In addition to serving on YTB's Board of Directors, Mr. Hemings is a Group Director of Sales for Energizer Holdings, Inc., where he is responsible for $200 million in annual sales. Prior to his appointment as Group Director, Mr. Hemings served as Energizer's Director of Business Development, leading the annual business planning process. Before beginning his tenure at Energizer, Mr. Hemings held several sales and sales management positions at Procter & Gamble.

Following the announcement on April 30th of his acceptance of a seat on the Board of Directors of YTB International, Inc., Robert H. Dickinson has reconsidered his decision. "Upon further review I have respectfully decided not to accept a Board position with YTB. After careful consideration of my personal and retirement objectives, I determined that I should not commit to that appointment," said Dickinson.

YTB's Chairman, Lloyd "Coach" Tomer commented, stating, "We are pleased to have recruited a Board member of Paul's experience and talent. Paul will make an excellent addition to our Board, and we look forward to learning from his extensive sales and marketing experience at Energizer Holdings and Procter & Gamble." Mr. Tomer continued, "We understand Bob's decision to reconsider joining our Board in order to address other personal opportunities and wish him the very best in his endeavors. He is a friend and supporter of YTB."

Prior to joining the YTB Board of Directors, Mr. Dickinson served as President and Chief Executive Officer of the Carnival Cruise Lines division of Carnival Corporation. Mr. Dickinson also previously served as President and Chief Operating Officer of Carnival Cruise Lines for ten years, and remains a member of the Board of Directors of Carnival Corporation, on which he has served since 1987. Mr. Dickinson also currently serves as a member of the Board of Directors of Carnival plc, and has held such Board seat since 2003. Mr. Dickinson received his B.S.B.A in management from John Carroll University and his MBA from Duquesne University. He was awarded an honorary Doctor of Business Administration degree from Johnson & Wales University in 1995.

Mr. Saunders has been a Florida State Senator for District 37 for the last ten years, representing Collier and Lee counties. In addition, he has served in an "of counsel" capacity for the firm Gray Robinson, P.A., and previously for Woodward, Pires & Lombardo, P.A., practicing in the areas of land use, government and health care law. Mr. Saunders received his B.A. from the University of South Florida, his J.D. from the College of William and Mary, and his L.L.M. in Ocean/Coastal Law from the University of Miami.

Commenting on the addition of Messrs. Dickinson and Saunders to the YTB Board of Directors, J. Lloyd "Coach" Tomer, Chairman of the Board of Directors, said, "I know that I speak on behalf of our entire company when I say that we are extremely pleased to welcome Robert and Burt to our Board. Our Board is very diverse, and we constantly draw on the knowledge and experience that each individual director brings to the table. Bob's extensive travel industry experience, and Burt's legislative experience, combine to add valuable strength to our Board, and we look forward to tapping into their respective skill sets. I believe that these additions will bring necessary and valuable resources to the Company, while enhancing our efforts to further build the YTB brand and reputation."

YTB is a leader in the travel services business and has operated in the travel services industry for 25 years. The Company recently reported its third consecutive quarter of profitability, with total revenue for the year ended December 31, 2007 increasing by 177% to $141.3 million, compared to $50.9 million for the previous year.

The OTCBB provides access to more than 3,300 securities, includes more than 230 participating market makers, and electronically transmits real-time quote, price, and volume information in domestic securities, foreign securities and ADRs.

 Value of travel services booked on YTB's RTAs 
websites increased 84% in 2007 to $414.5 million

WOOD RIVER, Ill., April 1, 2008 /PRNewswire-FirstCall/- YTB International, Inc. (OTC Pink Sheets: YTBLA - News; "YTB" or the "Company"), a provider of Internet-based travel booking services for travel agencies and home-based independent representatives in the United States, Bermuda, the Bahamas, and Canada, today announced its financial results for the twelve-month period ending December 31, 2007.

Total revenue for the year ended December 31, 2007 increased 177% to $141.3 million, compared to $50.9 million for the previous year. While only the commissions arising from RTAs' booking of travel services booked on the RTAs' websites are reflected as a component of the Company's revenues, YTB also keeps track of the aggregate retail value of all travel services that are sold by its RTAs' websites (which directly impacts commission revenues). The value of such travel services increased 84% in 2007 to $414.5 million, from $225.7 million in 2006.

