You know, I looked for this list last week and didn’t see it. Then mid-morning yesterday, it dawned on me that it might be out this week. After writing about this Power List the last 4 years (because YTB has made the list all 4 years) I can go directly to the URL without even needing to look it up. I’ve enjoyed the publication (I enjoy it all year long actually) and it’s fascinating to see the chess match that goes on in the travel industry.

Ironically, Travel Weekly appears to see it as a chess match as well, but on a much grander scale – the last decade. There have been some new faces (like YTB) that have shown up in the last few years and others that have either gone completely out of business or have been acquired by or merged with other companies. (More of the latter from what I can tell.)

The biggest surprise to me was who knocked off the #1 and #2 positions the last few years. American Express and Carlson Wagonlit have had a lock on the the number one and number two spots respectively until this year. (American Express has had a lock on #1 since 1992, when the Power List first came out.)

Online giant Expedia jumped over both this year to take the number one spot.

Yep, online travel is now king.

The list also shrunk in size this year (from 61 total to 52) because – well 2009 was a rough year for travel. Bookings may have been up – but with prices cut in half to get people on board ships, into hotel rooms, and on vacation you literally needed to sell twice as much in order to even maintain your spot from last year.

How did YTB fair in all this?

Not too bad actually. YTB did drop from 25 to 29.

Considering the economy, the incessant and dysfunctional obsession from industry “professionals” about YTB’s MLM model and our fine group of ambulance chasers who can’t quite grasp the meaning of the word “NO” – 29 is actually pretty good.

On the other hand, most clients who book with YTB don’t know (or don’t really care) that there’s an MLM arm attached to the company. Technology plays a big part in that.

I’d highly recommend taking some time to read Travel Weekly’s cover Story “10 Years In Review” to attain their perspective on how technology has changed the face of travel. I’ve been writing about it for years here – but I’m just one of those MLM “Yahoo’s” – a newcomer to the industry who really doesn’t know how things work. (Or so some would have you think.)

Turns out that the internet and technology has not only changed the rankings considerably over the last ten years, but it’s essential in the growth and viability of the vast majority of the agencies who are still around. That’s not to say high touch and high service doesn’t continue to play a role like most of the old dogs would have you believe. (The ones who demand this type of service from YTB in order to legitimize the model.)

A total focus on high touch and high service however, would have certainly landed YTB on the outside of this Power List looking in.

Back in 2001 when YTB was founded, they saw a trend towards technology. Today, over $50 BILLION in travel was purchased online last year between Expedia, Orbitz, Priceline, and Travelocity. While all four certainly produced top 10 rankings, Travelocity didn’t provide sales numbers and wasn’t included in this years rankings. (See “What happened to…” in the Travel Weekly report.)

Those who have embraced this shift and taken advantage of the paradigm shift from brick and mortar to click and order have done very well for themselves over the last ten years.

Those who haven’t? Well, you can now find them on various message boards, forums and some have even created their own blogs to bitch and complain about how MLM not technology has ruined their business.

Change is a little more difficult for some – and honestly, some may never come around. (I certainly wouldn’t count on it.) I wouldn’t worry about it however. They’re the ones who are faced with another Power List with the name YTB Travel Network in it for the forth year in a row.

Instead, embrace the technology YTB has provided with new an innovative ways of booking travel.

In fact, you can do that tonight if you’d like. Carnival will be featured once again on our booking engine with yet another “Sail-A-Thon” to wind down Carnival Month with YTB. It’s a live 4 hour blowout sale and you could get up to $160 Cash Back from Carnival if you book with us tonight.

Technology and travel…

It appears to be the right mix if you ask me. ;-P

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You’ve heard it, I’ve heard it – just about everyone has heard how wonderful travel sales have been from “Travel Professionals”. Even with all the doom and gloom about a recession last year.

Heck, it’s easy to say things are wonderful when you don’t have to disclose just how well you’re really doing. Very few of the world’s travel agencies are publicly traded companies and as people often do, they tell you what they want you to hear.

Looks like the truth is starting to catch up with some of these folks, as Orbitz announces a net loss of $337 million for 2009 yesterday. Net revenue just for the fourth quarter was $738 million, down 15 percent from the same period of 2008. According to m-Travel news, the losses were pinned on “removal of most domestic air booking fees and a significant reduction in hotel net revenue due to lower average daily rates, lower hotel booking fees, lower breakage and disappointing results at HotelClub.”

