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Travel Agent in a Box - Just Add Money and Stir

Starting back in the '60s (and ongoing), you could send a little money to a post office box and become an ordained minister, legally able (in most states) to perform marriage ceremonies and other rites of the trade. Today you can send a check and become a travel agent.

Good travel agents are some of the hardest working people in business. They have to acquire a basis of knowledge and they can never stop learning. They have to be prepared for clients who want to go to Disneyland, clients who want to book a safari to Kenya and clients who want the cheapest way to get to the next state.

Travel-agent-in-a-box scams count on overplaying the discounts travel agents get on their own travel and the credentials necessary to get them. They sell instant "certification" for prices ranging from $495 to well over $3,000. You can even make a down payment and finance the balance (at 18 percent a year). Some require a minimum amount of bookings to maintain travel agent status. In that case, consumers end up booking with a very disinterested and untrained person who isn't going to get them anything near the best deal available. They cheat the person who fell for the scam and they cheat every consumer who tries to use the victim as a travel agent.

I read between the lines of one of the largest travel-agent-in-a-box promotions, did a little math and came up with the truth. Their claim: "We have over 50,000 registered outside agents. Last year we booked $100 million in travel." This come-on makes you think they're doing great business. Let's take a look at the facts:

1.Most major U.S. airlines, hotels and car rental agencies require that anyone claiming travel agent benefits show a valid IATAN (the International Airline Travel Agent network) card on demand. 2.To receive free travel benefits through IATAN, you must earn a minimum of $7,000 in commission each year. 3.Major airlines require that you work a minimum of 35 hours per week selling travel with a minimum annual income from salary and commission of $12,000-15,000. 4.This company claims 50,000 outside agents and $100 million in bookings. Dividing total sales by number of agents we reach a figure of $2,000 in sales per agent per year. If each travel-agent-in-a-box earned ten percent commission (very unlikely when that is more than most regular travel agencies get on domestic air tickets) each agent earns an average $200 in annual commission. At five percent (a much more likely figure) each agent earns a whopping $100. 5.To reach the IATAN $7,000 minimum, each travel-agent-in-a-box would have to sell $70,000 or more in travel to friends, relatives and associates and receive the very unlikely ten percent commission. At five percent, each agent would have to sell $140,000 a year to legally qualify for an IATAN card.

Don't let yourself be conned by these deals. It could easily take you five years to even reach a break even point. If you've been tempted to sign up for a travel-agent-in-a-box deal, here are a three more facts that should stop you in your tracks.

1.Even in the unlikely event that you reach the IATAN minimum, your regular air travel privilege is the right to purchase airline tickets at 75 percent off--but the discount is taken off a high-priced fare and often results in a fare that is higher than what most consumers can get with a seven- to 21-day advance--not to mention special promotional fares. 2.Hotels that offer discounts and companies that offer fam trips (designed to familiarize agents with their products) are becoming more and more stringent in not accepting membership cards from travel-agent- in-a-box companies. They want some assurance that the value they accord will actually result in increased bookings. 3.The Airline Reporting Commission periodically audits travel agencies. They check the agency's list of qualifying travel agents. If any of the people listed do not meet the criteria for agent discounts, the agency's right to ticket may be revoked. 4.If you are truly interested in becoming an outside agent and have skills that make you a good candidate, most reputable agencies will be happy to talk with you. If they think you are committed, can sell travel and will represent their company well they will offer a shared commission arrangement that won't cost you a dime. The independent agent and the ticketing entity split the commission on an agreed upon basis.

Federal regulatory agencies are cracking down on card mills, now estimated to be almost 100 in number. Many limit their membership fee to $495--five dollars below the $500 threshold that would require them to register with the state as an offerer of business opportunities.

One of the favorite come-ons of travel-agent-in-a-box promoters is attracting people to sales presentations by offering free travel. The free travel turns out to be a minimum-value trip awarded to one "lucky" person. In return, the promoter gets a guarantee of a roomful of people with an avowed interest in travel on the cheap.

Others operate like pyramid schemes because of their focus on new members recruiting other members. Unfortunately, they skirt the legal limits of pyramid scheme laws because there is an actual product involved.

There is no cheap fare pie in the sky available in exchange for payment of a hefty fee. Travel-agent-in-a-box scams (like their evil twin, travel clubs with that charge membership fees in the thousands of dollars) just want to deposit your money in their bank account. They'll promise you the right to mine for unheard of travel discounts but give you the shaft.

SPECIAL NOTE REGARDING INDEPENDENT AGENTS--Some independent agents will offer very personalized service on tours and cruises--big buck items that they often receive premium percentages for. Unless they are allied with a mega-agency that can negotiate great deals, they're still not going to get you the best price even though they may provide a lot of service. You may find that one of the best uses of an independent agent is booking last minute tour company specials that usually hit the newspaper travel sections on Sunday morning. Many of these packages can only be booked through travel agents. The independent agent that remains open on weekends can book your sale package on Sunday, before most other agencies open. You get a shot at some great deals with very limited availability.

SPECIAL NOTE FOR PEOPLE INTERESTED IN BECOMING INDEPENDENT AGENTS--The travel industry can always use conscientious and hard-working travel agents. If you believe you can sell travel, approach your local travel agencies about negotiating an independent agent commission structure. It's like found money for them. You do all the work and they get a new source of profit. A legitimate agency will issue a legal IATAN card as soon as you qualify. By dealing with a reputable local agency you also can access promotional material and have face to face contact with the owner.

Provided by Bestfares.com