The tough thing about tough things.

I've been watching todays events unfold as some of the incredible team members were unfortunately laid off from my former company TravelNet Solutions . I wanted to share my point of view for what it's worth. First off, these things are never good for employees and that shouldn't go without being mentioned. It is difficult to ever feel that you are not valued and to have the uncertainty of where your next paycheck is going to come from. These things can be incredibly disruptive and are sensitive topics to broach. So that should be stated first and foremost, I feel for the people who lose their jobs every time I see one of these circumstances occur, no matter what company it happens to. I'm looking forward to hopefully welcoming a few of my former colleagues to my new company PassPass if it works out.

But I'd also like to provide another perspective. Maybe a positive spin on a tough situation. Cause the tough thing about tough things, is there are usually positives from any challenging situation. For context, I'm going to provide a limited history on this from someone that has a perspective that few do in regards to TNS.

TravelNet and Track Hospitality Software — A TravelNet Solution built an incredible mission driven culture over a long period of time, and a product that was needed in the market at the time we built it. Like all companies, our goal was to create value for our customers, our employees, our shareholders and the world. What was accomplished over the few years by a small, very hard working and dedicated group was outstanding. I'm super proud of what was accomplished.

It was also not possible without the customers who believed in the company and the people that believed in the mission and worked incredibly hard for a long period of time to achieve the mission. Also, it has to be stated, that it would not have been possible, without the leadership of Ryan Bailey and the executive team and, the Ownership at the company.

Essentially, it was a team game, and all of the most successful organizations are successful because they have this alignment, fortitude, grit, vision, and work ethic to be successful. It is the work of all involved, not a chosen few.

Without speaking out of school or violating any outstanding non disclosures, I can tell you all, when the majority of the company was eventually acquired in 2022 - many people in the company - MANY - became Millionaires, some multi-millionaires and the ownership and investment group that came in, was extremely generous giving many additional employees in the company handsome bonuses. I was part of the team that signed off on sharing in the financial windfall regarding Track, with the employees, I personally can say I contributed significantly to those that gave their heart and soul and time to the business. This was not required, but it was the right thing to do and I didn't expect thanks as I would never have had the blessings I did without those that contributed along the way. So as I stated, it was the right thing to do.

With that being said. I've watched at the shock, and awe, and outrage of people today, who are understandably upset by some of the people that were unfortunately affected by the RIF that happened. I watched former colleagues share that they were surprised and put the "open to work" sign on their Linkedin profiles. I can say from experience first hand of losing a job, this is never easy for the employee, there is a sort of embarrassment I felt when I went through it, and a special sense of vulnerability that high performing people aren't used to. I know these people are high character and will do well in whatever they do next.

But here is the tough thing about it. I also know, the leadership that made this decision, in this particular case, is also of high integrity and high character. While I can't speak to other organization or other leaders who I do not know, but I can speak to this organization. I know a decision like this, was not taken lightly at this group. I know the character and how much people matter to the leadership at TNS.

Over the last few years, as the Macro Economic winds have blown away the madness of covid and the windfall of printing trillions laid waste to the incredible speed of rate hikes, death of the ZIRP era, and the cascade of inflation led to the inevitable slow down of growth in many industries. There were warning signs in 2022, and there were real financial challenges in 2023 for even the best of companies. Brad Gerstner, General Partner at Altimeter Group famously penned an open letter to Mark Zuckerberg at Meta and told him "time to get fit"

https://medium.com/@alt.cap/time-to-get-fit-an-open-letter-from-altimeter-to-mark-zuckerberg-and-the-meta-board-of-392d94e80a18

Meta followed this advice when their stock was plummeting, think of it, one of the greatest companies, most profitable companies, of all time, had to be told by one of the greatest modern investors "to get fit".

Meta did. They had a series of RIFs. (Here is an article explaining what a RIF is)

Today, their stock has rebounded and the company is fit and healthy and is making investments in the future to the delight of shareholders, employees and customers.

I understand why some in the Vacation Rental / Hospitality industry will be out today and in the coming weeks and months, with pitchforks, they will use this opportunity to degrade the company, the people, the customers, the work that has been done to build a great software company that helps 1,000's of users, millions of travelers, and hundreds of employees. They will be proclaiming the demise of this "once great company". They will be trying to capitalize on this. I understand why.

But I see it differently. I see it as smart, necessary, although unfortunate for many, but required action, to strengthen the focus, the balance sheet, the foundation and the future of this still great company that is working to ensure a strong and positive future for all involved.

This is something that all companies go through. This is a tough thing.

But the tough thing about tough things, is often for the person casting their vote, giving their opinion, choosing their side. I think it can be difficult for many, steelmanning, looking at it through the lens of pragmatism and not emotion. Being intellectually honest and not pouncing at the opportunity to denounce, but considering the reasons and the people and having compassion for all sides.

I am still incredibly bullish on TravelNet Solutions and Track Hospitality Software — A TravelNet Solution and I am not discounting the team that is there and that will carry the business into the future, nor the customers who are putting their faith in this business to continue to help them achieve their mission.

If you are still at TravelNet, keep pushing and keep achieving and take this company to new heights. If you are no longer at TravelNet, feel free to reach out to me. Maybe this was Gods way of saying it's time to explore new territories and horizons and all will be ok, because this too shall pass.

Matt