After a period of silence, it seems that
some travel suppliers are in step with Royal Caribbean Cruises
Ltd.'s crackdown on alleged "card mills."
Perillo Tours
quietly stopped taking bookings from YTB Travel Network, a
multilevel marketing travel agency, and IATA canceled four U.S.
agencies for what may be similar reasons.
IATA said it
canceled the agencies for violating its regulations forbidding the
"improper lending, subcontracting or hiring to a third party of an
IATA numeric code by agencies."
Agencies in the
card mill/multilevel marketing categories are among the targets,
but IATA declined to name the canceled firms.
IATA said it was so
concerned about the integrity of its programs and proper care of
its numeric codes that it hired legal counsel in September to
assist with its investigations. It said a worldwide investigation
was continuing and could result in cancellations in other
countries, as well.
Steve Perillo,
president of Perillo Tours, said that when he read the news of
RCCL's move, he decided to have a look at YTB bookings for his
firm. He said he found that "90% of the travelers and booking
agents were the same person. ... I wondered what kind of a game
this was," he said.
"I would love for
all agents to take our tours," which can mean price reductions of
up to 50%, he added, "but this is not the idea. It is to support
agents to learn and sell the product, not to use this for their own
travel discounts. The specter of this is growing, and this is
abusing the privileges of sellers."
Kim Sorensen, YTB's
CEO, has vigorously asserted that his firm is not a card mill, that
the YTB card is merely an identifier.
However, at Perillo
Tours, ID cards per se are not the issue; Perillo said it was
simply that "when our staff hears a valid IATA number, they
book."
Perillo Tours has
not formally notified YTB yet, Perillo said, but the letter will go
out soon.
The amount of
business was "not huge. We are a niche operator," he
said.
Perillo said he had
found about 20 bookings over the last six months, "nothing that
would make or break us. It is the principle."
As to other
YTB-like firms, Perillo said he was studying the situation. "I
don't want to act rashly. I need to find out what others are up
to."
Sorensen, however,
accused Perillo of "just piling on for publicity. We have no
relationship with them. Some of our [referring travel agents] may
have booked some business with them but not to my knowledge. Our
two companies have never communicated. It is easy to sever ties
with someone that doesn't sell your product," he said.
While RCCL did not
name YTB, Sorensen acknowledged to Travel Weekly last month that
RCCL had severed its relationship with YTB. The effective date for
termination was Nov. 9, he said, adding that his efforts to meet
with RCCL on the matter came to nothing.
To
contact the reporter who wrote this article, send e-mail to Nadine
Godwin at ngodwin@travelweekly.com.