YTB International

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

In 2004, YTB's founders bought interest in a related company, REZconnect Technologies, and increased their marketing budget. Members were then recruited through videos of successful salespeople.{{cite news |date=January 5, 2005 |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 |work=Business Wire |url=http://findarticles.com/p/articles/mi_m0EIN/is_2005_Jan_5/ai_n8683762}}{{cite news |title=REZCONNECT TECHNOLOGIES, Inc. MERGES WITH YTB TO CREATE MEGA TRAVEL ORGANIZATION |publisher=PRWeb |url=http://www.prweb.com/releases/2004/9/prweb162804.htm|archive-url=https://web.archive.org/web/20041215171515/http://www.prweb.com/releases/2004/9/prweb162804.htm|url-status=dead|archive-date=December 15, 2004}}{{cite news |last=Logan |first=Tim |date=August 31, 2008 |title=YTB sells dream of prosperity, but some say it is a nightmare |newspaper=St. Louis Post-Dispatch}}

In 2007 Royal Caribbean stopped doing business with YTB. They described the company as a "card mill", an industry term for businesses that sell "travel agent identification cards" to customers, promising travel discounts or other perks and a commission on any sales of these kits to other consumers.{{cite news |last1=Jainchill |first1=Johanna |last2=Godwin |first2=Nadine |date=15 October 2007 |title=Royal Caribbean throws 3 'card mills' overboard |work=Travel Weekly |url=http://www.travelweekly.com/article3.aspx?id=134600 |access-date=10 August 2014}}{{Cite web |title=YTB defends its business practices |url=https://www.travelweekly.com/Travel-News/Travel-Agent-Issues/YTB-defends-its-business-practices |access-date=2023-03-01 |website=www.travelweekly.com |language=en}}{{Cite web |last=Biesiada |first=Jamie |date=February 10, 2016 |title=Ghosts of card mills |url=https://www.travelweekly.com/Travel-News/Travel-Agent-Issues/Ghosts-of-card-mills |website=Travel Weekly}}

In 2008 the company was sued by California Attorney General Jerry Brown. An out-of-court settlement required changes to the company's business model and generated a decrease in membership attributed to bad publicity.{{cite news |last=Logan |first=Tim |date=1 March 2013 |title=Long slide lands YTB in bankruptcy court |newspaper=St. Louis Post-Dispatch |url=http://www.stltoday.com/business/local/long-slide-lands-ytb-in-bankruptcy-court/article_0cf832a6-6ab5-591b-a852-2588ccd49b83.html |access-date=28 May 2014}}{{cite news |last=Barr |first=Diana |date=5 March 2013 |title=YTB International files for Chapter 11 bankruptcy |newspaper=St. Louis Business Journal |url=http://www.bizjournals.com/stlouis/news/2013/03/05/ytb-international-files-for-chapter-11.html?page=all |access-date=29 May 2014}} Later that year, YTB laid off 17 employees.{{cite news |date=August 29, 2008 |title=YTB cuts 17 positions |publisher=St. Louis Business Journal |url=http://www.bizjournals.com/stlouis/stories/2008/08/25/daily112.html}} In 2008 the company's revenues were $44.8 million.{{cite news |author=PRNewswire-FirstCall |date=August 15, 2008 |title=YTB International Announces Financial Results for the Second Quarter of Fiscal 2008 |work=Reuters |url=https://www.reuters.com/article/pressRelease/idUS195832+15-Aug-2008+PRN20080815 |url-status=dead |access-date=2009-07-18 |archive-url=https://archive.today/20120907130600/http://www.reuters.com/article/pressRelease/idUS195832+15-Aug-2008+PRN20080815 |archive-date=2012-09-07}}{{cite news |title=SEC Info: Annual Report |url=http://biz.yahoo.com/e/080331/ytbla.ob10ksb.html |access-date=1 June 2014}} YTB said its independent auditor at the end of 2008 expressed "substantial doubt about our company's ability to continue as a going concern,"{{cite news |last=Lifsher |first=Marc |date=May 15, 2009 |title=California settles with Internet travel business it accused of running pyramid scheme |newspaper=Los Angeles Times |url=http://www.latimes.com/business/la-fi-travel-crackdown15-2009may15,0,3670191.story |access-date=2009-05-15}} a sentiment the company later echoed.{{cite news |last=Tritto |first=Christopher |date=August 7, 2009 |title=YTB loss widens, sales plummet |publisher=St. Louis Business Journal |url=http://www.bizjournals.com/stlouis/stories/2009/08/03/daily68.html |access-date=2009-08-12}}

In 2009 the company operated 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 and then to $18 million in the second quarter. The number of the company's paying members declined from a high in April 2008 of 138,000 to 60,414 in mid-2009.{{cite news |last=Logan |first=Tim |date=August 11, 2009 |title=Earnings |pages=Business, p. A10 |newspaper=St. Louis Post-Dispatch}} This decline in revenue led the company to sell several commercial properties, including the company's Learjet.{{Citation |author=Logan, Tim |title=YTB growth stalls in Q3, sells assets |url=http://www.stltoday.com/blogzone/business-news/biz-buzz/2008/11/ytb-growth-stalls-in-q3-sells-assets/ |work=Blog Zone |publication-date=2008-11-17 |archive-url=https://archive.today/20090603013155/http://www.stltoday.com/blogzone/business-news/biz-buzz/2008/11/ytb-growth-stalls-in-q3-sells-assets/ |publisher=St. Louis Post-Dispatch |archive-date=2009-06-03 |url-status=dead}} That year YTB also sold RezConnect to company officers. Under the terms of the sale, YTB would indemnify the new owners for any YTB-related liabilities.{{cite news |last=Godwin |first=Nadine |date=July 9, 2009 |title=YTB sells RezConnect to executives |newspaper=Travel Weekly |url=http://www.travelweekly.com/article3_ektid197476.aspx?terms=*ytb* |access-date=2009-07-18}}

