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'''YTB International''', known as '''YTB Global Travel''', '''Your Travel Biz''' or '''YTB''', operates a [[multi-level marketing]] business through owner-affiliate websites offering travel, excursions, and lodging. The company was founded in 2001 by J. Lloyd "Coach" Tomer, Scott Tomer and Kim Sorensen. The company is currently owned by U.S. businessman Sam Hathi of Jamraval, Inc. Other YTB subsidiaries include YTB Travel Network, Inc., Zamzuu, Inc., and REZconnect Technologies, Inc (2004–2009). YTB is based in [[Wood River, Illinois]]. International subsidiaries operate in the U.S., Puerto Rico, the Bahamas, Bermuda and Canada.<ref>[http://www.secinfo.com/d12TC3.t2Gq.d.htm SEC Info - YTB International/Inc - 8-K - For 1/12/08 - EX-99.1<!-- Bot generated title -->]</ref>
YTB International, known as YTB, operates an online travel agency under the parent company YTB Global Travel Inc. The company was founded in 2001 by J. Lloyd “Coach” Tomer, Scott Tomer and Kim Sorensen. The company is currently privately owned by Jamraval. Other YTB subsidiaries include YTB Travel Network, Inc. and Zamzuu, Inc. The company is based in Wood River, Illinois. International subsidiaries operate in the U.S., Puerto Rico, the Bahamas, Bermuda and Canada. <ref>{{cite web|last1=YTB International|first1=YTB Global Travel|title=YTB corporate information from company website|url=http://ytb.com/Page/AboutUs/wa=root|website=www.YTBPulse.com|publisher=YTB International|accessdate=1 June 2014}}</ref>

Between 2006 and 2009 the company was the subject of several lawsuits and investigations in [[California]], [[Illinois]], and [[Rhode Island]], alleging the company to be a [[pyramid scheme]] and usage of deceptive marketing.<ref>{{cite news |url=http://www.stltoday.com/stltoday/business/stories.nsf/story/7647B35CE68492D186257604000C930D?OpenDocument |title=YTB sales rep meeting is here |last=Logan |first=Tim |date=July 31, 2009 |publisher=''[[St. Louis Post-Dispatch]]'' |accessdate=2009-08-12}}</ref><ref name=RI/> Declining revenues following this led to the company's bankruptcy in 2013, after which is was purchased by Jamraval, Inc. and reorganized under the name YTB Global Travel.


==Business model==
==Business model==
YTB Global Travel Inc has 2 separate companies that operate under the YTB Global Travel Inc. corporate umbrella.<ref>{{cite web|last1=YTB International|first1=YTB Global Travel|title=YTB corporate information from company website|url=http://ytb.com/Page/AboutUs/wa=root|website=www.YTBPulse.com|publisher=YTB International|accessdate=1 June 2014}}</ref>
Participants pay a $249 set up fee to establish an "online travel agency" website.<ref name="YTB Website">{{cite web|last=Corporate|first=YTB|title=Corporate Website|url=http://www.ytbpulse.com/Corporate/|publisher=YTB International|accessdate=11 February 2014}}{{dead|date=May 2014}}</ref> They can then collect commissions for recruiting new participants, utilize the website for their own travel purposes, or sell travel packages to others.<ref>{{cite news|url=http://travel.latimes.com/articles/la-trw-travelsuit5-2008aug05|title=Jerry Brown sues YourTravelBiz.com over alleged pyramid scheme|last=Lifsher|first=Marc|date=August 5, 2008 |publisher=''[[Los Angeles Times]]''|accessdate=2008-09-14}}</ref> However, most participants make the majority of their money by recruiting new agents rather than through travel sales of their own.<ref>{{cite news|publisher=Chicago Tribune|title=Card mills take 'agents' for a ride|author=James Gilden|date=December 9, 2007|url=http://articles.chicagotribune.com/2007-12-09/travel/0712060396_1_travel-web-sites-card-mills-ytb-travel-network|accessdate=29 May 2014}}</ref>


YTB already has thousands of people who own travel booking engines in the United States, Bermuda, the Bahamas and Canada. Their presence is being felt by the travel industry having sold over $2 billion in travel in their first 10 years,<ref>{{cite news|title=SEC Info YTB International 2013|url=http://www.secinfo.com/$/SEC/Registrant.asp?CIK=852766|accessdate=1 June 2014|work=Yahoo Finance|publisher=Yahoo Finance}}</ref> and they have been featured in the top 35 largest travel agencies in North America for the last five years straight<ref>{{cite web|last1=Tobin|first1=Rebecca|title=Travel Weekly: Power List of top performing trael agencies|url=http://www.travelweekly.com/Travel-News/Travel-Agent-Issues/Power-List-2012/|website=www.TravelWeekly.com|publisher=Travel Weekly|accessdate=June 25 2012}}</ref>.
YTB have stated they are considering replacing their referring travel agent business model with one based around franchises.<ref>{{cite news|title=YTB International Contemplates Implementation of Franchises|url=http://www.mywire.com/a/PRNewswire/YTB-International-Contemplates/6950258?extID=10051|publisher=[[PR Newswire]]}}</ref> On October 18, 2008, they introduced a new tier of affiliates in an attempt to fit better into the travel industry, saying the new training program they will be introducing for those who remain as 'referring travel agents' improves over the previous "one-day classroom event".<ref>{{cite news|url=http://www.travelweekly.com/article.aspx?id=181020|title=YTB creates 'affiliates' label for agents making referrals only|author=Nadine Godwin}}</ref>

YTB has a business model with 2 opportunities for business under YTB Global Travel.<ref>{{cite web|last1=YTB International|first1=YTB Global Travel|title=YTB corporate information from company website|url=http://ytb.com/Page/AboutUs/wa=root|website=www.YTBPulse.com|publisher=YTB International|accessdate=1 June 2014}}</ref>