2009 wasn’t a very nice year for the travel industry. Royal Caribbean had problems getting financing for their new mega ship at the beginning of the year. (Although they obviously secured the financing needed eventually.) Expedia was hit with a $129 million settlement in a class action that was filed for unfair business practices. We also can’t forget how hard Mexico was hit last year with the H1N1 virus that wreaked havoc across the globe.

All while consumers saw some of the best deals seen in decades – which was great for them, but not so sweet for Travel Agents. We had to sell two to three times as much in travel just to keep commission levels at levels they had seen in years past.

I have to hand it to any company who’s made it through a year like 2009 regardless of who they are, or what they do. When anyone in our industry takes a hit like Orbitz has, the entire industry is reminded of how lucky we are to still be in business. In a way, it shows strength and resolve – even with the huge losses.

Think about YTB with all that it had to endure for the last 18 months – yet I’m still here with a booking engine that’s producing sales and revenue. Some said I nor the company would make it past 2009. At this point, every day I look at my booking engine, or see a new cruise booked in my back office, I think about those people and smile. Why? Because I no longer have to question if they could be right – I see the fruits of my dedication and determination with my own eyes. My experience once again overrides mere words to the contrary.

It wasn’t easy, nor was it pleasant to endure all the doom and gloom during 2009.

The outlook for the coming year looks much better than it did this time last year. Commissions are getting close to where they were prior to the all fire sales we saw over the last year. (That’s not to say there aren’t some great deals to be had.) Businesses and families are traveling once again. Maybe not at the levels they once were, but when I look at the amount of advanced bookings compared to this time last year, it’s dramatic. Most of what I saw last year were last minute deals that customers just couldn’t pass up.

It’s good to see that I wasn’t alone or that our situation in YTB was unique. Everyone struggled and everyone had “issues”.

I’m just thankful that it looks like all this is behind us (for the most part) and everyone appears to be far more optimistic and on the mend.

Including YTB.

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You know me…always looking for the positive angle. It’s part of my DNA. (Or how I was brought up if you ever talk to my mother.) .

Regardless of who’s fault it is, I found a very positive article about the airline industry that I wanted to share in Travel Weekly. I did a short piece on Examiner.com just before the Thanksgiving holiday weekend that caught my eye. AirTran was predicting a 5% increase in air travel during the busy travel holiday weekend over last years numbers. Unfortunately, the ATA (Air Transport Association) wasn’t so sure and was predicting a 4 percent decline during the same period.

Much to the delight of Continental, Southwest, JetBlue, Alaska and AirTran, they too saw a significant increase for the entire month of November now that they’ve looked over the data. As a result, the numbers have most in the industry looking at 2010 in a much different light.

Not all the airlines reported an increase for the month. (Namely Delta, American, United and US Airways) However, the entire industry did see a slight uptick of 0.2% across all the airlines for the same period. According to AirTran Senior Vice President and CFO Arne Haak “The worst is behind us” as the industry has been experiencing close to double digit decreases in traffic in 2009. Prior to this current quarter most everyone in the industry has been extremely cautious. The news coming out of New York at the Next Generation Equity Research investors conference was a welcome change. It prompted Delta’s CFO Hank Halter to quote “demand will remain strong” and more executives stating that they are “starting to see more promising traffic and bookings”.

As an additional sign that the tide is starting to turn United ordered 50 new aircraft last week due to some very attractive pricing. (We can’t forget Carnival’s order of two new Dream Class ships last week either.) Like deals clients have seen to fill seats, rooms, and cabins, suppliers are starting to pull the trigger on some attractive deals of their own. Materials and supplies for building both aircraft and ships right now are looking very attractive for those who are willing to go after them.

And that’s exactly what we’re going to need to get us out of this funk we’ve been in. Those who think Government is that answer with it’s “stimulus package” or “bailouts” simply don’t get it. It’s spending in the private sector that stimulates the economy. The transfer of cash from one to another for a product or service.

We didn’t get here overnight, and it’s going to take more than one good month or a few orders to right this ship. But news like this catches the attention of those who have been “thinking” – into actually “doing”. This recession won’t last forever, and the companies who are willing to step out and spend on expanding and building now will be the ones best poised to take advantage of the recovery when it hits it’s full stride.

Regardless of when it happens, it’s good to see news like this and people starting to look at the future in a more optimistic light.

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I got back from a wonderful Thanksgiving weekend with extended family last night just prior to the Steelers vs. Ravens game. To tell you how out of touch I was this weekend, I had no clue that Big Ben wouldn’t start last night. (Much to my shock and surprise.)

