New York-based travel management company Altour announced
late on Wednesday the acquisition, signed on Monday, of Savage, Minn.-based
Advantage Travel & Incentives, primarily because of its strength in
meetings and incentive services.
Altour president Alexandre Chemla told BTN that Advantage "is perfect for
us because the segment we have been missing is in the group and incentive
area." He said that meetings and incentive services account for about 40
percent of Advantage's $90 million in annual sales revenue, with the rest
coming primarily from business travel. He would not disclose the purchase
price, but said that he had been "impressed by the quality of the people.
We don't really acquire a business, but people. We wanted to acquire Advantage
because they have the same spirit of business as we do."
Chemla did not sign Advantage's management team, led by its president, CEO and
founder Mary Sue Leathers, to two-year contracts, as is often the case in such
acquisitions, but said that he hoped they would stay on indefinitely
"because they have been doing a great job."
Chemla said that structurally Advantage would be combined with The Travel
Authority, another Midwest travel management company that Altour bought last
fall. Lee Thomas, president of TTA Operations for Altour, who reports to
Chemla, will manage Advantage operationally and financially.
Thomas, in a prepared statement, said, "The business mix and utilization
of technology for the corporate traveler will enhance the service experience
for both Advantage and The Travel Authority customers."
Chemla said that with corporate travel accounting for 70 percent of Altour's
business today and with every company having some kind of group and incentive
activity, he anticipates Advantage being able to capture a lot more business,
especially with additional sales strength of the larger organization, which
claims a travel volume in excess of $900 million.
While the purchase is complete, he expects the integration of the 15-year-old
Advantage to take about nine months, a timeframe similar to that of The Travel
Authority integration into Altour's 24-hour call center.
While Chemla said acquisitions present some opportunities and risk,
particularly during uncertain economic conditions, he also said, "we have
seen in an improvement in the business, and in Advantage's business at the same
time."
In a prepared statement, Leathers said that Advantage team is looking forward
to "the increased buying power and enhanced capabilities Altour
offers."