Flight Centre Travel Group continues to strengthen its North America presence by agreeing to acquire Silicon Valley-based Casto Travel Inc’s US Operations.
Flight Centre has entered into a Unit Purchase Agreement with Casto with the acquisition expected to close early February 2019. Established in 1974, Casto is one of the leading independent travel management companies in the San Francisco Bay Area employing 85 persons and generating total transaction volume of $120 million (USD). Casto serves largely corporate travel complemented with a premium leisure offer from its three offices in San Jose, San Francisco and Tiburon.
Managing director Graham Turner said the new business is a significant addition to Flight Centre’s increasingly diverse global network: “Casto strengthens our overall US operation, which includes the highly successful and rapidly growing corporate travel business, along with our on and offline leisure businesses and wholesaler GOGO.”
“This will give us greater scale in Silicon Valley and in the large West Coast market, where we previously had a relatively small corporate travel presence, while also complementing our larger operations on the East Coast and in other key locations.”
Dean Smith, President of the Flight Centre Travel Group for the Americas, said acquiring Casto represents a significant piece of Flight Centre’s future growth and strategic direction in the USA. “This acquisition provides us a tremendous opportunity to increase our presence in the West as well as leverage Casto’s local expertise and reputation for excellent service in one of the largest corporate travel markets in the world.”
“Casto’s location in the heart of the Silicon Valley also brings with it the benefit of access to the fast-growing technology sector.”
Joining Flight Centre Travel Group’s FCM Travel Solutions business gives Casto global reach, proven marketing expertise and a full corporate product suite to significantly increase opportunities to win larger pieces of business in the West.
Both Marc Casto and Maryles Casto will remain with the company in executive roles post acquisition.
“Casto’s focus on pairing industry-leading travel technology with a continual commitment to excellence in service has created a history of success in Silicon Valley. We are excited to partner with Flight Centre Travel Group and extend their best-in-class global platform in this highly dynamic marketplace.” said Marc Casto, President and CEO of Casto Travel.