INTERVIEW
By MOLLY DYSON
Ed Adams and Gary Pearce Direct Travel’s CEO and ATPI’s CCO on their joint venture
Ed Adams CEO, Direct Travel
n Adams set up Direct Travel in 2011 with support from private equity firm Silver Oak Services Partners and the TMC has made nine
acquisitions so far. n Previously he founded Professional Travel Corporation in 1983 and later created Navigant International, which was sold to Carlson Wagonlit Travel in 2006.
Gary Pearce, CCO, ATPI Group
n Pearce has held senior roles within the TMC sector, specialising in the energy, marine and offshore
industries. n In 2013 he joined Griffin Travel, which was acquired by the ATPI Group the following year.
when speaking to Ed Adams, CEO of Direct Travel and Gary Pearce, ATPI Group’s chief commercial officer. Adams explains: “Direct Travel is very
D
strong in North America, but less so outside our home market. We’ve been working with consortiums, which have their place, but as the world continues to shrink and so many middle men are expanding, it made sense to form a new company. We looked for a partner with a similar culture to our own; we both have ambitions to grow globally and look for new opportunities. “ATPI was the perfect fit in terms of innovation,
culture and agility. We spoke for over a year about forming a partnership. We had some history of supporting each other’s clients, so it made sense to form a joint venture with 50 per cent ownership on each side.” Pearce says that part of the reason for the deal
from ATPI’s point of view is that ATPI is “stronger outside of North America”. He adds: “We were looking for a way to expand our horizon within
IRECT TRAVEL AND ATPI have joined forces to establish a joint venture called Direct ATPI Global Travel. The rationale behind this partnership soon becomes clear
been phenomenal. We’ve won business from eight to ten new clients and had the opportunity to take existing clients from both companies into the new JV to support them better.”
SUCCESSFUL FUTURE Direct Travel and ATPI look set to benefit from new business opportunities in markets they may not have reached separately. Pearce attributes future success to both companies having similar technology strategies. “We wanted to go to the marketplace being
known as the travel company that can consolidate travel management on multinational profiles with the same platform,” he says. “We’re using the same product and tying our tech together – unless you’re one company, that’s hard to do.” The ability to grow with clients is another
selling point, says Pearce. “The joint venture also offers scalability. For growing enterprises looking for a TMC to support them in multiple markets, the partnership can support them going into new locations thanks to our local partners.” Adams adds: “If you don’t have ownership and
control of the partner in the country you’re calling upon, it’s difficult to put effective management in place. This is the best of both worlds in that we
“We’re going to expand cross-selling opportunities. I envision us becoming more integrated”
North America. The scalability on offer with Direct Travel fits our client base. I really like the Direct team’s entrepreneurial spirit and forward- thinking. We both wanted to make sure we did the right things for our clients, so we took our time to do this correctly.” The combined group has annual sales of more than US$7 billion with 4,500 employees in 150 offices across 60-plus countries. Recently it exhibited under the new banner for the first time in Europe at the Business Travel Show. Adams and Pearce report a successful
Ed Adams 38 BBT March/April 2018 Gary Pearce
start for the JV. “We couldn’t be happier with the partnership,” says Adams. “We’ve had joint management opportunities on a number of occasions and it’s going wonderfully. We’re empowering our employees and learning a lot from ATPI. So far it’s been a seamless transition.” Pearce agrees adding: “It has exceeded our expectations. Having a bigger presence has
have ownership in a country that can respond to that country’s needs, which means clients have assurances that we can deliver on our promise.” While the JV is off to a good start, Direct Travel
and ATPI have decided to continue operating under their own brands in their home markets. Looking to the future, growth is still the main priority for the JV and each company individually. “Direct Travel is going to continue to make acquisitions in North America,” Adams says. “Together, we’re going to expand cross-selling opportunities. I envision us becoming more integrated as we move forward.” Pearce agrees: “We will focus on continuing to
grow the new company. We’ll find new markets and pursue opportunities. As the marketplace expands, we need to make sure we can establish partners to continue growing globally.” “This has been a phenomenal opportunity for
both companies and our people have integrated very well,” says Adams. “We’re looking at this as an opportunity to be very agile in how we grow from here on out.”
BUYINGBUSINESSTRAVEL.COM
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