1. American Express ($11,950A)
2. Carlson Wagonlit Travel ($11,000B)
3. Rosenbluth International ($3,740)
4. WorldTravel Partners-BTI ($3,300)
5. Maritz Travel ($1,883)
6. Navigant International (N/D)
7. Liberty Travel ($1,320)
8. SatoTravel ($1,089)
9. McCord Travel ($728)
10. Omega World Travel ($639)
11. Travel & Transport ($617)
12. Total Travel ($598)
13. The Travel Co. ($500)
14. VTS Travel ($467.2)
15. Northwestern ($430.8)
16. Travel Inc. ($403)
17. Boeing Travel ($355)
18. AAA Auto Club South ($288.9)
19. Travelocity.com ($285)
20. Garber Travel ($277)
21. First Travelcorp ($276)
22. Direct Travel ($270)
23. Travel Management ($269.8)
24. World Wide Travel ($257)
25. MSN Expedia ($250)
26. Corporate Travel ($237)
27. Worldtek ($210)
28. AAA Carolinas ($208.6)
29. AAA Cincinnati ($208)
30. Fugazy Executive Travel ($205)
31. Preview Travel ($200.1)
32. Morris Travel ($200)
33. World Travel Specialists ($196)
34. AAA Travel Agency ($194.3)
35. Tzell Travel ($192.5)
36. AAA Worldwide Travel ($188)
37. Nippon Travel ($185)
38. Sea Gate Travel ($182)
39. Adelman Travel ($178)
40. WorldTravel ($175)
41. Oaks Corp ($175)
42. Casto Travel ($152.6)
43. Valerie Wilson ($151)
44. Protravel Inc. ($150)
45. Carlson Wagonlit/WTS ($140)
46. Sundance Travel ($139)
47. Advanced Travel ($136)
48. Stevens Travel ($135)
49. AAA Minnesota/Iowa ($135)
50. Journeycorp ($130)
1. American Express Travel Related Services
200 Vesey St.
48th Floor
New York 10285
phone: (212) 640-2000
web site: www.americanexpress.com/corporate services /
employees: 14,359
president, American Express Corporate Services: Ed Gilligan
senior vice president, American Express Corporate Services: Jud Linville
1998 ranking: 1
With 3,200 agency locations, American Express Travel Related Services had 1998 gross revenue of $11.95 billion in the U.S. ARC sales were about $9.7 billion for the agency chain, which has more than 1,700 retail outlets.
The agency's business mix is dominated by corporate travel, although specific percentages were not provided. Newly gained corporate travel accounts included Northrop Grumman at $61 million, Federated Department Stores at $26 million and Ingersoll Rand at $21 million.
The agency purchased Travel One, a Mount Laurel, N.J.-based corporate agency, with an annual volume of $700 million. American Express merged Travel One with its small to medium-sized account business to form American Express One.
American Express said it accepts bookings through its Web page, which was established in 1995, but it declined to estimate the percentage of bookings to be derived from Internet sales in two years.
Subsidiary businesses include American Express Incentive Services, joint-venture firm with Maritz Travel , wholesaler Travel Impressions and Golden Bear, a luxury cruise wholesaler.
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2. Carlson Wagonlit Travel
Box 59159
Minneapolis 55459
phone: (612) 212-1000
web site: www.carlsonwagonlit.com
employees: 20,000
president/chief executive officer: Jon Madonna
1998 ranking: 2
With more than 3,000 locations worldwide and representatives in 141 countries around the world, Carlson Wagonlit Travel racked up more than $11 billion in gross retail sales last year. Carlson Wagonlit Travel did not reveal how its agency locations are configured. Of those sales, $3.5 billion in ARC air sales were reported. Carlson Wagonlit Travel employs 5,160 full-timer workers in the U.S., and more than 20,000 employees worldwide.
The agency offers SoloAct as its automated self-booking system, and TransAct as its automated expense management tool. It declined to reveal the percentage of clients who use these tools.
Corporate sales made up 96% of the agency's overall business last year, with domestic tickets constituting 73% of its air sales. Since the start of 1998, Carlson Wagonlit Travel purchased Travel-Rite (Chicago), with an annual sales volume of $20 million. In response to the question, Carlson Wagonlit Travel said it charges client fees, and it passes back commissions and overrides.
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3. Rosenbluth International
2401 Walnut St.
Philadelphia 19103
phones: (215) 977-4000, (800) 338-6448
fax number: (215) 977-4026
web site: www.rosenbluth.com
employees: 4,731
president and chief executive officer: Hal Rosenbluth
1998 ranking: 3
Rosenbluth International posted gains in 1998, with $3.74 billion in gross retail sales in 1998 and $2.4 billion in ARC sales in that time period. The company's primary CRS is Galileo International. Sabre is the secondary system.
Business travel comprised 96% of the agency's sales; 76% of air sales came from domestic tickets.
Since the start of 1998, Rosenbluth purchased Business Express, which posted an annual sales volume of $13.8 million. The company also launched @Rosenbluth, an automated self-booking system.
Clients are offered a choice of Captura or Extensity, two automated expense management tools geared for clients' specific needs. Also introduced was the Business Interaction Management initiative, which will enable the agency's clients to determine when and if a business trip is necessary.
The company charges both management and transaction fees. The company declined to say if it passes commissions and/or overrides back to clients but acknowledged that commission caps and reductions have "moved" many customers to pay for their services.
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4. WorldTravel Partners-BTI
1055 Lenox Park Blvd.
4th Floor
Atlanta 30319
phones: (404)-841-6600, (800) 342-3234
fax: (404) 814-2983
web site: www.worldtravel.com
employees: more than 5,000
chairman, board of directors: John Fentener van Vlissingen
chief executive officer: John C. (Jack) Alexander
presidents: Danny Hood and Ralph Manaker
1998 ranking: 10
New accounts brought in $314.5 million; they include ABN Amro; Levi Strauss & Co.; Hoechst Marion Roussel; Arthur D. Little; Cordiant Communications, and Northrup Grumman.
In October 1998, WorldTravel Partners and BTI Americas merged. The newly merged agency operated 407 full-service offices, 1,107 STPs and 298 on-site locations by January 1999. With offices located nationwide, the agency earned $3.3 billion in gross retail sales. ARC sales totaled $2.8 billion. More than 5,000 employees were on the payroll at the start of 1999.
Sabre is the agency's principal CRS, and Worldspan, Galileo International and Amadeus also are used. The agency counted more than 6,000 CRS terminals. ResAssist, a self-booking system, is used by 20% of the retailer's clients.
Its business mix is 80% corporate, 10% meetings and incentives, 5% leisure and 5% travel technology. Domestic air sales accounted for 71% of all tickets sold, and the average domestic ticket cost $460 last year. The annual average international fare was $1,340.
Eight percent of the agency's bookings are made on its Web site, which was established in 1996. WorldTravel Partners expects that number to reach between 10% and 15% within two years.
Because most of the agency's clients were already on management or transaction fees, the international commission caps were perceived as a price increase from the airlines. However, the small number of clients still on commission and profit-share were affected considerably.
The agency charges management fees, transaction fees and a hybrid of both.
Pricing varies by account, and menu pricing is available. In fee-based arrangements, the agency passes back both commissions and overrides.
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5. Maritz Travel Co.
1395 N. Highway Drive
St. Louis 63095
phone:(314) 827-2445
Fax: (314) 827-4443
web site: www.maritztravel.com
employees: 2,419
president: Mike Boland
1998 ranking: 5
Maritz operated 73 full-service locations, 317 STPs and 83 corporate on-site locations, including eight new full-service sites and 14 corporate locations.
The agency reported $1.88 billion in total gross retail sales in 1998 with $1.56 billion derived from ARC sales. The agency's principal CRS varies by region and client, and it operates more than 1,000 terminals.