While watching the pre-game before last night’s game, I made my rounds to the various travel publications to see what else I might have missed over the extended weekend. What wasn’t a shock, or a surprise was seeing YTB prominently placed yet again on the front page of Travel Weekly with the headline YTB: ‘We’re not going away’.

Yes, it’s true, a trade publication has finally ponied up and is preparing the industry that YTB is – like it or not – here to stay.

You can probably imagine how this news is going to sit with some with more twists and outrageous claims in an attempt to turn the tables back to thier own illusions. Others will simply ignore the warning and continue on with the impossible dream of ridding “their” industry of the likes of YTB.

Nadine Godwin took advantage of one of the many Super Saturday events up in New York the previous weekend at the Park Central Hotel on November 21st. The event was hosted by a very magnetic group of TSO’s. If you haven’t heard about or seen Noah Matos, not to worry, you will. He’s one of the most dynamic new Directors in YTB these days.

Based on how Nadine’s story was written, it looks like she was a participant of this New York meeting the way she quoted Scott Tomer and his message to the group of about 100 TSO’s and guests. Unlike other eyewitness “reports” I’ve seen in years past on blogs and message boards, Nadine not only had the guts, but the foresight to actually make her presence known and was able to clarify a number of points in this well written article.

It’s no secret that YTB has been battle tested the last few years. The company has had most everything – including the kitchen sink thrown at it. That comes with the territory when you include the three letter word “MLM”. It brings out some real nut cases – including the high profile ones. One such critic thought he had the power and ability to end the model and the company based on the premise that you pay for the opportunity to recruit others into the business. That’s called a pyramid scheme – which are illegal and ultimately shut down. 

Regardless if you deal with facts or fiction surrounding what is or isn’t a pyramid scheme – YTB is not only still around, but holding meetings and trainings in cities like New York every weekend. Sure the company had changed over the years. Good companies do that. Even profitable companies like Wal-Mart and McDonalds. Have you seen the new McCafé’s sprout up the last 6 months? You know there was a time when you had a choice of a hamburger and cheeseburger (a hamburger with a slice of cheese) when you ordered there – right? YTB has always been a company that likes to introduce new ideas and products. YTB Flowers, YTB Golf, YTB Outdoors and YTB Romance were all products introduced years ago.

Today, YTB has shopYTB for even more income opportunities using a model and a team of people who have proven that ordinary people can produce some large numbers. (Travel Weekly has shown us that for years.) For some reason however, a few in the industry don’t recognize $424 million in travel sales. All they can see and all they ever talk about is the recruiting revenue that’s 1/4 of the total travel sales. YTB didn’t create the pour margins in travel – but we sure have to put up with most of the crap because recruiting revenue pays better. (Which isn’t hard to do.)

Look – I know there are people who can’t wrap their tinny little brains around the Network Marketing business model. While a simple “no thanks” would do, there are those who – for one reason or another – feel the need to dig up every negative aspect they can find about the industry. And if they can’t find it – they make it up just so they have something to do with their time. Doesn’t make much sense to me either – but like I told you last Wednesday – you have to let it go and move on.

They said the the entire travel industry would cut us off – didn’t happen.

They said California would be able to shut us down for being a gigantic pyramid scheme – Instead, we’re putting together franchise documentation.

They said the Class Action filed by the ambulance chasers was powerful. Turned out to be redundant, irrelevant, immaterial and a big ol’ pile of scandalous crap.

They said we’d be bankrupt with the doors closed by the end of last year – no, April – no, Convention – no, third quarter – no, end of this year. Well, you get the idea here – and we’ll continue to read this position until the cows come home.

Point is, that all the claims and speculation about YTB over the years from our critics have been proven wrong over time – and Scott, Kim, and Coach have pretty much been spot on. Why? Because critics don’t have the practical experience that our Founders do to make the right choices. They went through the same garbage with AL Williams when the insurance industry got all bent out of shape about part time insurance agents.

To this day, the organization they built still produces residual income some 30 years later based on the very model and standard YTB was built.

That’s not to say our Founders make all the right choices. They’re also risk takers and there are bound to be mistakes made along the way – nobodies perfect here. However, if I had my choice between three men who’ve been battle tested not once – but twice in this industry and made it – you can bet you’re life who I’m going to side with here.