The first: YTB Travel Network offers the Travel Agent Opportunity. One may choose to participate in YTB Travel Network by purchasing their own online travel website/booking engine wherein they will be paid commissions generated by the sales on their site. Participants who pay a $249 set up fee and $50 per month to maintain an "online travel agency" website,[4] can sell travel online, utilize the website for their own travel purposes, as well as sell travel packages to others. They also have access to training and private industry exclusive portals for booking directly through vendors and suppliers at no additional cost.<ref>{{cite web|last1=YTB International|first1=YTB Global Travel|title=YTB corporate information from company website|url=http://ytb.com/Page/AboutUs/wa=root|website=www.YTBPulse.com|publisher=YTB International|accessdate=1 June 2014}}</ref>

The second: YTB Marketing. The Marketing/Sales Opportunity. The second business is that of a Independent Marketing Representative or a REP. A REP is one who markets the business to potential Referring Travel Agent business owners who will purchase their own home based travel business for $249.00. The Rep opportunity has no cost. It is totally free to participate in this opportunity. YTB does not charge a fee to participate in the marketing arm of YTB Global Travel. A YTB REP will market and advertise the YTB RTA business model or YTB Travel Network opportunity. YTB will pay a commission or referral fee and tiered compensation to those who decide to participate in the REP marketing opportunity. A person looking at this business model may choose one or both opportunities. Neither one is dependent on the other.<ref>{{cite web|last1=YTB International|first1=YTB Global Travel|title=YTB corporate information from company website|url=http://ytb.com/Page/AboutUs/wa=root|website=www.YTBPulse.com|publisher=YTB International|accessdate=1 June 2014}}</ref>


==History==
==History==
2001: J. Lloyd "Coach" Tomer, his son Scott Tomer, and Kim Sorensen launched YTB in 2001 in Alton, Illinois.<ref>{{cite web|title=YTB International: About Us corporate website|url=http://ytb.com/Page/AboutUs/wa=root|website=www.YTBPulse.com|publisher=YTB International|accessdate=1 June 2014}}</ref>
J. Lloyd "Coach" Tomer, his son Scott Tomer, and Kim Sorensen launched YTB in 2001 in [[Alton, Illinois]]. Growth was slow until 2004, when YTB's creators bought controlling interest in a related company, REZconnect Technologies, increased their marketing budget, and aggressively recruited new members with videos of successful salespeople.<ref>{{cite news| url=http://findarticles.com/p/articles/mi_m0EIN/is_2005_Jan_5/ai_n8683762 | work=Business Wire | title=REZconnect Technologies, Inc., into Which YourTravelBiz.com, Inc. Had Previously Been Merged, Has Reincorporated in Delaware, Changed the Name of the Company to YTB International, Inc. and Now Has YTBL as Its New Trading Symbol | date=January 5, 2005}}</ref><ref>{{cite news|url=http://www.prweb.com/releases/2004/9/prweb162804.htm|title=REZCONNECT TECHNOLOGIES,Inc. MERGES WITH YTB TO CREATE MEGA TRAVEL ORGANIZATION|publisher=[[PRWeb]]}}</ref><ref name=Logan>{{cite news|title=YTB sells dream of prosperity, but some say it is a nightmare|last=Logan|first=Tim|date=August 31, 2008|publisher=''[[St. Louis Post-Dispatch]]''}}</ref> By years end, the company employed 23 employees with total travel sales reaching $20 million.{{Citation needed|date=September 2009}}


In 2002, YTB held a National convention in ST.Louis MO.<ref>{{cite web|title=YTB International corporate FaceBook page|url=https://www.facebook.com/YTBPulse/info|website=https://www.facebook.com|publisher=YTB International|accessdate=1 June 2014}}</ref>
In 2008 the company was sued by the California attorney general, which was eventually settled out-of-court. The settlement required changes to the company's business model, and generated a decrease in membership attributed to bad publicity.<ref name=slide/><ref name=Barr>{{cite news|last=Barr|first=Diana|title=YTB International files for Chapter 11 bankruptcy|url=http://www.bizjournals.com/stlouis/news/2013/03/05/ytb-international-files-for-chapter-11.html?page=all|accessdate=29 May 2014|newspaper=St. Louis Business Journal|date=5 March 2013}}</ref> In late 2008, YTB laid off 17 employees, a move that was part of a reorganization.<ref>{{cite news|url=http://www.bizjournals.com/stlouis/stories/2008/08/25/daily112.html |title=YTB cuts 17 positions |publisher=''[[St. Louis Business Journal]]'' |date=August 29, 2008}}</ref> In 2008 the company's revenues were $44.8 million.<ref>{{cite news |url=http://www.reuters.com/article/pressRelease/idUS195832+15-Aug-2008+PRN20080815|title=YTB International Announces Financial Results for the Second Quarter of Fiscal 2008 |author=PRNewswire-FirstCall |date=August 15, 2008 |publisher=Reuters|accessdate=2009-07-18}}</ref> YTB said its independent audit at the end of 2008 expressed "substantial doubt about our company's ability to continue as a going concern",<ref name=settlement>{{cite news |url=http://www.latimes.com/business/la-fi-travel-crackdown15-2009may15,0,3670191.story|title=California settles with Internet travel business it accused of running pyramid scheme |last=Lifsher |first=Marc |date=May 15, 2009 |publisher=''[[Los Angeles Times]]'' |accessdate=2009-05-15}}</ref> a sentiment the company itself later echoed.<ref name=losswidens>{{cite news |url=http://www.bizjournals.com/stlouis/stories/2009/08/03/daily68.html |title=YTB loss widens, sales plummet |last=Tritto|first=Christopher |date=August 7, 2009 |publisher=''[[St. Louis Business Journal]]'' |accessdate=2009-08-12}}</ref>


