Ballou Launches Firm With Two Acquisitions

WASHINGTON -- Haddon Holidays and Allied Tours became the first acquisitions of the new travel business headed by Roger Ballou, the former president of Alamo and Certified Vacations.

The tour operators will be part of Global Vacation Group, the conglomerate created by Thayer Equity Investors, a limited partnership here led by Frederic Malek, former president of Marriott Hotels and Northwest Airlines.

Terms were not disclosed.

Ballou, who joined Thayer Equity last August, was named chief executive officer of Global Vacation Group.

Haddon Holidays is a 25-year-old Hawaii specialist with most of its penetration in the eastern U.S. The company, based in Mount Laurel, N.J., and a member of the U.S. Tour Operators Association, is headed by president Ralph Caliri. He could not be reached for comment.

Allied Tours, founded 40 years ago and based in New York, is one of the leading U.S. inbound operators from Europe and Latin America, handling 500,000 FIT and group passengers a year.

Stanley Fisher, Allied president, said he could not comment.

A spokesman for Thayer Equity said the company would have no further comment.

Thayer's statement announcing the purchases did not indicate whether Caliri or Fisher would stay on to head their firms.

Last fall, Ballou told Travel Weekly that he planned to build the nation's largest tour company through acquisitions, leaving individual firms to operate independently with existing management. He said he would combine some operations to take advantage of economies of scale.

Since last fall, he has outlined his concept of tour operator consolidation, saying it would be driven by limited financial-exit opportunities available to small business owners, such as family run firms lacking children who want to take over the businesses.

Ballou said he intends to take Global Vacation Group public this year.

Joining Ballou on the senior management team of Global Vacation is chief financial officer Walter Berman, former executive vice president and chief financial officer of American Express Travel Related Services.

J. Raymond Lewis Jr., who joined Ballou at Thayer Equity in January after resigning as president of Certified Vacations, is Global Vacation Group's chief operating officer. He is a former Holiday Inn Worldwide executive vice president of marketing and sales.

WASHINGTON -- "Strategic alliances with travel agents will be a cornerstone of Global Vacation Group's strategy," Roger Ballou said in a presentation made available to Travel Weekly.

Some brands within the group will be sold exclusively through agents, he said, adding that the company will protect distribution if travel agents commit market share.

However, the company will also sell to consumers on line. "We want to serve the consumer the way the consumer wants to be served: The consumer will decide," the document said.

Other strategies include: