The Tollman family decides to sell a company it has owned for over a century
IAN STALKER
Two veteran Ontario travel agents are taking in stride the announcement that long-running, family-owned The Travel Corporation will see a new owner whose name isn’t likely to yet resonate among those working in the travel industry.
The Travel Corporation announced that it has reached an agreement with a U.S. firm that manages assets on a global scale to buy 18 TTC brands, including escorted tour operator Trafalgar; Uniworld Boutique River Cruises; youth travel specialist Contiki; premium guided vacation company, Insight Vacations, and other global travel brands and supporting business entities.
Red Carnation Hotels won’t be part of the acquisition by Apollo Funds and will continue to be overseen by the Tollman family.
The transaction is subject to conditions, including regulatory approvals. It is expected to close in the fourth quarter of this year.
“For more than 104 years our family has built TTC into an industry leader known for exceptional service and innovation,” TTC chairman Brett Tollman said. “Without a next generation to lead TTC, the time has come in our strategic succession plan to select a new owner with a proven track record and who shares in our vision and customer-first values. We will support a seamless transition and are confident the team at Apollo will continue driving the business forward to meet growing global demand for touring, river cruising and specialist and adventure travel.”
The Travel Corporation is now U.S.-based and has steadily acquired different brands over the years.
Pat Probert of Toronto’s Bob Family Travel said after hearing the news that The Travel Corporation and the Tollman family itself “have been awesome companies to deal with. However, a company is only a company at the end of the day. It is the employees, in our mind, that make the difference in any company out there and we believe the culture of team the Tollman family has bestowed on its vast companies shows in the amazing quality of the teams they have built and who execute the long-term plans.”
Overall, he feels that there won’t be any vast changes.
“However, some changes are always good, and we look forward to any positive changes,” he adds. “In addition to Uniworld, we deal with several of their companies like Trafalgar, Red Carnation and others because of the quality of the business and future sustainability they have offered for years and years to our clients. Service and product offerings are very important, and we look forward to what will be coming down the pipeline in the future.”
Similarly, Sheila Aue of Trevello Travel Group in Mississauga said she isn’t expecting any significant changes anytime soon.
“I don’t think this will affect the agents in the onset of the acquisition. We could possibly see changes later down the road if a change in business operations is required, but I would think it would be business as usual from an agent standpoint,” said Aue, who books TTC brands.
Meanwhile, Ethel Hansen Davey of Toronto’s Uniglobe Enterprise Travel Ltd. was a little more cautious about the announcement.
“My first thought, if it ain’t broke, don’t fix it,” she said. “I’m not sure why this move is happening and it would be a shame if the move has an effect on the level of service TTC has provided to our mutual clients over the decades. There is a very loyal group of travellers that insist on the this company for their tours. They have always been very good to work with from a travel advisor’s perspective.”
The Apollo name isn’t likely to be familiar to travel agents. The company describes itself as “a high-growth, global alternative asset manager. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth.”
As of March 31, Apollo had approximately US$671 billion of assets under management.
Apollo Private Equity Partner Michele Raba said her company is upbeat about the TTC’s prospects.
“TTC has a leading collection of brands that we believe we can take to the next level as an Apollo Funds portfolio company, leveraging our extensive experience in the travel, tech and hospitality sectors,” she said. “We’d like to thank the Tollman family for trusting in our good stewardship of the business they’ve built for more than a century and look forward to an exciting next chapter in which TTC can serve as a platform for growth.”
