03 January 2011

Amadeus Continues Shedding Of Non-Core

Amadeus has completed the sale of another of it's non-core businesses with the offload of Vacation.com to Travel Leaders the off-shoot from Carlson run now by Mike Batt.

The sale brings a concentration of market power from the independent agents of Travel Leaders, Vacation.com and Nexion. While the numbers are impressive for the three businesses, it really doesn't make a lot of disfference. Given the concentration of the larger online and offline businesses - there is pretty much no place any more for the small mom and pop shop.

For Amadeus this continues the trend of its offloading of non-core businesses. This leaves only one sore thumb outstanding to dispose of - Opodo - fire sale anyone for say Expedia who needs a market share boost or possibly Priceline? It also positions the company for a major purchase of a different line of business. With only 2 planks to its core - Airline IT and GDS - the company needs a third leg to balance out the company.

Clearly the bets it made earlier in Hotels, OTA and Travel Agency networks have failed to ignite a dominant position that it commands in its other traditional business segments.

A new CEO at the helm is coming from the CFO position will likely signal a period of fiscal conservancy in the company. But with a solid balance sheet and a pile of cash sitting there - not to mention an accelerating revenue stream in an oligopoly market with no real clouds on the horizon for at least another year - the company has many options in front of it.

But which way will they go?

Inquiring minds want to know... send me a post card of an email with some of your suggestions. I will then put it up as a poll.

With thanks to Zazzle for the image.

No comments: