Don't Get Scammed by Fake Travel Agents

Travel is a billion dollar a year industry and this is resulting in rise in the number of travel agents you may run into around town. Since most are now home-based (to keep overhead expenses down and remain competitive with large discounters like Groupon and Cosco) it makes it harder than ever to determine who is running a legitment agency and who is trying to rope you into a pyramid scheme (ahem, sorry... multi-level marketing program). As a relatively new agent, I'll admit that I fell for the scam the first couple of times I met one of these "agents." After some confusion and research, I'll admit I became a little angry at the idea that an already struggling-to-come-back industry could potentially suffer from the unscrupulous marketing techniques of some industry pirates.

To be clear, I do not believe that those individuals selling travel under one of these companies are unscrupulous. I do, however, believe they are naive (sorry, but they are). I would like to think that in this information age that people would know better. Yet we never seem to learn and we continue to get duped by too-good-to-be-true deals. The unscrupulous ones are the organizational leaders who are intelligent and savvy enough to know that they are peddling false promises and taking people for their hard-earned money.

At this point I'll resist the temptation to name names and just let you figure out who they are for yourselves after I explain the general set up. This more out a fear of being sued than anything else (an unfortunate reality nowadays). As I mentioned before, I first started running into these agents at a local, monthly networking event. Having just purchased my travel agency franchise and done a fair amount of due diligence prior to deciding which brand to buy into, I was surprised to encounter not just one or two, but three agents working for a travel agency with which I was not familiar. I was really taken aback the following day when one of them called me up and proceeded to give me the third degree about my business, asking several questions that were not appropriate to discuss with potential competitors (such as royalty fee amounts, purchase pricing, commission percentages and the like). Even more unprofessional, she seemed genuinely agitated when I refused to give her the answers she sought.

I mentioned this to the event organizer, who graciously apologized even though she clearly is not responsible for the actions of attendees. It was eventually forgotten about until a few months later when I ran into another agent at the same event who mentioned in passing that he was "recruited" by the agent with whom I had the negative call. The word choice struck me as odd at the time, but again I brushed it off as I got the impression that he was more of a hobbyist agent and not really posing any significant competition. Then, one of my wife's coworkers started blasting Facebook with celebratory pictures of her as having completed her travel agent training and looking forward to her first travel party where she hoped to bring on-board some more agents. Again, odd. What new agent has the wherewithal to hire and train new agents while still learning the ropes his/herself and getting their business up and running?

More recently and again at the same networking event, I met four very young agents from yet another unknown agency. The conversations I had with them left me so confused as to how or why they were selling travel. Aside from the fact they looked like they were barely out of high school, they seemed to have no travel experience. One even went as far as to ask if Mount Rushmore was in Washington after I told her I took my family there last summer. Really!?

Perhaps the most suspicious, and the usually the biggest tell-tale sign of a scam, is secrecy around their business. All four agents described their business differently. Vaguely, but differently. It was like pulling teeth to get a straight answer. The most I got from one of them is that it was a "club" just like Sam's or Cosco.

Now I really had to investigate this, if for no other reason than to know my competition. That's when I discovered that both of these lesser-known agencies were lesser-known because they weren't really travel agencies. They were multi-level marketing programs (MLMs) similar to Mary Kay and Amway. Like those organizations, agents are able to sell products (in this case vacations) and can make a little bit of money doing so. However, you don't really start making money until you bring a team of people under you, who in turn bring a team of people under them and so on and so forth. Each team member pays a monthly membership fee, the amount of which (along with the size of your team) is what more than anything determines your agent level (not the amount of commissionable sales you make as an agent, which is the industry standard).

Agents are highly encouraged to recruit their friends, family and coworkers into the organization because most of their income comes from membership dues not travel commissions. These dues are analogous to the excessive inventory that agents are required to purchase in other MLMs. Members are usually allowed to earn points for time and money spent in the organization, which can be applied toward travel discounts under some stringent rules that, more likely than not, lead to more points being lost than redeemed (consequently leading to additional income for the agency). Agents are tempted to buy into this program under the typical MLM promise of pulling in hundreds of thousands of dollars per month with something as seemingly simple as having a specified number of affiliates working under you in the various levels.

