ADI? So, What's Up? Not Much!

So, after all that big stink about the picture of a kid flipping the bird, the picture becomes a bit more clear. Mind you, no one was able to refute my contention that YTB did not acquire ADI. True to their tactics, the MLM crowd just deflected the conversation to a funny photo.

But as I said, Regina decided to get an answer and in the end..YTB did not acquire ADI. They may in the future, but for now they seem to be a vendor only.

You can find out the current version on Regina's other blog:

Apparently, there was indeed an announcement made about the acquisition of ADI by YTB at the Richmond Travel Training event. According to Jeanie Sharpless, the announcement was made by YTB Travel CEO, J. Kim Sorensen, and the founder and CEO of ADI, Curtis Edwards, who was there to confirm it. The problem, however, is that while this merger is on the planning table and discussions between the two companies are taking place, and maybe they are even close to finalizing the details... TODAY, it is still in the planning stages, and the acquisition has not yet been confirmed. In the excitement of the possibilities of this merger actually taking place, it was announced. It probably shouldn't have been, but it was. You know how excited we humans can get about things. Anyway, since more legal work must be done before it is a DONE DEAL, for now, the answer to the question at hand is "NO" YTB has not acquired ADI

Now, why on earth would a company announce a merger to a roomful of people when it is not a done deal. This is in Business 101--but with only 2 hours of education, I guess I cannot hold Scott accountable. But this apparently was announced by Kim Sorensen. And here we are a month later and neither ADI or YTB is willing to confirm it.

I have a hunch why it was "announced". In a word recruiting. Here you are in Virginia with a roomful of prospects and non-producing RTA and Reps. You need to do something to get them to sign up and to jump start their productivity. Tell them something--anything. And it seems that ADI was the straw that was drawn.

So, maybe YTB will acquire ADI at this point. Maybe they won't. But I am thinking that after a month, that there probably was no real announcement in Virginia--but now that many RTAs have gone on and broadcast it including some recorded telephone call...YTB may need to put up or shut up. And since the President of ADI is indeed an RTA this is probably the only way he is going be be able to make any money off of YTB!

YTB Takes Nashville By Storm

NOTE: See update below the original post!

This is just developing, but it seems that (is everyone sitting down?) a YTB RTA has collected money from Seniors at local high schools for their Senior Year Graduation Trip. Well, it seems that the buck stopped at the RTA's bank account and the seniors are out of a trip.

From what I hear (as I said I am still working on this) YTB has terminated the RTA and there is not much further info. Stay tuned.

I wonder if this was in conjunction with their new "acquisition" of ADI?

UPDATE: Not Nashville proper but here is the news report:

Parents Victimized In Alleged Scam
Parents Make Payments For Bogus Trip
Reported by Jennifer Johnson

POSTED: 8:14 pm CDT April 25, 2008
UPDATED: 3:12 am CDT April 26, 2008
LaVERGNE, Tenn. -- A group of high school seniors in Rutherford County may not be able to take a class trip with their friends after a woman allegedly took their money.

The trip they were planning to take has imploded and now police are looking for a woman who may have stolen thousands of dollars from unsuspecting parents.

For many seniors in high school, it's become a rite of passage for every student to be able to go on one last trip with their classmates before graduation.

But some students from LaVergne High School are learning that their dream vacation has become a nightmare.

"My son came home and was telling me about a trip that was being scheduled. Initially, I was under the impression that it was a school sponsored trip, so I started sending in money and whatever deposits he needed," said parent Uvonne Gooch

Over the past nine months, Gooch sent more than $500 to a woman named Cynthia Anderson, who said she was organizing a senior trip to Jamaica.

Last month, Gooch learned the tour company that Anderson was supposed to be paying the cruise to hadn't received a dime.

"YTB told me themselves, 'We didn't know anything about a trip, but let us research and see what's going on.' They got back with me and said, 'Yes, Cynthia is affiliated with us, but we didn't know anything about the trip,'" said Gooch.

Not only are Gooch and the other parents out of their money, but the graduates now have no place to schedule a vacation to in such a short period of time before graduation.

"The trip is off. It's cancelled. I have the e-mails. It's cancelled," said

What concerns Gooch the most is that some parents still think the trip is on and may still be making payments to Anderson.

The alleged scam seems to have affected more than just LaVergne High School. Anderson had reportedly approached every high school in Rutherford County with the same offer.

I wonder who Anderson is? Is she a rogue RTA? Or is she one of those Power Team Leader? I recall one RTA stating that RTAs "had" to make all bookings through YTB Headquarters. Well, I guess not so much.

Go on and quote the rogue TTAs (we realize we have them and they suck), but as I have said, when you bring in 131,000 untrained people in a year that are handling the travel dreams of clients, it is a recipe for disaster. Now this woman has been selling this "scam" to all of the high schools in the area--funny this seems like the instructions offered by ADI on their website--and we know they are at least a partner for YTB.

A Wife, Mother, Minister, Businesswoman, Mentor, and Coach Lies!

