Thursday, December 06, 2007

The "Spin" On 12,000 Bookings...

The final numbers for the Carnival One Day Sale were announced by YTB yesterday afternoon. While I had seen, and wanted to post about this release yesterday, I also was curious to see how some of our "Travel Agents" would respond to the news, and what kind of "spin" they would have before I started to write. To their credit, the response is admirable and while I certainly don't believe YTB shocked the industry, we certainly did better than anyone expected when combined with the short notice and the assumption that we're not a "Travel Company" per say, but a "Marketing Company" in their view.

On November 8th, YTB booked more than 12,000 cruise passengers through gift certificates, individual, and group cruises. If you recall the Cruise Lines International Association said its Oct. 17 World's Largest Cruise Night (WLCN) is expected to generate 17,852 bookings.

Based on what we now know about the One Day Sale, I'm going to direct you to John Frenaye's response and perception concerning the take on YTB's One Day Sale and how it relates to CLIA's Worlds Largest Cruise Night. It happens to be consistent with the mindset and reasoning concerning our company, and John, to his credit, happens to be rather professional, and does provide documentation in an attempt to support his views. In addition, John's perception of who we are and what we do illustrates perfectly what so many of our opposition keep telling people about YTB regarding how little Travel is sold through our RTA's. These One Day Sales give us the best example that I can recall to actually compare apples to apples by using each of the numbers generated by the "One Day Sales".

John writes: "Based on the 130,000 Referring Travel Agents that participated, all things being equal, each would have earned 60% of the YTB commission or about $1.77 per Referring Travel Agent."

John later states: "So, 4,000 traditional agents produce 34,654 bookings (probably 70,000 passengers) resulting in sales of $43 million and commissions of $5.8million. This seems a bit more successful than 130,000 agents producing 6,000 bookings, resulting in sales of $2.4 million and commissions of $384,000."

There are several problems with the statements above.

Two words mysteriously disappeared between what is actually reported in Modern Agent and what John is trying to convey. The report states 4,000 participating agents "and agencies". In addition, the 34,654 and $43 Million being reported was not generated in one day, but between Oct. 15-31. The "One Day" or Oct. 17 World's Largest Cruise Night (WLCN) is expected to generate 17,852 bookings, which translate into an estimated $22.3 million in sales and more than $3 million in travel agency commissions.

I know the opposition would like to lead you to believe that all 130,000 RTA's participated in the One Day Sale to help the cause of YTB. If we are to assume that all 130,000 participated then we must also assume the entire Travel Agent Community participated in CLIA's World's Largest Cruise Night. I did some research, and found more than 20,000 ARC-accredited Travel Agency locations and Corporate Travel Departments. Since our opposition assumes that all YTB RTA's participated in the One Day Sale, can we therefore assume that all Agencies and Agents participated in CLIA's World's Largest Cruise Night? Liberty Travel has 200 storefront locations, with 8 - 20 Agents per location, that's a possible 4000 Agents from just one Agency. Just 10 Agents per Agency would consist of 200,000 Travel Agents overall.

Of course we couldn't average everyone in the Industry overall, and I can just see the comments listed below now.

  • Not all ARC Agencies participated.
  • Not all Travel Agents sell cruises, some just do tours, some just do corporate, some just focus on all-inclusive vacations.
  • Not all Travel Agents are CLIA certified and may not have known about the Cruise Night.
  • You can't assume that every Agency has a minimum of 10 Agents working for them, some are Independent.
  • We only booked a few on that very night, but we did book some between Oct. 15-31.
  • You can't lump the entire Travel Industry together and divide it like that.

Oh...but of course I could, and I just did. The average Travel Agent will make just $11.50 in commission for their efforts in CLIA's World's Largest Cruise Night.

That's all things being equal folks, but as you can clearly see, we don't play by the same set of rules as everyone else. And I promise you, there will be people who will take John's math and assumptions as fact and leave it at that. They don't realize that the math actually used doubles (34,654 not 17,852) CLIA's one day sales total, and divides in half YTB's numbers from 12,000 to only 6000 and we are to believe that's "all things being equal".

Go figure.

In closing, I don't mean to pick on John specifically. Like YTB, he just happens to be the most vocal of all the Traditional Travel Agents out there. With his industry connections in the media, he is far more capable than anyone in getting his views and opinions published in the press to promote his views. I will tell you that while John and I are on opposite sides of the fence concerning what is considered beneficial in our industry, we have formed a mutual appreciation for our difference of opinion. He has made very valid arguments in the past that I not only agree with but support. His perception of what YTB has actually accomplished with our successful one-day cruise sales event in November however happens to miss the mark.

For those of us who actually participated in YTB's One Day Sale, I say kudos to you for your effort and responsibility in helping YTB in their efforts to let the industry know that we have stood up and want to be counted in the same fashion as everyone else in this industry. What we book we keep as our own. What is booked by any other Agent or Agency in this industry is not of our concern or part of our commissions earned. All things being equal, we are independent and we book travel just like anyone else.


