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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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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The Travel Industry has been in turmoil for some time and the constant changes due to factors both inside and outside of the industry have forced many in the industry to scramble for market share and positioning. You may remember Candi May’s carousel with Travel Professionals, Bye Bye Now, and Carlson Wagonlit before she finally found a home with YTB.

Just this week I found two articles of more musical chairs.

I’ve mentioned Liberty Travel a time or two before and do recall earlier in the year when an Australian company (Flight Center) had purchased the Agency. This week they announced that they will be closing 15% of their retail locations, or 30 of its 197 stores across the country. The closings will occur in Florida, Illinois, Maryland, New England and Upstate New York. While an exact number of jobs lost in this move was not disclosed, since the Australian buyout by Flight Center there has already been a loss of some 180 jobs.

This move has been positioned as a “consolidation” of sorts and employees will be moved around to other stores. That is if they’re actually performing. Other “dead wood” will be let go entirely. Shannon O’Brien, the company’s acting CEO, said outlets in undesirable locations will be closed for “a stronger shop network as our platform for future growth.”

It also looks like this move is necessary since Liberty will be costing Flight Center some $10.2 Million just in the second half of 2008.

Liberty Travel is currently ranked #10 on the 2008 Power List.

In another move this week, Uniglobe Travel Center, the host agency division of Uniglobe Travel USA, has agreed to purchase Magellan360. The sale will bring annual sales to $85 million with some of 400 independent contractors and home-based agents. Sales of $100 million are required to make Travel Weekly’s Power List, thus Magellan360 was unranked in the Travel Weekly Power List.

Magellan 360 has already been thrown around a few time in years past as stated in the Travel Weekly article.

Scott Ahlsmith, the Travel Institute chairman and Virtuoso vice president of global technological solutions, previously owned the 21-year-old business but sold it in January 2007 to Red Branch Technologies, which in turn is selling to Uniglobe. The transaction is expected to close on Nov. 30.

Uniglobe Travel Partners may pick up the spots it lost in 2008, (currently ranked 43 after falling from 40 in the 2007 Power List) and move is certainly a plus for Magellan360 affiliates. They will gain access to Uniglobe programs, including assistance with business planning, marketing toolkits and the opportunity to network with more than 750 franchised Uniglobe agencies around the world.

It’s never ending when it comes to these types of closures, purchases, and takeovers. The flux of this industry, while not entirely isolated to this particular industry, it does appear to me at least to be far more than any industry I’ve ever been involved with in years past.

Change is never easy, especially when it comes to a work environment. Nor does it matter if the change is positive or negative; it upsets the status quo. We’ll have to wait and see how all this shakes out for the companies involved. It will also be interesting to see how long this move lasts. From what I’ve seen, there may be even more before it all shakes out and settles down.

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If you’ve been reading this blog for any length of time you should know that I am a die hard Steelers fan. I grew up in Pittsburgh during the years of the Steel Curtain, Lambert’s Lunatics, Franco’s Army, and four Super Bowl Championships in the 70’s. You can take the boy out of the city, but you could never take the Steelers out of the boy.

My only memories of the Steelers, even as a small boy are three Coach’s, (Chuck Noll, Bill Cowher, and Mike Tomlin) two stadiums, (Three Rivers and Heinz Field), and one ownership, the Rooney’s. In 1933, Art Rooney Sr. (“The Chief”) purchased this NFL franchise for $2,500. The other four current NFL teams in existence at that time were the Chicago (Arizona) Cardinals, Green Bay Packers, Chicago Bears and New York Giants.

To state that this Franchise is riddled with history is an understatement at best.

You may also know if you’ve been with YTB for any length of time that Coach is also a Steelers fan. He grew up just outside of Pittsburgh, and even after moving away many decades ago, he like me, still bleeds Black and Gold.

I’ll never forget the first night my wife and I saw this business. It was during one of the Founders Tours back in 2005 and Coach was there and when he got up to speak, he said something, and honestly I don’t remember what the exact word was, but it was a very distinct Pittsburghese, and I turned to my wife and told her right then that Coach was from Pittsburgh.

She looked at me like I was nuts, (Wasn’t the first time, and wasn’t the last. ;-P) but when I was introduced to Coach after the presentation, I asked him if he spent any time in Pittsburgh. He was shocked that I picked up on his dialect, but we Pittsburgher’s N-at always know!

While I am aware of some cities who have attempted to have Coach change his loyalty to other teams, Coach knows who the REAL American Team is! (Isn’t that right Charlie?!)

That being said, it has come to my attention that for the first time in over 75 years, the ownership of the Pittsburgh Steelers may be jeopardy of changing hands. Four of the Rooney brothers plan to get out of the NFL and focus their business efforts on their racetracks and other interests. (Ownership in gambling, such as racetracks, is against NFL policy and regulations.)