In 2003 YTB Opened its doors to Puerto Rico.<ref>{{cite web|title=YTB International corporate FaceBook page|url=https://www.facebook.com/YTBPulse/info|website=https://www.facebook.com|publisher=YTB International|accessdate=1 June 2014}}</ref>
In 2009 the company was operating at a loss of $1.9 million for the first three months of the year. Revenue in that quarter dropped 49% to $21.8 million<ref name=settlement /> and then to $18 million in the second quarter.<ref name=losswidens /> The company's paying members also declined substantially in number, from a high in April 2008 of 138,000 to 60,414 in mid-2009.<ref>{{cite news |title=Earnings |last=Logan |first=Tim |date=August 11, 2009|publisher=''[[St. Louis Post-Dispatch]]'' |pages=Business, p. A10 |accessdate=2009-08-12}}</ref> The decline in revenue led the company to sell several commercial properties it owned in 2009, including the company's Learjet.<ref name=logan2008>{{Citation
|title=YTB growth stalls in Q3, sells assets |publisher=[[St. Louis Post-Dispatch]] |work=Blog Zone |author=Logan, Tim |publication-date=2008-11-17 |url=http://www.stltoday.com/blogzone/business-news/biz-buzz/2008/11/ytb-growth-stalls-in-q3-sells-assets/ |archiveurl=http://web.archive.org/web/20090603013155/http://www.stltoday.com/blogzone/business-news/biz-buzz/2008/11/ytb-growth-stalls-in-q3-sells-assets/ |archivedate=2009-06-03 }}</ref> That year YTB also sold RezConnect, by then its technology and booking arm, to two of RezConnect's officers. Under the terms of the sale, YTB would [[indemnification|indemnify]] the new owners for any YTB-related liabilities.<ref>{{cite news|url=http://www.travelweekly.com/article3_ektid197476.aspx?terms=*ytb*|title=YTB sells RezConnect to executives|last=Godwin|first=Nadine|date=July 9, 2009|publisher=''Travel Weekly''|accessdate=2009-07-18}}</ref>


In 2005, YTB held a National convention in ST.Louis MO.<ref>{{cite web|title=YTB International hosts national concention|url=http://www.yourtravelbiz.com/2005_Convention/2005_Convention_Registration.htm|website=YTB International corporate website|publisher=YTB International|accessdate=2005}}</ref>
In 2011 the company sold its headquarters building and adjoining property for $7.6 million.<ref>{{cite news|last=Volkmann|first=Kelsey|title=YTB to sell Wood River headquarters for $7M|url=http://www.bizjournals.com/stlouis/news/2011/03/25/ytb-to-sell-wood-river-headquarters.html|accessdate=29 May 2014|newspaper=St. Louis Business Journal|date=25 March 2011}}</ref>


In 2005 YTB hosted it's first ever Fun Shine Travel Trade show in Orlando Florida.<ref>{{cite news|title=Annual Report: Form 10KSB for YTB INTERNATIONAL, INC.|url=http://biz.yahoo.com/e/080331/ytbla.ob10ksb.html|accessdate=March 2008|work=Yahoo Finance|publisher=Yahoo Finance}}</ref>
In March 2012 the YTB announced a plan to merge with LTS Nutraceutical, another MLM firm. In May the company began a major restructuring, and stated that the President and CEO, Robert Van Patton, had submitted his resignation. In September YTB called off the merger, and announced that founder and chairman Scott Tormer was also resigning.<ref name=Barr-2>{{cite news|last=Barr|first=Diana|title=YTB calls off LTS merger, Chairman Scott Tomer resigns|url=http://www.bizjournals.com/stlouis/news/2012/09/05/ytb-calls-off-lts-merger-chairman.html|accessdate=29 May 2014|newspaper=St. Louis Business Journal|date=5 September 2012}}</ref><ref name=slide/><ref name=Barr/>


In 2006, YTB held a National convention in ST.Louis MO and announces guaranteed income plan.<ref>{{cite web|title=YTB Travel Network Announces 'Guaranteed Income' for Representatives|url=http://www.prweb.com/releases/2006/08/prweb424478.htm|website=www.Prweb.com|publisher=PR web via YTB International|accessdate=8-16-2006}}</ref>
⚫
On March 1, 2013 YTB International filed for Chapter 11 protection in federal court in St. Louis. The last quarterly earnings report the company filed was for the third quarter of 2011, although the company later announced that the report contained errors.<ref>[http://www.secinfo.com/dUuzd.xaw.d.htm SEC filing w.r.t. to Chapter 11 protection]</ref><ref name=slide>{{cite news|last=Logan|first=Tim|title=Long slide lands YTB in bankruptcy court|url=http://www.stltoday.com/business/local/long-slide-lands-ytb-in-bankruptcy-court/article_0cf832a6-6ab5-591b-a852-2588ccd49b83.html|accessdate=28 May 2014|newspaper=St. Louis Post-Dispatch|date=1 March 2013}}</ref><ref name=Barr/>


In 2007, YTB held a National convention in ST.Louis MO.<ref>{{cite web|last1=Bauknight|first1=Douglas|title=Latest news from YTB National Convention!|url=http://travel-pro.blogspot.com/2007/08/latest-news-from-ytb-national.html|website=Blogspot|publisher=Douglas Bauknight via Just Picture It Now|accessdate=1 June 2014}}</ref>
⚫
On October 11, 2013 YTB completed the sale of its assets to a Chicago based businessman Sam Hathi of Jamraval, Inc. "We believe the YTB franchise can be turned around and that it can regain the leadership position that it once held in the travel services industry," said Hathi in a statement. YTB has operated as YTB Global Travel since being aquired.<ref name="YTB emerges">{{cite web|last=Brown|first=Lisa|url=http://www.stltoday.com/business/local/chicago-investor-acquires-ytb-business/article_59a2524a-dc79-544f-b6e4-a8bfced71c77.html|title=Chicago investor acquires YTB business|publisher=St Louis Biz Journals|accessdate=11 February 2014}}</ref>


In 2007 YTB held a record breaking Sail-a ton with Carnival Cruise Lines that booked over 12,000 cruise passengers in 24 hours.<ref>{{cite news|title=TB International Ends 2007 on High Note|url=http://www.prnewswire.com/news-releases/ytb-international-ends-2007-on-high-note-58822622.html|accessdate=12-20-2007|work=PR Newswire}}</ref>

In 2009 YTB sold RezConnect, by then its technology and booking arm, to two of RezConnect's officers. Under the terms of the sale, YTB would indemnify the new owners for any YTB-related liabilities.<ref>{{cite news|title=YTB sells RezConnect to executives|url=http://www.travelweekly.com/Travel-News/Travel-Technology/YTB-sells-RezConnect-to-executives/|accessdate=1 June 2014|work=Travel Weekly|publisher=Travel Weekly|date=7-9-2009}}</ref>