Net income for the year ended December 31, 2007 was $3.2 million, or $0.03 per diluted share, compared to a net loss of ($6.0) million, or ($0.07) per diluted share, for the 2006 fiscal year.

Stockholders' equity as of the 2007 year end increased by $19.3 million or 958%, to $17.3 million from a ($2.0) deficit as of the end of fiscal 2006.

"2007 was a banner year for YTB. During the year we more than doubled the size of our network of RTAs to approximately 131,000 strong in addition to reporting three consecutive profitable quarters," stated Scott Tomer, Chief Executive Officer of YTB. "As our company grows, so does the attention we have gained within the travel industry. Over the past year we have received praise for our energy and industry-changing business strategy from leading travel companies and organizations. However, not surprisingly, we have also attracted criticism from those companies with whom we indirectly and directly compete. We challenged these critics by concentrating on our business and making YTB one of the most successful travel service companies around. Moving into 2008, we see no signs of slowing down, as we expanded our services into Canada."

"We have established a strong network of contacts within the travel world, which have led to significant agreements that have expanded the scope of our travel business. Most recently, we announced an exclusive partnership with Shanghai Spring International Travel Service and Mandarin Voyages to market and sell European tour packages, including trips to France, Germany, Belgium and Holland. These agreements expand our RTAs' ability to offer fun, unique travel options," stated, J. Kim Sorensen, CEO of YTB Travel Network, a wholly- owned YTB subsidiary. "We are very proud of these efforts and look forward to helping more RTAs find success through selling travel."

About YTB International

Recognized as the 35th largest seller of travel in the U.S. in 2006 by Travel Weekly, YTB International, Inc. provides Internet-based travel booking services for home-based independent representatives in the United States, Puerto Rico, the Bahamas, Canada, Bermuda, and the U.S. Virgin Islands.

It operates through three subsidiaries: YourTravelBiz.com, Inc., YTB Travel Network, Inc., and REZconnect Technologies, Inc. YourTravelBiz.com focuses on marketing online travel websites through a nationwide network of independent business people, known as 'Reps.' YTB Travel Network establishes and maintains travel vendor relationships, processes travel transactions of online travel agents and affiliates, collects travel commissions and pays sales commissions. Each RTA directs consumers to the YTB Internet-based travel website. REZconnect Technologies hosts a travel agency for traditional travel agents and offers franchises of brick and mortar travel agencies. For more information, visit http://www.ytbi.com/investor.

Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. Such forward-looking statements involve risks and uncertainties and are subject to change at any time, and the Company's actual results could differ materially from expected results. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances.

                             
    This document is available on the KCSA Worldwide Website at www.kcsa.com. 





    
    
    
    
    
    

    

  




        

   







                                                                         






    
      
 
Wood River may get hotel
Convention center also part of YTB’s plans

April 7, 2008 - 11:14PM

By CYNTHIA M. ELLIS

The Telegraph

 
 
WOOD RIVER - Before plans are even drawn, officials' excitement about a 
recently announced development project is difficult to contain. Officials
 recently learned YTB International Inc. and Aventurs of St. Louis are 
planning to build a convention center and hotel




    

"It's a big boon to the city," Mayor Fred Ufert said. "We are looking 
forward to the development of this project."        
    

Ufert said the city has not been informed about the hotel project officially
 but does know YTB is planning to build a convention center in the near future.
    

The Wood River City Council approved the annexation of 29.44 acres along 
Old Alton-St. Louis Road and Edwardsville Road (Illinois Route 143) and 
Illinois 255 on Monday night. The council then approved to rezone the property 
as B-3 Highway Business.

    

The newly annexed property will be contiguous with adjacent properties in the
 area and will allow for the expansion of YTB, said Jeff Stassi, the company's 
director of real estate development and procurement.
    

The Planning Commission held a public hearing March 20 and approved the 
rezoning of the property. Board members said the annexation would be in harmony
 with the city's zoning ordinance and would increase the area's tax base 
significantly.
    

