YTB International is considering replacing its referring travel agent (RTA) business model with a franchise system, possibly in 2009.
In a July 15 filing with the Securities and Exchange Commission, YTB said it expects that a franchising model would facilitate its expansion into new markets through more comprehensive training and a new, proprietary e-commerce platform.
YTB said details regarding price, products and a plan for converting the business model are “under consideration, but the company anticipates that its existing RTA base would be treated favorably under its forthcoming proposal.”
The company also said that if a franchising model is adopted, its distribution is expected to be managed by YourTravelBiz.com, also known as YTB.com, an existing subsidiary and the company’s current marketing arm.
YTB counted nearly 139,000 RTAs as of March 31, but quarterly reports showed that in the last quarter of 2007 and first quarter of this year, the company was attracting new RTAs at a slower rate and that its RTA retention rate also had dropped dramatically in those two quarters.