In 2007, Founder J. Kim Sorensen named one of the most influential people in the travel industry.<ref>{{cite web|title=YTB's J. Kim Sorensen Named One of 'The Most Influential People in the Travel Industry'|url=http://www.reuters.com/article/2007/11/28/idUS13946+28-Nov-2007+PRN20071128|website=Rueters|publisher=Rueters|accessdate=November 28, 2007}}</ref>

In 2008 YTB expanded into the countries of Canada, Bermuda, and the Bahamas.[17]<ref>{{cite news|title=YTB International Expands to Canada, Bermuda, and the Bahamas Online Travel Agency Continues Growth|url=http://www.prnewswire.com/news-releases/ytb-international-expands-to-canada-bermuda-and-the-bahamas-56931047.html|accessdate=1 June 2014|work=PR Newswire}}</ref>

In 2008 the company's revenues were $44.8 million.<ref>{{cite news|title=SEC Info: Annual Report|url=http://biz.yahoo.com/e/080331/ytbla.ob10ksb.html|accessdate=1 June 2014}}</ref>

In 2008, the company held one of the largest National Conventions in history. YTB had over 18,000 attendees at its St.Louis based convention with classes provided by many vendors and suppliers like Carnival Cruise Lines, CLIA Intl., Steps of St Paul, Travel Guard Travel Insurance and many others. The company had a near life size replica of the statue of Lady Liberty created for this convention themed "Liberty and Travel for All"<ref>{{cite web|title=YTB CONVENTION, 2008|url=http://www.stltoday.com/news/multimedia/ytb-convention/image_b252bc3d-a553-5029-9791-bac2b601b500.html|publisher=St.Louis Post Dispatch|accessdate=1 June 2014}}</ref>

In 2009 YTB held it's national convention in St. Louis MO.<ref>{{cite web|last1=Dooley|first1=George|title=YTB Convention Opens: A Viewpoint from YTB Defender|url=http://www.travelagentcentral.com/home-based/consortia/ytb-convention-opens-viewpoint-ytb-defender-16577|accessdate=1 June 2014}}</ref>

In 2009 YTB hosted another large Fun Shine Travel Trade show in Orlando Florida. The event again, held over 5000 YTB travel agents.[21]<ref>{{cite web|last1=Bauknight|first1=Douglas|title=Funshine 2009 opens for YTB|url=http://www.justpictureitnow.com/2009/09/25/funshine-2009-opens-for-ytb/|accessdate=1 June 2014}}</ref>

In 2010, YTB hosted another National convention.<ref>{{cite news|last1=Volkman|first1=Kelsey|title=YTB convention to attract 5,000 to St. Louis|url=http://www.bizjournals.com/stlouis/stories/2010/08/02/daily15.html|accessdate=1 June 2014|work=St Louis Biz Jounal}}</ref>

In 2010, YTB introduced ZamZuu Inc. An E-commerce shopping platform that would appear on all referring travel agent websites. YTB had entered the world of e-commerce, adding to their existing product offerings in travel.<ref>{{cite web|title=YTB International: About Us corporate website|url=http://ytb.com/Page/AboutUs/wa=root|website=www.YTBPulse.com|publisher=YTB International|accessdate=1 June 2014}}</ref>

In 2011 YTB hosted another National Convention in St.Louis MO.<ref>{{cite web|title=Convention 2011 is the place to be this summer!|url=https://www.yourtravelbiz.com/2011_Convention/index.html|website=YTB corporate Website|publisher=YTB International|accessdate=1 June 2014}}</ref>

February 2012: Founder J. Kim Sorenson died.<ref>{{cite news|title=YTB Travel executive Kim Sorensen dies|url=http://www.travelweekly.com/cruise-travel/ytb-travel-co-founder-kim-sorensen-dies/|accessdate=2-2-2012|work=Travel Weekly publication|publisher=Travel Weekly}}</ref>

In 2013, YTB was purchased by Chicago investor Sam Hathi of the Hathi Group and Jamraval.<ref>{{cite web|last1=Brown|first1=Lisa|title=Chicago investor acquires YTB business|url=http://www.stltoday.com/business/local/chicago-investor-acquires-ytb-business/article_59a2524a-dc79-544f-b6e4-a8bfced71c77.html|publisher=St Louis Post Dispatch|accessdate=1 June 2014}}</ref>

January 2014, YTB hosts National "Convention at Sea" aboard the Carnival Ecstasy out of Miami Florida.<ref>{{cite news|title=Announcing Ignite 2014 YTB Convention at Sea!|url=http://www.yourtravelbiz.com/bizRep/BizReports/BizReport_2013/BRX_Ignite2014-Announcement-11-1-2013.htm|accessdate=1 June 2014|publisher=YTB International corporate announcement}}</ref>

==Awards==
YTB received the Pinnacle Award from Carnival Cruise Lines four years in a row.<ref>{{cite news|title=YTB Receives Carnival's Pinnacle Award|url=http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aiX.KBzlaSC0|accessdate=1 June 2014|work=Bloomberg|publisher=Bloomberg}}</ref>

YTB was named "Best of the Best" by Travel Impressions. FARMINGDALE, NY (Dec. 8, 2011) – YTB Travel Network was recognized in 2011 by Travel Impressions (http://www.TravelImpressions.com), one of the country’s largest tour operators selling destinations worldwide, as a "Best of the Best" travel agency which is given to top performing agencies and consortia partners. YTB Travel Network was invited to attend Travel Impressions 16th annual “Best of the Best” gala event, held Nov. 30 - Dec. 3, 2011 at the Fiesta Americana Grand Coral Beach in Cancún, Mexico. "Best of the Best" honors are bestowed on a limited number of agencies that are top producers for Travel Impressions, and that are considered to be its best partners.<ref>{{cite news|title=Ytb travel network recognized as a travel impressions’ 'best of|url=http://bookr2.com/viewmanual/529787|accessdate=12-28-2011|work=Trael Impressions press release}}</ref>
==Lawsuits==
==Lawsuits==
[[California Attorney General]] [[Jerry Brown]] and former employees sued the company in early August, 2008, alleging it to be a pyramid scheme, among other claims. The Illinois [[Better Business Bureau]] and [[Illinois Attorney General]] [[Lisa Madigan]] joined Brown in investigating the company.<ref>{{cite news |author=Steve Gonzalez |url=http://www.stclairrecord.com/news/214177-ytb-targeted-in-federal-class-action-lawsuit |title=YTB targeted in federal class action lawsuit |publisher=[[Madison County Record]]}}</ref>


