Could this be the start of a vast domino effect in the business travel sector, and in particular the TMC ? A few hours after the announcement of the redemption ofEgencia by American Express GBTanother operation was unveiled by TripActions. The start-up specialising in business travel management is acquiring the services of Reed & Mackay, a prestigious British business travel agency which will be celebrating its 60th anniversary next year. Reed & Mackay has made a name for itself on the French market through the acquisition of Frequent Flyer Travel Paris at the end of 2017. Marc Leidelinger, Chairman and founder of the French agency, said at the time: " I've been to dozens of TMCs around the world, and if there's one I admire, it's Reed & MacKay. ".
The acquisition of Reed & Mackay was made official on 5 May. This is the first transaction of its kind for TripActions, which raised $155 million in funds at the beginning of the year. The objective is clear: to combine the technological expertise of the start-up with the human know-how of the British business travel agency: "This acquisition (...) combines TripActions' user-focused, technology-driven business travel and expense management solutions with Reed & Mackay's prestige and personalised service", explains a TripActions spokeswoman. She added: " Together, the group will join forces to offer an unrivalled business travel and expense management solution for companies of all sizes around the world. ".
5,000 customers, $5 billion in business travel expenditure
With this acquisition, the entity will be responsible for managing some $5 billion in business travel expenditure, with a portfolio of 5,000 clients worldwide. The press release states that the Reed & Mackay brand will be retained, as will the agency's employees.
" This acquisition significantly alters the TMC landscape and it is pleasing to see TripActions continuing to invest in the European market. "says Scott Davies. The CEO of the Institute of Travel Management (ITM) continues: " The combination of TripActions' business travel and spend technology with Reed & Mackay's personalised service and scale will create a very compelling proposition across a wide range of market segments. ".