One only has to work through the math to realize that number would be practically impossible for everyone to reach in a competitive market and the only people who are really making money in the agency are the owners and other staff in the highest echelons. As a legitimate agent - who owns a fully licensed and insured corporate entity which operates under a similarly licensed host agency that has won industry awards, enjoys exclusive partnership agreements with major cruise lines and land tour operators, and invests in the success of its agents through ongoing professional development geared toward product knowledge and not recruitment (all of which are the true test of legitimacy, not whether commissions are paid by airlines as one Internet source stated) - it infuriates me to no end to think that these other agencies are trying to lure unsuspecting travelers into their pyramid schemes (lets call a spade a spade here). Those travelers will inevitably learn the sad truth of their decisions and then be turned off all travel agencies forever... even the REAL ones. That's unfortunate because we really do provide a service to our clients in planning their perfect vacations, be it a boxed tour/cruise or completely customized adventure.

As a travel consultant, I feel a responsibility to assist all travelers in making the right decisions for themselves, regardless of whether or not they're my clients. That is why I wrote this and why I will gladly chat with anyone who calls me with questions about my agency or an agency they are questioning. No secrets here.

The Case for Cruising

I probably shouldn't say this given my chosen profession, but I am not into cruising. I don't hate cruising, I'm just not fanatical about it like many people are (you know you've met them). There was a once a time, however, when I thought I did hate cruising - mostly because of the environmental impacts. Think large ships dumping massive tonnage of waste into the oceans, tourists invading en masse areas that were not previously frequented by people, etc. etc. Then I got invited on a cruise. I did my research before accepting and discovered that the industry has done a lot to clean up its practices since the '70s and 80s. While there may still be room to improve, I do firmly believe that we have a responsibility as consumers to reward businesses who are making an effort. If we don't, then what incentive is there for them to do so?

Environmental impacts aside, cruising just isn't my preferred style of travel. I got my travel chops backpacking across the South Pacific, staying in youth hostels and seeking out-of-the-ordinary experiences. Heck, I've hitch-hiked in every country I've visited, sky-dived over deserts, hiked volcanoes, bungy-jumped in a canyon and shared a jungle treehouse with bats and bugs. Cruising is a little too safe and a lot too comfortable for a traveler with my tastes, even with my older age and considerably shortened vacation time. Right?

Well, not so fast. There is a place for cruising even for the adrenaline junky traveler, especially if you have found yourself all grown up and trying to get the most out of your one-week-a-year vacation. When you think about most of the places that people cruise - the Caribbean, the Mediterranean, Hawaii or even river cruising the classic cities of Europe - how else are you going to see so much with such little time?
In my younger years I always said I didn't want to go to Europe until I could spend months there backpacking around, going from country to country on my EuroRail pass. It just seemed like such a waste to spend twelve hours in a plane and only see one city. It's the same reason I never went to Hawaii. Then river cruising came along. They spend more time in port than their ocean-going cousins which means more time to explore those sites. The same is true for many Hawaiian cruises. Best of all, you get to see multiple cities/islands without having to constantly pack/unpack your luggage and you are guaranteed a locally-inspired, great meal every night!

Even with the shorter Caribbean cruises, you still have plenty of time to get out and explore some while in port. Modern shore excursion options are practically limitless and there's something for everyone. History buffs can take a guided tour, beach bums can usually save money and walk to the nearest plot of sand and adventure seekers can go diving, snorkeling, sailing, horseback riding and the list goes on. All things considered, the prices are pretty reasonable too and at the end of the day you don't have to wait your turn to take a shower in your flip-flops in some communal bathroom.

There are many places I wouldn't cruise to, but there are also many places where cruising just seems to make sense. Next time you are facing budget and time limitations, yet you still want to see and do as much as possible, consider taking a cruise. Even if you swore to yourself you never would. Your travel agent can help you find the perfect boat (it's cliche but true, there is a boat for everyone so don't just go for the cheapest option) whether that's the one for relaxing, luxury, partying, family or adventure. S/he will also help you get the best deal and navigate the first-time cruiser experience. In the end, you just may find yourself surprised by how much fun you had.

Instead of "Use it or Lose it" Vacation Time Policies, why not try Something Different?