Stassi said that YTB is expanding the facility it purchased in 2006 to create 
more room for its growing workforce. He said there currently are about 350 
employees, and the company expects to more than double its size during the next
 18 months "YTB isexpanding to meet its needs," he said. 
    

The publicly traded company develops, sells and supports online travel booking
 engine Web sites for 140,000 independent representatives across the country 
and in Canada.

    

The first phase of the project will include a 45,000-square-foot convention
 center and dining facility, adjacent to property along Edwardsville Road. 
The convention center, which would be open to the public, is expected to hold
 between 2,000 and 3,000 people. 
    

Future phases include the expansion of the company's corporate headquarters, 
as well as a hotel and some retail in the form of restaurants, Stassi said.
    

During the public hearing, it was announced that survey work currently is 
being done on 9.96 acres, and that the area likely would be subdivided and 
a hotel built. 
    

The hotel chain or the developer was not named, but officials plan to make an 
announcement soon about the project.
    

Stassi, who previously served as the city's director of parks and recreation, 
said he is looking forward to working with city officials again. He left the 
city in November 2005 to work in the private sector. He joined YTB more than 
two months ago. Ufert said the development would continue to add to the city's 
economic growth. 
    

"We're looking forward to the continued development on the city's east end," 
he said. Last year, the city passed a 5 percent hotel/motel tax in anticipation
 of future development.
    
 Currently, the city brings in an average of $350 to $500 per month from fewer
 than a dozen rooms at a motel and rooming house.
    

"We expected growth and planned for growth," Ufert said. "The city is always 
looking ahead at what it needs. This project is just another piece of the 
puzzle that allows the city to prosper."

   
    
    
    
    
    

     



        


        
                

    

"We are very pleased to welcome Sunrise Travel into the YTB family. This acquisition assists YTB in maintaining compliance in Ontario, which is of utmost importance to our organization," said J. Kim Sorensen, CEO of YTB Travel Network, a wholly-owned YTB subsidiary. "Careful research went into choosing an experienced, qualified travel agency and Sunrise Travel is a great fit for the YTB travel business."

The acquisition of Sunrise Travel Service further broadens YTB's ongoing expansion into Canada, which began last month. This purchase also provides YTB with a competitive advantage in three very lucrative markets: Leisure, Honeymoon, and Corporate Travel, all of which are areas of expertise for Sunrise Travel Service. Additionally, Sunrise Travel Service has developed a niche market for travel to Europe and the Middle East, which will serve to broaden YTB's international travel offerings and create even more opportunities for the thousands of YTB RTAs who have already joined in Canada.

It should be noted that while YTB tracks the aggregate value of the travel services sold, only the commissions arising from such sales, not the amount of such sales themselves, are reflected in YTB's financial statements.

"We began 2007 as a travel company few people outside of YTB had ever heard of. We ended the year as Travel Weekly's 35th largest travel agency in America (as reported for 2006), and we experienced a record setting day at YTB with more than 12,000 cruise passenger bookings on Carnival Cruise Lines. Also, YTB Travel Network's CEO J. Kim Sorensen was named one of the 33 most influential travel executives, along with the founders of Enterprise Rent-A- Car and Virgin Atlantic Airways," said YTB founder and CEO Scott Tomer. "These accolades, along with our ever-increasing business initiatives and growth rate, give me no doubt that 2008 will be another record-setting year for YTB, which means a year of new opportunities for Reps and RTAs."

YTB's RTAs, the people who offer YTB's wide array of travel services, more than doubled in 2007, growing from just over 60,000 to more than 130,000. It was also a record year for YTB Reps, who received one and a half times more Leadership Bonuses compared to the first six years of YTB's business.

"The abilities and successes of our Reps and RTAs never ceases to amaze and inspire me," continued Tomer. "The fact that we are on track to be among the twelve largest travel agencies in the country with more that $1 billion in sales is just incredible. And we are committed to giving the team the support they need - from improved training and more sophisticated technology platforms to a larger office support team."

Among the projects expected to launch in 2008 are the development of a next generation booking engine that will enable YTB to increase the products sold through the travel store, expansion of the YTB Outdoors, YTB Fly Free, and YTB Cars sites, and growth in Canada, Bermuda, and the Bahamas as those countries come online.

