Citystate Travel has announced its acquisition of Fortune Travel, one of Singapore's largest local corporate travel agencies.
This latest acquisition, which comes on the back of Citystate's own merger with its sister company Citystate Ardent Travel earlier this year, marks the latest step in Citystate's ambitious strategy to expand its offering to capitalise on the full recovery of travel.
Albert Ho, Executive Director of Citystate Travel says: "The acquisition aligns with our aspiration to grow the corporate travel business and will add much breadth and depth to our clientele portfolio, with sales revenue expected to be bumped up more than 2.5 times when travel recovers progressively over the next two years or so.
"The combined entities provide us the scale to allocate additional resources to upgrade our technology to enhance operational efficiency and customer services. I've always admired Fortune Travel for its incredible spirit of enterprise underpinned by its network of dynamic and independent sales associates."
Citystate Travel's Leow Tze Wen and Fortune Travel's Ng Choon Leng signing the acquisition agreement.
Shareholders of Fortune Travel made a decision to wind down the business operations due to severe impacts of the Covid-19 pandemic on the travel industry.
Fortune Travel CEO Ng Choon Leng expressed her gratitude to employees and long-time customers who have contributed to the success of the company over the years.
She added: "Because of them, the company is still in a strong liquidity and balance sheet position despite the pandemic. Our shareholders have unanimously agreed to the acquisition by Citystate Travel and will pursue other investment opportunities."
Both Ho and Ng believe that the acquisition will result in synergies as both entities are using the Amadeus global distribution system for travel bookings, which will enable seamless transfer of profiles.
Not only does the global network open up opportunities for some of Fortune Travel's larger corporate clients to tap on Citystate's capability and experience in supporting consolidation of travel solutions across markets in the region, Citystate also give clients access to the Radius hotel programme offering corporate rates worldwide, according to both leaders.