The annual Power List from Travel Weekly currently ranks YTB International #25 for 2008 out of a record number of agencies this year with 62 companies with travel sales of more than $100 million. All of the agencies in this years Power List faced a common enemy during the latter part of the year, that being the economy. As we are now at the half way point of 2009, many on this years list are not as optimistic as they once were about travel sales and expect a decline anywhere between 15% – 25% between 2008 and 2009.

The economy is one thing, but when a company such as YTB has to endure fear based attacks from a small, yet extremely loud group of critics who desperately need to control free enterprise and exaggerate every move the company makes, is another. With the legal attacks combined with the mud thrown up on the internet via blogs, forums, and message boards, a year over year increase of any amount should show the stability and resolve of our model for anyone who has two wits about them.

Regardless of which side of the fence you reside, the following numbers appear in Travel Weekly’s 2009 Power List.

– 2008 Sales: $424.1 million
– Employees: 317
– Previous Ranking: 26
– ARC sales of $2.76 million
– 85% of sales from leisure travel
– Hosts 92,383 travel sellers
– Owns Rezconnect Technologies Inc.
– Publicly held

True, some spent the last year focused on creating excuses and never gave YTB a chance to survive and/or make this years Power List. Accusations of bankruptcy or being prohibited from conducting business outright started the second claims were filed by the State of California which magically appeared the day before the YTB’s National Convention in August of 2008. Its sad, but some appeared to have missed or simply forgot that there was a legal process that needed to take place. As we’ve seen so many times before, relying on negative speculation rather than facts can damage ones credibility as some sort of expert.

Few have also knocked the legitimacy of the Power List with any excuse they could come up with. It was last years list with a huge jump from #35 to #26 and 84% growth that more than likely had something to do with the desperate pleas posted for anyone who would listen to in order to stop YTB from co-existing with names like American Express, Carlson Wagonlit, Expedia, Travelocity, Orbitz, and Priceline.

With so much press and attention on YTB it’s not surprising that Travel Weekly once again made special note of our company in this years list.

One company that has seen its share of headlines recently is YTB (No. 25), a publicly traded multilevel marketer with and ARC appointment and a reported $424 million in travel sales, most of it through a network of tens of thousands of small hosted, work-from-home recruits.

A source of unending controversy since it first gained national attention a few years ago, YTB recently settled an action brought by the State of California that accused the company of operating an illegal pyramid scheme. Even if YTB succeeds in transforming itself into a franchise operation and fulfilling the other terms of the California settlement, the company is likely to remain a galvanizing force for friends and foes alike.

For the purposes of the Power List, however, only one thing matters: total sales. Although this number is not included in YTB’s annual financial report to the Securities and Exchange Commission, it is consistent with a company statement to the SEC.

“During fiscal 2007, the aggregate value of retail travel services that have been booked by our RTA’s and independent franchises surpassed $400 million”. YTB reported in the statement.

The company has stated that the total represents retail travel sales and excludes revenue from other activities.

Like it or not, YTB continues to make headlines in this industry because YTB is a major player when it comes to actual travel sales. A few clearly don’t understand the difference between gross sales and actual income generated from those sales reported in our SEC filings. If some can’t comprehend that it takes $424 million in sales to generate $27 million in actual revenue in the travel industry, I’d question how much they truly understand thier industry. However, because there’s a very clear and distinct fear surrounding MLM and recruiting, all focus and attention points directly at revenue generated from recruiting compared to income generated from travel. Those of us that can make the distinction between the two revenue streams have understood for years how silly such comparisons are. Why the perceptions between apples and oranges and these fears persists after all these years is a question I’ve long given up asking. 

I couldn’t possibly tell you what type of excuses will come from this years list. You can be assured that like other years, something will be pointed out here that will attempt to question the validity and accuracy of this report when it comes to YTB. In order to come up with these excuses however, desperate critics will need to toss out the fact that YTB is one of very few that are publicly traded companies who answer to the SEC. They will also toss out YTB’s appearance on this list for it’s third straight year. And lastly, the special notes surrounding YTB in Travel Weekly’s introduction, like last year will be completely ignored and the beliefs and opinions of these few critics will appear to some as an overriding and dominant fact, instead of desperate pleas for attention to make all things right with thier own little world.

There comes a time when you should stop and look at the reports such as this and compare them with all the excuses we’ve seen over the years. Demands for clarification or additional questions directed at YTB and Travel Weekly have played out for far too long. Both YTB and Travel Weekly don’t appear to be all that concerned, and continue to stick with the same qualifications they always have despite the pleas and concerns.

Some will continue as they always have because changing thier beliefs would be far too upsetting and create too much turmoil. Others however, will begin to see things for what they truly are. If you’re of the latter, I welcome you to the idea of MLM and Travel as major player in the Travel Industry.

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After a busy week last week, I was doing some reading in some of the Trade Journals. I came across several articles in Travel Weekly concerning Agent Issues that I found interesting.

