Carlson Wagonlit acquires US TMC

Carlson Wagonlit Travel (CWT) has acquired Pennsylvania-based Gateway Travel Management, in a move to grow its small and medium enterprise (SME) market.

CWT said the purchase of the regional travel management company (TMCTravel Management Company: An agency which manages business travel for a company.) reflects the global company's plans to increase its offering for smaller businesses.

CWT has also recently launched CWT Connect Now, an online travel tool for companies with a small to medium annual travel spend.  

Sam DeFranco, senior vice president of National Accounts for CWT North America, said: "GTM's expertise at serving SME clients in the Pittsburgh area will benefit CWT even further in this key market."

Previously privately owned, the 26-year old regional TMC handles $160 million in annual air volume.

CWT has taken on 80 employees with the acquisition, including CEO Jim Pekins.

Pekins said: "As companies of any size seek to grow and expand across borders, increased investment is needed to provide the level of technology and service clients and their travellers have come to expect."

He added the Gateway team feels CWT is "best suited to deliver those capabilities over the long term".

There is a growing trend among TMCs to go after SME business.

American Express Business Travel scrapped its American Express One product in February and created a revamped SME offering call AXcent (to be known as AXcentis in Australia and North America to suit local markets).

Rival TMC HRG launched its own SME product at the tail end of 2009 - Simply HRG - while in January FCm Travel rebranded its SME division as Corporate Traveller, to make it clear to customers that it was focussed on businesses with smaller travel spend.

www.carlsonwagonlit.com