According to the Bureau of Labor Statistics, despite vacation time being nearly 7% of an employee’s total benefits package,1 people on average are taking fewer and fewer vacation days each year. Over the past decade this number has risen to an estimated 5.7 unused vacation days per year, worth between $1898-$2609 per employee. This unused vacation time results in lost productivity and low morale as well as a very real financial burden. Private companies are reporting some $224 billion in liabilities from rolled-over vacation time according to the U.S. Travel Association.2   As a result, they are forced to implement creative - and at times stringent - policies to get employees to use their vacation time (such as use-it-or-lose-it policies). Instead of coming down with a heavy hammer, why not try some positive reinforcement?

By partnering with us, you will show your staff that you care about their mental well-being and come out looking like the good guy while we do all the work. We will set up a personalized Web portal, complete with your company’s logo, that you can like to your Intranet. Your employees will have direct access to us and all of our travel offers. Best of all, it won’t cost you anything. We’ll even waive our service fees for them, including our group fees if you decide to book a retreat or seminar at sea with us! What can you lose?

OK, it's probably true that carrots alone won't be enough to save your company from paying out all that unused vacation time when an employee leaves. Still, I don't think anyone would argue with an appropriate balance of carrot and stick. Chances are, if you have made it to the higher ranks of your organization, you've garnered a fair amount of negative sentiment just by the nature of your role and the decisions you make on a regular basis. Providing a travel resource to your staff is sure to help you recover some of that lost street cred with the people you lead. Show them what we already know is true, that you do care.

Have you always wanted to visit Cuba?

Picture by Carnival Corporation

First and foremost, given the current debate on things, I feel compelled to warn you that this article is not a treatise on the merits of thawing relations with Cuba no its track record of human rights violations and the injustices of the Castro regime. Likewise, this is not a commentary on the Obama presidency. Rather this is the musings of a traveler who delights in moving outside his comfort zone to experience new things, meet interesting people and learn a little something about the complex world we live in.

Not since the 'boomers has there been a generation of Americans able to visit Cuba, despite it being a mere 90 miles from our shores. The result has been several generations during which an air of mystery surrounded the island nation. With it's deep roots in Spanish colonialism, slave trading, conflict and revolutions - Cuba promises to deliver a profoundly educational experience for those open to the idea educational, immersive travel. Anyone who has traveled through Latin America understands the strength and resilience of the people in these countries who often straddle a thin line between the wealthy, western nations and the relatively impoverished (and often disadvantaged) native cultures. Add to that decades of isolation and socio-political tension you can cut with a knife and your trip to Cuba is sure to deliver a history and anthropology lessons around every corner and in every cafe.

If you are like me, the prospect is too good to pass up. Still, there is no denying that Americans may be viewed as persona non-grata by some, particularly Castro-loyalists. There in lies the conundrum.
Do you take advantage of a new opportunity to learn about a nation and people so similar yet so different than its Latin American neighbors or do you play it safe and wait for political temperatures to cool?

Starting May 1st, Carnival Corporations will present a great opportunity for those with a pioneering spirit and a sense of adventure. Travelers can sail on their newest brand of cruise ships, Fathom, on 7 night cruises to Cuba that visit 3 cities and tout an impressive 3.5 days of shore excursions that are designed to be fully immersive, educational and safe. In Carnival's own words:

"Our voyages to Cuba provide your clients an exclusive opportunity to relax by the pool, enjoy a leisurely dinner, or take advantage of Cuban cultural immersion activities on board in between ports. Your clients will only have to unpack once and will arrive in the next port fresh and ready to make the most of their time. Book your clients with confidence as they depart on what is sure to be an unforgettable experience and an opportunity to make history. 

So many great things to immerse yourself in. Learn how to salsa, and maybe even tango. Practice some elementary Spanish. Take a workshop on how to make great travel photos. Learn the art of the Cuban cocktail and make an authentic Mojito or Daiquiri. Join an orientation session in Cuban history and culture to help deepen your onshore experience. 

Or, if you'd rather, spend your time by the pool, in the spa, or just leaning over the deck rail enjoying the Caribbean breezes."

I for one cannot wait to be among the few who can tell their fellow travelers about this one-of-a-kind trip. Fathom's first ship, the MV Adonia, is already booking cabins and space is filling up. Even if you thought cruising was not for you, this promises to not be your typical cruise experience. A word of caution, however, for families - age restrictions apply to these sailings.

If you would like more information or to book a Fathom cruise, contact your Dream Vacation Specialist at D&H Travel Advisers by visiting our Website at www.dhtraveladvisers.com.