Apple Leisure Group (ALG) and the Mark Travel Corporation agreed to join forces earlier this week, and while the financial terms of the agreement will not be known until the second quarter of this year, the group's future CEO Alex Zozaya said that the companies complement each other and will lead to innovation and added benefits to consumers and travel agents.
"Joining forces to create a leading integrated leisure travel and technology solutions company makes a lot of sense for both of us," said Zozaya.
One of the most important aspects of the deal for ALG is access to innovative technology through Trisept Solutions.
"Gaining access to the technology capabilities of Trisept was a compelling draw for ALG," Zozaya noted. "This will allow us to develop technology solutions for each of our brands and the travel agents we collectively serve."
Zozaya also touched on travel agents' concerns that there would be a less competitive market and assured them that they will have added benefits.
"Agents and their clients will be the primary beneficiaries of the integration," he said. "Agents will still have access to the same brands they've always relied upon, but the product will be more comprehensive. As a combined entity, we'll have more resources to leverage on behalf of our agent partners."
Details of what the new company will look like after the merger aren't expected until the deal is finalized in the second quarter of this year. KSL Capital Partners and KKL, which acquired Apple Leisure Group in late 2016, will continue to be majority stakeholders in the company, and Mark Travel's founder and CEO Bill La Macchia and Bill La Macchia Jr., chief engagement officer, at Mark Travel, will also continue to have a stake in the company.
Earlier this week, industry leaders noted that they look forward to seeing what emerges from these negotiations.
"Since travel agents sell the majority of volume for both of these brands, we believe that the retail travel distribution channel will be more important to them than ever," said Pam Young, senior vice president-industry relations at Travel Leaders. "If this merger results in broader product offerings and other efficiencies, it will be a good result for the agency community. In general, travel agents are loyal to a particular tour operator. If the merging of these brands brings about more content in their product offerings, that is good for travel agents."
Avoya Travel also noted that the new companies will result in added benefits for travel agents.
"It's too early to tell how the merger will directly impact Avoya's business, if at all, however, we feel very positive about the deal as they are both exceptional companies that we have strong relationships with," says Ashley Hunter, Avoya Travel's vice president of sales development.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
