You can’t tell me that YTB hasn’t been at the center of attention for most everyone in the Travel Industry for the past few months. When news broke back in early October about Royal Caribbean, one of the first companies both suspect and named was YTB. Since then there have been countless news stories, message postings, e-mails, and phone calls concerning the one company in the spotlight; YTB. I woke this morning to find Company President of YTB Travel Network, Kim Sorensen named by Travel Weekly as one of the most influential people in the Travel Industry. (Page 2) There is little doubt that YTB is making one heck of an impact in the industry.

Sorensen went, in a matter of weeks, from a virtual unknown in the industry to its favorite target for vitriol (from traditional agents and some suppliers) or admiration (from his tens of thousands of referring agents and, behind closed doors, some suppliers.) He has demonstrated some grace under fire, admitting his organization is still maturing, and we suspect that he and YTB will be around for many years, forcing all parties to examine what constitutes a legitimate seller of travel and challenging suppliers to assess how, and with whom the wish to do business

During the year, Travel Weekly has been most gracious in allowing YTB to voice just who we are and what we do. Yet there are those who simply will not recognize just how we as a company have changed this industry this year. Rumors still swirl concerning our #35 Ranking this summer and the $226 Million we booked in Travel. Even when given the chance to defend the numbers reported, some choose to simply ignore the fact that our booking numbers came from our suppliers, not YTB, and these numbers represent travel sales, not marketing sales.

In the Travel Weekly report dated October 24th there are a number of statements that are either ignored or simply misrepresented when it comes to how much Travel YTB actually booked in 2006. I hate treating people like a bunch of grade school children, but it’s become increasingly evident that some either don’t know how to read, or don’t have a basic understanding of the English language. How some of this information eludes them is unknown at this time, but we will attempt once again to educate those that want to discredit our company and our numbers.

The ranking was based on YTB’s response to the Power List survey, where the company reported about $226 million a year in “verified sales”. There’s that word again, “verified” which actually means confirmed as to accuracy or truth by acceptable evidence. There is a lot of contention and controversy right now if these numbers were actually “verified” by Travel Weekly. If these numbers were not verified, I don’t know why this publication would quote Mr. Sorensen as stating they are “verified sales”.

Sorenson said that figure reflected the total value of bookings that resulted from referrals by its agents, not YTB’s actual net revenue. The “spin” is that this statement does not reflect actual travel “bookings” but rather recruiting sales. I honestly don’t know how someone can misunderstand this, but somehow the word “bookings” magically turns into “recruiting” and “Agents” somehow magically turn into “Reps” who are selling web sites not travel.

Sorensen said that the $226 million sales figure it offered to Travel Weekly describes the volume of revenue it generates for cruise, vacation and other travel suppliers, rather than YTB’s own net revenue.

This paragraph is deleted in all posts found on forums and message boards. It simply isn’t discussed or pointed out for those who wish to discredit our ranking or our “verified sales”. It just magically goes away or is ignored.

“What we reported for the Power List was gleaned from numbers that we got from suppliers: how many passengers were booked through us, or the figure for dollar sales at the end of the year. We didn’t reconcile that with reports from our representatives. We just pulled in information on our sales from many reports and many sources for that”.

And because we did this, not only is YTB misleading everyone, but now our suppliers are also misleading everyone. Nobody can be trusted when it comes to Network Marketing I guess. The number given to Travel Weekly came directly from Carnival, Royal Caribbean, Apple Vacations, World Choice, and the rest of our “shady” suppliers. Gleaned means “to collect bit by bit” and you would think that collecting numbers directly from suppliers would add even more credibility, but apparently that’s not the case when it reports Network Marketing numbers.

Helping our Travel Professionals understand that these are in fact travel sales, and not recruiting sales is even more difficult when they try to fit a square peg into a round hole. There seems to be this notion that the travel booked in 2006 ($226 Million in sales) has to be reflected somehow in our SEC filings for the same year. ($7.4 Million in commissions.) The two simply don’t match up and somehow our Professionals use this insight to try to discredit our ranking.

Based on this information and if we match the $226 Million in “Travel Sales” with $7.4 Million in commissions, that would reflect that YTB earned on average 3.2% in commissions across the board. Yet it was noted back in January that 30 to 35% of our bookings are cruises. Based on 30% of the $226 Million Travel Weekly “verified” this one category alone would produce $10.8 million in sales. This does not include air, hotel, tours, cars, tickets, or all-inclusive packages.