There are no current lawsuits including or against YTB, YTB International or any of its subsidiaries. YTB has a A rating with the Better Business Bureau.<ref>{{cite web|title=BBB: Y TB International of Wood River IL|url=http://www.bbb.org/stlouis/business-reviews/travel-agencies-and-bureaus/y-t-b-international-in-wood-river-il-110220794|website=www.BBB.org|publisher=BBB Better Business Bureau|accessdate=1 June 2014}}</ref>
Brown sued the company for $25 million in early August 2008, charging unfair business practices, false advertising, and operating a "gigantic pyramid scheme that is immensely profitable to a few individuals on top and a complete rip-off for most everyone else".<ref>{{cite news|last=Volkmann|first=Kelsey|title=Brown sues over alleged pyramid scheme|url=http://www.bizjournals.com/losangeles/stories/2008/08/04/daily11.html|accessdate=28 May 2014|newspaper=L.A. Biz (St. Louis Business Journal)|date=5 August 2008}}</ref> Brown's lawsuit indicates that 45,000 sales reps earned an average of about $90 in 2007 and of their 200,000 total agents, some 125,000 earned nothing and 37,000 earned less than $39.<ref name=Logan /> On May 14, 2009, California authorities settled their suit with YTB for $1 million. As part of the settlement, YTB agreed to restructure, possibly hastening a transition to a franchise system. That same day, Madigan filed a similar suit in Illinois.<ref name=logan20090515>{{citation

|url=http://www.stltoday.com/stltoday/business/stories.nsf/story/32ACD29A32AE57D4862575B70002546B?OpenDocument |title=YTB settles with California, promises big changes |last=Logan |first=Tim |date=May 15, 2009 |publisher=[[St. Louis Post-Dispatch]] |accessdate=2009-05-15 |archiveurl=http://web.archive.org/web/20090520005927/http://www.stltoday.com/stltoday/business/stories.nsf/story/32ACD29A32AE57D4862575B70002546B?OpenDocument |archivedate=May 20, 2009 }}</ref> Brown said the agreement would put an end to the $450, $50 per month unprofitable personalized websites.<ref name=settlement />
August 2008:California Attorney General Jerry Brown sued the company in early August, 2008, alleging it to be a pyramid scheme, among other claims. These were allegations and there was never any proof of wrong doing. The suit was eventually settled.<ref>{{cite web|title=YTB Settles California Attorney General Lawsuit|url=http://www.prnewswire.com/news-releases/ytb-settles-california-attorney-general-lawsuit-61872032.html|website=PR Newswire|accessdate=5/24/2009}}</ref> The Illinois Attorney General Lisa Madigan joined Brown in investigating the company.<ref>{{cite web|last1=Gonzales|first1=Steve|title=YTB targeted in federal class action lawsuit|url=https://madisonrecord.com/issues/332-class-action/214177-ytb-targeted-in-federal-class-action-lawsuit|website=https://madisonrecord.com/issues/332-class-action/214177-ytb-targeted-in-federal-class-action-lawsuit|publisher=Madison St. Clair Journal Record|accessdate=8-2008}}</ref>

2009: On May 14, 2009, California authorities settled their suit with YTB. As part of the settlement, YTB agreed to ensure that participants clearly understand the two different company's and their responsibilities.<ref>{{cite news|last1=Logan|first1=Tim|title=YTB settles with California, promises big changes|url=http://web.archive.org/web/20090520005927/http://www.stltoday.com/stltoday/business/stories.nsf/story/32ACD29A32AE57D4862575B70002546B?OpenDocument|accessdate=5/15/2009|agency=ST. LOUIS POST-DISPATCH}}</ref> That same day, Madigan filed a similar suit in Illinois which also was dismissed due to lack of evidence of wrong doing.<ref>{{cite web|last1=Dooley|first1=George|title=YTB Wins Round in Court|url=http://www.travelagentcentral.com/home-based/community/ytb-wins-round-court-16468|accessdate=6/2009}}</ref>

Around the same time, several former agents filed a class-action lawsuit, alleging the company to be an illegal pyramid scheme.<ref>{{cite news|last1=Volkman|first1=Kelsey|title=Former agents sue YTB International|url=http://www.bizjournals.com/stlouis/stories/2008/08/11/daily14.html|accessdate=8/11/2008}}</ref> YTB responded by stating that it intends to "vigorously defend the case,". The case was dismissed in July 2009. The case was called an "ungainly monster which had no merit" by a federal judge.<ref>{{cite news|last1=Godwin|first1=Nadine|title=Judge throws YTB complaint out of court|url=http://www.travelweekly.com/Travel-News/Travel-Agent-Issues/Judge-throws-YTB-complaint-out-of-court/|accessdate=7/21/2009|work=Travel Weekly}}</ref>

⚫
In 2007, YTB was also investigated for similar allegations in Rhode Island.[37]<ref>{{cite news|last1=Dooley|first1=George|title=RI Agency Investigates YTB Business Model|url=http://web.archive.org/web/20080514135632/http://traveltrade.com/news_article.htm?id=326|accessdate=11/16/2007|work=Travel Trade Journal}}</ref> The investigation did not conclude any wrong doing.


