Montvale, NJ – December 21, 2018 – Flight Centre Travel Group (FLT) continues to strengthen its North America presence by agreeing to acquire Silicon Valley-based Casto Travel Inc’s (CTI) US Operations.
FLT has entered into a Unit Purchase Agreement with CTI with the acquisition expected to close early February 2019. Established in 1974, CTI is one of the leading independent travel management companies in the San Francisco Bay Area employing 85 persons and generating total transaction volume of $120 million. CTI serves largely corporate travel complemented with a premium leisure offer from its three offices in San Jose, San Francisco, and Tiburon.
Managing director Graham Turner said the new business is a significant addition to FLT’s increasingly diverse global network. “Casto strengthens our overall US operation, which includes the highly successful and rapidly growing corporate travel business, along with our on and offline leisure businesses and wholesaler GOGO.”
“This will give us greater scale in Silicon Valley and in the large West Coast market, where we previously had a relatively small corporate travel presence, while also complementing our larger operations on the East Coast and in other key locations.”
Dean Smith, President of the Flight Centre Travel Group for the Americas, said acquiring CTI represents a significant piece of FLT’s future growth and strategic direction in the USA. “This acquisition provides us a tremendous opportunity to increase our presence in the West as well as leverage CTI’s local expertise and reputation for excellent service in one of the largest corporate travel markets in the world.”
“CTI’s location in the heart of the Silicon Valley also brings with it the benefit of access to the fast-growing technology sector.”
Joining FLT’s FCM Travel Solutions business gives CTI global reach, proven marketing expertise and a full corporate product suite to significantly increase opportunities to win larger pieces of business in the West. Both Marc Casto and Maryles Casto will remain with the company in executive roles post acquisition.
“Casto’s focus on pairing industry-leading travel technology with a continual commitment to excellence in service has created a history of success in Silicon Valley. We are excited to partner with Flight Centre Travel Group and extend their best-in-class global platform in this highly dynamic marketplace.” said Marc Casto, President and CEO of Casto Travel.
Casto Travel (CTI) was established in 1974 and has become one of the leading independent travel management companies in the San Francisco Bay Area.The business, which employs 85 people, is based in San Jose, California and now generates about $US120million in Total Transaction Value. CTI serves largely corporate travel complemented with a premium leisure offer from its three offices in San Jose, San Francisco, and Tiburon.
About Flight Centre
After starting with one shop in the early 1980s, Flight Centre Travel Group (FCTG) has enjoyed remarkable growth to become a $20 billion business consisting of more than 40 brands. One of the world’s largest travel agency groups, it has company-owned operations in 23 countries and a corporate travel management network that spans more than 90 countries. FCTG was listed on the Australian Securities Exchange in 1995 (ASX: FLT). Flight Centre Travel Group employs more than 19,000 people globally and has a total of almost 2800 businesses.
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