting me steal that comment by the way!)
I needed a couple more pieces to this puzzle in order to complete the picture that was forming in my head, and at this point, probably like yours, it's was very clouded and murky and there were more questions than answers. I told you I knew just enough to be dangerous about Joystar. There was something else about this company I was missing. So I did some more digging.
Apparently, at one time Bill Alverson was the CEO of a Travel MLM called TravelMax in the mid-1990's which is now defunct and from what I understand one of the first MLM's in the Travel Industry to operate. While researching, I also found that there certainly isn't any love lost between our "Star Villain" in this story and Bill Alverson. There is a considerable animosity between these two. While reading Bill's Blog to the field, I found this post, which I agree, reflects A FEW of these "Professionals" out there who are crying about all the business being taken away by "Card Mills". (However this entry is clearly directed at one particular person, our "Star Villian".)
ALL RIGHT ALREADY! I'll cut the "Star Villain" charade and let you know who I'm talking about here. It's someone I've mention here a couple days ago; Peter Stilphen, who much has been written about from the CEO Bill Alverson, and he even created his own web site dedicated to Peter. So yes, there's no love lost. (Sorry Mr. Alverson, it IS out there.)
But how does this connect with Royal Caribbean?
I might be the ONLY YTB RTA that's registered with CruisingPower.com, (according to Lisa Bauer), but I did access Royal Caribbean's "Agent Only Area", to find this answer. Along with "The Letter" there is an FAQ section, (also found via Google without access to RCI.) which for those of us who are caught up in this fiasco NEED TO READ so you know what's going on. In the FAQ it mentions that Royal Caribbean has joined the same organization mentioned above called PATH, The Professional Association of Travel Hosts.
I have been reading about this organization from various publications, Blogs, and message boards with some good, and not so good reviews. In particular, and most recently (8/27/07) while reading Bill Alverson's Blog he states at the very bottom of his post directed specifically at PATH:
"Stay tuned for information on ill-conceived trade associations and the Antitrust violations including price fixing, unfair competition, restraint of trade and other potential criminal charges all association members may face because of the potential criminal activities of a few very bad eggs."
To be completely honest, I know nothing about all these claims, and I'm simply not going there. (Right now) But it did pose the question, "Just who is this group called PATH?" So I start digging around on their web site.
Imagine my surprise when I take a look at just who is not only on The Board Of Directors but standing President?!
None other than Peter Stilphen.
I don't know about you, and I'm no lawyer, but doesn't this whole "Royal Mess" start looking like "Royal Scandal" and the start of unfair competition and restraint of trade to you?
Before you come to this conclusion however, take some advice from a couple of mentors of mine:
"Don't believe a word I say, unless you can verify it on your own!"
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Doug & Ronda Bauknight
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Labels: Card Mill, Host Agency, Joystar, PATH, Peter Stilphen, Royal Caribbean, Travel MLM