Confused?

Here is what our Travel Professionals are missing. Travel commissions are not paid until the travel has been consumed. I’ve used this example before, and I guess our Professional STILL don’t understand how this works so let me cut and paste from a previous post.

I booked an 11 day riverboat cruise for clients from Cologne to Nuremberg directly with UniWorld in November of 2006. While only a deposit was made at the time of booking, a gross sales number was generated and this cruise booking is part of the “verified” travel sales that went on the Travel Weekly report. While a commission percentage and number was known at that time, the actual commission numbers did not show up for YTB (or me) until the cruise was paid on September 3rd. (Typically made 60-90 days before sailing)

On December 1st, my clients with several other couples will be flying to Cologne to enjoy this holiday cruise and when they return, UniWorld will then issue a check to YTB in commission and I in turn receive my 60% cut from YTB. While it’s possible that this commission will be paid in December of 2007, it’s more likely UniWorld will pay YTB 30 days after, January of 2008.

While “verifiable travel sales” show up in 2006, the SEC filings will not see earnings until Q1 of 2008.

Square peg…round hole.

I honestly don’t have a clue as to what it’s going to take to help them understand. I’ve been trying to help Anti-MLM Zealots understand for years how and why our model works. Maybe our SAP NetWeaver® technology platform coming in March will help in this issue. Don’t count of it however, like most everything else that adds credibility to our company or industry, there will always be those few feel it’s simply better to ignore than accept.

I’m heading over the river and through the woods with my kids to Grandmothers house we go for an extended weekend in the morning. Peace be with all of you and may you find something to be truly thankful for this Thanksgiving Holiday!

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

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Apparently, I’ve upset some people for not allowing them to have a voice on my Blog. They feel they have a right to have their views an opinions expressed anywhere they choose. Yet, it’s perfectly acceptable for these same individuals to prohibit my views and opinions in areas they choose. Our Petitioning Agents have banded together, and have not only blocked individuals like myself from even viewing what’s being said, but have also taken over forums designed specifically for those who work with various Travel MLM’s in the industry.

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The calls and e-mails have been coming in droves over the last several days. News of our Carnival Sale was originally stated to be announced yesterday. A minor glitch has come to our attention which to my understanding has no bearing on our ability to sell or get paid on travel. (Nor does it lack the ability to be corrected.) This in turn has detoured our efforts with Carnival in announcing these numbers.

For those of you who truly understand the forces out there who have been slinging mud lately, certainly you understand. The rumors and accusations that I’ve seen been thrown around the internet are amazing, especially in light of the fact that there has been no definitive announcement made by anyone concerning anything. People “think” they know what’s going on and while some are calling for a concert from the Fat Lady, others who know what has happened realize, it’s a little naive to make assumptions without having all the facts. That has little bearing however, when you have an opportunity to point fingers and create your own story to advance the cause.

I don’t really know the proper word or phrase to describe the announcements made concerning YTB, both last Thursday, November 8th, and then again yesterday November 13th concerning YTB. Ironic, maybe. Coincidental, possibly. I think our good friend John Frenaye and our Petitioning Agents may consider the news “exquisite timing” however.

Therefore, the company has decided to keep a very tight lip as speculation and rumors continue to mount while YTB prepares to answer all the questions circling around the industry. While some of us wait confidently, unfortunately, at this time, I must take a back seat and allow my company to issue statements concerning the future growth and dominance in this industry. As an Independent Representative of the company, it’s not my place to speculate to anyone what our future plans are.

I will tell you this. Based on what I know, I personally feel not only very good about what will transpire, but confident that the company will answer in a way that is both accurate and meaningful in regards to just who YTB is, and how we will continue to play a major part in the Travel Industry for the coming months and years.

The first part of our answer has come this evening just after the market close, with news of our second profitable quarterly report in a row, with record revenues of $39.9 Million and our best profit to date of $2.1 Million. ($1.6 Million year to date.) All this, while we continue to grow and expand our infrastructure to support our valued Reps and RTA’s.

More importantly, Travel Commissions are starting to support the $226 in sales from 2006 on our SEC filings. I’m sure we will have those who botch these numbers throwing out figures from this filing that support their cause, while ignoring the growth of Travel Sales by those that that have been with this company for more than 9 months. I’ve seen these numbers and filings ransacked many many times over the years.