Mix is 94% business and 6% leisure travel. Domestic tickets account for 71% of the agency's air sales. The agency's annual average domestic ticket price is $525; annual average international ticket price is $1,914.
New accounts gained since the start of 1998 produced $250 million in air sales; they include ARCO, Deloitte & Touche, Comdisco, Lawrence Livermore/Berkely Labs and Rohm & Haas.
Maritz is majority shareholder in GTM, which has headquarters in St. Louis, London and Singapore. The agency's subsidiary businesses and their annual sales volume are: Marketing Research Co., $146 million; Performance Improvement Co., $666 million; Maritz Europa, $178 million, and Maritz Canada, $34 million. The company also formalized Maritz Consulting Services Group and launched Maritz's Client Travel Web site.
The agency said the impact of air commission caps were "minimal," due to fee-based arrangements made with 95% of its clients under contract. Pricing and structures vary by client, and in most cases, Maritz passes back both commissions and overrides to its customers.
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6. Navigant International
84 Inverness Circle East
Englewood, Colo. 80112
phone: (303) 706-0800
fax: (303) 706-0770
web site: www.navigant.com
employees: 2,800
president: Edward S. Adams
1998 ranking: 6
At the start of this year, the publicly traded company counted 142 full-service locations, about 500 STPs and 293 corporate on-site locations. Navigant said ARC sales were $1.8 billion. The agency's primary CRSs are Sabre and Gallileo; Worldspan and Amadeus are secondary systems. Navigant has 2,662 CRS terminals.
The agency said 92% of its sales are derived from business travel, and 72% of its air ticket sales are domestic. Its annual average domestic ticket price is $428, and its annual average international ticket price is $1,279.
Its main Internet service provider is MCI, but Navigant uses several other Internet companies.
Navigant purchased eight agencies since the start of 1998, but declined to provide their sales volume data. They are: Arrington Travel, Chicago; Atlas Travel, Houston; World Express Travel, Anchorage, Alaska.; Jarvis Travel, Calgary, Alberta; Chartrek Travel, Norwalk, Conn.; Akra Travel, Jacksonville, Fla.; Bowers Travel, Phoenix; TravelCorp., Minneapolis.
A subsidiary of the agency is Aqua Software Products.
Navigant charges fees to clients, and fees vary among its agency locations; prices range from $10 to $35. The retailer passes back commissions and overrides to clients. The agency says the large percentage of management fee or service fee agreements in place has mitigated the effect of commission caps.
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7. Liberty Travel
69 Spring St.
Ramsey, N.J. 07446
phone: (201) 934-3500
fax: (201) 934-3617
employees: 1,800
president: Gil Haroche
vice president: Michelle Kassner
1998 ranking: 7
Liberty Travel earned $1.32 billion in gross retail sales this year, with $430 million in ARC sales. Ninety-eight percent of the retail sales are leisure travel.Its air sales mix is 55% international, with an average ticket price of $840, and 45% domestic, with a $335 average ticket price.
The privately held company, based in the Northeast, had 195 full-service locations, three STPs and one corporate on-site location at the start of this year, including five full-service sites added in 1998.
8. SatoTravel
1005 N. Glebe Road
Arlington, Va. 22201
phone: (703) 358-1200
fax: (703) 358-1218
web site: www.satotravel.com
employees: 1,700
co-chair and chief executive officer: Lawrence Hough
1998 ranking: 8
Formerly owned by 11 domestic airlines, SatoTravel was acquired in January by an investment group comprised of Stuart Mill Capital, Ambassadors International and GE Pension Trust. The privately held company operated 350 full-service locations, about 1,000 STPs and five corporate on-site locations at the start of this year, along with five uncategorized locations.
The agency had $1.09 billion in sales last year, and none of those sales was processed through ARC. Service fees are charged, and pricing varies by client; SatoTravel also employs menu pricing. CRSs are Sabre, Galileo International, Worldspan and Amadeus; the agency counts about 2,800 terminals. Eighty-six percent of the agency's business is derived from business travel, with 10% derived from leisure and 4% from meetings and incentives. As for air sales, 70% of its tickets are domestic; the agency declined to reveal average ticket prices.
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9. McCord Travel Management
321 North Clark St.
Chicago 60610
phone: (312) 527-1500
fax: (312) 527-0545
web site: www.mccordtravel.com
employees: 1,024
president and chief executive officer: Bruce Black
1998 ranking: 12
McCord Travel Management had $728 million in gross retail sales, with $623.8 million derived from ARC sales. McCord executives said the international commission caps had minimal impact on their larger accounts because most already paid service fees.
Its business mix is 82% business, 14% leisure and 4% meetings and incentives. New accounts brought in $62 million in air sales since the start of 1998. They were Alcon Laboratories, Citgo, Wilson Sporting Goods, Duff & Phelps and Kerry Ingredients.
The privately held company counted 12 full-service locations, 182 STPs and 77 corporate on-site locations; it added two full-service offices and 23 corporate sites in the past year. With 1,200 CRS terminals, the company uses Galileo International, Sabre and Worldspan.
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10. Omega World Travel
3102 Omega Office Park
Fairfax, Va. 22031
phone: (703) 359-0200
fax: (703) 359-8880
web site: www.owt.net
employees: 750
president: Gloria Bohan
chief operating officer:
Daniel Bohan
1998 ranking: 11
Omega World Travel had gross sales of $639 million, with $570 million in ARC sales. The agency had $50 million in new accounts. Subsidiary travel businesses, a wholesale consolidator and the cruise.com Web site earned $6 million and $8 million, respectively. International commission caps led to consolidation of resources and tighter management policies.
The agency counted 103 full-service locations, 160 STPs and 78 on-site offices. Of those, two full-service, 30 STP and 111 on-site facilities were new. Omega World has locations in the Washington area, Wisconsin, New York, California and North Carolina. Sabre and Galileo International are the principal CRS providers. Worldspan is the secondary provider. A total of 822 terminals are used.
Eighty-three percent of the firm's sales are derived from corporate travel, with 78% of air sales comprised of domestic tickets. The annual average domestic and international fares were $381 and $922, respectively. Omega World charges management and transaction fees, and passes back both overrides and commissions.
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11. Travel and Transport
2120 S. 72nd St.
Suite 700
Omaha 68124
phone: (800) 228-2545
fax: (402) 398-9290
web site: www.tandt.com
employees: 855
president: William Tech
1998 ranking: 13
Travel and Transport's total gross retail sales for 1998 were $617 million. ARC sales were $514 million. The privately held company, which is based in the Midwest, operated 41 full-service locations, 182 STPs, and 96 corporate on-site offices at the start of this year, including two new full-service locations. The agency's principal CRS provider is Galileo International, and its secondary system is Sabre. The agency operates a total of 182 CRS terminals.
The agency's sales breakdown is 75% business, 20% leisure and 5% meetings, with 85% of its air sales derived from domestic tickets. Travel and Transport's annual average domestic ticket price is $413, and its annual average international ticket price is $1,532.
Travel and Transport added $43 million in annual air sales through new accounts. The agency declined to list these companies. Last year it purchased Kurdian Travel, with an annual sales volume of $7 million.
The agency charges fees to its clients but declined to reveal its pricing structures. Travel and Transport passes back overrides and commissions.
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12. Total Travel Management, Inc.
1441 E. Maple Road
Troy, Mich. 48083
phones: (248) 528-8000, (888) TTM-TTM4
fax: (248) 528-3696
web site: www.ttm.com
employees: 550
chairman: Brent J. Garback
president: Linda M. Garback
1998 ranking: 14
Located in 23 states, the agency posted $598 million in gross retail sales in 1998. The agency reported $512 million in ARC sales for that period. The company's primary and secondary CRS systems are Worldspan and Sabre, respectively. The agency has 415 CRS terminals.
