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Uniglobe Franchises Form New Regional Agency
JUNE 05, 2007 --
Uniglobe Travel USA has merged nine of its top agency franchises and its franchisor division to create a separate $200 million consolidated travel management company that will focus on corporate accounts of up to $20 million in annual air, car and hotel spending, the company's leaders said.
On average, the members of Uniglobe Travel Partners handle accounts of $8 million to $10 million, but the merger will enable them to add large multinational accounts to its portfolio of 225 major accounts, according to Marie Magliano, president of the newly formed company. "We are going to take it to the next level," she said.
In an equity shareholder, joint ownership deal, Uniglobe Travel Partners will have 13 offices in 11 U.S. cities, including New York, San Francisco and Houston. The company remains part of the Uniglobe network, which has more than 700 franchises in 30 countries
"The move positions them with the large regionals, said Mark Walton, principals of Deerfield, Ill.-based travel management consultancy Consulting Strategies. "They are now large enough to be competitive with good-size corporate accounts. Given the right changes to their structure and the right integration, it can be done."
The company will use Amadeus as its official GDS, the Amadeus E-Travel Management online booking tool, Cornerstone's management information systems and GDSX for quality control automation, and will continue to consolidate suppliers, Magliano said
Magliano, president and CEO of the Mount Arlington, N.J-based Uniglobe at Best Travel, will serve as president of the newly formed company. Her New Jersey office is serving as the company's headquarters. Doug Carpenter, of Blue Bell, Penn.-based Uniglobe Wings Travel, will serve as CFO and treasurer and Mary Hanigan, of Lake Oswego, Ore.-based Uniglobe Spectrum Travel, will serve as corporate secretary.
There are no current plans for future consolidations within the franchise network, but chairman of Vancouver-based Uniglobe Travel International Gary Charlwood is not ruling out future mergers.
"The likelihood of others being formed is there, but it's remote," he said. It's taken a long time to form this. It's a possibility but not as likely as this because there has been such a long gestation time."
More consolidation in the travel business, however, is inevitable, Walton said. "Consolidation in the travel agency arena isn't even close to being done and there are opportunities in the travel space for future consolidation."
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