NEWS - Travel Technology
VTS Travel chief mulls pursuit of 800 Travel Systems(1/10/01)
twcrossroads.com
By Dennis Schaal
TAMPA, Fla. -- VTS Travel chief executive officer Vince Vitti said he intends to increase his stake in 800 Travel Systems and will consider "a takeover or merger" involving the discounted air and hotel company and the firms he already controls.
Vitti owns 7.5% of 800 Travel Systems, which is based here, and is on its board of directors. He also heads VTS Travel Enterprises, a corporate travel agency, and First Internet Travel, which runs a consumer hotel site, at www.1800usahotels.com. Both are headquartered in Mahwah, N.J.
800 Travel Systems released a statement indicating that Vitti views the Tampa company's stock as undervalued; that he and his companies intend to buy "substantial quantities of stock" over the next three months, and that "a takeover may be initiated if significant stock becomes available through the public market."
The development is viewed as friendly by Peter Sontag, the chief executive officer of 800 Travel Systems, which owns Lowairfare.com and Cruisebrokers.com.
"The big picture is that the industry is consolidating and the only thing that vendors/suppliers understand is volume," Sontag said. "A closer relationship with First Internet Travel is extremely beneficial to our customers and shareholders so I'm very pleased."
Vitti said he's "absolutely supportive of 800 Travel Systems and I have the long-term belief that the company is uniquely positioned to expand using the combination of its telephone call centers and Internet chat protocol."
800 Travel Systems employs some 370 people and operates call centers here and in San Diego. Some 85% of its business is done through telephone bookings and 15% is done on line.
Vitti said he will buy more 800 Travel Systems stock, which has been trading at just under $1 on average for the last 50 days, and continue to assess market conditions about further moves.
He said a possible combination, if he pursued it, would be to blend First Internet Travel's consumer hotel business with Lowairfare.com's air inventory. 800 Travel Systems and Vitti's companies already have a marketing alliance.
In its Winter 2001 issue, Fortune Magazine's Technology Guide named Lowairfare.com one of its top 10 sites of the future, citing its live agent and Internet chat features.
800 Travel Systems reported a net loss in the third quarter of $453,570. |