The privately-held company had six full-service offices, 55 STP locations and 45 corporate on-site offices at the start of this year, having added three corporate on-site locations in 1998.
The agency's business mix is 79% corporate, 5% leisure and 16% groups, meetings and incentives. Domestic tickets accounted for 67% of air bookings, and the agency's average domestic ticket price is $440; the annual average international ticket price is $1,850.
Since the start of 1998, TTM saw a $21 million uptick in annual air sales, due to consolidation of existing accounts and increased volume from groups and meetings. New major corporate accounts are MichCon, Aaramark, Teleflex, Questor, Automotive Industries and Masland.
The agency uses a variety of pricing options for corporate travel accounts, such as management fees, transaction fees and fees for on line bookings. A subsidiary of the agency is Total Events Management Inc., a firm with annual sales volume of $40 million.
TTM has started developing password-secured client web pages on its web site, that include client-specific information, i.e. hotel databases, on-line surveys, on-line reservations, client specific leisure discounts, and client travel policies.
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13. Travel Services International Inc.
d/b/a The Travel Co.
220 Congress Park Drive
Delray Beach, Fla. 33445
phone: 561-266-0860
fax: 561-261-0872
chairman and chief executive officer: Joseph Vittoria
president and chief operating officer: John Balson
employees: 2,000
1998 ranking: N/A
Travel Services International is one of a growing number of "rollup" companies in the travel industry. The company reported gross retail sales of $500 million in 1998. The firm had ARC sales of $75 million last year. The company, which operates under the name The Travel Co., uses Amadeus as it's principal CRS provider. The company's secondary CRS system is Sabre.
TSI's business is 100% focused on leisure travel, with a very strong emphasis on cruise vacations. The agency, with offices in California, Texas, Florida, Illinois and Maine, has 20 corporate-owned agency locations. Domestic and international air sales are each 50% of total air sales at TSI. The agency's average domestic ticket price $250; average international ticket price $800. The 1998 international commission caps had very little impact on business at TSI. Most of the agency's international air business is booked through consolidators. TSI does charge fees. Fees vary based on service.
TSI includes various operating companies, including the following cruise-related businesses: Cruises Inc., Cruises Only, Cruise Fairs of America, Cruise One, CruiseWorld, Ship 'N' Shore, Gold Coast Cruises, CruiseMasters, The Cruise Line Inc., Landry & Kling, The Travel Co., Cruise Outlet of the Carolinas and 1-800 Cruises. Other operating companies include the following: Auto Europe, D-FW Tours, Trax Software, Diplomat Tours, AutoNet International, Lexington Services, ABC Corporate Services, Lifestyle Vacation Incentives and AHI International Inc.
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14. VTS Travel Enterprises
150 E. 52nd St.
New York 10022
phone: (212) 267-5500
fax: (212) 644-0615
web site: www.vtstravel.com
employees: 550
president: Vincent E. Vitti
senior vice presidents: Catherine Carroll-Katz and Patrick Fragale
1998 ranking:15
VTS grossed $467.2 million in 1998, with $346.1 million derived from ARC sales. The company operated 17 full-service locations, 80 STPs and 98 corporate on-site locations at the start of 1999. It added 19 full-service and corporate locations and removed 25 STPs in the past year. Its principal CRS is Galileo International. Sabre is its secondary system. The agency counted 450 terminals.
New corporate travel accounts include Timeplex, Roberts Pharmaceutical, Allied Colloids, Maidenform, the New York Daily News and Plainsboro Marketing Group.
Sabre Web Reservation and Apollo Travelpoint automated reservations systems are used by about 25% of the retailer's clients.
A full 90% of VTS's sales are derived from business travel, and domestic air sales comprised 65% of its air sales. The annual average domestic and international tickets cost $497 and $1,535, respectively. The agency charges both service and management fees, passes back commissions to clients, but only returns overrides to its largest accounts.
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15. Northwestern Travel
7250 Metro Blvd.
Minneapolis 55439
phone: (612) 921-3700
fax: (612) 832-2080
web site: www.nwtm.com
employees: 725
chairman and chief executive officer: John Noble
1998 ranking: 16
The agency, which serves the Midwest, earned $430.8 million in gross retail sales in 1998; ARC sales totaled $271.4 million. New accounts brought in $36.5 million. New corporate accounts and their values are: Viad, $7 million; Sun Country Airlines, $4 million, and Control Data Systems, $2.8 million. The agency purchased Cruises and Resort Travel, with $4 million in annual sales volume, and Waters Travel, with $3.5 million in annual sales volume.
Northwestern charges management or transaction fees, but executives decline to reveal its fee structure. The agency passes back commissions and overrides to clients. Its principal CRS is Worldspan, and Sabre is secondary; the company counts 549 terminals. Sixty-nine percent of Northwestern's revenues are derived from business sales, 28% from leisure sales and 3% from groups and incentives.
Domestic tickets accounted for 84% of the agency's air sales; the average ticket price was $506. International tickets, which cost $1,908 on average, made up 16% of the agency's air sales. Subsidiaries are Northwestern Incentive Services; the company declined to reveal its annual sales volume.
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16. Travel Inc.
4355 River Green Pkwy.
Duluth, Ga. 30096
phone: (770) 291-4100
fax: (770) 291-5254
web site: www.travelinc.com
employees: 349
chairman and chief executive officer: Wil Brown
1998 ranking: 21
With gross retail sales of $403 million, Travel Inc. totaled up $221 million in ARC sales last year.
Travel Inc. introduced a program called MARSS (Management Account Reconciliation Segment System). The electronic ticket tracking and reconciliation system allows agents to identify and refund unused e-tickets as well as unused segments within those tickets.
Travel Inc. counted 12 full-service, 44 corporate on-site and 130 STP locations at the start of 1999. One full-service, eight corporate and 26 STP locations were added in the past year. The company's offices are located in the Southeast, Southwest and Midwest. The agency's principal and secondary CRSs are Worldspan and Amadeus, respectively. It operates 450 terminals.
The company's business mix is 70% business, 10% leisure and 20% group and incentive travel. The agency's annual average domestic ticket price was $466, and 81% of its air sales were for tickets within the U.S. The average cost of an international ticket was $1,271.
Travel Inc. offers menu pricing, and charges management and transaction fees. Revenue share is based on fee structure, client volume and service configuration. Each client is evaluated in and individual basis, the firm said.
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17. Boeing Travel Management Co.
325 J.S. McDonnell Blvd.
Hazelwood, Md. 63042
phone: (314) 551-4000
fax: (314) 551-4098
employees: 245
president: Samuel Jenkins
1998 ranking: 17
This subsidiary of the Boeing Co. operated seven full-service, 12 corporate on-site and 48 STP locations at the start of this year. Of those, two STPs and one corporate on-site location are new.
The agency counted $355 million in gross retail sales, of which $279 million was derived from ARC sales. The firm reports that $16 million of its total air revenue was derived from new accounts, but the company declined to list these clients. Using Sabre and Galileo International on an equal basis, the agency operated 276 terminals.
Ninety percent of its revenues were derived from business travel, 7% from leisure and 3% from meetings. Domestic air sales accounted for 65% of its tickets. The average annual domestic ticket cost $525; the average annual international ticket was $2,000. The agency passes back commissions and occasionally returns overrides to clients. It offers a tiered pricing scheme and charges management and transaction fees.
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18. AAA Auto Club South
1515 N. Westshore Blvd.
Tampa, Fla. 33607
phone: (813) 289-5000
fax: (813) 289-1430
employees: 553
president/chief executive officer: Robert Sharp
executive vice president/ chief operating officer: Thomas O'Brien
1998 ranking: 19
Gross retail sales reached $288.9 million last year, with $129 million processed through ARC.
The agency launched TMIS -- the Travel Management Information System -- a tool that allows travel managers to track their total sales by branch, vendor, counselor and product.