"Thanks to the hard work and commitment of our RTAs, 2007 has been a record-breaking year for YTB. We saw our first consecutive quarters of profitability with record revenue and net income. In addition, we more than doubled the size of our RTA network to more than 135,000 RTAs, reaching every state in the U.S. and Puerto Rico," said Scott Tomer, chief executive officer of YTB International. "We plan to build on this foundation in 2008 by expanding into Canada, offering fantastic tour packages for the Beijing Olympics, and continuing to improve our training programs and transactional systems, as well as many other new initiatives and opportunities."

    Some of the company's highlights for the year include the following:

    -- Increasing total revenue for the nine months ended September 30, 2007
       by 207.6% to $95.9 million, compared to $31.2 million for the same
       period last year;

    -- Being named by Travel Weekly as one of the top eleven leisure travel
       agencies and one of the 35 largest travel agencies overall for 2006;

    -- Having YTB International President, J. Kim Sorensen, named by Travel
       Weekly as one of the 33 most influential people in the travel industry;

    -- Holding a record-setting cruise "sail-a-thon," booking more than 12,000
       passengers in less than 24 hours;


    -- Rolling out "YTB E-Campus," designed by Dr. Marc Mancini, one of the
       travel industry's most highly respected speakers, educators and
       consultants;

    -- Adding 93 new YTB Sales Directors between January 1, 2007 and December
       17, 2007; and,


    -- Exceeding $225 million in travel sales for 2006 and already more than
       doubling that figure for 2007.

"This has been a great year for YTB," continued Tomer. "We've put a fantastic team in place from our executive staff to legal and communications partners, and, of course, our representatives in the field, who are really the heart and soul of YTB and the new face of travel on the Internet."

About YTB International

Recognized as the 35th largest seller of travel in the U.S. in 2006 by Travel Weekly, 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. It operates through three subsidiaries: YourTravelBiz.com, Inc., YTB Travel Network, Inc., and REZconnect Technologies, Inc. YourTravelBiz.com division focuses on marketing online travel agencies through a nationwide network of independent business people, known as 'Reps.' YTB Travel Network division establishes and maintains travel vendor relationships, books travel transactions of online travel agents (RTAs, now numbering more than 135,000), collects travel commissions and pays sales commissions. Each RTA sells travel through a personalized Internet-based travel website. The REZconnect Technologies division builds online reservation systems for suppliers within the travel industry. For more information, visit http://www.ytbi.com/investor.

YTB International Partners with Shanghai Spring International Travel Service for Exclusive 2008 Olympic Tour Packages

Wednesday December 12, 4:56 pm ET

WOOD RIVER, Ill., Dec. 12 /PRNewswire-FirstCall/ -- YTB International, Inc. (OTC Pink Sheets: YTBLA - News; "YTB" or the "Company"), a provider of Internet-based travel booking services for travel agencies and home-based independent representatives in the United States, today announced an exclusive partnership with Shanghai Spring International Travel Service to market and sell tour packages to the 2008 Summer Olympics in Beijing, China. The packages will be available from YTB beginning on or before January 11, 2008.

In an effort to provide more tours to China for the 2008 Olympics than any other travel agency, YTB and Shanghai Spring International Travel Service, the largest privately owned travel agency in China, will offer exclusive 7 to 11 day tour packages and tickets for the Summer Olympics in August 2008. Through this strategic partnership, YTB's Referring Travel Agents (RTAs) are positioned to benefit from Shanghai Spring International Travel Service's dominant position within the Chinese market, and pass these savings on to their customers. YTB's customers will recognize value not only in terms of cost savings, but also in terms of the exclusive access to sold out events, attractions, and hotel accommodations.

"We are excited by our partnership agreement with Shanghai Spring International Travel Service, and welcome the challenge to become the largest tour provider to the 2008 Summer Olympics. Our RTAs have the resources needed to rise to this challenge, and we are confident that we will be able to provide our customers with the most professional service at the most competitive rates," stated J. Kim Sorensen, President and CEO of YTB Travel Network. "The Olympics remain the preeminent sporting event of our time, and serve as a major draw for travelers around the world to visit new destinations, and to enjoy live competitive sports. We look forward to providing our customers the opportunity to partake in history, as China holds its first Olympics."

