CHESTNUT HILL,
Mass. -- The global realignment of corporate travel alliances just
became even more complex.
Garber Travel, with
the support of Ian Allan Travel in the U.K., wants to resurrect and
manage the Synergi travel agency network and is seeking pledges of
allegiance from the groups affiliates.
Garber Travel
applied to the U.S. Patent and Trademark Office to register the
Synergi name, an initial step in maintaining the global agency
group under its old name.
Garber Travels
initiatives came after The Travel Company in the U.K. purchased the
shares it didnt already own in Synergi last month. The Travel
Company rebranded the consortium TTC Global Network. Garber Travel
is pursuing affiliates that dont want to be a part of TTC Global
Network.
The relationships
among former Synergi affiliates and TTC are complex. Adding to the
uncertainty, many corporate travel agencies worldwide are being
wooed by Hogg Robinson, Radius, TQ3Navigant and others.
Paul Allan, the
chairman of Ian Allan Travel, spoke about the situation last week
from Garbers offices, where he arrived to sort out strategy about
maintaining the Synergi brand.
Allan, whose agency
sold its Synergi shares to The Travel Company, said his agency has
a network agreement with TTC and thus remains in that network even
as hes making plans with Garber to keep Synergi going.
Meanwhile, Mike
Premo, senior vice president of the global network for TQ3Navigant,
said he envisions a scenario where many travel management companies
around the globe will operate in two networks. That will probably
happen in multiple companies for an extended period of time, Premo
said. The situation in every country is different.
One travel
management official, who declined to be identified, said companies
like American Express and Carlson Wagonlit can take advantage of
the mass realignment occurring in corporate travel because they
have a more coherent global solution.
New
blueprint
For Garber and Ian
Allan, the immediate task is to create a new blueprint for
Synergi.
We have talked to
the majority of Synergi partners over the last 10 days, and they
strongly support the concept of maintaining a network using the
Synergi name with a revised, streamlined business approach, said
Roz Garber, president of Garber Travel.
About 40 of the 50
or so affiliates expressed interest in staying with Synergi, Garber
said, adding that many of these travel management companies spent a
lot of money rebranding as Synergi in recent years and have a
strong interest in maintaining the brand.
Officials from
Garber Travel and Ian Allan were at a loss to explain why TTC
Global Network decided to abandon the Synergi name. Were scratching
our heads as to why that happened, Allan said.
Garber said she
envisions a streamlined business model for the group that would
probably include having one coordinator for the network working
from Garber Travels headquarters. Previously, Synergi had an office
and staff in New York.
Garber Travel took
the lead in the effort to revive the Synergi network because The
Travel Companys acquisition of Synergi put the agency in a bind.
When The Travel Company was acquired by BCD Holdings in January,
BCD Holdings revealed a plan to create a global network. One of the
players in that network will be WorldTravel BTI, a competitor of
Garber Travel.
As of last week,
TTC Global Networks Web site still listed Garber Travel as its U.S.
affiliate.
However, Garber
said her agency, which had some $368 million in 2004 sales, will
not be part of TTC Global Network, although Garber continues to
serve clients that it served as the U.S. affiliate of
Synergi.
She cited The
Travel Companys relationship with WorldTravel BTI as the reason for
Garbers exit.
We are still
listed, Garber said early last week. They [TTC] still think we are
a part of it.
Wooed and
wooing
While Garber Travel
has been contacting Synergi affiliates about staying on with the
group, the agency has been wooed by several other
groups.
The upheaval in the
ranks of global agency networks began when Hogg Robinson and BCD
Holdings ended their partnership in Business Travel International
(BTI).
In turn, Navigant
and TUI terminated their global joint venture, TQ3 Travel
Solutions, when BCD Holdings acquired TUIs corporate travel
business last month.
Navigant retained
the TQ3 brand and trademark and is seeking to expand
internationally.
Navigants Premo
said it retains the contracts of 60 TQ3 licensees, and agencies in
other networks and independents have expressed interest in joining,
as well.
The changes in the
ownership structures of TQ3, BTI and Synergi created a lot of
discussion, travel and e-mail. People are exploring their options,
said Premo, who was conducting business in Singapore.
If you are the
Synergi guy in Norway and TUI sold its wholly owned business to
BCD, then clearly you are concerned about what is going to happen
to you, Premo said.
Synergi had about
50 affiliates in more than 3,000 locations around the world, doing
some $10 billion in annual business, according to Ian Allan Travel,
which was one of three Synergi affiliates that sold its shares to
The Travel Company.
Ian Allan sold its
shares, Paul Allan said, because The Travel Company bought out two
other shareholders. Garber Travel was not a Synergi
shareholder.
The fact that
Synergi had two shareholders in the U.K had always been an issue,
Allan said.
Obviously, our
connections [to TTC Global Network] are very loose, Allan
said.
Roz Garber said
last week that she expected the U.S. trademark office to approve
the application to register the Synergi brand within
days.
She said The Travel
Company abandoned the Synergi brand, which gave Garber Travel the
opportunity to obtain the rights.
In announcing the
acquisition of Synergi on Jan. 9, The Travel Company said it will
completely abandon the Synergi brand and cease using the Synergi
name in the market for providing or advertising travel management
services. The new name going forward will be TTC Global
Network.
Garber said her
agency has enough resources to manage Synergi with still-undefined
support from Ian Allan. Garber will invite other travel agencies to
become shareholders or join the network on a membership-fee
basis.
We have developed
relationships with current Synergi partners, Garber said. In
business, its all about relationships. When we contact partners in
South America, they know who we are. We are a known
entity.
To contact
reporter Dennis Schaal, send e-mail to [email protected].