Blog homeGreat article written by Travolution about consolidation in the travel technology sector
There is a strong chance that a major independent travel technology company will emerge during the current economic climate, a senior travel executive has predicted.
Comtec chief executive Simon Powell told Travolution this week that consolidation in the technology sector is needed and inevitable as travel firms look to outsource IT requirements away of the existing axis of GDS-backed suppliers such as Amadeus, Travelport and Sabre.
“Similar to the big tour operators last year, there will be some major consolidation amongst the travel technology firms in the next year,” Powell said.
It is “more than likely” that like-minded providers of IT and software who are strong in different regions and disciplines will come together to form a major supplier of back-end systems for online and offline intermediaries and tour operators, Powell said.
He added: “There is now a real need for a large technology business that is not connected to one of the large GDSs to be created.
Comtec, which Powell admitted is currently focusing on growing its business in the US and improving its travel agency systems in the UK, would “want to be a part of any organisation” should it emerge.
A financial warchest made available following the company’s private equity deal earlier this year could still be used for acquisitions, Powell said.
However I think we need a summary version
- Comtec wants us to believe (and worry that) a number of travel technology companies will go out of business in the next year. Nothing is more destabilising than this for competitor system suppliers looking to take on new customers.
- Comtec want to reassure everyone that they are not going to be one of those companies
- Comtec still have money left in their warchest for acquisitions
I would have thought it should have been suggested by “Jack” not “Simon” 
I am still left wondering whether this is elaborate PR to destabilise their competitors – or whether they are serious? Are you serious Comtec?
Alex humour 101 for non-native English speakers: Jack – after I’m all right, Jack
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Simon’s comments came at the very end of our discussion and clearly were not on the agenda for our initial conversation.
Comtec is very serious, i gathered from Simon’s comments. i suspect an organisation like Comtec is obviously in the business of letting the market know about its position, especially on the back of completely unfounded speculation (which isn’t worth repeating here) which i put to him AFTER the information above was gleaned.
any company of Comtec’s size has to be a player of some description if the consolidation he talks about is to happen.