WTL Waterlogic

RNS Number:5832X
World Travel Holdings PLC
22 January 2001

                          World Travel Holdings plc


 Acquisition of Travac, New York based flight consolidator,and New Marketing
                             Alliance with TRAMS


       WTH's US profile significantly enhanced by two new associations




London, UK - 22 January 2001 - World Travel Holdings plc ("WTH"), the global
travel technology and services business, today announces that on 19 January
2001 it acquired Travac Tours and Charters LLC, the owner of the long
established Travac flight consolidator business ("Travac").


Travac is based in New York and Florida and supplies discounted airline
tickets by telephone to travel agents, particularly those on the Eastern
Seaboard of the United States. It has good working relationships both with its
travel agent customers and with the airline suppliers. It also owns a consumer
website (www.thetravelsite.com) which it uses to distribute its fares and
certain other travel services, such as package tours and rail journeys,
directly to US consumers.


In the year ended 31 October 2000, Travac generated ticket sales of over US$20
million of which nearly 90 per cent. were to the travel trade. In that period
it generated US$1.8 million of operating profit and a small net profit before
owners' remuneration. At 31 December 2000, Travac's net assets were US$0.4
million including some US$0.6 million of cash.


The consideration for the acquisition is US$725,000 which was paid in cash on
completion and up to a further $175,000 cash and 250,000 new ordinary shares
of 1p each in WTH, dependent on the level of sales in the 6 months following
completion and the 15 months following completion. There will also be an
adjustment made to the initial consideration to reflect the difference in the
audited net assets of Travac at 31 December 2000 from US$355,000.


The Directors of WTH believe that this acquisition brings the following
significant benefits to the group:

- Travac is an established, cash rich and cash generative business,

- The association opens up direct relationships between WTH and US airlines,
mirroring the relationships in the UK between the airlines and WTH's UK
consolidator,

- It adds a further consolidator's fares to the Group's fare1 offering in the
USA,

- The relationship brings the Group an established website which enables WTH
to take the WorldTravelDirect offering to the US consumer,

- It should also enhance the relationships between fare1 and Travac's travel
agent customers,

- The association between Travac and WTH should also enhance Travac's levels
of business and profitability.


Jonathan Biles, chief executive of WTH, said "The acquisition of Travac is a
significant boost for the Group. Not only does it provide us with access to a
substantial and profitable business and a further database of airline fares
for fare1 but it also opens opportunities and flexibility for the development
of fare1, Travac and a US consumer business. These should enhance the Group's
future profitability."


"Our fare1 offering is continuing to gain acceptance with US travel agents and
with the Christmas/New Year break completed we expect to see more indicative
booking patterns starting to emerge."


In a separate deal, WTH also announced today that it has entered into an
agreement with TRAMS for a joint marketing alliance. TRAMS is the leading
provider of database management and back-office technology to US travel agents
and the alliance will strengthen the offerings of both WTH and TRAMS to the US
travel agents. WTH will be introducing TRAMS' 11,000 travel agent subscribers
to fare1 over coming months.




Contact:

Jonathan Biles - World Travel Holdings plc 020 7456 1352

Giles Sanderson or Emma Rutherford - Financial Dynamics 020 7831 3113


NOTES TO EDITORS:


World Travel Holdings plc

WTH distributes travel products and services, predominantly through the
Internet and mainly to travel agents, using the Group's proven technology
platform Powerflyer. WTH supplies scheduled and negotiated fares, car rental,
hotel bookings, travel information and travel insurance over the Internet.
These products and services are supplied through distinct channels: Fare 1 for
travel agents, WorldTravelDirect.com for consumers and Trident for corporate
customers.


The travel market:

- Global travel market estimated at over US$500 billion in air travel alone
each year

- Only 20 per cent. of those who research travel online then book online

- It is currently estimated that approximately 12 per cent. of the global
travel market will be booked directly on the Internet by consumers by 2003

- It is currently estimated that 88 per cent. of travel commerce will be
booked by other means - principally travel agents - by 2003

- Over 40,000 travel agency offices in the US with estimated 250,000 personnel

- Each US agency location processes on average 350 tickets per month

- 8,500 travel agency locations in the UK with 23,000 travel agency managers


For more information, log onto www.worldtravelholdings.com

Waterlogic (LSE:WTL)
Historical Stock Chart
Von Jun 2024 bis Jul 2024

Waterlogic (LSE:WTL)
Historical Stock Chart
Von Jul 2023 bis Jul 2024