Major Travel Agencies Are on a Consolidation and Expansion Fast Track

Sparked by record sales and demographic trends, travel agency consolidation and expansion is happening at a fast pace. Just within the last few weeks, mergers between large and midsize agencies include Frosch International Travel's acquisition of Luxe Travel, Direct Travel's acquisition of Professional Travel, and Coastline Travel Group's acquisition of World Travel Bureau. Other agencies, among them Protravel, Ovation Travel, and Avoya Travel are expanding by opening new locations and/or beefing up efforts to increase their networks of independent travel advisors. "It's a huge time for agency growth, especially through acquisition," said travel agency management consultant Robert Joselyn of Joselyn Consulting Group, adding that the number of agencies seeking counsel on expansion plans has skyrocketed in recent months. The agencies involved are privately held, and they didn't disclose terms of the deals. What's behind it? According to Joselyn, the expansion through acquisition trend is not only a result of prosperity, but the growing challenge of finding seasoned travel advisors to staff new offices. "A lot of travel agencies have the financial means and desire to expand, but the difficulty they face is a declining pool of experienced travel advisors to draw on," he said. "The quickest way to get around this is to acquire existing agencies that already have advisors." At the same time, the number of travel agencies for sale is also rising, Joselyn added. "The aging of the travel advisor population means an increasing number of travel agency owners are planning to retire," he said. "They're looking for a succession plan and strategy for their business. So there are opportunities out there to buy agencies." Wh