Jamie Biesiada
Though it might face some challenges along the way, industry experts say Travel Leaders Group's planned merger with Altour will create one of travel's most powerful agency groups.
The merger, subject to regulatory approval, was announced in July. Both groups will continue to operate with their names and leadership in place when the deal closes, which is expected to happen this month. The combined companies will be able to boast $24 billion in annual sales when including Travel Leaders Group's nonowned agencies.
One of the more interesting aspects to watch will be how the two different companies will handle the merger, said Marc Mancini, president of Marc Mancini Seminars and Consulting.
"New York City-based Altour made its early reputation as the travel agency that understood the refined needs of the entertainment business - not an easy thing to do," he said. "It has gone beyond its specialty to become a sophisticated provider of upscale and mid-market travel and has a worldwide presence."
Meanwhile, Mancini said, "TLG has long been headquartered in Minnesota, and brings a homey Midwest approach to business. But don't be fooled. Michael Batt and Roger Block, its founders, are sharp and shrewd and have steered their company through many successful acquisitions and mergers."
Jack Mannix, founder and principal at Jack E. Mannix & Associates, said no merger is without hiccups, but the leaders in this case are used to navigating similar situations.
Travel Leaders Group has also proven with acquisitions in the past that it tends to keep in place managers and business structures that have resulted in a successful company, Mannix said.
"They're not going to say, 'OK, everybody at Altour, now you work for TLG Inc. and this is how we do things,'" he said. "They're not going to go in and change stuff. It's going to be kind of business as usual, would be my guess, because that's what made these companies like Altour so successful. They're going to leave it alone, and I think that's a very smart move."
Mannix was not surprised to hear about the merger, and said it would likely be a good move for both Travel Leaders Group and Altour. They will realize benefits from efficiencies of scale and will be an attractive home for agents looking for support.
"They really have quite a broad array of capabilities that would appeal to a lot of people, I would think," he said.
Both companies were well-respected on their own, and the merger will place the combined organization near the top of the heap of agency groups, Mannix said. They represent a number of different spaces, from leisure to corporate, and Altour brings a nice U.K. presence and strong corporate business to the table.
Mancini called the Altour merger "one of the most challenging [Travel Leaders Group] has ever faced," but predicted it will be worth the work.
"Bottom line: There may be a few bumps in the road - these are very different companies - but this merger will eventually produce one of the most powerful agency groups in the travel industry," he said.