Simon Hargreaves is managing director of the Travel Trust Association
With news the Worldchoice board has recommended acceptance of the Travel Trust Association offer, you might think I am a fan of mergers and takeovers. But, normally, nothing could be further from the truth.
Most mergers I have seen in my business life were about market share rather than profitability. So why am I excited about the Worldchoice/TTA merger?
Both organisations and their members are successful in their own right and would continue to be, with or without a merger. Both organisations fiercely support their independent members and will continue to do so. There will be no change to the overall mindset and direction of the businesses.
But where they differ is in the models and options they offer members.
A key difference is the strengths of our respective technologies. Consumers’ Internet use continues to rise, and they are demanding more choice. That requires we invest
more in technology for members.
A joint organisation will adopt each component’s technological strengths and develop single solutions at a lower cost. That has to be a good thing.
The clichéd reason for merging is to drive better deals from common suppliers. That may prove true, but the deal can be successful without this.
I expect all members to get better options from suppliers. Given the need for an independent company to provide customer choice, the range of suppliers and value for money are more important than anything else.
I was cynical when I first realised TTA and Worldchoice might merge, but this cynic has been converted. I may be new to travel, but I know that if you don’t drive your business, you will be driven out of business.
- ‘The Worldchoice board believes the deal meets all objectives and that members and staff will have an exciting future’
Colin Heal on the Worldchoice and TTA merger