We may have to provide a special course on what these numbers actually mean for some of our guests here to enlighten them, but that’s another post at another time.

More news to come, I’m sure, and I believe based on the release of our quarterly numbers, it will be sooner than later.

Till then.

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.

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

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I had mentioned in my last post that at the time of that post, I was unaware that any other suppliers or vendors have joined RCCL terminating “card mills”. If you have been following this story with me, you should know by this time how I’ve have an uncanny way of digging up documentation and information via the internet. (It’s a gift.) While I have heard of several companies from various message boards and forums throughout the course of “water cooler gossip” I have yet to see anything verified by a source I’m willing to trust at this point.

Over the weekend I found another link in which I’d like to share, and while I certainly consider this to also be nothing more than “water cooler gossip” especially concerning the source, I’d like to have some fun shooting all the fish in this barrel. While some may take this as nothing more than another personal attack, or ask why I’m giving so much energy to something I first decided to ignore, I believe those of us who are under attack by this individual should be aware of not only what we are being accused of, but the positioning and tactics being used in regards to YTB specifically.

As both Kim and Coach were able to express thanks to Travel Weekly last week, there are a lot of misconceptions about Network Marketing. Here is a listing of just a few of the common misconceptions regarding our industry as it’s related to what they “think” we are doing.

A. Suppliers allowing them discounts, free travel, FAMS, and other perks merely for referring themselves and their family to a website.

While the problem is originated at the supplier level for “allowing” discounting, it’s suddenly becomes a problem with MLM and not the supplier. See how that works? All the problems are directed at MLM because the supplier can’t differentiate what is a legitimate IATAN or CLIA credential, and one of our “ID Cards”.

These petitioning Agents certainly can’t blame the supplier, they are the life blood these Agents. So they put a gun to the suppliers head, tell the supplier “us or them” and when supplier caves to forfeit a combined $23 Million in sales, suppliers are sung praises for finally being able to say “no”. The supplier was unable to regulate just who is “giving back” and who is “taking advantage” of the discounting, therefore, MLM is taken out of the loop completely because these Agents believe MLM is the real problem.

B. Suppliers paying top commissions from day one, when we have to work years for a few points.

It’s my understanding that only “YTB consistently changes it’s “sales” numbers to appease different audiences”, not the other way around. If you recall when this story first broke, here is what we were told via comments on this very Blog.

“Why would I want to be YTB to earn 60% commission of 13%, when I now earn 80% of 16% and higher? Stupid. Ya’ll keep drinking your koolaid.”

I’d like to note that fingers are now being pointed at me for posting our commission percentages on this very Blog. They are upset with me for showing these top commissions, as these percentages apparently are a closely guarded secret in the Travel Industry. If this is the case, I don’t know how anyone would actually know WHAT commissions YTB actually makes.

While it may look like a “Catch 22″, I didn’t open this can of worms, and I don’t mind at all commenting or documenting how slimy the worms are.

Why does YTB get “top commissions”? If you joined American Express, Carlson Wagonlit, or any other Agency in the Top 50, they are also paid top commissions. Agencies earned these commission levels based on Sales Volume. Sell “X” amount of cabins, earn “Y” amount of commissions. Increase the amount of cabins sold, Agencies qualify for a higher amount. Carnival has awarded YTB their Pinnacle Award as one of the Top Agencies the last three years in a row, 2005, 2006, and 2007.

Because YTB is MLM, we don’t deserve top commissions along with the Award for Top Sales? YTB obviously qualified with every Travel Supplier we have on our list. Kudos to the RTA’s of YTB for making this happen!

C. The MLM companies idea of help to the consumer is to refer them to the Travel Agent Only toll free number of the supplier.

I have no idea if Agent Only numbers are given out or not. Doing so isn’t at all productive. If, by some slim chance they are, the “customer” who calls will be asked for either an Agency Phone Number or Agency IATA number, (depending on the supplier) and since this is the first question asked by an inside service representatives, no further information is given without first supplying either of these two identifiers.

I realize there are over 60,000 new RTA’s who have joined YTB in the last 9 months. If you have a question, we have our own phone number or support ticket system along with a newly renovated 120,000 square foot Home Office with hundreds of support staff to assist you. The founders and Corporate Heads of YTB have set in place one of the best training systems and support programs available to anyone wishing to get involved in the Travel Industry. Additional thanks going out to Dr. Marc Mancini and TheAcademy.com for their support and assistance in this leading edge training technology to help those who have recently joined our ranks. span>

D. The solicitation of our clients with slick unethical and misleading marketing materials.

We must have missed the Memo from the DSA announcing YTB as members of their prestigious organization. YTB is clearly attempting to raise the bar joining the DSA in abiding by their Code Of Ethics.