The private company, with offices in the Southeast, operated 73 full-service locations, four STPs and two corporate on-site locations at the start of this year. One full-service site is new. Galileo International is the retailer's sole CRS provider. The agency has 575 terminals.
With 90% of its sales derived from leisure and 89% of its air sales derived from domestic tickets, the annual average fare was $240. The average international ticket cost $600. The retailer declined to reveal the name or names of new accounts, which yielded $4 million. AAA Auto Club South purchased Great Getaways Travel, Vero Beach, Fla., with an annual sales volume of $2.3 million.
Some of the retailer's accounts are charged fees, and pricing varies by client. Commissions and overrides are passed back to clients on a limited basis. The agency plans to convert corporate customers to credit card or fee-based payment plans.
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19. Travelocity.com
4200-B Buckingham, MD1310
Fort Worth, Texas 76155
phone: (817) 963-3594
fax: (817) 963-1824
web site: www.travelocity.com
president: Terrell Jones
vice president/general manager: Jim Marsicano
1998 ranking: N/A
Total gross retail sales hit $285 million worldwide for the international company. The company does not break out a sales figure specific to the U.S.
AMR Corp. is the parent company for Sabre, which runs Travelocity.com.
Travelocity.com and Travelocity.co.uk are the entity's two Internet locations. Travelocity.ca (Canada) was added this year.
Sabre, obviously, is the company's principal CRS.
Seventy percent of the company's sales were leisure-oriented, but no breakdown of domestic vs. international sales was revealed by Travelocity.
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20. Garber Travel
1047 Commonwealth Ave.
Boston, Mass. 02215
phone: 617-787-0600
fax: 617-787-2565
employees: 390
email: [email protected]
web site: www.garber.com
president: Louis Garber
executive vice president: Joan Kaplan
senior vice president/chief financial officer: Gary Fertig,
1998 ranking: 20
The agency had $277 million in gross retail sales and $225 in ARC sales for calendar 1998. The company operated 54 full-service locations, 56 on-site locations and 95 STP's for a total of 205 locations. Sabre is the principal CRS. The company has 360 CRS terminals.
Garber's travel sales are 70% business, 22% leisure and 8% meeting, incentive and housing. The domestic/international air sales mix is 76%/24%. The average domestic ticket price is $429; the average international ticket price is $1,088.
Subsidiaries include Emergency Travel Service, a 24-hour emergency support unit; Magic Carpet Vacations, a wholesale tour operator; Meetings and Incentives Management Group, and Garber Technology.
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21. First Travelcorp
4513 Creedmoor Road
Raleigh, N.C. 27609
phone: (919) 783-5535
fax: (919) 783-8743
web site: www.firsttravel.com
employees: 276
president/chief executive officer: Garland S. Tucker III
executive vice president: Fred L. Coward III
1998 ranking: 22
First Travelcorp operated eight full-service locations, 99 STPs and 39 corporate on-site locations at the start of 1999. Of those sites, 22 STPs and five corporate on-site locations were added in the past year.
First Travelcorp posted $276 million in total gross retail sales in its most recent fiscal year, with ARC sales of $180 million. The agency uses Galileo International and Worldspan in approximately equal amounts, using 321 terminals.
Business sales make up 77% of the agency's business, with leisure at 14% and meetings and incentives at 9%. Domestic tickets made up 83% of First Travelcorp's airline bookings. Its annual average domestic ticket price was $412, and its annual average international ticket cost $1,697.
New accounts added in the past year totaled $65 million in annual air volume. New clients are Equifax, Sonoco Products, United Dominion, Adtran, Cone Mills, Volvo Penta, American Software, Fuqua Business School (Duke University), Dialysis Clinic and McKinney & Silver.
The company said international commission caps reduced its commission income "by the expected amount." Management or transaction fees are charged. Terms vary depending on account size and service configuration.
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22. Direct Travel
1180 Ave. of the Americas
New York 10036
phone: (212) 302-7870
fax: (212) 302-8447
web site: www.dt.com
employees: 255
president: Herb Edelberg
executive vice president sales, marketing & technology: Michael Steiner
1998 ranking: 18
Gross retail sales reached $270 million at Direct Travel, with $192 million in ARC sales. Direct Travel developed Online Profile Manager, a Web-based customer profiling tool. Galileo International and Sabre are the company's principal and secondary reservations systems, and it uses 300 terminals.
Direct Travel's offices are located in New York, Boston, Chicago, Washington, San Francisco and Rockville, Md. At the start of this year, it counted seven full-service, 45 STP and 26 corporate locations, of which nine STPs and six corporate sites were new.
Eight percent of all bookings now are made through the Internet, on a Web site established in 1996. Direct Travel expects that to reach between 10% and 20% in two years.
The agency declined to reveal its management and transaction fees. Directlink Technologies, the company's subsidiary, is an online reservation and reporting system.
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23. Travel Management Partners
3725 National Drive
Suite 210
Raleigh, N.C. 27612
phone: (919) 782-3810
fax: (919) 782-3595
web site: www.tmptravel.com
employees: 196
president: John W. Lewis
executive vice president: Wanda L. Shankee
1998 ranking: 41
Travel Management Partners unveiled its CorpTrip automated booking system, now used by 60% of its corporate clients. In addition, its Travel Trakker software was expanded to provide automated ticket copies, credit card reconciliation, point-and-click reporting, travel authorization request and charge allocations.
The retailer operated one full-service office, 71 STPs and 31 corporate on-site locations in 1998. Of those, 11 STPs and six on-site offices were new. Offices are located nationwide.
Total gross sales reached $269.8 million last year, with $173.6 million in ARC sales. New accounts earned $42 million. They include Telcordia, with a volume of $25 million; Newport News Shipbuilding, $5 million; Innovex, $5 million, and Wandel & Golterman, $2.5 million. Galileo International is the agency's reservations system, and it operates 211 terminals.
The company declined to reveal its business mix, but 80% of its air sales were domestic, with an annual average ticket price of $645. The average international fare was $1,510.
The agency now accepts 1% of its bookings through its Web site, established in 1998. Executives expect that number to increase to 35% in two years. Subsidiary TMP Meeting Services earned $3.5 million in 1998.
The agency charges both management and transaction fees, and passes back commissions and overrides. The international air commission caps affected the company's investable cash flow, executives said.
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24. World Wide Travel Service
2228 Cottendale Lane
Little Rock, Ark. 72202
phone: (501) 378-1211
fax: (501) 378-5206
web site: www.wwts.com
employees: 410
chief executive officer, chairman and owner: Betta Carney
president and chief operating officer: Gloria Hopkins
1998 ranking: 23
World Wide Travel Service said it lost more than $400,000 in revenue due to the international commission caps. The agency does charge fees, and it set a rate of $10 per ticket, plus menu pricing.
The privately held company had 36 full-service locations, 11 corporate on-site locations and nine STPs at the start of 1999; two full-service locations and three corporate on-site locations were new last year. The agency has locations in Arkansas, Florida, Georgia, Kansas, Louisiana, Missouri, Oklahoma, Texas and Washington.
World Wide Travel Service posted $257 million in retail sales, with $210 million derived from ARC sales. Its principal CRS is Sabre, and secondary systems are Worldspan and Galileo International. World Wide uses 458 CRS terminals. The retailer offers its clients Quality Agent, its own automated self-booking system, and 29% of its customers use it; it offers no automated expense management tool.
Sixty-eight percent of the agency's retail sales were derived from business travel; 20% from leisure, and 12% from incentives and meetings. Domestic tickets comprised 79% of the agency's air sales, with $312 as the annual average domestic ticket price. International tickets, with an average cost of $750, accounted for 21% of its air sales.