NOTE: Of course after this posted, the original post was deleted, so the link is no good. Apparently, she does not stand by her words, but that is OK because what you see below is the complete content of the original post.

Duck! Look out! Rogue RTAs are on the loose again. I guess EAB is busy "dating" up a storm in Honolulu and they needed a replacement! Ladies and gents, I give you Regina Osei. I know she reads this blog so perhaps she may shun her anonymous moniker and come clean. I was reading her blog a few days ago and saw a headline that surprised me. YTB Travel Merges With American Destinations. How the hell could I have missed that one? Even worse, how could YTB have missed the opportunity to issue a press release. Well, after a quick phone call, I discovered that her post is a lie. More on that in a bit, but for now, here is what she has falsely claimed:

YTB Travel Merges With American Destinations The YTB Travel Network , has again edged out the competition by merging with 27 year old experienced, professional tour operator, American Destinations. American Destinations specializes in 'educational group travel' throughout North America, and it has a similar business model to YTB Travel, which makes for a fantastic union. This merger between YTB Travel and American Destinations is also great news for YTB Travel clients and RTAs (Referring Travel Agents) because it allows YTB Travel to offer even greater tour and group packages. Click here for more information about American Destinations.

Well no doubt Regina is more interested in recruiting people on her own Power Team. That alone seems to be reason to allow truth and honesty to fall by the wayside. I would expect more from someone who, in her own biography on her blog, claims to be a "wife, mother, minister, businesswoman, mentor, and coach." Just picture that, a minister and spreading mis-truths all for the sake of the almighty dollar.

Well, if you check out American Destinations, Inc. you will see that they have not been acquired or merged. They are merely one of the "thousands" of vendors that have made a decision to work with YTB. I called and spoke a representative of ADI and they categorically denied any relationship with YTB other than paying them a finders fee for any referrals. Additionally, they have been doing business with YTB for several years. My contact also added, "if you can call the amount of referrals 'business'" Here is their policy on YTB:

1.) Referral Commissions: As an RTA with YTB you can earn referral commissions on groups that you refer to us. In most cases, this is a one time referral commission. Example: You visit or call South Middle School. The 8th grade class is planning a tour to Washington, DC. You call ADI with South Middle School's contact information and we proceed with the selling process from this point. If the group travels with us, you will receive a referral commission. 2.) ADI Travel Consultant: You have the opportunity to earn residual income and build a lifetime business. ADI has groups that have traveled with us for up to 10, 15, 20+ years. An information packet is available that is designed to teach you how to represent ADI and effectively market student and adult group tours that will position you for tremendous growth in the travel industry; therefore, helping you to realize substantial residual income. We feel that when properly trained to sell group travel, you will be more confident to approach group leaders. The more confident you are the more tours you will sell; therefore, the more financial success you will realize! ADI wants to help you build a relationship with your clients to ensure repeat business. We encourage you to take full advantage of our vast knowledge and great experience in the group tour industry by purchasing our American Destinations, Inc. Travel Consultant Training Packet for a one-time investment of $199.00. We are so confident that you will benefit from thi s information that after you sell three overnight tours (minimum of thirty passengers per departure) ADI will refund your investment plus include a bonus of $199.00! You will double your investment! Example I: South Middle School calls ADI directly and wants to do another trip with us. Since you are a registered ADI Travel Consultant and South Middle School is one of your past accounts, we will notify you of the Trip Order so you can follow up with the group leader and therefore, receive the commission if they travel. Example II: Someone from South Middle School knows a teacher planning a trip at Rosemont High School. He/she encourages him/her to call American Destinations, Inc. for a tour proposal. Since the referral came from one of your accounts, you will be contacted immediately to follow up with the group leader at Rosemont High School to begin a relationship with him/her. At the completion of the tour, you will receive the commission for this account. Please remember, no matter which opportunity you choose, travel proposals are FREE OF CHARGE. A member of our staff (referred to as an ADI Account Manager) will be assigned to you to assist you as much as possible. Also, please ask about "in person" training seminars in your area for you and your team. Again, we are very excited to help you grow your business. Do not hesitate! Call ADI now (800-369-4986) and begin to build a group travel business that will last a LIFETIME! To become an ADI Travel Consultant, please email or call with the following information: * RTA Name * Business Name * YTB ID# * Mailing Address * Home/Business/Cell Phone Numbers * Fax Number * E-Mail Address * Polo Shirt Size (Please mail check or money order to American Destinations, Inc., PO Box 2228, Clarksburg, WV 26302) Note - Services NOT Provided By ADI: * Motorcoach Charters: ADI does NOT provide services for motorcoach only charters.

So, nothing here. Old news. More misinformation that is being propagated by a rogue wife, mother, minister, businesswoman, mentor, and coach. Not sure if the real Coach would be proud or ashamed. Maybe she will make the correction; but then again that might hurt the recruitment effort.

Is Hickory A Done Deal?

A little bird just told me that Coach and Scott are meeting with the Executives of Hickory Travel Systems this morning and may be finalizing a deal.