The first that caught my eye was an article about the ARC Accreditation Mark and the VTC (Verified Travel Consultant) Mark, which accredited travel agents, can use to promote their ARC credentials to consumers and suppliers.

I found the Accreditation interesting several fronts. First, you may recall, that IATA terminated YTB’s Accreditation back in November of 2007 for violating its standards. Why YTB was singled out for doing exactly what any other Host Agency has done, is yet to be answered by IATA’s U.S. agency commissioner, James Johnstone. Any Outside Agent dealing with a Host Agency has the IATA’s numeric code either on file or on their ID Cards.

After reading this article I wondered if YTB’s ARC number was back up after winning its bid to keep the number that ARC assigned. (Not assigned by IATA) I checked to see if YTB’s numeric could be accessed from the Check Code page. (If you know the number, you can input it here. I’m not at liberty to post it for you.)

Second, it’s been said that IATA is the “be all and end all” when it comes to verifying and accrediting Agencies, however, I have to question why IATA’s new policy of eliminating paper tickets, which goes into effect in just a few days, (June 1st) doesn’t effect US Agencies? Could it be that U.S. Agents settle through ARC, which continues to process paper?

While ARC continues to thrive and grow, IATA continues to make waves in what has been deemed as “unfair competitive advantage” of agents by refusing to deal with them when e-tickets are not an option in for Canadian Agencies. (Sound familiar?)

On another front, I know many of you have enjoyed the Training Seminars and Webinars available by our vendors and suppliers that I post in my free Weekly Newsletter. Many of you have gained valuable information from CCRATravel in recent months, and I’m sure you will be pleased to see that Net, Preferred, GDS, and Promotional Rates will be increasing to include not only more than 70,0000 Hotels, but Car Rentals with Avis and Budget.

I’m sure an overview should be available soon on how to capitalize on this expanded service available in your Travel Portal.

One last note before I head out today. June is Carnival Month for YTB and next Thurday’s training call will feature both President and Co-Founder of YTB Travel Network J. Kim Sorensen and Mike Julius, Regional Vice President of Carnival Cruise Line on Thursday June 5, 2008.

Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker
Phone: 678.458.5812

Learn How To Become A Travel Agent

Book Your Travel & Vacations With

Travel Reservations: 1.800.243.4450
RTA #24635

Kind of mixed bag today on news and updates concerning the company everyone loves to talk about – YTB. I spent some of the afternoon yesterday reading between phone calls and e-mail’s on most of the favorite watering holes getting a pulse and latest spin on all the news.

If you’ve been stuck in some sort of hole and don’t know what the heck I’m talking about, you’ve come to the right place. Not to worry, and not to disappoint, I’ll fill you in.

For the folks in YTB, you might want to keep this post handy because it’s going to be loaded with some pretty powerful ammunition for some of the junk we’ve had to endure over the last few years concerning our stock, and will also debunk some of the spin out there concerning “it doesn’t add up” and “insider trading” that’s currently floating around by our Critics.

An official announcement has been released that YTBLA will move off the Pink Sheets and over to the OTC. Now for our “Critics” this is no big deal, and to be fair, it IS only the first phase of our intent to upgrade to a National Exchange like AMEX or NYSE. OTC isn’t all that big of a deal, and there is still some work to do to move over to one of the “big boys”, but this first step is crucial and also provides several key elements that I need you in YTB to know and also warn our Critics who are calling foul in several areas concerning our Annual Report and questions they have concerning our business practices and / or math.

If you didn’t know, or simply don’t recall, our Annual Report states the following:

“Because we have become current with our periodic reports under the Exchange Act, we intend to have our Class A Common Stock quoted on the OTC-BB once again and to thereafter apply for its listing on a national securities exchange, although no assurances can be given in this regard. Towards such end, on March 3, 2008, the requisite paperwork for the quotation of our Class A Common Stock on the OTC-BB was submitted to a FINRA member firm for filing with FINRA.”

For those that don’t know who FINRA is, they are the Financial Industry Regulatory Authority and a firm who tests and authorizes Members. The FINRA looked at several key factors concerning our company’s business practices. The portfolio of regulatory services that FINRA offers includes member application processing, registration processing and disclosure review, financial and operational surveillance, examinations and audits, market surveillance, investigations, disciplinary actions, dispute resolution and regulatory consultation.

FINRA’s regulatory clients include NASDAQ, American Stock Exchange (Amex), International Securities Exchange (ISE), NQLX and the Public Company Accounting Oversight Board (PCAOB).

By maintaining constant market surveillance – on both a real-time and post-trade basis, the FINRA helps ensure the fair and orderly conduct of securities transactions. FINRA oversees and regulates all trading on NASDAQ, the American Stock Exchange, the International Securities Exchange, the Chicago Climate Exchange and in the OTC markets, as well as trades in New York Stock Exchange- and Amex-listed securities reported to NASDAQ.

What this means to you the RTA and / or stockholder is this:

One – While our Critics want to discredit our Annual Report with this bunk that it doesn’t add up, you can now politely suggest that they may want to consider a remedial math class and then some sort of Financial or Securities Course to help them with any errors or questions they have.

