Business Editors/Travel Writers ORLANDO, Fla.-- --July 7, 2008--Contrary to what naysayers are touting about a soft economy threatening the travel industry, Travel Holdings’ continued growth indicates that the world’s need to travel is stronger than ever, and that travelers are continuing to act on that necessity.
Business Wire via NewsEdge :
Business Editors/Travel Writers
ORLANDO, Fla.--(BUSINESS WIRE)--July 7, 2008--Contrary to what naysayers are touting about a soft economy threatening the travel industry, Travel Holdings’ continued growth indicates that the world’s need to travel is stronger than ever, and that travelers are continuing to act on that necessity. Having nearly doubled in size annually since 1994, the wholesale travel distributor reports another celebratory year in sales revenue and has nearly quadrupled its earnings before interest, taxes, depreciation and amortization (EBITDA) both in 2007 and during the first quarter of 2008. In line with this growth and the paralleled success of its supplier partners, the global company also completes the launch of an improved accounting system that speeds the process of payments to inventory providers around the world.
“Last year, our top line revenue numbers increased by more than 38 percent, and our EBITDA grew 387 percent from 2006,” states Uri Argov, President and CEO for Travel Holdings, Inc., the parent company of Tourico Holidays, LastMinuteTravel.com and Travel Global Systems. “The numbers from this year’s first quarter are even more exciting, especially when taken into account with the perceived struggles of today’s global tourism economy. We have developed and implemented a sophisticated tool that forecasts the coming year based on five-year trends, business parameters, mathematical algorithms and revenue management iteration. This accurate system predicted last year’s numbers with only a 1.7 percent error, and currently forecasts a 62 percent growth on our top line and a 55 percent growth in gross margins this year compared to last. Additionally, 2008 EBITDA is expected to grow 122 percent compared to 2007.”
Travel Holdings experienced a rise of 59 percent in sales revenue during the first quarter of 2008 compared to 2007, and the company’s EBITDA was boosted by 343 percent from the same time last year.
“As our mutual business with supplier partners continues to grow this year and in the future, we will continue improvements to our accounting systems, dedicated customer service, and proprietary technology. Being on the pulse of this industry is our forte,” explains Argov.
To better report and deliver these growing sales to supplier partners, Travel Holdings has now assigned each of its accounts payable personnel with dedicated world regions, including contacts in charge of reconciling invoices for suppliers in Asia, Central and South America, Germany, the United Kingdom, United States, and more. The accounting staff is also now available during all time zones, twenty-four hours per day and seven days a week.
“More supplier payments are additionally being made through wire transfers directly to business bank accounts within two business days, ensuring the quicker delivery of payments. Prior to the implementation of this system, supplier partners could wait up to seven business days for credit card payments,” says Robert Fischer, Travel Holdings’ Chief Financial Officer. “We are working to become the best payer in the industry. Our DPO is way below 30 days and we intend to keep reducing the number further with our upcoming automatic reconciliation system.”
About Travel Holdings – http://www.TravelHoldings.com
Travel Holdings, Inc., one of the most distinctive and expansive travel distribution companies in the world, was created in 2004 through the merger of Tourico Holidays, LastMinuteTravel.com and Travel Global Systems (TGS). The company utilizes proprietary technology to supply travel inventory at competitive pricing to all segments of the online travel industry, including retail, wholesale, group, travel agents, corporate and affiliates. The company＇s core asset is its merchant hotel network, which exceeds 13,000 individual properties throughout North America, Europe, South America and Asia Pacific, supplemented with dynamic packaging from contracts with leading airfare, cruise, car, attraction and transfer suppliers.
For Travel Holdings, Inc., Orlando
Ypartnership Public Relations
Amanda Patrick, Account Executive, 407-838-1829
Amanda.Patrick@ypartnership.com
or
Travel Holdings, Inc.
Lauren Volcheff, Marketing Director,
407-667-8700 ext. 7355
Lauren@travelholdings.com