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25. MSN Expedia
Microsoft Corporation
One Microsoft Way
Redmond, Wash. 98052
(800) 936-4500, (425) 936-7329
corporate e-mail: [email protected]
web site: www.expedia.com
business unit manager: Rich Barton
1998 ranking: N/A
This Microsoft Corp. subsidiary operates one virtual full-service agency, with two international versions of its product which were added in the last year. MSN Expedia saw $250 million in gross retail sales last year in the U.S., with $150 million processed through ARC. A full 60% of its air tickets were sold outside the ARC network. The company employed 320 full-time workers at the start of this year. Worldspan is the company's principal CRS. MSN Expedia operates 50 CRS terminals.
MSN Expedia derives the lion's share of its sales from leisure travelers, with 67% planning vacations on its site. Another 30% of sales are derived from business travelers, and 3% is credited to nonmanaged business travel.
The company's average annual domestic fare was $302, and the average annual international fare was $340. Mix of domestic vs. international air sales: domestic air sales: 95%; international air sales: 5%.
Last November, the company unveiled U.K. and Australian versions of the site. The sites were completely re-engineered, to reflect the travel customs in each country. In addition, MSN Expedia has developed relationships with travel vendors in each country.
MSN Expedia surpassed $8.5 million in weekly sales in December, 1998. In March, MSN Expedia became the first on-line travel service to crack $13 million in sales in one week, and claims to frequently exceed sales of $2 million per day.
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26. Corporate Travel
Management Group
450 E. 22nd St., Suite 100
Lombard, Ill. 60148
phone: (630) 691-9100
fax: (630) 691-1668
web site: www.Corptrav.com
employees: 250
chief executive officer: Bonnie Lorefice
1998 ranking: 25
Corporate Travel Management Group brought in $20 million in new accounts last year, with the acquisition of the U.S. Web, Bell Microproducts and Nicor accounts. The three companies accounted for $7 million, $5 million and $1 million in annual air volume, respectively.
The agency initiated service fees on international bookings to counter revenue losses of 50% to 60% due to commission caps. Corporate Travel Management Group charges management and transaction fees, and it offers menu pricing.
The agency saw $237 million in gross retail sales last year, with $149 million in ARC sales. Its principal and secondary CRS providers are Sabre and Galileo International, respectively.
The firm's business mix is 80% corporate, 10% leisure and 10% group and incentive. Domestic airline tickets accounted for 85% of the agency's air sales, and the average annual ticket price was $488; the agency's average international fare was $1,434.
With five full-service, four corporate onsite and 43 STP locations, the agency added one full-service, three corporate and five STP sites last year. Subsidiaries are OakBrook Travel and Rainbow Vacations, two leisure agencies. with an annual sales volume of $6 million.
The privately held agency, with locations in the East and South, is a member of First Business Travel International, Hickory, Time and Giants. Four percent of Corporate Travel Management Group's were made on the Internet, and the agency expects that 15% will be derived from Web bookings by 2001.
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27. Worldtek Travel
11212 Water Street
New Haven, CT 06511
phone: 203-772-0470
fax: 203-865-2034
web site: www.worldtek.com
employees:: 201
chairman: Topper Luciani,
president: Ken Luciani Sr.
1998 ranking: 36
Worldtek had gross retail sales of $210 million, and reported ARC sales of $154 million in 1998. Full service locations, 38; corporate on-site locations, 23; STPs, 25; Total locations 63. The agency had offices located in 17 states. The agency's principal CRS is Worldspan; secondary CRS is Sabre. Agency has 200 CRS terminals.
Company sells 95% business travel; 5% leisure travel. Domestic ticket sales are 86% of of Worldtek's business, while international is 14% of sales. Worldtek was awarded $14 million in new acounts since beginning of 1998.
The 1998 international commission caps reduced yield at the agency to 6.1%. Worldtek charges management fees to clients and passes commissions back to some clients.
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28. AAA Carolinas
6600 AAA Drive
Charlotte, N.C. 28212
phone: (704) 569-3600
fax: (704) 532-1908
president/chief executive officer: Dave E. Parsons
vice president, travel: Sarah Henshall
1998 ranking: 35
The agency reported $208.6 million in gross retail sales for 1998, with almost $129 million derived from ARC sales. The privately held company, which operates in North Carolina and South Carolina, operated 26 full-service locations, 12 STPs and 10 corporate on-site locations at the start of 1999. The agency opened two full-service locations and two on-site shops, and it added one STP in the past year. AAA Carolinas uses Galileo International as its only CRS, with 350 PC access points.
The agency's business mix is divided 50% each of business and leisure. Domestic air constitutes 85% of its air sales. The agency derived $16 million in annual air sales from new accounts in 1998 and declined to disclose the names of these clients.
The agency purchased Charleston, S.C.-based Palmetto Travel, with annual volume of $6.5 million. The company said increases in volume and in leisure bookings have bolstered total commissions even as the average commission rate continued to drop in 1998.
The agency charges management and transaction fees, and pricing varies depending on the account. AAA Carolinas passes back commissions or overrides to clients on a case-by-case basis.
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29. AAA Cincinnati
15 W. Central Pkwy.
Cincinnati 45201
phone: (513) 762-3300
fax: (513) 762-3282
web site: www.aaacincinnati.com
employees: 575
president/chief executive officer: James L. Pease III
vice president/chief financial officer: Steve Verbeck
1998 ranking: 31
AAA Cincinnati will accept bookings on its Web page in July. New accounts brought in $4 million last year, but AAA Cincinnati declined to reveal the names of new customers. The agency purchased AAA Miami County (Ohio), with an annual sales volume of $4 million. The agency said it would lose $250,000 on an annual basis due to international commission caps.
The Midwest-based company had 32 full-service offices, 22 STPs and five corporate on-site locations last year. Of those, three full-service centers and one STP were new.
Retail sales were $208 million last year, with $147 million in air sales processed by ARC. With 280 CRS terminals, the agency's principal reservations system is Worldspan, and Galileo International is its secondary service provider. Business travel comprised 60% of the agency's sales last year, and domestic air sales accounted for 84% of the total number of tickets sold.
The agency's annual average domestic ticket price was $447 and the international fare was $989.
AAA Cincinnati charges its corporate clients management and transaction fees, which vary by client, and passes back commissions and overrides.
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30. Fugazy Executive Travel
50 Federal St.
Boston 02110
phone: (781) 994-1203
fax: (781) 932-4266
employees: 265
web site: www.fugazy.com
president: Jeffrey Smith
chief executive: Joel Smith
1998 ranking: 30
Boston-based Fugazy Executive Travel is a publicly held company. It operated 25 full-service, 30 corporate on-site and 90 STP locations at the start of this year. Of those, five new full-service, five on-site and 30 STP locations were added.
The agency saw gross retail sales of $205 million last year, with $165 million derived from ARC sales. New accounts brought in $50 million last year. Service fees have allowed Fugazy to recoup nearly all losses incurred as a result of international commission caps.
Sabre is Fugazy's primary CRS, and Galileo International the secondary provider. The agency operates 150 terminals. The Xtra On-Line self-booking system is used by 5% of the retailer's clients, and Complete Travel Manager is used by 100% of its customers for expense management.
Fully 90% of its sales are business travel oriented, and domestic air sales accounted for 75% of the retailer's tickets. The average annual domestic and international ticket prices were $500 and $650, respectively.
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31. Preview Travel, Inc.
747 Front St.
San Francisco 94111
phone: (415) 439-1200
fax: (415) 421-4982
web site: www.previewtravel.com
employees: 258
chairman: James Hornthal (Interim CEO)
1998 ranking: N/A
Since it launched on-line bookings of vacation packages in July 1998, Preview Travel has expanded its offerings to include approximately 1,000 vacation and travel packages. The publicly held company has one corporate on-site location.
Its total gross retail sales for 1998 were $200.1 million; air sales totaled $160.5 million, but 100% of the agency's air tickets were paid for outside the ARC network. The agency's principal CRS is Galileo International, and it operates 100 manned workstations and 3,000 "virtual stations."