In the defense of YTB, several current agents have characterized the complaints from former agents as sour grapes from those who didn't spend enough time attending to their business. "We are proud of our business model and how our operations are conducted in an ethical and transparent way," said chief executive Scott Tomer. "We also are wholly confident that our business model will withstand scrutiny, and look forward to setting the record straight in court."<ref>{{cite web|last1=Dooley|first1=George|title=California Attorney General Complaint Reveals YTB Economics|url=http://www.travelagentcentral.com/legal/california-attorney-general-complaint-reveals-ytb-economics-9588|publisher=Travel Agent Central|accessdate=8/6/2008}}</ref>
Around the same time, several former agents filed a class-action lawsuit—seeking to include more than 1,000 of their peers, alleging the company to be an illegal pyramid scheme. The lawsuit says that the company "claims to sell travel services, but said company's main business is inducing others to become travel agents".<ref name=Volkman>Kelsey Volkmann (August 11, 2008). [http://www.bizjournals.com/stlouis/stories/2008/08/11/daily14.html Former agents sue YTB International]. ''[[St. Louis Business Journal]]''.</ref> YTB responded by stating that it intends to "vigorously defend the case,"<ref name=Volkman /> and the case was dismissed in July 2009 on the grounds that non-residents of Illinois could not pursue the matter under Illinois law.<ref>{{cite news |publisher=Travel Weekly |title=Judge throws YTB complaint out of court |date=July 21, 2009 |author=Nadine Godwin |url=http://www.travelweekly.com/article3_ektid197844.aspx}}</ref> [[Illinois Attorney General]] [[Lisa Madigan]], after her office and the Illinois [[Better Business Bureau]] received more than 150 complaints about the company, partnered with Brown's office in his state's investigation of the company. The BBB indicated that 80% of YTB revenue came from new agent recruitment, with agents earning an average of $111 per year, almost $400 less than the initial $499 sign-up price.<ref>Kelsey Volkman (August 8, 2008). [http://www.bizjournals.com/stlouis/stories/2008/08/04/daily87.html UPDATED: BBB received 90 complaints about YTB, Ill. AG received 70]. ''[[St. Louis Business Journal]]''.</ref> In May 2011 it was announced that YTB had reached a settlement with the state of Illinois, paying $150,000 in restitution. No admission nor denial of guilt was made in the settlement.<ref>{{cite news|url=http://www.stltoday.com/business/local/article_ec8848e4-654d-11e0-b312-001a4bcf6878.html|title=YTB settles deceptive marketing charges by Illinois|date=May 4, 2011|publisher=StlToday.com}}</ref>


==Bankruptcy==
⚫
In 2007, YTB was also investigated for similar allegations in Rhode Island.<ref name=RI>{{cite news|url=http://traveltrade.com/news_article.htm?id=326 |title=RI Agency Investigates YTB Business Model|author=George Dooley |archiveurl = http://web.archive.org/web/20080514135632/http://traveltrade.com/news_article.htm?id=326 |archivedate = 2008-05-14}}</ref>
⚫
On March 1, 2013 YTB International filed for Chapter 11 protection in federal court in St. Louis. <ref>{{cite news|last1=Logan|first1=Tim|title=Long slide lands YTB in bankruptcy court|url=http://www.stltoday.com/business/local/long-slide-lands-ytb-in-bankruptcy-court/article_0cf832a6-6ab5-591b-a852-2588ccd49b83.html|accessdate=3/2013|work=St Louis Dispatch}}</ref><ref>{{cite news|title=SEC Info|url=http://www.secinfo.com/dUuzd.xaw.d.htm|accessdate=1 June 2014}}</ref>


⚫
On October 11, 2013 YTB completed the sale of its assets to a Chicago based businessman Sam Hathi of Jamraval, Inc. "We believe the YTB franchise can be turned around and that it can regain the leadership position that it once held in the travel services industry," said Hathi, owner of newly formed YTB Global Travel Inc., in a statement. Moving forward, YTB will operate as YTB Global Travel. <ref>{{cite news|last1=Brown|first1=Lisa|title=Chicago investor acquires YTB business10|url=http://www.stltoday.com/business/local/chicago-investor-acquires-ytb-business/article_59a2524a-dc79-544f-b6e4-a8bfced71c77.html|accessdate=10/11/213}}</ref>
In the defense of YTB, chief executive Scott Tomer said "We [are] are wholly confident that our business model will withstand scrutiny, and look forward to setting the record straight in court."<ref>{{cite news|last=Logan|first=Tim|title=Travel company faces additional investigations Illinois and the local Better Business Bureau are also looking into YTB, which California is suing as a 'gigantic pyramid scheme.'|accessdate=28 May 2014|newspaper=St. Louis Post-Dispatch|date=8 August 2008}}</ref>


==References==
==References==

Revision as of 03:14, 2 June 2014

YTB International
Company typePublic
IndustryTravel
FoundedAlton, Illinois, U.S.
(January 2001)
FounderJ. Lloyd “Coach” Tomer,
Scott Tomer and
Kim Sorensen
Headquarters
Wood River, Illinois
Number of employees
120 (2010)
Websitewww.ytbpulse.com

YTB International, known as YTB, operates an online travel agency under the parent company YTB Global Travel Inc. The company was founded in 2001 by J. Lloyd “Coach” Tomer, Scott Tomer and Kim Sorensen. The company is currently privately owned by Jamraval. Other YTB subsidiaries include YTB Travel Network, Inc. and Zamzuu, Inc. The company is based in Wood River, Illinois. International subsidiaries operate in the U.S., Puerto Rico, the Bahamas, Bermuda and Canada. [1]

Business model

YTB Global Travel Inc has 2 separate companies that operate under the YTB Global Travel Inc. corporate umbrella.[2]

YTB already has thousands of people who own travel booking engines in the United States, Bermuda, the Bahamas and Canada. Their presence is being felt by the travel industry having sold over $2 billion in travel in their first 10 years,[3] and they have been featured in the top 35 largest travel agencies in North America for the last five years straight[4].

YTB has a business model with 2 opportunities for business under YTB Global Travel.[5]

The first: YTB Travel Network offers the Travel Agent Opportunity. One may choose to participate in YTB Travel Network by purchasing their own online travel website/booking engine wherein they will be paid commissions generated by the sales on their site. Participants who pay a $249 set up fee and $50 per month to maintain an "online travel agency" website,[4] can sell travel online, utilize the website for their own travel purposes, as well as sell travel packages to others. They also have access to training and private industry exclusive portals for booking directly through vendors and suppliers at no additional cost.[6]

The second: YTB Marketing. The Marketing/Sales Opportunity. The second business is that of a Independent Marketing Representative or a REP. A REP is one who markets the business to potential Referring Travel Agent business owners who will purchase their own home based travel business for $249.00. The Rep opportunity has no cost. It is totally free to participate in this opportunity. YTB does not charge a fee to participate in the marketing arm of YTB Global Travel. A YTB REP will market and advertise the YTB RTA business model or YTB Travel Network opportunity. YTB will pay a commission or referral fee and tiered compensation to those who decide to participate in the REP marketing opportunity. A person looking at this business model may choose one or both opportunities. Neither one is dependent on the other.[7]

