More Pressure From Travel Agent

Travel Agent magazine had an article on the changes that host agencies and our associations need to implement to make a dent in the card mill/MLM  issue.  They interviewed Peter Stilphen and came up with a bullet list (some of which I disagree with) which is a good start.

• Host agencies should be required to maintain a commission escrow account or insurance that protects the travel agent in case of insolvency by the host agency.
• The host agency should eliminate the 100 percent commission programs. They are unfair to host agencies and suppliers and are unprofitable. The only benefit to hosts is they build volume with the supplier.
• CLIA should eliminate the extra photo ID cards afforded to their member agencies.
• The word "insolvency" should be spelled out and applied to those hosts that have demonstrated they are not paying their agents. Insolvency along with any Chapter 11 filing by that host agency should automatically allow the transfer of bookings on any reservation that as yet a commission has not been paid to that host by the supplier.
• Requirements and rules should be implemented that deal with or forbid those host agency models that promote multi-tier commission programs.
• Host agencies should be forbidden to offer photo ID cards to their affiliates for any reason other than as a membership card. They should not have any numbers on the card except an internal number issued by that host agency.

I am not sure what an escrow account will do when it is managed and run by the same people that are supposed to be paying the agents in the first place.  The solution, in my opinion, is to re-take this industry with a public relations campaign and offer more oversight--either on the associative or the governmental level.

Agents need to let the traveling public know how detrimental card mills and MLMs are to the travel industry, and to the consumer. Government entities need to be able to watch over, or at least have some leverage, over the agencies to protect the consumers. There is a strong movement to do just this afoot and likely you will see the beginnings of that in March or April.

In a recent meeting with an Ohio state Senator, there were many ideas floated about how to gain better control over the scourge. To be honest, he was absolutely shocked at what is happening and even more shocked when he realized that one MLM had nearly 2500 unregulated, untrained, card carrying MLMers running amok in his State!