The YTB and Shanghai Spring International Travel Service Tours will include round trip air to and from China via Los Angeles, Four Star accommodations including tips, baggage fees and taxes, daily meals, guided local tours, and admission from two to four Olympic events based on package and event preference. In addition, the YTB and Shanghai Spring International Travel Tours will also include safety insurance for visitors to China.

Shanghai Spring International Travel Service was founded in 1981 and started Spring Airlines in 2004, and currently operates eight aircraft traveling to 28 destinations in China and will be adding nine new airplanes to the fleet by 2009. The company is currently the only travel agency that owns and operates an airline in Asia.

"We chose YTB International because we wanted to work with the best Internet travel agency in the U.S. and one that would have access to thousands of potential customers," said Jenny Hu, Deputy General Manager of Shanghai Spring Tours. "YTB's high standards and great reputation, combined with their innovative business model, made partnering with them an easy decision."

Shanghai Spring has successfully purchased event tickets more than six times the number of any other purchasing agent or travel provider worldwide. In addition, Shanghai Spring has also reserved more hotel accommodations than any other agency to date.

YTB International Holds Historic One-Day Cruise Sales Event

Wednesday December 5, 12:47 pm ET

WOOD RIVER, Ill., Dec. 5 /PRNewswire-FirstCall/ -- YTB International, Inc. (OTC Pink Sheets: YTBLA - News; "YTB" or the "Company"), a provider of Internet- based travel booking services for travel agencies and home-based independent representatives in the United States, announced today that it held a successful one-day cruise sales event in November.

During the event, YTB's network of Referring Travel Agents (RTAs) booked more than 12,000 cruise passengers through gift certificates, individual, and group cruises. YTB's efforts marked one of the best single sales days for cruises in the history of the industry.

"With the holidays coming up and the weather getting colder, it seemed like a perfect time to highlight cruises. Everyone starts to think about visiting a warm, sunny destination once temperatures start to drop and the snow starts falling," stated J. Kim Sorensen, President and CEO of YTB Travel Network. "We chose to focus on cruises because of the great level of customer satisfaction reported by passengers we have booked on ships over the years"

YTB's J. Kim Sorensen Named One of 'The Most Influential People in the Travel Industry'

Wednesday November 28, 2:48 pm ET

Travel Weekly List Includes YTB CEO with Richard Branson and Al Gore

WOOD RIVER, Ill., Nov. 28 /PRNewswire-FirstCall/ -- YTB International, Inc. (OTC Pink Sheets: YTBLA - News; 'YTB' or the 'Company'), a leading provider of Internet-based travel booking services for travel agencies and home-based independent representatives in the United States, today announced that its President (President/CEO of subsidiary YTB Travel Network), J. Kim Sorensen, has been named one of the most influential people in the travel industry by Travel Weekly. YTB joins a list that also includes names like MGM Mirage, Virgin Atlantic Airways, TripAdvisor, Walt Disney Parks and Resorts, PricewaterhouseCoopers, and the Federal Aviation Administration.

According to Travel Weekly, Mr. Sorensen, " ... went, in a matter of weeks, from a virtual unknown in the industry to its favorite target for vitriol (from traditional travel 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 this 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, they wish to do business."

The publication describes the people on their "most influential" list as those who "had ideas that veered from the status quo and succeeded so spectacularly that the industry jumped out of its rut and followed." Among the other leaders who were recognized were Brad and Van Anderson, co-presidents, America's Vacation Center/American Express; Richard Branson, founder and chairman of Virgin Atlantic Airways and Virgin Group; Al Gore, former U.S. vice president and Nobel Laureate; Sheikh Mohammed bin Rashid Al Maktoum, ruler of Dubai and vice president and prime minister of the United Arab Emirates; Ian Schrager, chairman and CEO, Ian Schrager Co.; and Andy Taylor, chairman and CEO, Enterprise Rent-A-Car.

"I am truly honored and humbled to be included on this list," said Mr. Sorensen. "Especially since YTB is not about me, but about the great team and the huge network of representatives and referring travel agents that were willing to take a chance on a new way to sell travel. I speak for the entire company when I thank Travel Weekly for recognizing the huge potential of YTB."