How sad to see that our counterparts in the Retail Industry are not joining us in our efforts.

“In the wake of RCI’s decision to yank the privileges of “card mill” outfits, I got spammed with an email from a group that purports to be lobbying more big travel sellers to follow suit (see email below). Did anyone else get this? I don’t understand what is motivating this campaign–if I’m a legit TA, why do I need to waste my precious time joining a grassroots organization to cheerlead the big travel sellers for making a decision I like? I am also trying to figure out where they harvested my address from….”

I couldn’t have said it better myself. Thank You.

E. The solicitation of travel agents themselves to join their “downline”.

Finally something worth talking about! Absolutely!

We understand the plight of the Retail Travel Agent, and while they are spending time servicing important high ticket, high touch clients, these same clients can now be referred to their very own “booking engine” for air, hotel, cars, event tickets, even flowers without lifting a finger. These clients have been booking these services themselves for years now. If Retailers choose to simply let Travelocity, Orbitz, Expedia have it, that’s fine too. For a minimal cost, and loyal clients, it makes sense for those Retailers who want to retain all of their clients travel with minimal effort.

By the way…many of these Agents “get that”. There are obviously a few old school who want to continue to struggle and end up selling T-Shirt’s and creating their own Blogs, while at the same time left wonder why annual cruises booked by agents has dropped to about 90% and continues to decline.

F. Consumers believing that they are booking with a “friend” and ultimately it is being handled by an untrained person in a res center.

- Expedia booked $17.2 Billion in their Res Center.

- Travelocity booked $10.1 Billion in their Res Center.

- Orbitz another $10 Billion in their Res Center.

- Priceline finishes out the Top 10 Res Center Agencies with $3.3 Billion.

Over $40 Billion was spent last year in a Res Centers and that ONLY includes Expedia, Travelocity, Orbitz, and Priceline who are all Top 10 Agencies. Our friends have not only trained themselves, it appears that their training over the last few years was extremely effective.

MLM is apparently under a completely different set of rules and guidelines here when it comes to using Res Centers.

G. The promotion of their business with the focus on “free travel” and “traveling like an insider”.

Take a look around here, take a look at the YTB Marketing site, take a look at our Booking Engine…do you honestly believe obtaining “free travel” is YTB’s focus? Yes, I want to show you how to “travel as an insider”, to help you sell travel. This is what I was taught to do from the very beginning, take a FAM and then comment on my experience. This Trip Report is still being accessed to this day, and I still get sales off this article two years later. I see nothing wrong with organizing a large group and obtaining a conductors rate for yourself. I see nothing wrong with getting rebates in the form of commissions for your own travel. If they can do it…so can I.

Oh…that’s right…YTB is MLM.

Sorry….

While these Petitioning Agents are relying on “luck” and signatures, YTB has verified numbers of $226 Millionis sales in 2006, and a conservative number looks like that number is going to double to $550 Million for 2007.

In closing, I’d also like to note that while I’ve enjoyed exposing these Anti-MLM Zealots, a considerable number of fingers are also being pointed back at me.

Here is what I’m actually very proud of.

With years of posting about YTB, they have only been able to come up with one legitimate complaint about what I’ve done when it relates to all the myths, rumors and lies they are spewing about YTB.

Last year I submitted a Press Release on going full time with YTB. In the copy, I stated that YTB estimated $500 Million in sales for 2005, and expected to exceed $2.5 Billion in sales for 2006. While it looks like I either grossly exaggerated my sales numbers, (or simply missed these figures by a year of two) I am both humble enough, professional enough, and man enough to admit and correct any misrepresentation I have made about a company and industry I love, admire, and respect.

Actual verified sales number for 2006 was merely $226 Million in sales, and estimates for our current year have only doubled to $550 Million.

I appologize.

How long will we have to wait to see the same class, dignity or professionalism from our opposition?

Time will only tell.

Let’s just hope they correct this before others like Ms. Diana, Publications like Travel Weekly and suppliers like Carnival begin to figure out what’s really going on.

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!

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

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