St. Petersburg, Fla. -- Affinity International Travel Systems'
Recent Shift To Focus On Electronic Commerce Will Swing Into High
Gear When The Wholesaler Launches Its Web Site At The End Of The
First Quarter.
The site, which will be at http://faraway.com, is the first step
to "delivering a top-quality Internet product that should deliver
higher revenues and stronger margins than a traditional
brick-and-mortar environment," said Daniel Brandano, Affinity's
chief executive officer.
"Affinity has made a strategic decision to focus on its
e-commerce plan," Brandano said. "[We'll] sell travel products to
consumers and agents via [Affinity's] Web sites, not through
traditional retail storefront operations."
As reported, Affinity, the $2.3 million wholesaler of vacation
packages, has sold its retail operations, including Prestige Travel
Services, a wholly owned subsidiary that operated retail travel
agencies in Tampa and Fort Lauderdale, Fla.
Affinity also said it terminated its agreement to manage and
acquire St. Petersburg-based Travel Systems International and sold
its Goldmark Travel unit.
Affinity does not expect to realize any material gain or loss in
connection with the sale of Prestige or Goldmark, according to
Gerard LaMontagne, chief financial officer for Affinity.
That leaves Intrepid Travel of Seminole, Fla., which Affinity
plans to either sell or integrate into its wholesale operation at
SunStyle International Holidays here, Brandano said.
"With the most recent reduction of airline commissions from 8%
to 5%, it is now very difficult to attain profitable retail
operations," LaMontagne said.
"Due to eroding margins, we believe we will not be able to
generate a satisfactory return on our investment from retail
operations and therefore should shift the capital which has been
devoted to retail operations to our strategic e-commerce plan."