The MLMs And Card Mills, A Real Threat To Travel Professionals

The Network marketing companies (MLMs/card mills) are simply bad for the travel industry. Most of them lose money, change their names often and use the age old tactics of lies and deceit to sell their programs. They are not into selling travel as a serious profession, but rather, into having the naive consumer recruit others into the program with promises of great wealth as well as selling other products such as cosmetics, vitamins, and now used cars. Their affiliates are generally poorly trained, and pose a burden to suppliers and the integrity of the travel profession.  

The situation won't be solved by people like me writing articles about these folks. The situation requires the individual travel professionals, the organizations, CLIA and the suppliers doing their part. This can be done without fear of reprisal from the MLMs and card mills. We would be simply stating our position and offering basic information about the travel MLM/card mill industry.

There are some people that don't feel there is a problem with the intregration of the MLMs and card mills because the only reason we all exist is so the supplier can sell their products. The more people selling their products the better for all. There is at least one problem with this thinking. When you allow anyone to sell a supplier's product, you take the risk of someone misrepresenting the product because the individual is not properly trained to represent that product. This creates a huge burden and potential liability for the supplier who works with poorly trained agents. Usually that agent only cares about the sale and potential commission. In the long run the supplier will be hurt. In addition, the more consumer travel agents out there seeking travel agent benefits, the more burden it places upon the supplier. The real problem is that continuing on this road erodes or dilutes the role of the professional agent. The so- called consumer travel agent or referral agent is growing at a much faster pace than the legitimate travel agent which will hasten the above results.

I have been writing about card mills for several months now along with comments about them on my website for the past two years. As one single voice we can have an impact. Here are my recommendations. I'm sure you can come up with others. .

  • CLIA has become a powerful force in the re- emergence of the MLM/card mill in recent years. Some card mills have replaced their own IATAN look-a-like photo ID cards with the CLIA card to give them more acceptability and credibilty. If CLIA would upgrade their photo ID card requirements, it would force the non-serious agents to either obtain more training or get out. This works for both sides of the travel agent distribution system. On the MLM side it would deter the easy distribution of these cards. Where is the CLIA ADVISORY BOARD on this subject? Aren't you all travel agents?

  • Host Agencies need to develop "newbee" training programs and start accepting new travel agents. Coral Sands has been doing this from day one and it can be profitable. The Host Agencies need to create a workable program for developing new agents. At this time, the vast majority of new agents are joining the MLMs/card mills and receiving poor training and picking up some bad selling habits.

  • Organizations such as PATH, ASTA, ARTA, NACTA, NACOA and TPOC need to have a basic awareness program explaining both sides of the travel agent distribution system somewhere on their website explaining the differences between an MLM and entering into the "legitimate" travel industry. This can be done without infringing on Federal laws and nasty letters from the MLM attorneys.

  • The suppliers, especially the large cruise lines, the all-inclusive resorts and a few tour companies should re-examine their policies in regard to the qualifications of travel agents required to take advantage of their benefits as well as establishing a company policy regarding untrained agents.
  • Individual travel professionals should write, email or telephone their membership organization, preferred suppliers and CLIA expressing their opinions. If enough of us participate someone will listen.   

Keep in mind one important fact. This is not about travel agents losing benefits to the MLM referral agents. This is about continuing and growing the serious travel professional, enhancing our integrity and showing the consumer they can rely on a true travel professional. The MLM referral agents are presently growing at a much faster pace than the serious agent and, if left unchecked, will seriously dilute our professional travel status.