In 2011 the company sold its headquarters building and adjoining property for $7.6 million.{{cite news |last=Volkmann |first=Kelsey |date=25 March 2011 |title=YTB to sell Wood River headquarters for $7M |newspaper=St. Louis Business Journal |url=http://www.bizjournals.com/stlouis/news/2011/03/25/ytb-to-sell-wood-river-headquarters.html |access-date=29 May 2014}} In October 2011, a newly formed company, Sixth Scott LLC, began purchasing YTB Travel Network from YTB International.{{cite news |last1=Jainchill |first1=Johanna |date=2 November 2011 |title=Travel veteran Jeff Scott is YTB's new owner |work=Travel Weekly |url=http://www.travelweekly.com/Travel-News/Travel-Agent-Issues/Travel-veteran-Jeff-Scott-is-YTB-s-new-owner/ |access-date=10 August 2014}}{{cite news |last1=Jainchill |first1=Johanna |date=27 October 2011 |title=YTB's travel operations purchased |work=Travel Weekly |url=http://www.travelweekly.com/Travel-News/Travel-Agent-Issues/YTB-s-travel-operations-purchased/ |access-date=10 August 2014}} The company was relaunched as First Alliance Travel in 2012.{{cite news |last1=Rice |first1=Kate |date=8 October 2012 |title=Company launches host agency with YTB assets |work=Travel Weekly |url=http://www.travelweekly.com/Travel-News/Travel-Agent-Issues/Company-launches-host-agency-with-YTB-assets/ |access-date=10 August 2014}}

On February 1, 2012, founder J. Kim Sorenson died at the age of 62.{{cite news |title=YTB Travel executive Kim Sorensen dies |work=Travel Weekly publication |publisher=Travel Weekly |url=http://www.travelweekly.com/cruise-travel/ytb-travel-co-founder-kim-sorensen-dies/ |access-date=2012-02-02}} 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 Tomer was resigning.{{cite news |last=Barr |first=Diana |date=5 September 2012 |title=YTB calls off LTS merger, Chairman Scott Tomer resigns |newspaper=St. Louis Business Journal |url=http://www.bizjournals.com/stlouis/news/2012/09/05/ytb-calls-off-lts-merger-chairman.html |access-date=29 May 2014}}

On March 1, 2013, YTB International filed for Chapter 11 protection in federal court in St. Louis. The company filed its last quarterly earnings report in the third quarter of 2011, although the company later announced that the report contained errors.[http://www.secinfo.com/dUuzd.xaw.d.htm SEC filing w.r.t. to Chapter 11 protection]

On October 11, 2013, YTB completed the sale of its assets to Chicago-based businessman Sam Hathi of Jamraval, Inc. Since being acquired YTB has operated as YTB Global Travel.{{cite web |last=Brown |first=Lisa |title=Chicago investor acquires YTB business |date=11 October 2013 |url=http://www.stltoday.com/business/local/chicago-investor-acquires-ytb-business/article_59a2524a-dc79-544f-b6e4-a8bfced71c77.html |access-date=11 February 2014 |publisher=St Louis Biz Journals}} As of March 2, 2015 the company ceased enrolling new agents and representatives but still provides resources for existing members.{{Cite web |title=Ghosts of card mills |url=https://www.travelweekly.com/Travel-News/Travel-Agent-Issues/Ghosts-of-card-mills |access-date=2023-06-06 |website=www.travelweekly.com |language=en}}

In August 2008 California Attorney General Jerry Brown sued the company for $25 million, alleging it to be a pyramid scheme, among other claims.{{Cite web |title=YTB: What's true and what isn't |url=https://www.travelweekly.com/Travel-News/Travel-Agent-Issues/YTB-What-s-true-and-what-isn-t |access-date=2023-03-16 |website=www.travelweekly.com |language=en}} The Illinois Better Business Bureau and Illinois Attorney General Lisa Madigan joined Brown in investigating the company.{{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}}{{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|access-date=28 May 2014|newspaper=L.A. Biz (St. Louis Business Journal)|date=5 August 2008}} 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. 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.{{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 |access-date=2009-05-15 |archive-url=https://web.archive.org/web/20090520005927/http://www.stltoday.com/stltoday/business/stories.nsf/story/32ACD29A32AE57D4862575B70002546B?OpenDocument |archive-date=May 20, 2009 }} Brown said the agreement would end the sale of personalized websites that cost $450 to purchase and $50 per month to maintain.

Around the same time, several former YTB agents filed a class-action lawsuit that alleged the company was 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."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. YTB responded by stating that it intends to "vigorously defend the case," and the case was dismissed in July 2009 on the grounds that non-residents of Illinois could not pursue the matter under Illinois law.{{cite news |newspaper=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}} 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.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. 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.{{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}}

In 2007, YTB was also investigated for similar allegations in Rhode Island.{{cite news|url=http://traveltrade.com/news_article.htm?id=326 |title=RI Agency Investigates YTB Business Model|author=George Dooley |archive-url = https://web.archive.org/web/20080514135632/http://traveltrade.com/news_article.htm?id=326 |archive-date = 2008-05-14}}

In defense of YTB, chief executive Scott Tomer said, "We are wholly confident that our business model will withstand scrutiny, and look forward to setting the record straight in court."{{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.'|newspaper=St. Louis Post-Dispatch|date=8 August 2008}}

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Category:Companies based in Madison County, Illinois

Category:Online travel agencies

Category:Multi-level marketing companies