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Don't be fooled by promises of ID cards


Published 4:00 am, Sunday, June 2, 1996

WOULD YOU PAY $495 for a card that supposedly entitles you to all the hotel discounts, airline upgrades and other perks usually afforded to travel agents?

Before you say yes, keep reading.

For several years now, travel industry professionals have been waging an intramural war over these cards, and now that tens of thousands of them are in circulation, the battle is spreading to the general public.

The American Society of Travel Agents has filed a complaint with the Federal Trade Commission and the National Association of Attorneys General, asking them to take action against what ASTA calls "credential mills of bogus travel agent identification cards."



"The credential mills are running amok, and need to be stopped," said ASTA President Jeanne Epping. Her organization estimates that as many as 30 such firms are doing business.

ASTA has launched a campaign to persuade airlines, hotels, cruise lines and tour operators not to honor such cards. And it recently sued one card issuer, Nu-Concepts in Travel, for allegedly using ASTA's logo on its cards. (A spokesman for the Irvine company said it was a misunderstanding that should be cleared up by the time this appears in print.)

"The travel industry provides these courtesies to bona fide travel agents so they can familiarize themselves with the product and help sell it," said ASTA spokesman Steve Loucks. "But we have a problem with people buying these cards just to get the perks."

The ID cards come in several forms. At one extreme are credentials issued through the mail, no questions asked, sometimes by the same operators who issue fake student identification cards. At the other end are the cards offered by the "network marketing" firms that are proliferating in the travel industry.

"You will enjoy the perks of a travel agent, such as earning commissions, receiving upgrades on air travel, hotels, cruise ships, rental cars, golf courses, spas, etc.," promises a flyer issued by one such firm, World Class Network Inc.

Established travel agencies feel particularly threatened by these network marketing firms, which enlist people to sell tours, cruises and other travel products to their friends, relatives, neighbors and co-workers.

Ron Cummings, marketing director for Nu-Concepts, a travel network marketing company, objects to his firm being called a "card mill."

"What we do is enroll and train independent outside agents and allow them access to our highly experienced travel agents," Cummings said. "Their job is to bring the business to the house, and for that they get a commission."

He estimated that 20,000 people have paid $495 each to enroll with Nu-Concepts. This "outside sales force" generated $25 million in revenue last year - an average of $1,250 per salesperson. With those low sales numbers, ASTA said it believes that many, if not most, have signed up strictly for the travel agent perks.

"Not every one of the agents with us goes big into the travel business," Cummings said. "Sometimes they do it to take advantage of our own travel bargains."

He said Nu-Concept negotiates with hotel chains and tour operators for discounts that are available only to its members. But he said members are also entitled to any other courtesy available to travel agents.

"We don't encourage our agents to run to a hotel and say, "I'm a travel agent. Give me a discount,' " Cummings said. "But on the other hand, they're just as entitled to any travel industry benefits as any agent."

Ed Perkins, editor of the Consumer Reports Travel Letter in San Francisco, said people who sign up for such a program may find that few of the travel agent discounts they were expecting are available.

"Airlines don't honor travel agent cards at all," Perkins said.

Many airlines require a card from the International Air Transport Association Network, which has strict performance requirements for its members.

"My fear is that consumers are shelling out a lot of money - I've heard of people paying as much as $5,000 for these cards - for something that's not going to do them much good, or for something they can get cheaper some other way," Perkins said.

Someone with a travel agent card might qualify for a 50 percent discount on a hotel room or cruise, Perkins said, but those same rates are often available to the general public through special discount programs.

"The bottom line," said Perkins, "is that you're paying a big price to get in on stuff that you could get for free, or for a minimal investment." &lt;

