MIAMI -- Why would a thriving agency that has grown to $18 million
in bookings in only 11 years sell the business to a large,
consolidating agency?
Even after posting sales growth of 21% and 16% in the last two
years, the three sisters who founded Express Travel here in 1989
sold the business to TraveLeaders Group, a travel firm in Coral
Gables, Fla., that launched operations early this year.
Since January, when TraveLeaders acquired Coral Gables-based
Around the World Travel, South Florida's largest agency with $130
million in bookings, TraveLeaders has acquired a total of 14 travel
companies in six states, with annual bookings of $400 million. (See
adjoining story.)
Olga Ramudo, president of Express Travel and one of its three
Cuban-born owners, said the sisters did not decide to sell because
of competitive pressures, even though they agree the industry is
being swept by consolidation.
"We could have survived," she said. "We think a $20 million
agency can survive, although I don't think a $2 million agency
can."
Express Travel was approached by three agencies with buy offers
last year, and rejected them all.
But when Express Travel was approached by TraveLeaders' chief
executive officer Keith St. Clair six months ago, the sisters were
interested.
TraveLeaders' cash offer was not the only inducement, she
explained. The sisters were attracted by the prospect of
participating in TraveLeaders' growth through equity, while
continuing to operate as a unit with the agency's 32 full-time
staffers.
For example, Express Travel will be part of TraveLeaders' newly
launched Latin American Division, which markets to South
Florida-based companies with operations in Latin America, a market
already well known to Express Travel.
Ramudo also said she trusts some of the familiar names and faces
who are involved in TraveLeaders.
"People in the industry that I've known for years are [at
TraveLeaders], and it gave me confidence in what they're
doing."
Ramudo cited Hector de Lara Jr., whose major Coral Gables
corporate agency, De Lara Travel, was absorbed by Around the World
Travel shortly before TraveLeaders acquired the latter.
Since early this year, de Lara has been managing TraveLeaders'
South Florida agencies, with $250 million in bookings, as regional
vice president for South Florida. He will also head the new Latin
American Division, where Ramudo will be one of two co-directors of
sales.
Equally important in the sisters' decision to join with
TraveLeaders, she said, was a similar philosophy of servicing
clients.
"The people I trust at TraveLeaders believe in the same things
we do: service and integrity, and they're telling us to run the
business as we did in the past."
Ramudo said having added resources and backing from TraveLeaders
would allow her staff to enhance its services to existing and new
clients.
Looking over her agency's momentous decision, she said, "I'm a
risk taker, and I have faith in the concept.
"All my life I've gone on my instincts, and I've never been
wrong."