NEW YORK --
Continuing the rearrangement and rebranding of several global
travel management groups, The Travel Company in the U.K. purchased
the shares it didnt already own in the Synergi agency consortium,
rebranding it TTC Global Network.
The Travel Company
already owned 54% of the Synergi agency network, which has
affiliated travel management companies in about 45 countries. It
took full control by acquiring minority holdings from affiliates in
the U.K., Canada and Finland. Financial terms were not
disclosed.
The transaction
spreads the reach, particularly in the Asia-Pacific region, of the
still-unnamed travel management company that Netherlands-based BCD
Holdings is cobbling together with a string of recent
transactions.
As reported, BCD,
the parent of WorldTravel BTI, has agreed to acquire TUIs corporate
business and a majority stake in The Travel Company.
As part of those
initiatives, BCD and Hogg Robinson ended their longtime BTI
partnership, and TUI and Navigant ended their joint venture in TQ3
Travel Solutions.
The Synergi deal
could also be seen as a defensive move; Synergi affiliates might
otherwise have been wooed by other companies, including Navigant
and Hogg Robinson.
In the U.S., the
acquisition of Synergi could complicate matters for Garber Travel,
the Massachusetts-based corporate agency that is the U.S. affiliate
of TTC Global Network -- Garber Travel already competes with
WorldTravel BTI, which essentially will now control the
group.
I would think it
would be a concern of Garber Travel, said Norm Rose, president of
Travel Tech Consulting. Garber officials declined to
comment.
The music hasnt
stopped yet, Rose said, referring to expected shifts in global
alliances.
Mary Ellen George,
executive vice president of sales and marketing for WorldTravel
BTI, noted some overlap among the holdings of the new company that
BCD is forming and TTC Global Network affiliates.
As we build the new
organization, we are making careful steps to continue to make
acquisitions to meet our client needs, George said.
In that regard,
Rose said the Synergi acquisition appears to be an interim step to
gain global coverage quickly.
He noted that BCD
prefers to operate wholly owned companies. With affiliates, you
cant dictate what technology platform they use, he said.
Founded in 1992 as
SRG International (the initials at one point referred to Super
Regional Group), TTC Global Network had 12 partners when it was
formed. Its clout was primarily in North America and
Europe.
Today, TTC Global
Network also has affiliates in Asia-Pacific, Africa, the Middle
East and South America as it competes with mega-agencies to serve
corporations with global travel needs. Affiliates include DER in
Germany and Turners International Travel
in South Africa.
Michele Bibby,
operations director at The Travel Company, said that TTC Global
Networks client contracts are independent of individual affiliates
customer relationships.
Bibby said TTC was
very conscious of wanting to protect clients and affiliates within
the Synergi network, given the changing environment.
To contact
reporter Dennis Schaal, send e-mail to [email protected].