It remains to be seen what form of deal it is. One report was claiming YTB was acquiring Hickory Travel Systems and I heard another that said YTB was looking to utilize some of the technology that Hickory has developed.

My guess is that this may be a shopping trip for a new IATA number. Stay tuned, story developing!

YTB's Appeal To IATA: DENIED

This just in from Travel Weekly. It seems that IATA is one of the few organizations in the industry to stand behind their convictions. YTB has been denied any reinstatement. I suspect that this will drastically impact their Hickory acquisition and quite likely affect their Canadian operations.

April 16, 2008

By Nadine Godwin

YTB Travel Network won assurances that the company can continue to use its IATA numeric code as an ARC-approved agency, but it did not win reinstatement at IATA.

YTB had challenged IATA's termination of the agency before IATA's agency commissioner for the U.S. The commissioner, James Johnstone, found that YTB had "lent, subcontracted to or hired to a third party" its IATA numeric code and that IATA had taken "the appropriate step to enforce its right in the code."

Johnstone cited an IATA exhibit in which YTB told its referring travel agents (RTAs) that their ARC/IATA number identified them "as an industry professional allowing you to become eligible for potential perks, preferred pricing and other courtesies."

On the other hand, the commissioner said there was "no issue" on the matter of YTB's option to continue using the same numeric code as an ARC agency. He cited an IATA memorandum issued on April 10, which stated IATA was not claiming that its termination of YTB's accreditation "results in any impairment with respect to its ARC accreditation."

Therefore, YTB can use its ARC number but not with any reference to IATA, and the agency is no longer eligible for any IATA products or services, said the commissioner.

Also, YTB was directed to immediately cease using the IATA codes, including in connection with any ID or other credentials, and to immediately recall all IDs or credentials that include the IATA code. YTB also was directed to immediately cease using the IATA trademark.

YTB's attorney, Al Anolik, said YTB had already ceased using the IATA trademark on RTA cards and elsewhere.

What Comes With A Hickory Acquisition? Not Too Much.

On April 1, there was a funny April Fool's prank started by a colleague of mine and I picked up on it and posted that YTB was being acquired by Travel Acquisitions Group. A few days later, in a press release, YTB announced that they were seeking a company to purchase. Through some investigation I posted that the intended target was Hickory Travel Systems of Saddle River, NJ.

This will be an interesting acquisition , if it ever takes place and I wonder what YTB would get in the long run. I spoke with a mid-level colleague at Hickory and the word of YTB is spreading like wildfire. While the company will not comment specifically, I was told that on March 25, 2008, Scott Tomer and The Coach spent an entire day in Saddle River behind closed doors. I cannot say it was them with 100% certainty but I was told it was "a guy in a Hawaiian shirt and an older man wearing a YTB polo-type shirt". Toss in the fact that their jet filed and flew a flight plan from St. Louis to Teterboro, NF (6 miles from Saddle Brook) and I think we can all figure it out. Employees were told of a possible acquisition on April 8th, but no one officially named names.

But, Hickory has a long history in the travel industry and is composed of, get this, Traditional Travel Agents. Nervous agents. Agents who are frantically putting resumes out on the steet and actively looking for jobs. These same employees have seen Hickory picked apart over the years and recently lost Travel Leaders to TAG (ironic that the April Fool's prank involved TAG as well huh?).

I am not so sure how much is actually left of Hickory, but it seems that YTB may be circling the skies like a vulture to pick up what they can. But, if the employees are actively seeking new employment, what is the attraction? I know YTB is has tried to purchase their IATA accreditation by buying the small Ontario travel agency. Maybe this is just upping the ante? Maybe the loss of IATA accreditation was more of a big deal than they cared to admit?

But, I woudl hope that IATA is a bit smarter than that. After the accreditation does not automatically go along with the change in ownership. Hopefully YTB discovered this in their due diligence (which seems lacking to me considering the fiasco in China), or they likely will be buying an asset with few employees with a travel background and not much else. Just picture it now--it will be a clone of the existing HQ. A big building with very few years of combined travel experience.

YTB To Purchase Hickory Travel Systems

This afternoon, YTB filed the following with the SEC:

YTB International, Inc. (the "Company") is considering the acquisition of a wholesale travel company to complement the existing travel offerings to its Referring Travel Agents (RTAs).

At the current time, the negotiations for the potential acquisition remain at a preliminary stage and no assurances can be provided whether the acquisition will be consummated, and, if so, upon what terms (including the structure of the acquisition and the purchase price therefor).

The Company will not respond to questions or provide any further updates concerning the potential acquisition unless and until the Company enters into definitive agreements with respect to the acquisition.

It has come to my attention that the target is Hickory Travel Systems out of Saddle Brook, NJ. I have not received any response to an inquiry to YTB or to Hickory, but it makes sense in that I heard specifically that the target acquisition was a $17 billion dollar travel company. Furthermore, the jet flew to Teterboro, NJ on March 25, 2008 and was there all day. Maybe the acquisition might come with an IATAN endorsement?

Story developing and it will be interesting!