November 16, 2007
YTB IATAN/IATA Accreditation Cancelled
The emails and rumors that you've been hearing regarding the YTB's accreditation with IATA/IATAN are true.
YTB's IATA/IATAN accreditation has been cancelled. However, as a famous stock trader once said, "Nobody ever makes a dime when panicking."
What the heck is IATA anyways?
Here's the deal.
IATAN's mission is to promote professionalism, administer meaningful and impartial business standards, and to provide cost-effective products, services and educational programs that benefit the travel industry. Through the use of its informational and other resources, IATAN provides a vital link between the supplier community and the U.S. travel distribution network.
I am not privy to why IATAN pulled the plug, but right now it appears its up the lawyers to sort it out. No, this doesn't mean that you won't be paid on your travel and no this doesn't mean that YTB is in any sort of trouble. In fact, they just posted one of their best quarters of its history and the Carnival Sell-A-Thon has been a tremendous success.
Here is the straight scoop from YTB's corporate office.
1) Is YTB corporate working to get re-installment of the IATA/IATAN?
Yes. YTB and our legal counsel are actively working with IATA/IATAN to resolve this issue and substantiate that YTB meets or exceeds both IATA/IATAN's regulations and our own high standards.
2) Is YTB in trouble?
No, not at all. We just announced our best quarter ever, including our highly successful Sail-a-Thon with Carnival Cruise Lines. We are making plans for even more exciting opportunities for our RTAs and Reps, including great travel and event packages for the 2008 Beijing Olympics.
3) Are we a "legit" travel agency because of our remaining affiliation with ARC?
We are a legitimate travel agency for many reasons including our affiliation with ARC and CLIA, the extensive training and support that we offer our RTAs, our strong vendor relations, and the fact that Travel Weekly named us the 11th largest leisure travel agency in the country.
4) So, what did IATAN status do?
The only thing IATAN status did was offer an additional avenue for resources and supplier contacts. It also offered a card that must be earned and was recognized widely among the travel supplier community. The CLIA card offers many of the same benefits.
5) What is the difference between ARC and IATA/IATAN?
ARC (Airlines Reporting Corporation) is the organization that certifies us, and other travel agencies, to book travel and conduct business. We are in good standing with ARC. IATA/IATAN is a global trade organization, but their activities and accreditation do not have any effect on the day-to-day running of our business.
6) Can we still use the IATA/IATAN number at the time of booking?
Yes, the number will remain the same as it also serves as our CLIA and our ARC number.
7) Can we confirm that we are one of four agencies that had their accreditation cancelled?
Yes. However, we are actively working with IATA/IATAN and our legal counsel to regain our accreditation.
Are we going to issue new credential cards, since they say IATA/ARC#?
Until our issues with IATA/IATAN are resolved, we ask that RTAs refrain from using any materials that reference IATA/IATAN.
9) How is this going to affect the RTA's ability to earn commissions or receive travel perks? When calling the vendor, don't they need to give the IATA number?
It will not affect the ability to receive travel commissions in any way. Reduced rates will still need to be approved via the reduced rates department to determine eligibility. Hotels only require CCRA (in YTB's booking engine) to receive net rates (available in the travel portal); these rates are basically when booking with hotels directly. Some vendors will require an IATA or CLIA number while others want the YTB phone number as verification.
10) How does this affect YTBU teaching about credentials? Should we just omit the IATA/IATAN portion all together?
For now we should omit the IATA/IATAN portion, but we will continue to evaluate this, as we work with IATA/IATAN.
11) How should we address the IATA/IATAN issue in business briefing presentations?
If someone asks about it directly, assure them that the loss of IATA/IATAN accreditation does not, in any way, limit our ability to sell travel and receive commission. Also tell them that YTB is working with IATA/IATAN and our legal counsel to clear the matter up as quickly as possible
12) Does this have anything to do with Royal Caribbean terminating our contract?