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Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker

Phone: 678.458.5812


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Sunday, November 04, 2007

24 Hour Carnival Cruise Event – November 8th!

The debate over which business model is more profitable for cruise lines, and which is better suited for customers has certainly escalated in recent weeks. So much so, both John Frenaye and I have gotten the attention of George Dooley, Senior Editor of Travel Trade with a fair and objective review of what each of us are trying to do to suggest much needed changes.

On Friday I documented that CLIA (Cruise Line Industry Association) created 17,852 bookings on October 17th, which translate into an estimated $22.3 million in sales and more than $3 million in travel agency commissions. An entire industry, consisting of 20,790 agencies and 24 Cruise Lines with a combined 180 ships generated this number from my understanding. While Liberty Travel was one of the apparent leaders of this "sale", they certainly didn't leverage with CLIA in their efforts. Others, like Cruise Planners, did look as if they partnered with what CLIA and potentially capitalized with this Association and name.

If your scratching your head like I was how an entire industry with a month long promotion could possibly only generate $22.3 in sales in one day, I've been researching this a little over the weekend. If you recall, Vicki Freed had documented in an article released on Friday, "I know the argument may be that an average sales-volume-per-member may not be that meaningful," she wrote. "But, truthfully, we have many of models in our database -- including traditional -- that are not solid producers. In fact 60 percent of our travel agencies produce less than 10 guests per year." While I'm not certain exactly what percentage does or does not support the industry, I would venture that the majority feel the way Joyce does when she commented "Why would we support you on cruise night when you don't support us? You and Carnival are in bed with the MLM's. Well too bad Vicki, I ain't selling Carnival till you support the real travel agents." Of course we all know by this point that Royal Caribbean DOES support "real travel agents".

So how do we as a group of un-trained, un-qualified, un-regulated bunch of Yahoo's respond to all this? We've been asked by the Leadership of YTB not to sling mud, not to go knocking down doors, not to write letters, but to do one thing and one thing only.

ONE day.

ONE Cruise Line.

ONE Travel Agency.

I've always loved how the leadership in YTB doesn't simply react to all this non-sense, they respond. And for those of you who don't know the difference you should after November 8th.

Carnival and YTB are teaming together to set an all time one day cruise record to show just how viable our business model really is. We are now accepting reservations to be booked between Midnight and Midnight on Thursday, November 8th, for a sailing of your choice with The Most Popular Cruise Line in the World. Not only will I and others involved in YTB be eager to assist you, but we will also have the help and support of Carnival with a special 800 number to make these bookings for you.

Here is the required information we will need to better assist you with your booking with us.

● Full Legal Names (Ex: "Bob" legal name Robert)
● Date of Birth (dd/mm/yy)
● Citizenship
● Emergency Phone Contact for guests sailing
● Dining Preference (Main/Late dining times)

Note: Dining is on a request basis only and confirmed the day of sailing.
● Purchasing Carnival’s Insurance (?) YES/NO
● Payment Information

After Completing the Reservation, Carnival and YTB will provide you with a reservation "Booking Number." This booking number or confirmation number is your reference number for any questions/changes to the reservation. Please keep it in your file.

Deposit/ Final Payment must be met or your reservation will be canceled.
Passports are required.

Selected sailings will qualify for a one to two category upgrade during this sale. Please check with your YTB Specialist for these sailings. (And yes, I consider myself a Carnival Specialist.) My wife and I have sailed on Carnival Imagination, Fascination, Inspiration, Triumph, Victory, and Legend. Who knows, you might even get lucky and sail Fantasy during a major hurricane preventing you from getting back into the port of call! (What a cruise THAT was!)

So there you have it. We've been called out and this is the way we've decided to respond to all the "Retail Agents" out there. You've shown us what you can do. Thanks to the support of Carnival Cruise Lines, YTB now has an opportunity to show you what we can do. It's our chance to show the world just how viable our business model really is, and just how refreshing, tall, and cool this glass of Kool-aid really is.

I will not be posting the rest of this week. Instead, I will be busy following the play that has been called, which is gearing up and qualifying my clients with the Carnival Cruise Vacation with which Ship they wish to sail on, sailing date, number of people traveling (double, triple, quad cabin), type of accommodation (Interior, Ocean View, Balcony, Suite), air city (if air tickets are needed), getting the Carnival " Best Fare" and promotional fares that may apply. (Senior fares, Past Guest offers, Military Fares, Cruise Only fares, Resident specials.) These are capacity controlled and not available on all sailings.

PS - If you'd like to take advantage of these great rates and specials, you can contact me here!

Bon Voyage Everyone!


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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Book Your Travel & Vacations With


Travel Reservations: 1.800.243.4450

RTA #24635

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