Direct Travel is phasing out travel management technology TripStax's third-party customers as it brings the TripStax team, expertise and technology more closely into its own organization, the travel management company confirmed to BTN.
As of now, TripStax no longer is pursuing any third-party customers, and it will not renew contracts with current third-party customers, Direct Travel chief business officer John Coffman said. The TMC will work with those customers, so those with more immediate renewals might have the opportunity for an extension as they work on the transition, he said.
"We recognize that they have several customers that depend on TripStax," Coffman said. "We are working closely with each of those customers to make sure their needs are met throughout their contract terms, and we're making investments to help them in any kind of timely transition that makes sense for them."
TripStax was developed by U.K.-based TMC ATPI—a longtime partner of Direct Travel that was acquired by Direct Travel last year—and in 2022 was spun off as a standalone company to sell the technology to TMCs and other travel companies. It has remained wholly owned by ATPI and, by extension, Direct Travel following the acquisition.
Upon its launch as a standalone company, TripStax offered eight technology modules, supported by a central data core, and it received an honorable mention from judges at Business Travel Show Europe's Innovation Faceoff in 2022. Among the customers announced over the years have been One Global, Altour, and team travel booking tool Tripgrid.
'Significant Offers' but No Sale
Business Travel Magazine first reported last week that TripStax CEO Jack Ramsey was stepping down in November amid Direct Travel's new plans for the company. Ramsey will continue to assist Direct Travel in the interim, and TripStax chief product officer David Chappell is acting as the key staff and customer contact, according to a statement provided to BTN. Chappell also is leading the development plans and roadmap.
The statement noted that Direct Travel had explored a sale of TripStax over the past year and had received "significant offers from investors." Ultimately, Direct Travel concluded that it had too much strategic value and would play an important role in its own technology strategy.
"The technology investment is playing a larger portion of our budget and other travel management companies' budgets, and therefore, we really need to have that expertise focused and supporting Direct Travel's business as well as our customer needs as our portfolio continues to grow," Coffman said.
Coffman said it is still a bit early to outline specific plans for TripStax within Direct Travel. One area of focus will be on modules around crew movements and offshore energy, a "state-of-the-art" capability the TMC aims to leverage and grow within other aspects of the business. It also will provide opportunities to enhance Direct Travel's Avenir offering,he said.
"We all know AI and other areas are taking a bigger play, and TripStax was investing in some of those," Coffman said. "It's more about aligning those investment needs and dollars into a fashion that we can leverage for our customers."