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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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.

PS - If you're involved with YTB, sign up for our FREE Newsletter. As a Website Owner or Website Seller, we'll keep you up to date with all the latest news, acquisitions, and developments with YTB.

PPS - Subscribe to the Just Picture It Now RSS feed, (including e-mail) for all the latest posts and updates found right here!

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