This One Is For The Travehost Associate Publishers…

On Friday, our entire Travelhost network was sent out an email from David Portner, the CMO/secretary? for James E. Buerger, regarding the Travelhost business model.

Make no mistake, this letter was all about Travelhost Inc.  in Dallas.

Not the AP’s of the Travelhost network across the country!

What do I mean?

I mean, Travelhost Inc. was born in 1967, and is now almost 43 years old.  Congratulations.

They survived this long, by living off the backs of the hard-working AP’s of the network. Making money from printing and AP turnover.  Remember, turnover accounts for  nearly 1/3 of it’s income every year!

This business model “worked” for Travelhost Inc. 

But how many AP’s are left from 1967?

In fact, how many AP’s are left from 1997?

How about 2007?

With the exception of maybe 15 or 20 APs, in the top destination areas of the US, most just come and go.  At a 30% turnover rate, every three years, Travelhost has a “relatively young” network.

This business model seemingly works for Travelhost Inc.

But, does it work for it’s network of AP’s?

AP’s have about a 90% chance of FAILURE with the current business model.  The one that’s lasted Travelhost 43 years.

So, while Travelhost could continue to thrive on AP turnover for the next 43 years, it will do so at the expense of another THOUSAND or so entrepreneurs.

Is that really the “right” business model?

One Response to “This One Is For The Travehost Associate Publishers…”

  1. former franchisee Says:

    They now have somewhere around only 40 markets left and they are not in ANY top tourist destinations anymore, with the exception of Fort Lauderdale and Orlando. There is no Travelhost in Miami, Hawaii, Los Angeles, San Diego, San Francisco, Las Vegas, Reno/Tahoe, Boston, NYC, Austin, Atlanta, Chicago, Washington DC, etc.

    They can’t compete in top markets such as those. Their magazines are atrocious with no relevant content or localized covers which are very important to have in those type of markets. There are too many real, legitimate, good magazines (such as Where) in those markets and Travelhost simply can’t compete.

    Besides being a superior publication all around, the big advantage Where has is that their local editions are all corporate whereas Travelhost’s are individually owned so you end up with some poor sap paying all the bills and operating expenses him/herself (including outrageous printing costs 2 or 3 times the norm) trying to compete against a superior publication backed by the vast resources of a large corporation.

    Travelhost now resides primarily in markets such as Lubbock, TX.

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