This is not YTB's first honor from Travel Weekly. In 2007, the company was named the 35th largest seller of travel in the U.S. for 2006, and the 11th largest agency for primarily leisure travel by the publication.

YTB International Inc. Reports Earnings Results for the Third Quarter and Nine Months Ended September 30, 2007

11/14/2007

YTB International Inc. reported earnings results for the third quarter and nine months ended September 30, 2007. For the quarter, the company reported total revenue increased 203.5% to $39.9 million compared to $13.1 million for the third quarter last year. Net income was $2.1 million, or $0.02 per diluted share, compared to a net loss of $4.4 million, or $0.05 per diluted share, for the third quarter of 2006. For the nine months ended September 30, 2007, total revenue increased 207.6% to $95.9 million, compared to $31.2 million for the same period last year. Net income was $1.6 million, or $0.01 per diluted share, compared to a net loss of $6.0 million, or $0.07 per diluted share, for the same period in 2006










YTB International Announces New Ticker Symbol
Tuesday July 31, 12:22 pm ET

Company Issues Update on Common Stock Reclassification and Split

WOOD RIVER, Ill., July 31 /PRNewswire-FirstCall/ -- YTB International, Inc. (Pink Sheets: YTBL - News; "YTB" or the "Company"), a provider of Internet- based travel booking services for travel agencies and home-based independent representatives in the United States, today announced that the Company's Class A Common shares will commence trading on August 1, 2007 under the new ticker symbol "YTBLA" following the Company's previously announced common stock reclassification. The Company's existing ticker symbol "YTBL" will no longer be valid.

As previously announced in the Company's 2007 Definitive Proxy Statement, upon transfer, except for certain gifts to trusts or family members, each share of Class B Common Stock will automatically convert into a share of Class A Common Stock. Shareholders will receive two shares of Class B, and one share of Class A Common Stock in exchange for each share of existing common stock held as of the close of trading on the effective date, July 31, 2007.

The new CUSIP numbers for the Class A and Class B shares will be 98425R 200 and 98425R 309 respectively.

If shareholders hold shares through a brokerage account or in street name, then no action needs to be taken on their part, as the new shares will automatically be credited to their brokerage accounts, replacing existing shares. If existing shares are held in record name (i.e., through physical certificates), then shareholders will receive a transmittal letter from the Company's transfer agent, American Stock Transfer & Trust Company. Shareholders that receive the transmittal letter will be required to fill out any documentation included as instructed and mail it back, along with their existing common stock certificates, to the transfer agent at the address provided. Once the transfer agent receives the requested information, along with existing common stock certificates, the new Class A and Class B Common shares will be issued.

Further information on both the reclassification and split can be found in the Company's 2007 Definitive Proxy Statement on Schedule 14A, filed with the Securities & Exchange Commission on April 24, 2007.

 

 


YTB Names Dickinson to Board
Wed Apr 30 2008, by TravelTrade Staff


Retired Carnival Cruise Lines president and CEO Bob Dickinson was named to the YTB International board of directors in a move that YTB chairman J. Lloyd "Coach" Tomer said will help the company build its brand and reputation.

YTB has been criticized as a card mill and multilevel marketer, causing Royal Caribbean International last year to stop accepting bookings from YTB agents. IATAN has also ended YTB's participation in its agent credential programs, although YTB is appointed by the Airlines Reporting Corporation.

Dickinson told Travel Trade that the YTB model is a logical progression for cruise sales that very much resembles direct buy organizations that are popular with consumers for a whole range of products.

Dickinson likened YTB to Mary Kay, the multilevel marketer in cosmetics, and said that while YTB has the structure of a multilevel marketer it is also a Host agency providing a significant amount of training and marketing support, including Web sites.

YTB also incorporates a subtle form of viral marketing with its referral agents marketing to friends and relatives and people they know in their social spheres.

Asked about criticism of YTB from the agent industry, Dickinson said that any new model in terms of distribution, and of cruise distribution in particular, always has been criticized by the status quo. But in time all new models have been accepted once they have proven to be productive, said Dickinson.