The company derives 99% of its bookings from the Internet. Its service provider is Level 3, and its home page was established in 1995. The firm has no corporate clients and offers no automated expense management tools.
Business sales represented only 10% of the company's sales, with 50% derived from leisure sales, and another 40% from business/leisure sales. The company said 92% of its air sales were domestic tickets. Its average annual ticket price is $263. Preview Travel does not separately track average ticket prices for international and domestic sales.
Recent achievements include the February 1998 launch of Fodor's Destination Guides; a multiyear agreement with Lycos inked in March 1998, and marketing agreements signed with USA Today and Snap in June 1998; the July 1998 launch of real-time bookings on vacation packages and cruises; an marketing alliance with MasterCard completed in August 1998, and the introduction of express booking and enhanced customization features in December 1998.
Advertising on the company's Web site, targeting its 7 million registered members, has decreased the negative impact of commission caps, executives said. A full 35% of the company's revenue stems from advertising sales, which also shields the agency from "industry seasonality."
The company said it also intends to continue expanding its product line and diversifying revenue through merchandise sales and other initiatives.
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32. Morris Travel
240 East Morris Ave.
Salt Lake City, 84115
phone: (801) 487-9731
fax: (801) 483-6677
e-mail: [email protected]
employees: 300
president and chief executive officer: Mark Slack
1998 ranking: 25
With gross retail sales of $200 million, Morris Travel counted $150 million in ARC sales last year. The firm increased its fees in an effort to stem losses due to commission caps.
The agency operated 36 full-service, 21 corporate onsite and 19 STP locations at the start of this year. Of those sites, one full-service office is new. These sites are located in Utah, Idaho, Montana, Nevada, Oregon and Washington.
Worldspan is the agency's sole CRS, which operates 250 terminals.
The retailer's business mix is 50% corporate travel, 40% leisure, with an additional 10% derived from wholesale, meetings and incentives sales.
Eighty-five percent of its air sales are domestic tickets, and its annual average domestic ticket cost $340 last year.
The average price for an international trip was $700 in 1998.
Five percent of Morris Travel's clients use Trip Manager, an automated self-booking system; The agency processed .5% of its bookings through its homepage, which was established in 1995; officials hope for a modest increase to 2% of all bookings by 2001.
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33. World Travel Specialists Group
(dba The Lawyers' Travel Service)
71 Fifth Ave.
New York 10003
phone: (212) 679-1600, (800) 431-1112
fax: (212) 726-0910
web site: www.wtsg.com
employees: 160
chairman and chief executive officer: Paul Metselaar
president and chief operating officer: Paul Moskowitz
1998 ranking: 32
New accounts racked up $24 million in annual sales. These clients, and their sales volumes, are Jones, Day, Reavis & Pogue, $15 million; Patton Boggs, LLP, $2 million, and Scient, $2 million.
The agency purchased The Lawyers' Travel Service of California, with an annual sales volume of $8 million.
The Lawyers' Travel Service also opened its first international office in London to serve Linklaters & Alliance, a global law firm based in the U.K.
The agency charges management and transaction fees, and offers menu pricing.
It also passes back commissions and overrides to clients.
The agency operated nine full-service offices, 26 STPs and 41 corporate on-site locations last year, with four new STPs and seven corporate locations included in that roster.
A total of $196 million in sales were earned last year, with $162 million in ARC sales.
The agency, with 112 Sabre terminals, has no secondary CRS system.
Eighty-five percent of its sales are business-travel-related, with 10% in leisure and another 5% in the miscellaneous category.
Domestic air sales accounted for 70% of its ticket purchases, with the annual average domestic ticket priced at $598. The average cost of an international air seat was $1,736.
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34. AAA Travel Agency
1 Auto Club Drive, Suite 3
Dearborn, Mich. 48126
phone: 313-336-3034
fax:313-336-3492
web site: www.aaamich.com
vice president, travel and field operations: Linda Woolwine
manager, vendor relations and travel support: Larry Dickens
Employees: 320
1998 ranking: 29
AAA Travel Agency operates 63 corporate-owned locations, eight corporate on-sites for a total of 71 locations.
Its total gross sales are $194.28 million; its air sales are $84.23 million.
The principal CRS is Galileo International. CRS terminals 481.
The company reports a business to leisure mix of 15% business and 85% leisure.
Domestic tickets are 83% of business; international is 17%.
The average domestic ticket price is $270; the average international ticket price is $731.
According to officials, international commission caps continue to impact the agency's bottom line but with less severity than domestic airline commission caps.
No fees are charged to AAA members. Non-AAA members are charged $10 per ticket/reservation (charges are not to exceed $50).
Would not comment on passing commissions back to clients, cites competitive reasons
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35. Tzell Travel Specialists
119 W. 40th St.
14th Floor
New York 10018
phone: (212) 944-2121
fax: (212) 944-4086
employees: 240
president: Barry Liben
1998 ranking: 33
With offices located in New York, Boston and the Los Angeles area, the agency grossed $192.5 million in 1998, with $133.2 million counted as ARC sales.
The agency counts 215 CRS terminals; its principal system is Sabre, with Worldspan as a secondary service.
Tzell operated three full-service locations, nine STPs and one on-site location at the start of this year; one full-service location and one STP were added in the past year.
The company breaks out its business mix as 81% corporate, 10% leisure and 9% group and incentives.
International air sales account for 46% of Tzell's air sales, with 54% from domestic bookings; the average annual ticket price was $471 for domestic tickets and $1,392 for international tickets.
New accounts added since the start of 1998 brought in $19 million in annual air sales, and the company declined to disclose the names of new major corporate accounts.
The agency charges management or transaction fees, but would not disclose its charges.Tzell said it does not pass back commissions or overrides to its clients.
Tzell's subsidiary, Big Blue Travel, packages and sells sports-related trips. In September 1998, the agency opened Tzell New England.
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36. AAA Worldwide Travel
California State Automobile Association
150 Van Ness Ave.
San Francisco 94102
phone: (415) 565-2141
fax: (415) 863-2187
e-mail: [email protected]
web site: www.csaa.com
president and chief executive officer: Jim Molinelli
1998 Ranking: 37
Executives of the company described the impact of international air caps as minimal, because the agency's average international ticket price falls below the ticket price at which commissions are capped.
The retailer charges both management and transaction fees, with a $10 service charge per ticket, and a $35 service fee for nonmembers.
The privately held agency operated 48 full-service offices in Northern California, Nevada and Utah. It has 346 employees.
Total gross retail sales reached $188 million in 1998, with $46 million in ARC sales.
The agency's only CRS provider is Galileo International, with 310 terminals.
The agency's business mix is 98% leisure and 2% corporate, with domestic tickets comprising 76% of its air sales.
AAA Worldwide Travel said the average domestic ticket price was $252, and the average price was $575 for international tickets.
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37. Nippon Travel Agency America
(dba NTA America)
1025 W. 190th St., 3rd Floor
Gardena, Calif. 90248
phone: (310) 768-0017
fax: (310) 323-4032
web site: under construction
employees: 218
president: Hidetoshi Mitsuya
1998 ranking: 27
Nippon Travel Agency Pacific Inc. is divided into two subsidiaries: Nippon Travel Agency America Inc. and Nippon Travel Agency Hawaii Inc.
Nippon Travel Agency America is a subsidiary of Nippon Travel Agency Co. Ltd. (Japan), which is an arm of BTI Partners.
The agency had 12 full-service offices and seven STPs.
Gross sales reached $185 million last year, with $50.1 million derived from ARC sales.
With 46 CRS terminals, Nippon's principal and secondary CRSs are Galileo International and Sabre, respectively.
Seventy percent of the agency's bookings are business, 15% leisure and 15% for meetings and incentives.
