NEW YORK --
Confirming rumors that had circulated for weeks, the Travel Corp.
(parent company of Trafalgar Tours) acquired Uniworld, the Encino,
Calif.-based river-cruise operator, for an undisclosed amount.
Mike Ness, Travel
Corp.s president and CEO, said Uniworld will operate as a
stand-alone acquisition, but the parent firm will look for possible
synergies between Uniworld and the other Travel Corp. brands,
including Insight Vacations and Contiki Holidays.
The Travel Corp.
primarily was interested in Uniworld because it provides an
entrance into an emerging market.
We see river
cruising as a growing business, Ness said. We find that many people
who have been on ocean cruises want to continue the cruising
experience but want to see more of the countries. We want to be
part of the action.
Serba Illich,
founder of Uniworld, will stay on as nonexecutive chairman. The
company will be directed by Brian Stevenson, formerly the chief
operating officer, who was promoted to CEO.
Illich will turn
his attention to other ventures, including his recent purchase of
Putnik, the formerly state-owned tour operator of
Yugoslavia.
Founded in 1976,
Uniworld is widely credited in the industry with introducing
European river cruising to the U.S. market.
Up until
Uniworld, river cruising was really a European continental product,
said Larry Dessler, a cruise industry marketing consultant.
Everything you see on the rivers of Europe today was primarily
developed by Uniworld, including light cuisine, nonsmoking
environments, inclusive shore excursions and English-speaking
guides.
The challenge
facing the Travel Corp., Dessler said, is to start thinking like a
cruise line. He said tour operators make commitments, market their
products, then adjust commitments. They can adjust their product
needs.
Cruise lines, on
the other hand, own the bed. You cant eliminate 20 beds on a
sailing if there is no one there.
To contact
reporter David Cogswell, send e-mail to [email protected].