History

2001: J. Lloyd "Coach" Tomer, his son Scott Tomer, and Kim Sorensen launched YTB in 2001 in Alton, Illinois.[8]

In 2002, YTB held a National convention in ST.Louis MO.[9]

In 2003 YTB Opened its doors to Puerto Rico.[10]

In 2005, YTB held a National convention in ST.Louis MO.[11]

In 2005 YTB hosted it's first ever Fun Shine Travel Trade show in Orlando Florida.[12]

In 2006, YTB held a National convention in ST.Louis MO and announces guaranteed income plan.[13]

In 2007, YTB held a National convention in ST.Louis MO.[14]

In 2007 YTB held a record breaking Sail-a ton with Carnival Cruise Lines that booked over 12,000 cruise passengers in 24 hours.[15]

In 2009 YTB sold RezConnect, by then its technology and booking arm, to two of RezConnect's officers. Under the terms of the sale, YTB would indemnify the new owners for any YTB-related liabilities.[16]

In 2007, Founder J. Kim Sorensen named one of the most influential people in the travel industry.[17]

In 2008 YTB expanded into the countries of Canada, Bermuda, and the Bahamas.[17][18]

In 2008 the company's revenues were $44.8 million.[19]

In 2008, the company held one of the largest National Conventions in history. YTB had over 18,000 attendees at its St.Louis based convention with classes provided by many vendors and suppliers like Carnival Cruise Lines, CLIA Intl., Steps of St Paul, Travel Guard Travel Insurance and many others. The company had a near life size replica of the statue of Lady Liberty created for this convention themed "Liberty and Travel for All"[20]

In 2009 YTB held it's national convention in St. Louis MO.[21]

In 2009 YTB hosted another large Fun Shine Travel Trade show in Orlando Florida. The event again, held over 5000 YTB travel agents.[21][22]

In 2010, YTB hosted another National convention.[23]

In 2010, YTB introduced ZamZuu Inc. An E-commerce shopping platform that would appear on all referring travel agent websites. YTB had entered the world of e-commerce, adding to their existing product offerings in travel.[24]

In 2011 YTB hosted another National Convention in St.Louis MO.[25]

February 2012: Founder J. Kim Sorenson died.[26]

In 2013, YTB was purchased by Chicago investor Sam Hathi of the Hathi Group and Jamraval.[27]

January 2014, YTB hosts National "Convention at Sea" aboard the Carnival Ecstasy out of Miami Florida.[28]

Awards

YTB received the Pinnacle Award from Carnival Cruise Lines four years in a row.[29]

YTB was named "Best of the Best" by Travel Impressions. FARMINGDALE, NY (Dec. 8, 2011) – YTB Travel Network was recognized in 2011 by Travel Impressions (http://www.TravelImpressions.com), one of the country’s largest tour operators selling destinations worldwide, as a "Best of the Best" travel agency which is given to top performing agencies and consortia partners. YTB Travel Network was invited to attend Travel Impressions 16th annual “Best of the Best” gala event, held Nov. 30 - Dec. 3, 2011 at the Fiesta Americana Grand Coral Beach in Cancún, Mexico. "Best of the Best" honors are bestowed on a limited number of agencies that are top producers for Travel Impressions, and that are considered to be its best partners.[30]

Lawsuits

There are no current lawsuits including or against YTB, YTB International or any of its subsidiaries. YTB has a A rating with the Better Business Bureau.[31]

August 2008:California Attorney General Jerry Brown sued the company in early August, 2008, alleging it to be a pyramid scheme, among other claims. These were allegations and there was never any proof of wrong doing. The suit was eventually settled.[32] The Illinois Attorney General Lisa Madigan joined Brown in investigating the company.[33]

2009: On May 14, 2009, California authorities settled their suit with YTB. As part of the settlement, YTB agreed to ensure that participants clearly understand the two different company's and their responsibilities.[34] That same day, Madigan filed a similar suit in Illinois which also was dismissed due to lack of evidence of wrong doing.[35]

Around the same time, several former agents filed a class-action lawsuit, alleging the company to be an illegal pyramid scheme.[36] YTB responded by stating that it intends to "vigorously defend the case,". The case was dismissed in July 2009. The case was called an "ungainly monster which had no merit" by a federal judge.[37]

In 2007, YTB was also investigated for similar allegations in Rhode Island.[37][38] The investigation did not conclude any wrong doing.

In the defense of YTB, several current agents have characterized the complaints from former agents as sour grapes from those who didn't spend enough time attending to their business. "We are proud of our business model and how our operations are conducted in an ethical and transparent way," said chief executive Scott Tomer. "We also are wholly confident that our business model will withstand scrutiny, and look forward to setting the record straight in court."[39]

Bankruptcy

On March 1, 2013 YTB International filed for Chapter 11 protection in federal court in St. Louis. [40][41]

On October 11, 2013 YTB completed the sale of its assets to a Chicago based businessman Sam Hathi of Jamraval, Inc. "We believe the YTB franchise can be turned around and that it can regain the leadership position that it once held in the travel services industry," said Hathi, owner of newly formed YTB Global Travel Inc., in a statement. Moving forward, YTB will operate as YTB Global Travel. [42]

