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MERGERS AND ACQUISITIONS PREDICTED

THE TOUGHER ECONOMIC environment may spark a new round of travel management company mergers and acquisitions this year, Portman Travel commercial director Michael Hare has warned.

Speaking after the Guild of Travel Management Companies' annual general meeting, Hare - the organisation's deputy chairman - said: "There are certainly travel management companies that are on the acquisition trail. As the year progresses I think we will see that increasing. Inevitably we will see more consolidations in the third and fourth quarters."

However, both he and Guild chairman Maurice Veronique will enjoy some successes in 2009. "This coming year is going to be difficult but we are ready for it," said Veronique, chairman and chief executive of The Appointment Group. "All of a sudden people are knocking on our door and asking us to come in and see how we can save them some money."

Hare added: "As an industry we are very resilient - we have been through this before."

The Guild has welcomed three new members in the past year - Business Travel Direct, Co-operative Travel Management and Wexas Travel - and for the year ahead, Veronique has ordered a "radical re-evaluation" of the organisation's structure.

"The Guild will continue to play a pivotal role in the travel management sector," he said. "Our strategy for 2009 is to create an organisation that is a magnet for travel management companies, customers, suppliers, and all those involved in the industry. We now look to the government, and indeed global leaders, as well as the banks and financial institutions to be brave and stimulate the economy."