YTB's Response To IATAN

This is the response to the revocation of IATAN endorsement to the RTAs. I think it is incredibly casual considering the ability to obtain the IATAN card was the primary focus of the sales pitch. The CRTA card opens some doors. The CLIA card opens a few more. The IATAN card opens ALL doors. Now all of a sudden, those doors have been slammed shut!

While CLIA is accepted by the cruise lines, it is not universally accepted in the hotel industry or with tour operators. As Arnie Weissmann has said, many suppliers are hesitant to express an opinion on YTB, I imagine that this move by IATAN may have them changing their policies to accept IATAN only. It would be a way to do the right thing, yet not come out of their closet.

The RTAs have lost a huge part of their program. If I were an RTA, I now have to ask if it was worth $500 and the $50 a month.

YTB INFORMATION RELEASE IATA/IATAN UPDATE

November 16, 2007

Valued RTAs:

YTB is pleased to announce our best financial quarter ever, followed by a highly successful event with Carnival Cruise Lines just last week. Some of you have expressed concern about the cancellation of our IATA/IATAN accreditation. We want to assure you that this does not, in any way, affect the ability of YTB or its RTAs to sell travel and be paid commissions from the sale of travel. We are actively working with IATA/ IATAN and our legal counsel to substantiate that YTB meets or exceeds IATA's/ IATAN's regulations.

As a company that has always upheld high standards, we applaud IATA/IATAN for ensuring the integrity of their programs, and hope to have our certification reinstated as quickly as possible. We thank you for your continued support and for the passion you share for YTB. We will continue to keep you updated on any developments as we move forward in our efforts to work with IATA/IATAN. We also wanted to answer some of the questions we, and many of the Directors, have been receiving.

Questions and Answers

1) Is YTB corporate working to get re-installment of the IATA/IATAN?

Yes. YTB and our legal counsel are actively working with IATA/IATAN to resolve this issue and substantiate that YTB meets or exceeds both IATA/IATAN's regulations and our own high standards.

2) Is YTB in trouble?

No, not at all. We just announced our best quarter ever, including our highly successful Sail-a-Thon with Carnival Cruise Lines. We are making plans for even more exciting opportunities for our RTAs and Reps, including great travel and event packages for the 2008 Beijing Olympics.

3) Are we a "legit" travel agency because of our remaining affiliation with ARC?

We are a legitimate travel agency for many reasons including our affiliation with ARC and CLIA, the extensive training and support that we offer our RTAs, our strong vendor relations, and the fact that Travel Weekly named us the 11th largest leisure travel agency in the country.

4) So, what did IATAN status do?

The only thing IATAN status did was offer an additional avenue for resources and supplier contacts. It also offered a card that must be earned and was recognized widely among the travel supplier community. The CLIA card offers many of the same benefits.

5) What is the difference between ARC and IATA/IATAN?

ARC (Airlines Reporting Corporation) is the organization that certifies us, and other travel agencies, to book travel and conduct business. We are in good standing with ARC. IATA/IATAN is a global trade organization, but their activities and accreditation do not have any effect on the day-to-day running of our business.

6) Can we still use the IATA/IATAN number at the time of booking?

Yes, the number will remain the same as it also serves as our CLIA and our ARC number.

7) Can we confirm that we are one of four agencies that had their accreditations cancelled?

Yes. However, we are actively working with IATA/IATAN and our legal counsel to regain our accreditation.

8) Are we going to issue new credential cards, since they say IATA/ARC#?

Until our issues with IATA/IATAN are resolved, we ask that RTAs refrain from using any materials that reference IATA/IATAN.

9) How is this going to affect the RTA's ability to earn commissions or receive travel perks? When calling the vendor, don't they need to give the IATA number?

It will not affect the ability to receive travel commissions in any way. Reduced rates will still need to be approved via the reduced rates department to determine eligibility. Hotels only require CCRA (in YTB's booking engine) to receive net rates (available in the travel portal); these rates are basically when booking with hotels directly. Some vendors will require an IATA or CLIA number while others want the YTB phone number as verification.

10) How does this affect YTBU teaching about credentials? Should we just omit the IATA/IATAN portion all together?

For now we should omit the IATA/IATAN portion, but we will continue to evaluate this, as we work with IATA/IATAN.

11) How should we address the IATA/IATAN issue in business briefing presentations?

If someone asks about it directly, assure them that the loss of IATA/IATAN accreditation does not, in any way, limit our ability to sell travel and receive commission. Also tell them that YTB is working with IATA/IATAN and our legal counsel to clear the matter up as quickly as possible

12) Does this have anything to do with Royal Caribbean terminating our contract?

No, the two issues are not related in any way that we can identify.

13) Why does it seem like all this bad news is coming at once?

As YTB continues to grow, we become a bigger threat to both brick and mortar travel agencies and other online travel sellers. That means that some of our competitors might attempt to impede our business progress in any way they can. Think of it as a "success tax." But know that YTB's entire team is here to support our Reps and RTAs and we will continue to fight the negative statements and misinformation about our company.

Thanks for all you do for YTB.

J. Kim Sorensen

President & CEO

YTB Travel Network