TravelCube owner GTA has signed an agreement with MTS Globe to acquire its hotel distribution, destination management services and IT businesses. The deal represents a key strategic decision for both companies whose complementary portfolios will enable growth and an improved market offering in sun and beach, city and long-haul destinations.
Under the agreement, MTS Globe’s partner network and management team will remain unchanged and continue to trade under its MTS Globe, OTS Globe and Axis Data brands.
MTS Globe has long held a strong presence in sun and beach destinations and is the preferred partner for many European tour operators. Its successful and unique business model offers 12,000 hotels and customised destination services. In 2015, MTS Globe generated gross sales of €500 million. GTA has traditionally focused on city and long-haul destinations, establishing itself as one of the leading distributors of accommodation and destination services worldwide. In recent years it has been successful in growing a solid base in beach destinations.
“With this transaction GTA takes an important step towards fulfilling its vision to be the world’s easiest travel distribution partner to do business with,” said Ivan Walter, Chief Executive, GTA. “MTS Globe’s large portfolio in the Mediterranean beach destinations ideally complements GTA’s global accommodation and destination services offering. GTA will become a one stop shop for city and beach products worldwide and the increased portfolio will mean our customers can offer greater choice to travellers.”
Rembert Euling, Chief Executive, MTS Globe, said: “Under the new ownership, MTS Globe’s clients and suppliers will benefit from a clearer focus and distinction between our destination management services and hotel trading business. GTA’s global distribution network and investment will enhance growth opportunities for all business partners. The management team at MTS Globe, OTS Globe and Axis Data will remain the same and continue to drive value to our customers, while I will stay fully committed in supporting the further development of the new entity.”
Together, the partners will leverage their competencies to continually expand their beach offering worldwide. With the combination of the two companies’ distribution networks, MTS Globe’s suppliers will gain access to new markets.
The two parties have agreed to not disclose the purchase price or contract details. The transaction is subject to the approval by the relevant competition authorities.
GTA sells approximately 40,000 room nights per day online. More than 40% of its turnover is sourced from fast-growing markets in Asia, the Middle East and Africa.
MTS Globe is Europe’s largest independent incoming agency operating in 15 countries. Recently it has moved into long-haul destinations, opening destination management services in the Caribbean and the UAE.