Agents Hail Royal's Card Mill CutBy Carol Eannarino
The travel agent industry is hailing Royal Caribbean Cruises Ltd.’s decision to begin terminating business relationships “with certain travel-related companies that we have concluded are in the 'card-mill' business (selling ordinary consumers access to benefits designed for actual agents)."
A letter to travel agents last week from Royal Caribbean International, Celebrity Cruises and Azamara Cruises called "card mills" a "growing and troubling trend within the travel industry" and cited their "many negative effects."
The letter cited these effects as: leading to negative consumer experiences, "undermining the integrity and business reputations of accredited and certified travel agents"; devaluing "the knowledge, experience and expertise that legitimate, professional travel agents provide their clients every day"; "substantially increasing the costs of our operations by causing us to provide costly and valuable benefits to a set of persons or entities for which those benefits were not intended" creating "an environment in which the traditional and full set of services we expect a travel agency to provide to consumers are, in fact, not provided, despite the payment of a full commissions in connection with a booking," and misleading “normal consumers with unrealistic expectations of 'travel-agent-only benefits,' when, in fact, they are not travel agents."
The letter encouraged "legitimate, independent agents" to become affiliated with an accredited Host agency or to register on its travel agent Web site, CruisingPower.com and asserted that its efforts in this area will be "ongoing."
Agents and industry organizations responded favorably to RCCL’s move — and many said that it’s about time that a supplier took a strong stand against what they consider to be a long-time industry problem. Several expressed the hope that other suppliers will follow suit.
"MLM (multi-level marketing) 'agents' taking fam trips for free or reduced rate travel, not for training, has become very egregious," said one agent.
"A few months ago, Celebrity did a seminar at sea and our DSM was on the shuttle bus at the airport when a young lady began gushing about going on that seminar at sea — that she was going for free. She then whipped out a stack of YTB business cards telling other people on the shuttle that she could show them how to travel for free, as well."
Agents also say that, sometimes, legitimate agents are denied agent rates because "travel like a travel agent" people have taken the space.
"Many times I have been at trade shows or seminars and witnessed bogus agents win prizes — cruises, land, etc, just because they had attended," said a Florida agent.
"I have complained to the people who run the shows, and they don’t know how to monitor it. At one multi-cruise line trade show, the grand prize was won by someone sitting at my table who, throughout the dinner, bragged that he came only to get the freebies and he admitted he wasn’t an agent."
This agent added that at the Luxury Show in Riviera Maya last year, one woman won three prizes.
"She attended because the show and the fam trip were free. She said she couldn’t even sell travel to her family; she’s in it for the perks."
Charlie Funk, Just Cruisin' Plus, Nashville, said, "I think it is a good move. It is an assertion by a major cruise line to take back their training programs. The intent and purpose of fams is always and will always be to train agents to sell product and people have been abusing the intent of these things through these card mills and multilevel marketers."
"I am thrilled that one of the largest cruise lines has addressed a major industry problem," stated Vivian Ewart, senior vice president of the CruiseOne franchise organization and Cruises Inc.
Ensemble Travel Group also applauded the Royal move.
"This move by Royal Caribbean, Celebrity, and Azamara was a very bold but very important step in addressing the mounting problem of card mills in our industry," said Jack Mannix, CTC, president and CEO of Ensemble Travel Group.
"Even though today’s announcement may represent a loss of business for these three cruise brands in the short haul, their commitment to upholding the highest business standards will most certainly be rewarded with an even greater respect from members of the Ensemble Travel Group and other professionals in the travel agency community."
Peter Stilphen, MCC, Coral Sands Travel, who is president of the Host agency trade group PATH (Professional Association of Travel Hosts), said, “Host agencies should benefit from decisions made by Royal Caribbean and, hopefully, other suppliers.
"Thank God the suppliers are beginning to wake up concerning the MLM/card mills who have been penetrating the legitimate travel industry. We applaud RCI’s decision to terminate card mills. I feel many suppliers will follow RCI’s new business practices as they relate to the card mills."
He called on other lines, notably Carnival, to institute similar policies.
The chairman of the Association of Retail Travel Agents (ARTA), Barry Richcreek, said that the announcement by the RCI brands “is welcome news from a respected supplier to curtail the growth of the MLM/card mill business, a scheme which denigrates the stature and role of the legitimate travel retailer.”
He called it “a major step today to add teeth to its support for the legitimate travel retailer.”
Michael Batt, president and CEO, Carlson Leisure Group, including Carlson Wagonlit Travel, Cruise Holidays, Results! Travel, SeaMaster Cruises and Cruise Specialists, sent RCCL a letter of thanks “on behalf of the thousands of hardworking, true travel professionals associated with Carlson Leisure Group ...for recognizing the inherent peril associated with card mills and those purporting to be travel agents.
"By simply selling inexpensive credentials to individuals only wanting the perks — yet having no real desire to sell Royal Caribbean, Celebrity or Azamara Cruises — card mills not only threaten the good name of legitimate travel sellers, but they dilute suppliers' ability to best support those agencies that truly support them.
"We are pleased that RCCL has drawn a definable line in the sand, and we salute you for caring enough about our future together to promote integrity. In the end, you’ve helped make our customers the biggest beneficiary," the letter stated.
Peter Rasmussen, general manager, USA for the Host agency Travel Counsellors, said, "I sincerely hope the action will not stop with Royal Caribbean and that other strong companies will see fit to follow suit. It is high time for our industry to take steps to assure that the business practices of some do not continue to jeopardize consumer confidence in working with a travel professional."
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