With the increase of travel companies joining the network marketing industry, it’s very important to be aware of some very misleading information many companies are using to lure in their customers and business partners.
If you are seriously looking into becoming a travel agent / consultant / specialist / name-your-own-title, there are a few facts you need to know before chosing a company to work with:
1) A travel ID card will NOT earn you all the discounts promised with airlines, cruise ships and hotels. This is by far the biggest lie in the travel industry. The promise of free and low-cost travel is a great lure, but far from the truth.
In the travel industry, there are only two forms of identification that airlines, hotels and cruise lines recognize: an IATAN card and/or a CLIA card, with the IATAN card being the most widely-recognized card. To earn an IATAN card, one must, among other things, have already earned $5,000 in commissions in a 12-month period.
Just having an ID card that says you are a travel agent with the ABC Travel Company will get you nothing but laughed out of line at the airport. Want to go on one of those discounted FAM trips? Guess what..you need an IATAN number or a CLIA number…. and no, you cannot use someone else’s. You need to present your own card.
In the 1970′s, there was a rash of companies that promised travel agent ID’s that would save people hundreds of dollars on trips… all for $495…. and there is now a surge of these types of scams again.
For more information on this, just google “card mills”
While some companies may offer their own incentive trips to you for a volume of business, that is not the same as being able to show your travel agent id and get a discount from the airline/hotel/cruise line.
2) If you want to be a travel agent/specialist, etc, you MUST have Errors and Ommissions insurance (E & O). Don’t let a company tell you that it is not necessary. If a company says you are covered under their policy, ask to see a copy of it. Each agent must have their own, even if you want to just be a referral agent….unless you want to risk your family’s home, car and bank account. Why? Because, believe me, when John and Suzy’s honeymoon trip goes bad, their attorney WILL sue everyone involved. Think it won’t happen? You would be sooooooo wrong. It happens all the time. If you are going to be a travel business person, you need E & O insurance, which runs around $150 per year. Don’t let anyone tell you otherwise.
3) Companies must comply with the Sellers of Travel laws in several states and should provide you with either their state numbers or a letter of exemption for those states. This applies to doing business in that state, not just being located in that state. Florida and California are just two of those states.
4) Google the name of any company you are looking to join and make sure that there are not outstanding complaints at the Attorney Generals’ offices. There is one prominent company that has a history of starting in one state under one name, operating until the AG shuts them down, then re-opening in another state under another name, operating until the AG office there shuts them down, and moving yet again and again. AG offices are being inundated with complaints about “card mill” companies… make sure the business you are looking into is not one of them.
Are all home-based travel opportunities bad, then? No. Most home-based travel agents work with “host companies.” Google that term and you can learn more. How can you spot a good company from one that is not so good? Look out for any company that promises you an ID card that will save you money. If it is not an IATAN or CLIA card, it’s not worth any more than your driver’s license.
This is not something new, actually, but a reformation of an old scheme that first popped up in the 1970′s. Don’t be lured by the excitement and promise of free travel…do your homework and find a company that is legitimate. Don’t just listen to the company sales pitch and promises. Look online and understand how the travel business really works to save yourself, your family and your reputation.
Sincerely,
Robin
__________________
Robin van der Merwe
Dallas, Texas
I switched to Xango!
Find out why…
Reprinted with permission
