Bad News for YTB RTAs?
Several articles hit the news today about YTB Travel ( Your Travel Biz ) considering a changeover to a franchise business model...does this spell the end for the MLM / Network Marketing arm of YTB? And what happens to existing RTAs. This sounds similar to the BurnLounge scenario where the rep base built up the company, then they had some issues, and dropped their MLM model.
From the St. Louis Business Journal
YTB International Inc., a provider of Internet-based travel booking services for travel agencies and home-based independent representatives, said Tuesday that it is contemplating the replacement of its referring travel agent business model with a franchise operating system, potentially in 2009.
The company expects that a franchising model, if adopted, would facilitate the YTB'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.
The company hired iFranchise of Chicago for consultation on this switch, said Scott Tomer, CEO of YTB, in a statement.
If a franchising model is adopted, its distribution is expected to be managed by the current marketing arm of the company, YourTravelBiz.com, also known as YTB.com.
In May, YTB reported that its increased promotion and international expansion helped the company post a 77 percent increase in first-quarter fiscal 2008 sales, but that its loss widened due to expenses related to those efforts.
Wood River, Ill.-based YTB International Inc. (OTCBB: YTBLA) provides Internet-based travel booking services for travel agencies and home-based independent representatives in the United States, Puerto Rico, the Bahamas and the U.S. Virgin Islands. It operates through three subsidiaries: YourTravelBiz.com Inc., YTB Travel Network Inc., and REZconnect Technologies Inc.
Another article states that the current RTA base would be treated 'favorably' under its forthcoming proposal. No doubt, this is going to happen. Its just a matter of when, and how the current RTAs will be compensated. http://www.npros.com/2008/7/16/ytb-travel-considers-dropping-network-marketing-model/
Any other details on this? Have Reps been notified or are they finding out via the Internet about developments in their own company?