Domestic tickets accounted for 60% of the agency's air sales.
The annual average domestic ticket cost $564; the average international fare was $971.
New accounts brought in $2.7 million in air sales.
Revenues dropped by 20% at Nippon due to international commission caps.
The agency is in the process of establishing "minimal" transaction fees.
Nippon passes back commissions and overrides on select international flights depending on the carrier and the class of service.
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38. Sea Gate Travel Group
352 7th Ave.
14th Floor
New York 10001
phone: (212) 594-5867
fax: (212) 564-1843
employees: 170
web site: www.seagatetravel.com
co-owners: Vic Ascrizzi and Dan Green
1998 ranking: 42
The private company, which merged with New York-based Macpherson Travel, operated four full-service offices, 41 STPs and 14 corporate on-site locations.
Of those, 20 STPs, one full-service and one corporate on-site location were new.
Retail sales reached $182 million last year, with $140 million in ARC-processed sales.
Sabre is the agency's primary CRS, and Worldspan is its secondary system.
The agency operates 140 terminals.
Sea Gate offers clients the Sabre BTS self-booking system. About 30% use the technology.
The retailer derives 90% of its business from corporate travel, 5% from leisure travel and 5% from meetings.
Domestic air sales comprised 76% of the total number of tickets sold; the average annual fare was $600.
The annual average international ticket cost $1,050.
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39. Adelman Travel Group
6980 N. Port Washington Road
Milwaukee, Wis. 53217
phone: (414) 352-760
fax (414)-352-3900
corporate e-mail address: [email protected]
web site: www.adelmantravel.com
1998 ranking: 47
With offices located nationwide, the agency operated six full-service locations, 90 corporate on-sites and 45 STPs.
The agency had three additional locations using other configurations .
One full-service site, 15 corporate operations and three STPs were added in the past year.
The retailer earned $178 million in gross sales last year, with $129 million derived from ARC sales.
Adelman's principal CRS is Sabre, its secondary system Galileo International, and it operates 230 terminals.
Adelman's business mix is 73% corporate, 13% leisure, 9% meetings and 5% incentives.
Domestic air makes up 75% of Adelman's tickets, with the annual average price $420 per ticket.
The annual average international fare was $1,235. New accounts brought in $44 million.
Adelman also acquired four retailers: Colorado Connection Travel Service, QST Travel, Apex Travel Services (Milwaukee) and Avenida Travel Service.
The agency charges both management and transaction fees.
The agency offers menu pricing to clients.
Adelman passes back some commissions to clients that are on management fee or transaction fee-based schedules.
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40. World Travel
1724 W. Schuylkill Road
Douglassville, Pa. 19518
phone:(610) 327-9000
fax: (610) 327-8222
web site: www.worldtravelinc.com
employees: 205
president: James A. Wells
1998 ranking: N/A
World Travel charges fees to all accounts, as international airline caps resulted in a significant reduction of commission revenue, according to company executives.
The agency offers fee-based prices by account or applies service fees on a per-ticket basis. Fee-based programs provide clients with commissions in return for management fees and expenses.
Gross retail sales reached $175 million in 1998, with $156.7 million in ARC-processed sales.
The agency operated four full-service offices, 56 STPs and 55 corporate on-site locations at the start of this year.
Galileo International is the company's sole CRS provider, with a total of 210 terminals.
Corporate sales comprise 80% of the agency's sales, with domestic tickets making up 76% of air sales.
The annual average domestic ticket price was $483.56, and the average international fare was $1,272.04.
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41. The Oaks Corporation
31000 Wilcrest
Suite 360
Houston 77042
phone: (713) 430-1999
fax: (713) 430-1955
web site: www.oaksgroup.com
employees: 150
chief executive officer: Luis Acosta
president and chairman: Tania Dawood
1998 ranking: 47
The privately held Oaks Corporaton operated four full-service offices, 14 STPs and 13 corporate on-site locations in 1998.
Total gross retail sales for Oaks Corp. topped $175 million, with $150 million derived from ARC-processed transactions.
New travel accounts added $25 million in air sales to the agency's bottom line.
Sabre and Galileo International, respectively, are the company's primary and secondary reservations systems.
The agency converted to the Windows-based Sabre system.
The Oaks Corp. operates 107 CRS terminals.
Eighty percent of the company's sales are for business travel, 5% are for leisure, 10% are for marine travel and the remaining 5% represent meetings business.
International tickets comprise 60% of the agency's overall air sales, and the annual average international ticket cost $1,447 last year.
The agency's average domestic ticket was $414 last year.
Oaks Corp. charges management and transaction fees, and passes back commissions and overrides to clients.
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42. Casto Travel
1154 Sonora Court
Sunnyvale, Calif. 94086
phone: (408) 737-7000
fax: (408) 737-1582
web site: www.casto.com
employees: 192
president/chief executive officer: Maryles Casto
chief operating officer: Gus Vallejo
1998 ranking: 34
Casto Travel grossed $152.6 million in 1998, with ARC sales totaling $123 million.
The company has four full-service locations, 19 STPs and 12 corporate on-site offices in 1999, which included two new corporate sites and one STP. It employs 192 full-time staff members.
The agency's only CRS provider is Galileo International. It declined to reveal the number of terminals.
The agency's business mix is 93% business, 3% leisure and 4% meetings and groups. Domestic air sales account for 65% of the agency's tickets.
Casto accepts bookings through its Web page, which accounts for 5% of its overall business. Casto expects that number to increase to 15% within two years.
The company had $25.3 million in new accounts.
Casto Travel created a customized Web site for a specific group 1,800. The site functioned as an automated self-booking system.
The company's decision to end relationships with clients who objected to new fees allowed the company to focus on customers who "recognize there has been a paradigm shift in travel services and are willing to pay for such services."
Casto Travel charges fees to clients, but declined to reveal a fee schedule; the firm offers menu pricing and passes commissions back to clients for management-fee accounts. It also passes back overrides to clients on a negotiated, case-by-case basis.
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43. Valerie Wilson Travel
475 Park Ave. South
New York 10016
phone: (212) 532-3400
fax: (212) 779-7073
web site: www.vwti.com
employees: 168
chairman and president: Valerie Wilson
1998 ranking: 46
Valerie Wilson Travel earned $151 million in gross retail sales, with $104 million in ARC sales.
Fully 70% of the retailer's sales are derived from corporate travel. Domestic tickets account for 57% of air sales, with an annual average ticket price of $480.
International tickets made up 43% of the agency's air sales, with $1,300 as the annual average ticket price.
VWT's revenues were "seriously impacted" due to the international commission caps of 1998.
The agency charges $25 service fees and as well as charges for accounts of less than $200,000. Larger clients are offered a range of options, such as flat monthly fees or percentage fees based on all air travel or percentage of realized cost savings. Most fee structures are customized.
The agency does not pass back commissions to clients with sales between $200,000 and $4 million. A management fee structure is imposed for larger accounts.
New accounts brought in a total of $15 million since the start of 1998. Those companies include: Quokka Sports, $2 million; Heineken USA, $1.5 million; Laerdal Medical, $600,000; Oliver Wyman, $400,000; Trellborg Wheel, $345,000, and Interchem, $300,000.
Its principal CRS is Worldspan, with Sabre used as a secondary system; a total of 150 terminals are used.
The firm welcomed six associate agencies, with a total annual sales volume of $24 million, while maintaining a policy of not buying agencies.
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44. Protravel
515 Madison Ave.
New York 10022
phone: (212) 755-4550
fax: (212) 593-4907
web site: www.protravelinc.com
employees:150
president: Priscilla Alexander
1998 ranking: 43
Protravel last year unveiled its Meetings Management Software Program, which interfaces with its reservations system and allows Internet meetings registrations.