According the Official Steelers site Dan Rooney, and his son, Steelers President Art Rooney II, are arranging a financing plan to buy Dan’s brothers’ shares in the team in order to continue substantial ownership of the franchise by the Rooneys.

However, word has surfaced that the Steelers may have been secretly shopped around and an outside buyer has come into the mix, who may take control of the team.

Oh the HUMANITY!

So that got me thinkin’. (Dangerous, I know.) IF the Steelers are being shopped around, who better to take over than our very own Coach Tomer! He has the money, he has the loyalty, and I can’t think of a better Coach in the world! What I like most about this idea is that he surrounds himself with quality people and delegates jobs and tasks to people who excel in those areas.

Can you imagine…Coach Tomer, part owner of the Pittsburgh Steelers? Okay, hard to wrap, even for me after all these years of stability in this franchise, but like Cowher in 1992 and now Tomlin who’s now in his sophomore year, I can adapt.

What I like most about this idea is that for as long as I’ve known Coach, he’s always done what was best for people. The man has a heart of Gold. It’s not just us either. You may know about the cruises he gave away for Military and their families this spring. While I can’t document what I’ve heard about what this meant to every single family, and I’ve heard some very sincere and touching stories. Apparently it got back to the Top Brass and to have a Naval Commander take the time to write and thank our company for its service and aid in these families quality of life is truly astounding.

Like the Rooney Family, I feel the same way about the Tomer family and that’s why it’s such a perfect fit in my view. The Rooneys and the Tomers have always done what’s best for the team, and its fans.

“The Chief” was the laughing stock of the NFL for many years, and had only a handful of winning seasons before he hired Chuck Noll back in 1969 as their head Coach. Art Jr., one of two Rooney brothers who worked full time for the team, was so skilled as a scouting director that his drafts in the late 1960s and early 1970s were largely responsible for the Steelers winning four Super Bowls in six years.

His 1974 draft alone produced Hall of Famers Lynn Swann, Jack Lambert, John Stallworth and Mike Webster and led to Art Jr. being nominated for the Hall of Fame. No argument from me that this “recruiting” was the best in NFL history.

“The Coach” doing what he has done in the Travel Industry, taking a bunch of nobodies, and producing a top Travel Agency in only his 8th year in business, seems to me at least, to be a top pick in working WITH the Rooneys in keeping the legacy and the tradition alive and well in this blue color town who’s foundation was built in a melting pot of all walks of life.

It could prove to be a lot of fun, and isn’t that what life should be all about?!

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I’ve been wondering all year just where YTB International would place in this years Power List and I’m very pleased and honored to announce that YTB International has jumped 9 spots to #26 overall with $414.5 Million in Travel Sales for 2007.

This large jump in the rankings from YTB International is tied with Christopherson Andova Travel as the largest increase of any of the “Power Agencies” moving up the list 9 spots. YTB’s ranking rose from #35 in last years list to #26 for the current year.

Some of the 2007 Developments about YTB in Travel Weekly Include:

- ARC sales of $29.7 million
– $211 million fulfilled by third parties, known as Referring Travel Agents
– 85% of sales from business, 10% leisure, 5% meetings and conventions.
– Admitted as a member of the Direct Selling Association.
– Launched into Bahamas, Bermuda and Canada .
– Acquired Sunrise Travel in Canada
– August 2007 National Convention in St. Louis had attendance of more than 10,000, up from 3,200 in previous year.
– Launched YTB E-Campus
- Launched YTB Cars
- Held Funshine Traval Trade Shows in Orlando and San Diego with attendance of 5,000 and 3,000 respectively.
– Acquired American Destinations, a tour operator specializing in educational travel.
- Formed relationship with Shanghai Spring Travel in China to develop China and European tour programs.

A few “critics” had speculated that the 2007 Power List was comprised of “fees” or other “non travel” related sales instead of “travel sales”. I personally tried to educate those with this illusion about the fees, sighting SEC filings, and other documentation to no avail. This year it seems that Travel Weekly was also fed up with the ignorance of those who just won’t admit that YTB Travel Network is a real Travel Company.

“YTB has to be singled out because it faced another year of controversy because of the structure of its business – losing IATA and Royal Caribbean accreditation. Editors checked with the company multiple times to ensure that its reported total represented only direct travel sales, not referrals or any other nonqualified revenues.”

And some wonder why I won’t allow comments from these same ignorant Traditionalists who claim to know everything they need to know about YTB. I’ve told everyone before here, the truth always has a way of coming to light, and I’m not going to waste any more time with those who simply want to sling mud around here or elsewhere on the internet.

