Direct Travel, a prominent travel management company based in Colorado, has announced the acquisition of British firm ATPI, a strategic move aimed at expanding its global footprint. This partnership is expected to generate over $6 billion in annual travel volume, encompassing corporate and leisure travel, events, and specialized sectors.
The acquisition, confirmed on October 2, 2023, marks a significant milestone for Direct Travel, which has been operational for nearly 50 years. The financial terms of the deal were not disclosed. According to Direct Travel CEO Christal Bemont, the integration with ATPI, known for its extensive global presence across more than 90 countries, will enhance offerings in specialty markets such as oil, mining, and energy.
ATPI, while a leader in international travel management, has limited operations in North America, aligning well with Direct Travel’s focus on the U.S. and Canadian markets, where it derives about two-thirds of its business from corporate travel. Over the past few years, both companies have collaborated to serve over 100 customers, yet the separation in organizational structure has hindered optimal customer experiences.
“Our partnership has been strong, but coming together will allow us to operate more seamlessly,” Bemont explained. The merger aims to combine specialized services, innovative technologies, and skilled teams, enhancing the overall customer experience. Ian Sinderson, CEO of ATPI, emphasized this vision in a statement, noting that the merger will better serve clients collectively.
The newly formed entity will operate under the name Direct Travel and ATPI, with Bemont at the helm as CEO and Sinderson taking on a leadership role as president of various divisions. The combined workforce will consist of approximately 4,400 employees, positioning the merged company as a formidable player in the travel management sector.
Bemont anticipates minimal overlap between the two organizations, describing their integration as synergistic rather than duplicative. She joined Direct Travel in April 2024, focusing on enhancing technology to match the company’s reputation for exceptional customer service.
The travel management industry has faced considerable challenges in recent years, particularly during the COVID-19 pandemic. While business travel is rebounding, many competitors struggled to survive. “The pandemic hit hard, and many companies fell behind in technology,” Bemont noted, pointing out that layoffs have negatively impacted service levels.
According to the Global Business Travel Association, the global business travel market is projected to reach a record high of $1.57 trillion by 2025. Despite this optimistic forecast, the association anticipates only a moderate growth rate of 6.6% for the current year due to ongoing global tensions and policy uncertainties.
In Colorado alone, the business travel sector supported approximately 98,541 jobs and generated $5.5 billion in wages and income in 2022, highlighting the critical role travel management companies play in the economy.
As Direct Travel and ATPI forge ahead, the merger sets the stage for a new era in travel management, focusing on enhanced service delivery and technological advancements. The industry looks forward to witnessing the impact of this collaboration on both corporate and leisure travel markets.