He recalled the time when cruise-only agencies were pariahs - "They were illegal, immoral and fattening," said Dickinson.

There was also a time when the industry railed against at home agents who are now accepted because they have proven they can produce, as have Host agencies, said Dickinson.

A YTB model, he added, will get more than its share of criticism because it is new to travel in this iteration.

Some agents say YTB agents don't know travel and that is legitimate observation, said Dickinson, but that comes down to training.

At the end of the day, he said, it is up to the customer to decide which model succeeds. YTB agents, he said, know their customers - they don't have to spend a lot of time qualifying them because they probably know them from high school. The challenge for them is to book the product.

YTB also announced the appointment of Florida state legislator Burt L. Saunders, Esq. to its board. Dickinson and Saunders are the 10th and 11th members of the board.

Saunders has been a Florida State Senator for District 37 for the last 10 years, representing Collier and Lee counties. In addition, he has served in an "of counsel" capacity for the firm Gray Robinson, P.A., and previously for Woodward, Pires & Lombardo, P.A., practicing in the areas of land use, government and health care law.

In a statement, Tomer said, "I know that I speak on behalf of our entire company when I say that we are extremely pleased to welcome Robert and Burt to our board. Bob's extensive travel industry experience, and Burt's legislative experience, combine to add valuable strength to our board, and we look forward to tapping into their respective skill sets. I believe that these additions will bring necessary and valuable resources to the Company, while enhancing our efforts to further build the YTB brand and reputation."

09 January 2007

YTB refutes negative images, emphasizing multilevel biz model

YTB Travel Network, a little-known, 6-year-old host agency with some awfully big numbers -- $250 million to $300 million in 2006 sales and 61,000 referring travel agents -- is growing so fast it had to relocate its offices after Christmas, a second relocation in 18 months.

The publicly traded company, now based in Wood River, Ill., outside St. Louis, is also a multilevel marketing business.

Critics, however, employ alternative descriptions, including a pyramid scheme, a card mill or both.

It costs $450 up front plus $50 a month to be what YTB calls a referring travel agent, or RTA. The RTA refers family and friends to his or her own YTB-linked Web site for self-booking purposes; the RTA earns a piece of the commission.

Under a copyrighted compensation plan that resembles an Amway business model, any RTA who brings in a new RTA also earns a referral fee, and when the second RTA brings in someone new, the first RTA gets something, too.

YTB, at its Web home page, promises prospective RTAs "huge discounts," upgrades "and many more travel perks" as well as a "personal travel agent photo ID card and credentials."

 Based on the YTB's statements about its size and volume, RTAs average not quite $5,000 in annual sales.

 YTB owners are well aware of the negative images these details create, and they aim, by growing travel sales, to prove their model is a legitimate travel business.

YTB's controlling shareholders are the Tomer Group (Lloyd Tomer, his son Scott and Kim Sorensen) and the Brent Group (Mike Brent and sons Derek and Darren).

The Tomer Group, all of whom had been multilevel marketers in the insurance business, founded YTB, an acronym for Your Travel Biz.

YTB came to Rezconnect Technologies in Englewood Cliffs, N.J., to arrange for online booking capabilities and private-label Web sites for YTB and its investors as well as access to supplier incentives that Rezconnect had arranged for its licensees.

Mike Brent, Rezconnect CEO, said he did some due diligence at the outset -- by flying to St. Louis very early on Sept. 11, 2001 -- to satisfy himself that YTB's management aimed to build a real travel business and that YTB was not a pyramid scheme.

YTB was a multimillion-dollar travel business by 2004 when the publicly traded Rezconnect offered to buy it with stock. "I could see it would grow faster; we could take the reins off," Brent said. "We raised cash for YTB, and they ran with it."

By the end of 2006, YTB was 10 times as large as its parent, with about 150 staff vs. 15 at Rezconnect, he said, so the shareholders agreed to change the company name to YTB International and move the headquarters to Illinois.

The Brent Group resigned from all YTB board and management positions but continues to operate Rezconnect, which also owns the Travel Network franchise business.

"The baby became the parent," Brent said, adding that, at Rezconnect, "our expertise is not multilevel marketing. We let them [the Tomer Group] run with it." Stock holdings did not change, and Brent continues to be the largest individual shareholder, he said.

