WorldTravel BTI Takes McCord

WorldTravel BTI today merged with Chicago-based McCord Travel Management in a stock equity transaction, giving the Atlanta-based agency claim to be second only to American Express in terms of Airlines Reporting Corp. sales, with more than $3.8 billion in U.S. gross air sales for 2001. Also announced was the creation of a new, as of yet unnamed, $100 million meetings and incentives division within WorldTravel, to be headed up by former McCord CEO Bruce Black.

Under the terms of the deal, WorldTravel BTI retained its name and continued to operate under its previous management. BCD, the parent company of WorldTravel, maintained its position as primary and majority shareholder of the travel management company, but the Gidwitz family, formerly the primary shareholders of McCord, became the second largest shareholders in the newly merged organization.

Danny Hood, president of WorldTravel BTI, said that McCord's excellent market position in the key markets of New York, Chicago and Los Angeles made the agency an attractive partner. He added that Hoffman Travel, formerly a subsidiary of McCord, would be another important addition to the WorldTravel organization and that Hoffman would retain its name and management. He expected integration of the two companies to be completed within 90 days. When asked if other merger activity would be coming soon for WorldTravel, Hood said that he was interested in gaining market share in Houston, but that the agency would not make any major acquisitions or mergers for some months.

In related news, Synergi Global Travel Management, a $12 billion agency network with operations in 53 countries, announced that New York's Sea Gate Travel has become the network's only U.S.-based shareholder. The action coincides with McCord's merger with WorldTravel BTI, since the mega's affiliation with the Business Travel International network created a competitive conflict for Synergi-affiliated McCord.