As promised, I will research these controversial Host Agencies with a MLM and/or card mill business model. Pro Travel Network, is not to be confused with the notable and highly respected travel agency, Pro Travel International. Pro Travel Network is a straight forward, admitted multi level marketing host travel agency. It does not issue its own photo ID card and therefore it is not what we commonly refer to as a "card mill." It is all MLM.
Paul Henderson is the CEO and outspoken defender of this public company operating under an MLM business model. Mr Henderson's business background is network marketing and sales with little or no travel experience except "on the job" experience from his time at Pro Travel Network. It appears that none of Pro Travel Network's key executives have a travel background. One of his key executives was a former area sales executive for CountryWide Mortgage Lending; one of the key companies involved in the home sub-prime lending mortgage business disaster. The other executives have primarily network or direct marketing experience. Many executives from the MLM ranks generally lack credibility because they, as all MLMers do, work on the basis of hype, deceit and outward lies concerning their businesses. We can't say that this applies to the executives at Pro Travel Network but we can almost say they are guilty by association working under the MLM concept.
Pro Travel Network opened its doors in October 2003 soon after Mr Henderson left his business as a recruiting and sales representative unrelated to travel. PTN, Inc, as it is called today is a public company with insiders owning the majority of the common stock.
A REMARKABLE SIMILARITY BETWEEN PTN, INC AND JOYSTAR BUSINESS MODELS
While researching Pro Travel Network (PTN, Inc) I continually ran into a remarkable resemblance to the former JoyStar (TravelStar) business model. We all know now that the JoyStar business model was doomed from the beginning, as I had written about them for the past 5 years. When JS did finally fail for good it left hundreds of travel agents without their earned commissions as well as suppliers and other travel related companies in chaos. I am not saying the same fate will occur at PTN, Inc but it makes one think that one should do their own cautious research and move accordingly.
Here are a few similarities found.
PTN = PTN, Inc/ ProTravel Network
JS = JoyStar/TravelStar
1) PTN and JS are and were based in California and have been publicly registered travel companies in Nevada since the early 2000's.
2) Bill Alverson and Paul Henderson were and are the charismatic leaders of these companies, both with MLM backgrounds.
3) Both companies hype or hyped their companies growth in revenues and constantly issued press releases that focused on the future value of their stock while at the same time suffering operating losses. An apparent effort to build the stock price.
4) Both CEO's set themselves up with "golden parachutes" amidst growing company operating losses.
5) Both companies purchased retail cruise centers. JS bought the Miami Cruise Center with PTN, INC purchasing Cruise Adventures.
6) Both companies changed it's names at least once saying, in effect, their business model now covers more than just host agency operations and the new names should reflect the many ventures it now represents. JoyStar to TravelStar and Pro Travel Network to PTN, INC.
7) Being public companies subjected both to disclaimers concerning future growth and profitability of the company. PTN, Inc's financial statements were unaudited compared to JS audited financials.
8) Both JS and PTN, INC formed what they referred to as a social networking program for consumer travelers that rewarded those who participated via an MLM scheme. PTN calls it "The Destinations Club". JS named the program "TravelStar".
9) Both companies reported high sale growths in its early years despite little or no operating profits and in it's later years have shown a downturn.
10) Both companies blame the recent downturn in sales to the economy. JS blamed their failure on the economy. Henderson blames JS's demise on their business model. That's an interesting remark considering their resemblance. PTN, INC also blames recent revenue and profit downturns on the economy.
SUMMARY
We know that MLM business travel models operate in a similar fashion. PTN and JS just happened to operate in what appears to be the same business model. Hype, deceit and lies may work well with the MLMs in other industries but they will never work well with the retail travel industry because, as I have said many times, "There ain't enough profits in commission sales to make it work." That why you see these agencies working other areas by adding additional products, selling websites, recruiting other members and more recently using the social networking craze to expand the MLM model to more consumers looking for revenue and cheap vacations.
The only ones who really suffer are the professional travel agents. A fragmented and basically uninformed group that is being taken advantage of by the MLM dirtbags. When the professional travel agents decide they have had enough of being "dumped on", perhaps they will attempt to form a group. I applaud ASTA'S efforts to begin researching the idea of travel agent accreditation and proper credentials.
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