Thursday, October 11, 2007

YTB nail in the coffin

My first post questioned the legality of YTB (read it here). But months later there appears to be no movement against them... but now their lifeblood may be cut off... per this article Royal Caribbean International "will terminate relationships with multi-level marketers (MLM's) which provide travel agency credentials and identity cards to consumers for the purpose of becoming would-be 'travel agents.'"

YTB is not named, but it's obvious they are one of the primary targets. When I was being recruited to YTB one of the main benefits being pushed was my ability to travel cheaply since I would be considered a "travel agent". That felt fishy to me since I clearly was not a travel agent, and had no intention of becoming one, but since I like to travel, it is what got me to look into the business. I stopped looking once I saw that the primary way YTB'ers make their money is by selling the travel agent web sites... NOT from selling travel. My understanding of MLM laws is that you can NOT sell web sites as your primary business no matter what you call them.... so my personal belief is that it's a matter of time before the FTC tries to shut them down.

Now though, if you're a YTB travel agent, the travel industry may shut you down. Certainly that should be a major concern if anyone else follows in Royal Caribbean's foot steps. According to the Travel Daily News article, Marriot "and other major players" are participating in a new designation program that travel agents will have to meet to get cheaper travel. Having been on the Scam.com forum recently this has been developing over time, and the "benefit" of cheap travel to "fake" travel agents has already started to disappear.

So... whether YTB is able to continue without legal trouble from the FTC may not matter much longer if new recruits dry up when they learn they can't actually save on their personal travel. This will be especially bad if YTB is banned completely, even those who meet the criteria of the industry. My prediction... pain for YTB.


Digg!