InCruises, the Puerto Rico-based travel discount platform, introduced "Membership 2.0" on April 1, 2022. This update modified how members accrue and use travel credits, preceding the "Partnership 2.0" rollout scheduled for September 1, 2022. Co-founders Michael Hutchison and Frank J. Codina continue to lead inGroup International LLC, the parent company for InCruises.
The core offering remains a discount travel booking platform. Members pay $100 each month to access the system. Each $100 payment generates 200 Reward Points. These points hold a 1:1 value against USD on the InCruises platform. A key restriction dictates that members can only use Reward Points for up to half the cost of any booked travel. The remaining balance must be paid with cash.
InCruises' compensation structure rewards affiliates for selling memberships. Affiliates can recruit new members or attract retail customers. An affiliate must pay $95 every six months to maintain their standing. This fee is separate from any membership payments they might also make.
The compensation plan includes ten affiliate ranks. These start with Affiliate and progress through Marketing Director, Senior Marketing Director, Regional Director, National Director, International Director, Executive Director, Board of Directors, Ambassador Board of Director, and finally Royal Ambassador Board of Directors. Each rank requires specific Group Volume (GV) targets. GV represents the monthly member fee volume generated by an affiliate's downline, which includes the affiliate's own member fee.
For instance, a Marketing Director must generate and maintain $3,000 in monthly GV. Senior Marketing Directors require $10,000, and Regional Directors need $25,000. National Directors must reach $50,000, while International Directors aim for $100,000. Executive Directors are tasked with $250,000 in monthly GV. The Board of Directors rank requires $550,000.
Higher ranks involve additional criteria. An Ambassador Board of Director must generate $1,000,000 in new GV after qualifying as a Board of Directors, and personally recruit at least five International Directors or higher. Royal Ambassador Board of Directors need $2,000,000 in new GV after Board of Directors qualification, plus personal recruitment of at least five Executive Directors or higher. To prevent over-reliance on a single recruitment leg, no more than 50% of the required GV for rank qualification can originate from any one leg.
Affiliates must meet specific requirements to qualify for MLM commissions. They must be current on their $99 six-month membership fee payments. Additionally, they must demonstrate consistent recruitment activity. This means recruiting one affiliate within the last 30 days, or three affiliates within the last 90 days, or six affiliates within the last 180 days, or twelve affiliates within a full year. These rolling recruitment targets ensure ongoing affiliate engagement.
The introduction of "2.0" versions for both membership and partnership aspects suggests a strategic re-evaluation by InCruises. Such overhauls are often observed in the multi-level marketing sector when companies seek to address market feedback, comply with evolving regulatory expectations, or simply refresh their offerings to attract new participants. The shift in how Reward Points are used, specifically the 50% cash requirement, means members cannot fully fund trips solely through their accumulated points, potentially increasing the out-of-pocket costs for users despite the point system.
This model, where affiliates pay recurring fees ($95 every six months for affiliate status and $99 every six months for membership) and must continuously recruit, draws scrutiny from consumer protection groups. Regulatory bodies like the Federal Trade Commission (FTC) in the United States and similar agencies internationally frequently examine MLM structures to determine if the emphasis lies on product sales to genuine retail customers or primarily on recruitment of new distributors. Systems heavily reliant on recruitment, especially those with significant upfront or recurring affiliate costs, can sometimes resemble pyramid schemes.
InCruises' future operations under these updated models will likely face ongoing evaluation from industry observers and regulators, particularly regarding the balance between direct travel sales and affiliate recruitment incentives. The terms of "Partnership 2.0" became effective on September 1, 2022.