Thanks for the insight Nadine for those of us who have made the right choice here. And thanks for warning our critics that all the smoke and mirrors that they’ve attempted to throw up over time is clearing out of the way.

Despite all the setbacks, I too, “knew we’d be standing at the end.”

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When I first saw this story in Travel Weekly about Princess doing a survey on the most stressed out cities in the US I was intrigued. I mean – cruise lines have been helping people de-stress for decades. While I wouldn’t consider this survey Pulitzer material, it’s certainly an interesting read for those of us who want to sell more vacations. (If you want Pulitzer, I’ve been telling people for over a decade that a cruise is the best vacation money can buy.)

The Princess survey was done in conjunction with Harris Interactive who specializes in custom market research. The press release also referenced Dr. Kathleen Hall, founder of The Stress Institute, who believes learning how to deal with stress is one of the most important things Americans can do to lead more balanced lives.

According to the survey the top-five things Americans feel will help them achieve better life balance include realizing financial success, improving physical fitness, getting organized and taking more breaks and vacations. Yet one in four Americans aren’t planning to take a vacation in the next year. (Siting “work-related” reasons for not taking one.) As a side note – these same Americans (particularly those living in Washington, D.C.) don’t think the President of the United States should be given any vacation days either.

Here’s the list of America’s Most Stressed Out Cities

1. Chicago
2. Houston
3. Boston
4. Los Angeles
5. San Diego
6. Denver
7. San Francisco
8. Detroit
9. Tampa (tie)
9. Portland, Ore. (tie)
10. Seattle
11. Washington, D.C. (tie)
11. Baltimore (tie)
12. Sacramento
13. Pittsburgh
14. Philadelphia
15. New York
16. Phoenix
17. Atlanta
18. St. Louis
19. Minneapolis
20. Cincinnati
21. Las Vegas
22. Dallas/Fort Worth
23. Miami

Not surprising that the least stressed city in the survey has a major cruise port. (Hummmm)

I found the Princess Press release and the findings are an interesting read. Some of them include that 72 percent of Americas say they do not have balance in their lives, but there is hope. Slightly more than half believe they can achieve life balance in the next five years. The survey also noted that the poor economy is a leading causes for life imbalance, followed by the need to lose weight.

My solution to achieve life balance? I’m going to tote the Princess line here – “escape completely” on a luxury cruise liner for a week. Have someone else do the cooking and cleaning, enjoy the romance of the sea, and there’s something about the turquoise water that just soothes the soul. 

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A four year old class action lawsuit looks as if it will finally close pending court approval in December to the tune of $123.4 million to be paid by Expedia, and another $5.5 million to be paid by Hotwire. The suit filed back in 2005 came to a head back in June when a Superior Court ruled that Expedia collected a total of $184.4 million in service fees which the company pocketed as “pure profit” from consumers who purchased hotel stays and other travel packages between 2003 and 2006. The judgment is currently the largest award in Washington state history for a consumer class action.

When the ruling was handed down back in June, Expedia was quoted that it would “vigorously pursue our rights on appeal“, but changed it’s mind due to the high cost of the litigation and the additional time it would take to appeal. Instead, Expedia was able to deny any wrongdoing in the settlement, and has set aside $19 million for the class action settlement, a low end estimate of the cost associated with the settlement.

The class action case was based on unfair business practices and breach of contract in the way the online travel company paid taxes. Not only did Expedia bundled the service-fee charges with taxes into a single line item, but collected taxes based a higher retail price, when they paid wholesale, thus pocketing the difference.

Expedia’s second quarter profit fell to $41 million, down from $96 million a year ago – a 57% drop.

Although we don’t see much about the hotel tax issue at all on message boards and blogs due to over aggressive concerns concerning Travel MLM’s being “flawed”, the battle over traditional online travel companies has been a heated debate in courts all across the continent.

In June, a Los Angeles Superior Court ruled that Expedia and Hotwire had to pay $35.6 million to the city of San Francisco. A Georgia Supreme Court has also required Expedia to pay the city of Columbus, Ga. a 7% tax on the retail rate of hotel rooms, which forced Expedia and other online agencies to cease doing business completely in the city. New York adopted a new hotel-occupancy tax ordinance requiring that OTA’s remit taxes to hotels based on the net rate, then pay the city an additional taxes for service fees or margins. Also in Canada, an Ontario Superior Court is seeking $47.5 million in damages for violating Canada’s Competition Act and Consumer Protection Act for disguising taxes and service fees.