References

  1. ^ YTB International, YTB Global Travel. "YTB corporate information from company website". www.YTBPulse.com. YTB International. Retrieved 1 June 2014.
  2. ^ YTB International, YTB Global Travel. "YTB corporate information from company website". www.YTBPulse.com. YTB International. Retrieved 1 June 2014.
  3. ^ "SEC Info YTB International 2013". Yahoo Finance. Yahoo Finance. Retrieved 1 June 2014.
  4. ^ Tobin, Rebecca. "Travel Weekly: Power List of top performing trael agencies". www.TravelWeekly.com. Travel Weekly. Retrieved June 25 2012. {{cite web}}: Check date values in: |accessdate= (help)
  5. ^ YTB International, YTB Global Travel. "YTB corporate information from company website". www.YTBPulse.com. YTB International. Retrieved 1 June 2014.
  6. ^ YTB International, YTB Global Travel. "YTB corporate information from company website". www.YTBPulse.com. YTB International. Retrieved 1 June 2014.
  7. ^ YTB International, YTB Global Travel. "YTB corporate information from company website". www.YTBPulse.com. YTB International. Retrieved 1 June 2014.
  8. ^ "YTB International: About Us corporate website". www.YTBPulse.com. YTB International. Retrieved 1 June 2014.
  9. ^ "YTB International corporate FaceBook page". https://www.facebook.com. YTB International. Retrieved 1 June 2014. {{cite web}}: External link in |website= (help)
  10. ^ "YTB International corporate FaceBook page". https://www.facebook.com. YTB International. Retrieved 1 June 2014. {{cite web}}: External link in |website= (help)
  11. ^ "YTB International hosts national concention". YTB International corporate website. YTB International. Retrieved 2005. {{cite web}}: Check date values in: |accessdate= (help)
  12. ^ "Annual Report: Form 10KSB for YTB INTERNATIONAL, INC". Yahoo Finance. Yahoo Finance. Retrieved March 2008. {{cite news}}: Check date values in: |accessdate= (help)
  13. ^ "YTB Travel Network Announces 'Guaranteed Income' for Representatives". www.Prweb.com. PR web via YTB International. Retrieved 8-16-2006. {{cite web}}: Check date values in: |accessdate= (help)
  14. ^ Bauknight, Douglas. "Latest news from YTB National Convention!". Blogspot. Douglas Bauknight via Just Picture It Now. Retrieved 1 June 2014.
  15. ^ "TB International Ends 2007 on High Note". PR Newswire. Retrieved 12-20-2007. {{cite news}}: Check date values in: |accessdate= (help)
  16. ^ "YTB sells RezConnect to executives". Travel Weekly. Travel Weekly. 7-9-2009. Retrieved 1 June 2014. {{cite news}}: Check date values in: |date= (help)
  17. ^ "YTB's J. Kim Sorensen Named One of 'The Most Influential People in the Travel Industry'". Rueters. Rueters. Retrieved November 28, 2007.
  18. ^ "YTB International Expands to Canada, Bermuda, and the Bahamas Online Travel Agency Continues Growth". PR Newswire. Retrieved 1 June 2014.
  19. ^ "SEC Info: Annual Report". Retrieved 1 June 2014.
  20. ^ "YTB CONVENTION, 2008". St.Louis Post Dispatch. Retrieved 1 June 2014.
  21. ^ Dooley, George. "YTB Convention Opens: A Viewpoint from YTB Defender". Retrieved 1 June 2014.
  22. ^ Bauknight, Douglas. "Funshine 2009 opens for YTB". Retrieved 1 June 2014.
  23. ^ Volkman, Kelsey. "YTB convention to attract 5,000 to St. Louis". St Louis Biz Jounal. Retrieved 1 June 2014.
  24. ^ "YTB International: About Us corporate website". www.YTBPulse.com. YTB International. Retrieved 1 June 2014.
  25. ^ "Convention 2011 is the place to be this summer!". YTB corporate Website. YTB International. Retrieved 1 June 2014.
  26. ^ "YTB Travel executive Kim Sorensen dies". Travel Weekly publication. Travel Weekly. Retrieved 2-2-2012. {{cite news}}: Check date values in: |accessdate= (help)
  27. ^ Brown, Lisa. "Chicago investor acquires YTB business". St Louis Post Dispatch. Retrieved 1 June 2014.
  28. ^ "Announcing Ignite 2014 YTB Convention at Sea!". YTB International corporate announcement. Retrieved 1 June 2014.
  29. ^ "YTB Receives Carnival's Pinnacle Award". Bloomberg. Bloomberg. Retrieved 1 June 2014.
  30. ^ "Ytb travel network recognized as a travel impressions' 'best of". Trael Impressions press release. Retrieved 12-28-2011. {{cite news}}: Check date values in: |accessdate= (help)
  31. ^ "BBB: Y TB International of Wood River IL". www.BBB.org. BBB Better Business Bureau. Retrieved 1 June 2014.
  32. ^ "YTB Settles California Attorney General Lawsuit". PR Newswire. Retrieved 5/24/2009. {{cite web}}: Check date values in: |accessdate= (help)
  33. ^ Gonzales, Steve. "YTB targeted in federal class action lawsuit". https://madisonrecord.com/issues/332-class-action/214177-ytb-targeted-in-federal-class-action-lawsuit. Madison St. Clair Journal Record. Retrieved 8-2008. {{cite web}}: Check date values in: |accessdate= (help); External link in |website= (help)
  34. ^ Logan, Tim. "YTB settles with California, promises big changes". ST. LOUIS POST-DISPATCH. Retrieved 5/15/2009. {{cite news}}: Check date values in: |accessdate= (help)
  35. ^ Dooley, George. "YTB Wins Round in Court". Retrieved 6/2009. {{cite web}}: Check date values in: |accessdate= (help)
  36. ^ Volkman, Kelsey. "Former agents sue YTB International". Retrieved 8/11/2008. {{cite news}}: Check date values in: |accessdate= (help)
  37. ^ Godwin, Nadine. "Judge throws YTB complaint out of court". Travel Weekly. Retrieved 7/21/2009. {{cite news}}: Check date values in: |accessdate= (help)
  38. ^ Dooley, George. "RI Agency Investigates YTB Business Model". Travel Trade Journal. Retrieved 11/16/2007. {{cite news}}: Check date values in: |accessdate= (help)
  39. ^ Dooley, George. "California Attorney General Complaint Reveals YTB Economics". Travel Agent Central. Retrieved 8/6/2008. {{cite web}}: Check date values in: |accessdate= (help)
  40. ^ Logan, Tim. "Long slide lands YTB in bankruptcy court". St Louis Dispatch. Retrieved 3/2013. {{cite news}}: Check date values in: |accessdate= (help)
  41. ^ "SEC Info". Retrieved 1 June 2014.
  42. ^ Brown, Lisa. "Chicago investor acquires YTB business10". Retrieved 10/11/213. {{cite news}}: Check date values in: |accessdate= (help)
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