YTB Travel announces that YTB Travel is CONTEMPLATING the Cancellation of YTB Travel's Referring Travel Agent business model. To me and many other in the travel industry have been stating for the past year or so YTB Travel cannot survive in travel industry as an MLM. Could it be that Scott Tomer has finally determined that MLM and travel is indeed a very bad mix!
But, does Scott Tomer have the answer to the one question that will be on all of YTB Travels' RTA's lips, What about the millions and millions of dollars paid annually by the RTAs to YTB Travel? My guess is that this new YTB Travel "legitimate" company was indeed founded on the backs of the RTAs.
On July 15, 2008, Mr. Scott Tomer, Chief Executive Officer of YTB International, Inc. (the "Company"), announced that the Company is contemplating the replacement of its referring travel agent ("RTA") business model with the implementation of a franchise operating system, potentially in 2009. The Company expects that a franchising model, if adopted, would facilitate the Company's expansion into additional markets by providing more comprehensive training and a new proprietary e-commerce platform. Details regarding price, product offerings and the conversion plan are all under consideration, but the Company anticipates that its existing RTA base would be treated favorably under its forthcoming proposal. If a franchising model is adopted, its distribution is expected to be managed by subsidiary and current marketing arm of the Company, YourTravelBiz.com, also known as YTB.com.
The information in this report shall not be deemed "filed" for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended (the "Securities Act"), and shall not be incorporated by reference in any registration statement or other document filed under the Securities Act or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filings, except as shall be expressly set forth by specific reference in such a filing.
Well, if YTB Travel becomes a franchise it will be more than $500 and the RTAs will need to come up with some more cash. However, Scott Tomer may find it in his heart if he has one left and offer those RTA's a discount.
But, At this point the RTAs will now need to make an EDUCATED DECISION as to "IF" they indeed can or will be able to make money selling travel with YTB Travel and are they willing to put in the EXTRA cash required to draw their conclusion?
Moreover, YTB Travel has collected FEES to the amount of over $154 million in the past three years and to add INSULT to INJURIES YTB Travel "LEGALLY" owns all the names that the RTAs put into the system (by contract)
This wil be interesting to see what happens. Because, I'm sure YTB Travel RTAs didn't have this in mind when Kim Sorenson was legitimizing.
But, without the RTAs.... is there really a need for YTB Travel Reps?.
So, is YTB Travel on it's way to being one of the largest hosts/franchises in the travel industry? I think not!!!!
For more Information Contact:
Daryl D. Alex
Regional Executive
Traverus Travel And TeleVerus Cell Phones
1.877.744.3431
225.590.7700
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