In all, some 46 city and county taxing districts have filed lawsuits due to this issue.

But what will critics in the travel industry be talking about today? An overly aggressive and unfounded theory about how YTB will run out of people to recruit in some “pay to play” pyramid scheme suit up in Illinois. (An issue that has already been thrown out in a District Court there for being redundant, immaterial, impertinent, and scandalous.)

For those that desire to reside in reality, or have been “taken” by the concealment of service fees by Expedia over the years now have several options according to the Expedia Litigation Settlement Website.

1. Tell them you want a cash settlement (Send me a check)
2. Tell them you would like a credit (To be used on a future Expedia purchase)
3. Object to the settlement (It was all some big “misunderstanding” and it’s YTB’s fault.)
4. Opt out (You don’t care to receive cash or credit now due.)

Here’s what you need to be considered and qualify as part of the settlement:

You need to have “made a “standalone” hotel reservation through Expedia between January 10, 2001 and June 11, 2008 and paid a bundled “Tax Recovery Charge” and “Service Fee” in connection with that booking…

and/or

…you made any hotel reservation (either “standalone,” or as part of a “package” including airfare and/or car rental) through Expedia between February 18, 2003 and December 11, 2006 and paid a “Tax Recovery Charge” and “Service Fee” charge in connection with that booking”

A Final Approval hearing will be held on December 1, 2009, at 10:00 a.m. to determine if the proposed Settlement is fair, reasonable and adequate – whether the Named Plaintiffs will receive incentive awards in an amount not to exceed $7,500 each – decide if counsel should receive an award of attorneys’ fees and costs – or Order of Final Judgment and Dismissal should be entered.

While the final chapter certainly hasn’t closed on the subject of unfair and deceptive trade practices, it is however apparent at this point that many have taken issue and given notice over the Expedia issue. We’ll see what comes in the future for YTB concerning the claims surrounding YTB and this nonsense about misleading and deceiving people. While it has returned $125K to consumers in California, it’s a small pittance compared to the $129 MILLION settlement with Expedia.

But as we’ve seen for the past few years, YTB is apparently a bigger threat and far more dominant in the minds of a select few who want to wallow in thier own illusions that YTB is the real problem in the travel industry.

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A couple of weeks ago I put out a challenge to the industry to find a better opportunity than YTB regarding price, compensation, and benefits. It’s not surprising that I’ve had very few takers. I already knew the answer.

Here are the requirements that I’ve asked everyone to follow:

Just one Host, one Agency, one single Brick and Mortar that:

• Offers 80%-100% commission contracts.
• Pays cash bonuses of up to $10K when you hit performance levels for travel commissions earned.
• Covers the cost of your Medical Insurance and provides a $150,000 Life Insurance policy.
• Give me that “hat trick” for less than $500 start up and $49.95 per monthly overhead.

I’ve seen a handful of answers from those associated with Nexion, Travel Planners International, and over the weekend, CruiseOne.

While I have no problem with any of these Host Agencies, (I’m sure they’re all very good) none of them match what I have with YTB. Travel Planners for example can offer 100% commission (after two years) but lacks the bonuses and medical benefits I’m looking for. CruiseOne does offer the medical benefits I’m looking for, but I’d have to pay for benefits, along with a hefty $10K for the privilege of being aligned with them. (Where YTB will pay me $10K for producing.)

I do like and did find the payment option in Travel Weekly’s CruiseOne article interesting. If you can come up with $2500 down payment, you can finance the rest through a third party to complete the remaining amount owed. I have no idea what the interest rate or terms would be for something like this, but I can promise it will end up costing a bit more than the $9800 flat rate price to get started the old way.

I also liked Dwain Wall’s comment on the current influx of new blood into the industry in the Travel Weekly article.

“We’ve seen an influx of interest from very bright, passionate, entrepreneurial people who have been laid off from another industry or are working presently, but challenged to produce the initial CruiseOne Franchise Fee,” said Dwain Wall, senior vice president and general manager of CruiseOne. “We want to eliminate any barriers to success for people who show such strong potential and offer a stimulus plan, of sorts, to help aspiring entrepreneurs seize the moment and start their own cruise travel business.”

YTB found the same challenge for bright, passionate, entrepreneurial people as well, and came up with a $99 plan to get started. (You can find more info on the $99 plan here.)

To me, it’s all about risk verses reward. If you truly want to align yourself in the travel industry and see if this is something you want to do, why pay more for inferior compensation and benefits?

I’m just asking…

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