“A lot of folks that I’ve grown up with in the business would like to
have a capital event,” Adams says.
By scaling up through acquisitions, Direct Travel can cut costs, leverage
its investments across companies and get better deals from suppliers,
including airlines and car rental companies. Direct Travel is also cutting
back-office costs by moving to one system for its entire portfolio. Last year
it tripled its sales force to 15 people from five, and it now has a common
brand and marketing team.
Those moves have helped increase the organic growth rate of the
value of flights booked to 10 percent in the first quarter of this year from
a year earlier, up from a low single-digit annual growth rate in recent
years, according to John Coffman, Direct Travel’s chief financial officer.
“We’re starting to get momentum,” Coffman says.
has cut costs