The agency won $7 million in new accounts. It operated two full-service and 37 STP locations at the start of this year. The private company grossed $150 million, of which $120 million was processed by ARC.
Sabre is the company's only CRS, with 130 terminals.
Corporate travel comprises 75% of the agency's sales, with 10% derived from leisure sales and 15% from groups, meetings and incentives.
Domestic air sales account for 52% of the tickets. The average domestic ticket cost $576, and the average international fare was $1,850. Barclay Travel was purchased by Protravel in 1998. Subsidiaries include Fairways to Heaven Golf and Business Services.
Typical transaction fees are $25; menu pricing is available to all accounts, but most clients prefer a transaction fee. Protravel passes back commission and overrides only in a cost-plus management-fee environment.
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45. Carlson Wagonlit Travel/ WTS
845 S. Third St.
Louisville, Ky. 40203
phone: (502) 585-1743
web site: www.wtstravel.com
employees: 300
president: Tom Lumley
1998 ranking: 38
The agency, a franchisee of Carlson Wagonlit Travel in Minneapolis, reported gross retail sales of $140 million, with $92 million in ARC sales.
Worldspan serves as its primary CRS, with Sabre used as a secondary system. It operated 281 CRS terminals.
Fully 90% of its air sales are domestic, with an annual average ticket price of $376. International tickets, which comprise 10% of air sales, hit an average cost of $1,100 last year.
Business travel was 70% of the agency's overall business; leisure, 25%, and "other," 5%.
The retailer said it charges both management and transaction fees, and passes back commissions and overrides to clients.
The privately held company operated 32 full-service locations, 16 STPs and 12 corporate on-site locations, plus one additional location at the start of 1999.
Carlson Wagonlit Travel/WTS said it added eight full-service locations, one STP and two corporate on-site facilities in the past year.
Carlson Wagonlit Travel/WTS operates in Kentucky, southern Indiana, southern Ohio and Tennessee.
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46. Sundance Travel International
19800 MacArthur Blvd.
Suite 100
Irvine, Calif. 92612
phone: (949) 752- 5456
fax: (949) 752-9223
corporate internet web site: www.sundancetravel.com
employees: 220
chairman: Tom Livermore
president: Scott Shadrick
1998 ranking: 45
The private company operated four full-service, 48 STP and 41 corporate on-site locations at the start of this year. Of those, three STPs and two on-site locations were new.
With agency locations in the West, the agency grossed $139 million, of which $127 million was processed by ARC.
The agency uses Galileo International and Sabre, respectively, as its primary and secondary CRS providers.
Two percent of its clients use the company's Web site to self-book, and executives expect that number to increase to 15% in two years.
The Captura automated expense management tool is available through Sundance, but the agency declined to provide usage figures.
Sundance Travel said its business mix is 70% corporate travel, 15% leisure and 15% meetings and incentives.
Domestic tickets made up 70% of Sundance's air sales.
Subsidiaries include Sundance Meetings and Incentives, with an annual sales volume of $20 million.
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47. Advanced Travel Management
489 Fifth Ave.
New York 10017
phone: (212) 867-6112
fax: (212) 867-6118
web site: www.advancedtravel.com
employees: 165
managing partners: Michael Share, Frank Kogen
1998 ranking: 38
The private company operated three full-service agencies, 28 on-site locations and 31 STPs last year, a count that includes two new full-service, three on-site and five STP locations.
Advanced Travel Management saw $136 million in gross retail sales in 1998, $113 million of which was processed by ARC.
New accounts brought in a total of $13 million in air sales since the start of 1998. They include Penguin Putnam at $5 million; GSD&M Advertising, and Cline, Davis & Mann, each at $2 million.
Eighty-five precent of ATM accounts are on a management-fee or transaction-fee program, with charges varying by account and sales volume.
Commission and overrides are passed back to some accounts.
The retailer's only CRS is Sabre, and it operates 140 terminals.
Business sales represent 95% of the company's overall revenues, and 60% of its air sales are domestic tickets, valued at an annual average of $469.
International tickets cost an average of $1,231 last year.
Eleven percent of bookings are through the Internet. The company hopes to boost that number to 25% in two years.
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48. Stevens Travel Management
432 Park Ave. South
New York 10016
phone: (212) 696-4300
fax: (212) 696-0591
web site: www.stevenstravel.com
employees: 120
president: Harold Stevens
1998 ranking: 44
With three full-service locations, seven corporate on-sites and 15 STPs, the agency racked up $135 million in gross retail sales last year, of which $98 million was derived from ARC sales.
Worldspan is the agency's primary CRS provider, followed by Sabre. Stevens operates 125 terminals.
Worldspan Trip Manager, a self-booking system, is used by 35% of its clients, and the VIN expense management tool is available, but it is as yet unused by clients.
Stevens Travel has a firm called Insight Data, which develops travel-related software. The firm has a full suite of automation products, from on-line booking to reporting. The company also has a program to manage corporate meetings.
Eighty-five percent of the agency's sales are derived from business travel, and 60% of its air tickets are domestic.
The annual average domestic ticket cost $505 last year, and the average international ticket cost $1,605.
Stevens charges management and transaction fees, and does not pass back commissions or overrides to clients. The agency has increases fees on some accounts.
Commission caps "continue to drive down income dramatically," according to Stevens Travel Management officials.
The firm is continuing to diversify, and has begun a campaign to buy or merge with other agencies and recruit commission-based travel agents.
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49. AAA Minnesota/Iowa
420 Gateway Blvd.
Burnsville, Minn. 55337
phone: (612) 707-4200
fax: (612) 707-4220
web site: www.aaaminnesota-iowa.com
employees: 250
president and chief executive officer: Duane Crandall
1998 rank: 47
Total gross retail sales for AAA Minnesota/Iowa 1998 were about $135 million. Total ARC sales were $74.5 million.
The agency has 42 full-service agencies, three on-site locations and three STPs for a total of 48 locations.
The agency's primary CRS provider is Galileo International. Its secondary CRS is Worldspan. It has 175 CRS terminals.
About 75% of the agency's sales were for leisure travel; 25% were for business. Domestic air sales accounted for 75% of business.
The agency's average domestic ticket price is $375 and the average international ticket price is $1,200.
The agency charges fees based on cost, plus acceptable profit margin. Other factors, such as on site agents affect fee structure. The agency passes commissions back. The international commission caps cost the agency $350,000.
The agency plans to raise the percentage of on-line reservations from 2% to 25% in two years.
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50. Journeycorp Travel Management
488 Madison Ave.
New York 10022
phone: (212) 753-5511
fax: (212) 339-2982
web site: www.journeycorp.com
employees: 170
chairman and chief executive officer: Werner G. Haase
president: Nurit Kahani
1998 ranking: 38
Journeycorp began to employ transaction or management fees with all clients and emphasized the promotion of its on-line product in a move to recoup losses from international commission caps.
Journeycorp is booking about 2% of its tickets through the Internet, but expects that number will jump to 25% in the next two years.
Fees vary by account, and commissions are returned only to larger corporate travel accounts with on-site locations.
At the start of this year, the agency counted six full-service locations (including one new, corporate site), 17 STPs and 17 corporate locations, a number that includes one new corporate location added this year.
With locations throughout the U.S., the agency saw gross retail sales of $130 million, with ARC sales of $95 million.
New accounts brought in $5 million in annual air sales since the start of 1998. They are Development Corporation for Israel, American Bible Society, Millennium III, Response Personnel and Bally of Switzerland.
The agency's principal CRS is Sabre, and it declined to reveal the number of terminals it operates.
Eighty-five percent of the agency's sales are business travel, with 5% derived from leisure travel and 10% from incentives.
Domestic air tickets make up 65% of its sales, with an annual average ticket price of $650. International tickets were an average of $725 each in 1998.
The agency is a subsidiary of Xceed, a communications company traded on Nasdaq.
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