Travel Agency Acquisitions Are Being Driven by Aging and Ambition
Photo Credit: The travel agency space has experienced a flurry of acquisitions in recent years. Paris, France, one of the top U.S. leisure travel destinations, is pictured here. Flickr / David Johnson
Skift Take
Many of the mergers and acquisitions among leisure travel agencies have been sought after by big companies looking to grow their sales volume, for a variety of reasons. But an aging population of agency owners is looking for an escape hatch as well, adding fuel to the acquisition frenzy.
Over the last few years, acquisition activity has heated up among travel agencies as the industry has finally bounced back following the 2008 financial crisis.
Bigger agencies are gobbling up small and niche agencies at a rapid pace, while experienced agency owners are looking to cash in before the next potential downturn in the market.
While the terms of many deals aren't disclosed because major travel agencies tend to be private companies, the biggest one so far seems to be Australian corporate travel giant Corporate Travel Management's $49.6 million acquisition of California-based Montrose Travel.
"There are agencies looking to expand through acquisition and looking to increase profitability, by combining volume they may be able to generate more revenue from sales," said Robert Joselyn, a travel agency consultant and founder of TAMS, a service providing
