Whose side is your travel agent really on? 6 ways you can know

A true travel professional will be on your side from beginning to end. But what happens when you run across one of the 138,000 plus people that have bought their way into the travel industry by joining an alleged pyramid scheme?

Whose side are they on?

I’ll be the first to admit that many of them will talk a good talk. And it’s difficult to know the good from the bad when you’re dealing with a company that sells agency credentials — commonly called a “card mill” in the business. But a little due diligence on your part will go a long way.

In late January, Norwegian Cruise Lines made the decision to cut off one of these alleged pyramid schemes, YTB or Your Travel Biz. While it will not comment on their business decision, when you look at YTB’s rap sheet, you can draw your own conclusions:

• Along with other similar instances, a YTB Referring Travel Agent in Tennessee stole nearly $100,000 from several groups of high school seniors.

• IATAN (International Airlines Travel Agent Network) has rescinded its accreditation for re-selling its identification number illegally to provide unearned benefits to their members. Its subsequent appeal was denied.

• Royal Caribbean International and their three brands (Royal Caribbean, Celebrity, and Azamara cruise lines) have all terminated its relationship with YTB and refuse to accept any bookings from it.

• The California Attorney General has filed a $25 million lawsuit alleging deceptive business practices, and operating an endless chain.

• There is a class action suit in excess of $100 million filed on behalf of former referring travel agents and independent marketing representatives alleging deceptive advertising and false claims.

• It is not a member of the American Society of Travel Agents, the largest trade group representing travel agents. (And I do not believe it could comply with the organization’s Code of Ethics).

• YTB has numerous complaints with the Better Business Bureau and has an “F” rating.

Since YTB is a multi-level marketing company (MLM), its business plan is focused on recruiting new members. It is merely using travel as the sexy lure. According to YTBs SEC 10-Q Filing for the period ended June 2008, it had recruited more than 130,000 people. The pitch is to pay $500 and $50 a month for a cookie-cutter Web site, which will let you travel “like an insider” and make commissions off of your family and friends’ travel. Its SEC filings suggest the vast majority of its income is not from travel, but from recruiting.

I have been following the moves of YTB and other MLM companies in the travel industry for a few years in a personal blog. Along the way, I have had the opportunity to speak with many of their members who have only reinforced my opinion that MLM and travel is a bad mix.

The audacity of their business methods was recently revealed in the blog of one of their independent marketing representatives who has amassed a large enough recruiting base to be considered a member of “Coach’s Corner.” In his blog, he professes to know the industry and refers to himself as the “Travel Pro.” Mind you, his tenure reaches back to 2005 when he purchased his credentials. In discussing the recent termination by NCL, he outright claims that his best interest lies in his left rear pocket and not with the consumer:

I can only speak of my personal preference as a business owner and Travel Agent when I tell you that if I had an opportunity to sell a cruise to a client, with the possibility of making 40% more in agent commission over another, who do you think I would promote?

Unfortunately, his stance is the norm in a MLM/card mill/pyramid company. Again, the money is in the recruiting, not the travel. Is this the type of “travel pro” you want working on your behalf?

Is he even working on your behalf?

It’s natural to question the integrity of someone who has associated himself with a company that is mired in legal troubles and has been shut off from 2/3 of the major cruise lines operating today.

So, what is a savvy consumer to do? In a word: homework. Web sites can be created in a matter of minutes. YTB claims that within 20 minutes of clearing your credit card, you will have your Web site up and you will be selling travel.

From a practical point of view, heed the following six tips to make sure you are not thrust into the clutches of a “travel pro”:

1. Ask for references. But be suspicious if they give them to you immediately. I will provide references but only after verifying with my client that they are agreeable. A true agent needs to protect confidentiality.
2. Ask about their affiliations. Are they with a national consortium or franchise such as Vacation.com, Virtuoso, Ensemble, Travel Leaders, American Express? There is strength in dealing with a brand name.
3. Ask about their memberships. Are they members of any of the industry trade groups such as ASTA, NACTA, ARTA, or OSSN? And then verify it.
4. Ask about your agent’s tenure and experience. How long have they been selling travel? Have they been on that ship or to the destination? Do they have other resources in their network to rely upon if they have not?
5. Ask about other options. If your agent is promoting one supplier exclusively over another, ask some questions. Probe a little.
6. Verify their rating with the Better Business Bureau.

While none of the above tips are a guarantee of a good — or bad — agent, if they fail several of them, be suspect.

Never make a quick decision about your travel agent. Your travel is an investment in an experience and you certainly want it to live up to the expectations you have. Don’t let a fly-by-night agent ruin it for you.

But perhaps the best advice is to go with your gut. If something smells fishy, it’s usually because there’s a rotting fish nearby.

Tagged as: ASTA, attorney general, California, card-mill, lawsuit, MLM, professionalism, Pyramid, scam, tips, travel, travel agent, YTB