AUSTRALIA-BASED Corporate Travel Management (CTM) has acquired 75.1 per cent of Westminster Travel for A$49.2 million (US$45.2 million), effective January 31, 2014.
The deal will not affect Westminster’s existing management structure or company name, and managing director, Larry Lo, continues to steer the ship.
“We will act as a hub in Asia for CTM, looking after the business in Asia and China. We can bid for more tenders together (with CTM) in future. We can also leverage on CTM’s global network with GlobalStar membership for longhaul travel business.
“Apart from corporate travel, the retail business remains a focus as diversification has been our key strategy. In 2014, Westminster aims to expand its retail business via Wincastle Travel and S Travel brands. So far, Wincastle has added two branches,” said Lo.
Westminster has adopted a proactive strategy this year. In April, it entered into a joint venture in China to establish Mia Travel, a subsidiary specialising in tour and travel management services, with a 60 per cent stake. The subsidiary targets mid- to high-end longhaul tours – leisure and MICE – and currently runs offices in Shenzhen and Guangzhou.
Edmund Tsang, general manager for business development, Swire Travel, expects the acquisition trend to prevail as GBTA has predicted China’s business travel spend to increase by 14.3 per cent this year, and at more than double the rate of the US in 2014.
“Hong Kong is regarded as a springboard for international operators who have interest in the destination but lack local know-how. CTM will benefit from Westminster’s expertise in China, as well as its strong distribution and wholesale network,” said Tsang.
