Apple Leisure Group Acquires Travel Impressions from Amex

Apple Leisure Group has agreed to acquire American Express Travel Related Service Company’s global tour operator business, which includes Travel Impressions and American Express Vacations International.

The deal is expected to be finalized by the end of this quarter. Terms of the transaction were not disclosed.

Per the agreement, Travel Impressions will license the American Express Vacations brand while continuing to operate as a preferred supplier of American Express Travel.

Gorga: opportunity to drive growth
“We are excited about the opportunity to drive growth and to innovate with Travel Impressions’ products and services,” said Steve Gorga, president and CEO of Travel Impressions. “This is the right next step for our company.”

Apple Leisure Group is a holding company comprised of AMResorts, Amstar, Apple Vacations and Unlimited Vacations Club. Bain Capital invested in Apple in December 2012 and is a strategic partner of the company’s management team.

“The acquisition of Travel Impressions and the international tour operator business they manage underscores our commitment to innovation and to building out Apple Leisure Groups’ market-leading portfolio and first-class customer service, now utilizing a larger vertical platform,” said Alex Zozaya, CEO of Apple Leisure Group.

Apple to agents
In an email notifying travel agents of the pending acquisition, Apple Vacations’ co-president Tim Mullen said that the transaction “will have no impact on the responsive, quality-focused service that is provided to customers of Apple Vacations or Travel Impressions today.”

“All current products, programs, contracts and customer service levels will be maintained, and both brands will work together to maximize the value we deliver to you.

“Travel Impressions will continue to operate its business as usual under the existing brand, selling its tour products and services to travel agents, agency consortia and independent agencies, as they do today,” Mullen said.

Agent concerns on direct distribution
However, there is concern that that Travel Impressions may shift to a more direct distribution strategy.

“It’s kind of scary,” said Mark Hennigan, a destination wedding and honeymoon specialist at Dreamers Travel in Hampstead, Md., which does a lot of business with both Apple and Travel Impressions.

“Apple goes direct, and Travel Impressions does not,” said Hennigan. “We get a lot of marketing support from Travel Impressions, and I’m curious if we’ll get that from Apple.”

Other supplier relationships may also be affected, he said.

“This is a huge concern for us because Apple doesn’t sell Sandals, and Travel Impressions is probably 95% of my Sandals business,” said Hennigan. “It’ll be interesting to see the future of the relationship between Sandals and Apple.”

Positive views
Sandy Anderson, owner of Riverdale Travel in Coon Rapids, Minn., was upbeat about the purchase.

“I’m thinking this is a good thing for the travel community. It shows that Apple is being aggressive in the marketplace, and I think Travel Impressions is really known for their customer service,” said Anderson, whose leisure agency does upwards of $10 million in sales annually.

Apple Vacations is a top vendor for her agency, a member of Travel Leaders. “My relationship with Apple is very good; they’ve always supported my business,” she said.

Surprised agent
Another Minnesota agent, Jennifer Yokiel, ACC, of Minnetonka Travel and Cruises, was quite surprised by the sale. “It’s a big one; very unexpected,” said Yokiel, president of the Vacation.com member agency.

Like Anderson, she saw the acquisition of Travel Impressions as a good move for Apple Vacations. “I think Apple has a lot to gain,” she said, noting the more upscale nature of Travel Impressions’ product.

“We used to do quite a bit of business with Travel Impressions. They’ve got phenomenal products. They’re really well organized. I’m hoping that translates over to Apple.”

Marilee Crocker and Maria Lenhart contributed to this report.