These ARE travel sales, so our Traditionalists need to get over it. They also need to accept the fact that suppliers are not going to cast off these large sales simply because some don’t agree with the model YTB uses. I posted as recently as Friday how Carnival “get’s YTB”, that YTB generates considerable revenue for suppliers who support the model.

Other notable information in this list includes American Express Travel and Carlson Wagonlit who remain #1 and #2 respectively. In regards to the top Online Agencies, Expedia (#3), Orbitz (#6), Travelocity (#7) and Priceline (#8) all combined for $45.6 billion in Travel Sales, up $5.6 billion from $40 billion in 2007. Expedia also had the largest increase in sales of any of the Top 50 Power List Agencies, from $17.2 Billion in 2006 to $20 Billion in 2007.

One other note I’d like to add is that it’s now published that YTB International did acquire American Destinations, Inc. With Travel Weekly being named as a Top 50 Media Power in the trade publication category, I wonder if this documentation is enough for the formal apology someone said he would give Regina Osei for posting what she obviously knew to be true.

So there we have it YTB; our second year on the Power List and the largest gainer up the rankings. We all know our goal for 2008 is $1 Billion in travel sales and when we do, it will be another large jump in the rankings for this company.

With the National Convention just around the corner, I’d be willing to bet there will be some major announcements to help us achieve just that.

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In 2005, Atlanta based couple joined YTB International, Inc. as their Host Agency, enabling them to open their own travel business from home. Two years later, the company is now recognized by Travel Weekly as Leading Travel Agency in their 2007 Power List.

Atlanta, GA, – Just Picture It Now, an independent representative of YourTravelBiz.com and BandBVactions.com, a home based travel agency of YTB Travel Network, Inc. announced today that it’s parent company YTB International, Inc. has been named as one of the country’s leading travel agencies in Travel Weekly’s 2007 Power List. As part of the Power List, YTB was ranked 35th among all travel agencies and included in the top 11 leisure travel agencies. YTB International, Inc. provides Internet-based travel booking services for travel agencies and home-based independent representatives in the United States, Puerto Rico, and the US Virgin Islands.

The yearly ranking included gross sales figures, ARC sales; travel related subsidiaries; percentage of sales from business, leisure, etc.; corporate structure as well as other matters.

Figures that Travel Weekly was able to verify through YTB include:

2006 Sales: $226.1 Million

- ARC sales of $52.1 Million
– $91.7 Million of sales fulfilled by third parties
– $175.2 Million of sales from hosting outside agents.
– 80% of sale from leisure, 10% from business, 10% other.
– 300% growth in sales and representative for each of the last three years.

Other leading travel agencies named in this year’s Power List are Expedia, Travelocity, Orbitz, AAA, and American Express Travel Services.

Doug Bauknight, owner of Just Picture It Now, and BandBVacations.com added that the Host Agency, based just outside of St. Louis, is just 6 years old, and fulfill these large numbers with a team of RTA’s that are Home Based Independent Travel Agents. “Every time we open our mouth and tell someone that we own our own Travel Agency, the very next thing out of their mouth is “Really, can you get me a deal to _________?” Doug adds “This ranking simply shows how simple and viable our business model really is.”

Doug’s growing team would certainly agree. “If you had more time and more money…what would YOU do?” asked Chris Pappas, a team member based in Las Vegas. “I love that line! I already know what the answer is going to be.” Other team members have even been able to land large group cruises for family reunions, class reunions, Sunday School classes, even some company trips. “There are large commissions involved with group travel,” Doug adds “And now that the word is out how easy it is, it’s snowballed throughout the entire team.”

Combining the fun of travel with the speed of the Internet, multiplied by the power of referral marketing to provide the ultimate home-based business solution, YTB is taking
the industry by storm.

An advantage-rich, home-based business built around the Internet with an extremely lucrative compensation plan, YTB has become “The Choice” for over 100,000 to date. “In today’s marketplace, many companies seek your time and attention, each claiming that their opportunity is the best.” Doug adds in closing. “It’s great to see that the industry is not only taking notice but agrees.”

About Just Picture It Now

Is an Independent Marketing arm of YourTravelBiz.com and primary focus on marketing on-line travel agencies through a nationwide network of independent business people, known as “Reps.” Providing Internet-based travel booking services for travel agencies and home-based independent representatives in the United States, Puerto Rico, and the US Virgin Islands.

About BandBVacations.com

Is a home based travel agency also known as an RTA. (Referring Travel Agent) a division of YTB Travel Network, Inc., who establishes and maintains travel vendor relationships, books travel transactions of on-line travel agents (RTAs, now numbering over 100,000), collects travel payments and licensing fees, and processes travel commissions. Each RTA sells travel through a personalized Internet-based travel Website.

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