| Journal: TWUK | Section: |
| Title: | Issue Date: 06/11/00 |
| Author: | Page Number: 2 |
| Copyright: Other |
Global distribution supplier eyes UK purchase in bid to target 25% market share
Amadeus plans acquisition of UK travel agency consortium
Report by JEREMYSKIDMORE
AMADEUS is planning to buy an agency consortium in the UK after spending $57.3 million on US-based vacation.com.
Only 10% of vacation.com’s 8,400 travel agencies use Amadeus but the global distribution system is expected to significantly increase that figure following the purchase.
Amadeus UK managing director Graham Nichols announced the deal at the ABTA convention. He said: “We clearly believe in this philosophy and you can draw the conclusion that we would like to do the same in the UK market.
“Vacation.com is a profitable business in its own right and we also believe we can massively grow our presence with the consortium. We can’t force anything on its members but we will put together a proposition which is attractive and makes them likely to switch to Amadeus,” he said.
“In the UK, we have 8% of the market and our target is 25% in three years. We have about 10% penetration with the big independent consortiums, but if we can do a similar deal here we will grow quickly.
“We haven’t started any negotiations yet but hope to move quickly.
“We totally believe in the future of the independent, using the latest technology,” he said.
ARTAC Worldchoice managing director Julian Foster said he would listen to any offers but added he would be cautious about being tied down by just one technology supplier.
“You have to listen to every proposition but I would approach it with extreme caution,” he said. “There would also be legal complications. We are owned by the shareholders who are our members and would have to call an extraordinary general meeting. It would get very complicated.”
Advantage Travel Centres sales and marketing director Colin O’Neill also said any deal would be complicated to sort out.
“If Amadeus contacts us, we will go to the members to get their feedback,” said O’Neill. “But if the idea is to guarantee distribution of their system, we could discuss a straight commercial deal. Anything more and they would have to speak to our members on an individual basis.”
Nichols: Amadeus wants to increase the number of vacation.com agencies using the GDS