Two – While many are speculating that “insiders” are moving this stock price up – down – or pulling the preverbal “Pump and Dump”, the only pumping going on is by them, with mud they have loaded in the slings and arrows they are shooting all over the internet.

Any arguments directed at either “not adding up” or “insiders pumping and dumping” are now Null and Void.

Keep page 9 of the Annual Report, and the link to FINRA handy for anyone who wants to question the credibility of any of the financial statements. Everyone can be assured that all of our Financial Statements at this point are accurate, and our company is squeaky clean.

The second part of the news and spin floating around concerns YTB’s association with IATA. In an article posted in Travel Weekly on Wednesday, YTB will be able to continue to use the numeric code given to us by ARC, but it looks as if we will continue to do business without any type relationship with IATA.

I realize the Travel Agent community believes that an Association with IATA is crucial and like our listing the last few years on Pink Sheets, we will now endure the brunt of jokes about our lack of any association with what in their minds adds credibility. I’ve also heard spin that they believe this will hamper our International Expansion.

I could be completely off the mark here folks, and International regulations are not my area of expertise, but I do have a couple of questions.

Can IATA terminate based on guilt by association? YTB does own Sunrise Travel Services in Canada, and the Commissioner in Canada recently reinstated an Agency in Canada in which the US Association did not like, but couldn’t do anything about. Like the ARC numeric code issue, the US Commission “may” not have any input in any type of International IATA Accreditation, especially when the Agency was never even threatened with any type of termination or violations to begin with.

You can just imagine what the “critics” will say about that. (And I’m sure they will.) Based on all the “doom and gloom” about the swarm of supplies pulling the plug, the stock going bust, and how important IATA was here in the US and how they were convinced all these issues would crush us, I’d take just about anything you see or read from a “Critic” with a grain of salt. Chances of them being on mark about anything these days concerning YTB are sketchy at best.

The good news is this.

One – It seems critics have resigned themselves to the fact that IATA here in US concerning YTB really didn’t amount to much as they are now focused on hopes concerning our International Expansion. (We ARE s
till here, still booking travel, and still getting paid on that travel.)

Two – The numeric code was issued by ARC not IATA and IATA has conceded that the number is ours.

There’s still plenty of work to do and we’re certainly not out of the woods just yet. A lot can change in the weeks and months ahead, and from what I understand, YTB isn’t through by any means in becoming the Largest Travel Agency in the World.

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Doug & Ronda Bauknight
AKA: TravelPro
Travel Agent / Networker
Phone: 678.458.5812

Learn How To Become A Travel Agent

Book Your Travel & Vacations With

Travel Reservations: 1.800.243.4450
RTA #24635

I started a huge task weeks ago when I promised John Frenaye that I would get his questions answered. ALL his questions. Over the next couple weeks due to the length of this list, I have focused on each of these questions one at a time. My goal here is not only to answer the question, but also point out why this question is even asked in the first place.

While I hoped this would be an excellent opportunity and tool for anyone with additional comments about each of the specific questions to get better clarification, I seem to have been doing an outstanding job. Very little has come from the “other side” to contradict what I have to say. The comments section to discuss each of the questions in greater detail has been lacking at best. I think they’ve learned early on in this process that documentation beats conversation any day of the week.

Question #4 - How nearly 150,000 RTAs can pay in the course of 9 months $79 million dollars in website sales, fees, and training; and receive $9.3 million in return. (This is huge…anyone?)

Question #5 - And for those that say I don’t get the math, I did not learn how nearly 150,000 people paid in $79 million dollars and only got $64 million in return. (Hello? Anyone? Bueller? Bueller?)

Question #6 - Why it is a good thing to have your top executives selling off stock. (There were no takers on this one, so I am gonna assume that it probably is NOT a good thing as everyone initially thought.)

Question #7 - Why a 3:1 split was a good deal when two of the three shares are worthless. (Thanks to Doug for the most reasonable explanation of this. The split may have been a good deal but with the current value of the stock, it is anyone’s guess.)

Question #8 - Why employees at YTB could not sell me a cruise on November 9th. (Still no answer on this one yet other than they don’t do anything till an RTA sells it. Well, the YTB site said to call them. Coach in an interview was touting how the res center is all staffed with professional agents. So, why is it that they cannot sell me a cruise, and how is it that they do not know that cruises do not depart from Phoenix?)

Question #9 – Why when presented with facts and figures, the argument mysteriously turns to “you don’t understand”. (This is another one that we will just have to say…because that is the way it is.)

Question #10 – How many RTAs drop out in a month…a year….. (This number I fear will NEVER be known.)

Question #11 – How long does an RTA continue to pay the fee before canceling? (Answered. They continue to pay as long as YTB continues to charge them and they jump through the hoops to get them to stop.)

Question #12 – How it is a misunderstanding with IATAN and Royal Caribbean. (Answered. It apparently was NOT a misunderstanding and RCCL called a spade a spade and it is what it is. YTB has moved on and said they would never do business with RCCL again.)