No, the two issues are not related in any way that we can identify.
13) Why does it seem like all this bad news is coming at once?
As YTB continues to grow, we become a bigger threat to both brick and mortar travel agencies and other online travel sellers. That means that some of our competitors might attempt to impede our business progress in any way they can. Think of it as a "success tax." But know that YTB's entire team is here to support our Reps and RTAs and we will continue to fight the negative statements and misinformation about our company.
Thanks for all you do for YTB.
www.theytb.com
Filed under Blog by TheYTB.com Admin
Comments on YTB IATAN/IATA Accreditation Cancelled »
Travel Agent » YTB IATAN/IATA Accreditation Cancelled @ 10:06 pm
[…] YTB Admin wrote an interesting post today on YTB IATAN/IATA Accreditation CancelledHere's a quick excerptWe are a legitimate travel agency for many reasons including our affiliation with ARC and CLIA, the extensive training and support that we offer our RTAs, our strong vendor relations, and the fact that Travel Weekly named us the 11th … […]
Is YTB just a Scam? - Page 2 - ITYT Travel Forums @ 9:12 am
[…] YTB IATAN/IATA Accreditation Cancelled Interesting thread. YTB just had their IATAN/IATA cancelled. This article claims that YTB.com just posted their best quarter of its history and their legal counsel is working to regain accreditation. This could be a major blow to YTB's image. If they survive the PR, though, they could become a major player in the industry. Check here for the article. YTB IATAN/IATA Accreditation Cancelled […]
Travel Agency » YTB IATAN/IATA Accreditation Cancelled @ 5:35 pm
[…] YTB Admin wrote an interesting post today on YTB IATAN/IATA Accreditation CancelledHere's a quick excerptAs YTB continues to grow, we become a bigger threat to both brick and mortar travel agencies and other online travel sellers. That means that some of our competitors might attempt to impede our business progress in any way they can. … […]
Mike @ 9:35 pm
I feel obligated to post a reply to your blog. I have conversed about this on several blogs. I have a friend that is deeply involved in YTB and I have unfortunately had to advise him to cash out his money and get out. The YTB travel discount is predicated on the exploitation of a loop hole in the travel industry. Until now the industry has tolerated these abuses and or simply denied benefits until the RTA booked several “packages”. This is what Carnival has done. Caribbean set the precedence and now IATA and ASTA have followed suit. It will not stop there.
The central problem is that YTB is selling a “product discount” that is discretionary. This is not like a rebate coupon where if you follow the guidelines you will get the discount. The vendors hold all the cards, makes all the decisions, and YTB or any of the other Travel MLM’s are completely at their mercy. The vendors are now speaking and speaking loudly.
I am not here to debate the validity of MLM or the YTB model. That is a conversation better left for priests and fools. I am not here to debate whether or not YTB put more travel dollars in the vendor’s pockets. I think they have. The simple, clear, loud and undisputable fact is that the vendors are saying that they do not like the MLM model being used for travel. Their stance is that we (the vendors) existed before MLM and we do not want to be associated with it, GO AWAY!
Certain areas of the travel industry will not care. In particular hotels will not care. They will keep booking with the MLM companies because their prices are over inflated and many of their parent companies, Marriot, Cendant, Windham, already sponsor MLM type setups known as fractional timeshares.
I know that in ‘08 YTB is finally raising their standards so that you actually have to do full training to be an RTA. You will also have to actually sell travel to get the discounts. The problem is that is it too little too late. The travel industry as a whole has made up their mind on MLM’s and it is not good.
If YTB can not regain their standing in the industry within the next few months they are in trouble. They can sell the changes all day long but if the vendors aren’t biting, you might as well be fishing with dog doo. If the only thing you can promote as a discount is hotels and Carnival Cruise Lines, then there is not much of a “travel company”. The system will collapse or be an “also ran”.
Just some things you might want to think about
~ Mike ~
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