Today, YTB's travel business is about 40% air and 30% to 35% cruise, according to Kim Sorensen, president of the YTB Travel Network. He said tours accounted for less than half the number for cruises, with hotel and car rental accounting for the rest.

"We primarily see ourselves as a cruise agency," he said. "The cruise lines help train our people." Besides, he said, it is easier for novices to sell cruises, and there are plenty of prospects who have never cruised.

"Carnival is our best partner," Sorensen said. "It was first to see we emphasized selling travel, not just a card."

Although YTB is an ARC and IATA agency, it outsources air as well as hotel reservations and car rentals to Travelocity for fulfillment.

Volume last year was $250 million to $300 million, but the goal for 2007 is $1 billion, with a further goal by 2011 of being the world's largest travel agency, Lloyd Tomer said.

While YTB considers its affiliates to be referral agents, not booking agents, its thousands of RTAs do include some sellers who are experienced travel agents, individuals who chose YTB as their host. Some novices also signed on, Brent said, because they wanted to become travel agents.

Several hundred RTAs apply for CLIA cards each month. The number of IATAN card holders is much lower, with two or three being added per month, Tomer said. If a customer wants counseling, calls are taken by YTB's staff; most of those in the call center are experienced agents, Tomer said.

Well aware that the business could be construed as a pyramid scheme, both Brent and Tomer noted that the company was growing faster on the travel sales side than in sales of RTA kits.

Also, Brent said, "we wouldn't allow anyone to call us a card mill." Therefore, he said, the RTA does not get a YTB card without first qualifying for a CLIA card, passing a training course and producing business.

Even then, he said, the RTA must go through YTB, which checks the referring agent's productivity, to use the card for a cruise or tour at travel agent rates.

Sorensen said the company would emphasize training this year for existing RTAs but would keep adding to the numbers.

Why so many RTAs? YTB will be better positioned to grow travel sales if it had more producers, said Sorensen.

Although allowing that 61,000 referring agents is a lot, Brent said, "We're not close to maxing out. Amway has several million, and others have [affiliates] in the six figures."

Although he said he couldn't estimate YTB's max-out number, he said the firm believed it was still at the low end of its growth potential. In addition, it expected to have 600 staff members by 2009, he said, four times today's number, which is the reason for moving into a new office space that is way too large for now.

Legal News
 
Updates on some legal matters from YTB Legal & Regulatory and General Counsel, Ted Lindauer:

1. Chuck King : Mr. King was terminated in January, 2007 for several reasons including his continued use of non-approved sales materials. He demanded $4.5 million in damages which YTB refused to pay. Mr. King then put up a website, claiming that he was denied continuation of his health insurance, had sued YTB etc., all untrue. YTB has sued Mr. King; he has never sued or claimed against YTB in court or in arbitration. YTB expects a court hearing in late July to enjoin Mr. King from lying about YTB on his website or otherwise. 

EDITORS SIDE BAR: I actually talked with Chucks brother. This is not the first company that Chuck has been "kicked out of."  Chuck claims he held the fastest growing YTB distributorship. Well when you "pay peoples way in" thanks to several hundred thousand dollars from a private investor you will have rapid growth. You also end up with a VERY disgruntled investor when the money runs out! 



2. Rick Ricketts/ Florida AG Pyramid claim: A year ago, in July 2006, the Florida AG (Consumer Protection) placed a notice on its website that it was investigating Mr. Rickett's sale methods and his participation in an illegal pyramid program (YTB). YTB met with the Florida AG on several occasions and provided extensive information about our company. In November of 2006 the Florida AG's office informed YTB that there would be no further investigation of YTB but they would continue their investigation into Mr. Rickett's sales practices. In June of this year the Florida Consumer Protection office routinely renewed YTB's Florida Seller of Travel license. Mr. Ricketts reports that in his recent discussions in resolution of his issues with the Florida Attorney General's office there has been no mention by the Florida Attorney General's office of any claim that YTB is or may be an illegal pyramid. 




* Editors notes have not been reviewed endorsed or approved by YTB.
   They are simply observations by the editor of YTBReport.com