PHOENIX -- The Leisure Co. intends to operate the Vacation Store as its retail arm, selling directly to consumers and specializing in "high-volume, high-value" vacations, including cruises, inclusives and packages, John Garel, president and chief executive officer of the Leisure Co., said.

As reported, the Leisure Co., the 10-month-old America West Holding Corp. subsidiary that operates America West Vacations and Destination Leisure, recently purchased the Vacation Store, a Virginia Beach, Va., retailer that has generated $24 million in revenue thus far this year. Terms were not disclosed. The Vacation Store principals -- David Kaufman, chief executive officer, and David Wolfe, president -- will continue in those positions.

The Vacation Store was founded in 1995 by Landmark Communications, which owned the Travel Channel at the time. Landmark sold the Vacation Store to Kaufman and Wolfe in 1996 and, in 1997, it merged with Fort Lauderdale, Fla.-based 1-800-TAKE-OFF, a travel marketer. The Vacation Store's toll-free number and its Web site, www.takeoff.com, connects to its Virginia Beach call center.

In January, the Vacation Store opened its location in the Hilltop East Shopping Center in Virginia Beach, which became its headquarters. It sells Travel 2000 luggage and accessories and has preferred relationships with Carnival Cruise Lines, Delta Air Lines and SuperClubs.

Garel said the Vacation Store is the third part of the Leisure Co.'s three-pronged strategy: to operate America West Vacations and private-label brands; build the Destination Leisure wholesale brand, and operate a retail brand selling directly to consumers.

The Leisure Co. is a separate subsidiary of America West Holding Corp. from America West Airlines, which has a separate board and management team.

Garel said the aim is "to remain competitive within the leisure market. We're seeing it happen all over, with American Express entering the wholesale business [with its purchase of Travel Impressions this year] and Gogo and Liberty Travel. We are looking at a business model that includes agencies selling our wholesale product. We want to provide great value products to travel agents because we recognize the tremendous value that they provide the consumers."

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