New acquisition transforms RCG
RCG Companies is acquiring 1-800-CHEAPSEATS, the company announced.
RCG is one of the largest travel-tour operators in the US. It is acquiring Farequest Holdings Inc., which owns and operates 1-800-CHEAPSEATS, a well-known online travel company.
RCG currently owns SunTrips and Vacation Express, two of the largest leisure tour operators in the US. Each of the two companies serves more than 150,000 travelers a year.
The acquisition will transform RCG from a predominately offline tour operator into a full-service online and offline travel company, according to the company.
“The combination of RCG’s established tour operations with 1-800-CHEAPSEATS discount airfares, large online customer base, and online reservation technology, will position RCG to be a force in the online travel industry,” the company said in a release announcing the move.
1-800-CHEAPSEATS has more than 700,000 opt-in online subscribers. The company generates in excess of $4.5 million a month in airline bookings. It’s said to be one of the fastest growing online travel companies in the US.
1-800-CHEAPSEATS will offer additional sales and distribution outlets for RCG’s leisure tours and compliment its historical distribution through a network of independent travel agents in the US, according to the company.
RCG says it intends to eventually acquire 10% of Farequest Holdings stock.
At some point, RCG says it will change its name to more accurately reflect its business focus.
Report by David Wilkening
David
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