American
Express Global Business Travel has acquired New York-based Ovation
Travel Group, the parent company of Ovation Travel, Lawyers Travel and, in the UK, Chartwell Travel, the travel management company announced on Thursday.
The
purchase by GBT is a major move in what could well be an active mergers
and acquisitions environment in 2021 for travel management companies.
Financial terms of the deal were not disclosed.
Ovation Travel Group and its employees will
become a division of GBT's global customer partnerships organisation and
will continue to be led by Ovation chairman and CEO Paul Metselaar and
the current executive team.
GBT global head of mergers and
acquisitions Eric Bock said in a press statement that GBT continues to
execute on its acquisition strategy in the US small and medium
enterprise market. "This acquisition adds a very high-quality asset and
business that will enhance the service and capabilities we offer
customers," said Bock.
Ovation Travel Group ranked 15th on US-based Travel Weekly's 2020 Power List,
based on 2019 volumes. At the time, the company claimed $1.6 billion in
annual sales, with 84 per cent pegged as corporate travel volume.
GBT,
ranked third on that list, claimed $34.1 billion in annual sales volume
that year. In the UK, GBT topped BTN Europe's Leading 50 TMCs ranking in 2020.
Recent developments at Ovation include a 2019 relocation within
New York City and establishing new offices in London.
Tina Rose, managing director of Chartwell UK in London, said “This acquisition is great news for Chartwell and the Ovation Travel Group. Our clients and travellers will continue to receive the outstanding, high-touch service to which they are accustomed while our business will benefit from the scale, technology and expertise that comes with being part of the GBT family.”
In 2020, as the
company manoeuvred through the pandemic, Ovation introduced private air
charter services and enhanced its traveller safety and support services.
The
company also diversified its online booking partners, announcing a new reseller partnership with Serko for its Zeno tool last summer, which
joined a booking partner offering that already included SAP Concur,
GetThere and Deem. With the acquisition, the company will presumably add
GBT's KDS Neo to that line up.
Metselaar said in a provided
statement, "GBT’s 100 years of service excellence, its values-driven culture, and its commitment to leading the industry complement us on a global scale, giving me huge confidence in the future. I am delighted we are joining the GBT family."
GBT's acquisition of Ovation follows Corporate Travel Management's September 2020 purchase of Travel and Transport.
Earlier this month, and also in the US, Direct Travel acquired
Short's Travel Management's corporate travel portfolio, not including
the Short's sports travel business, according to a memo Short's sent to
clients.