ALTON-based travel company, Travelbag Holdings plc, has this week been taken over by one of the holiday giants.

In what is expected to prove one of the biggest deals in the travel industry this year, Travelbag has been acquired by ebookers plc, making in part of the most successful online travel agency in Europe.

The move is viewed as an exciting one by Travelbag marketing director Colin Whaley, who believes it will enable Travelbag to grow at a much greater rate.

ÒThere is a lot of growth in the travel industry online and we will be part of that,Ó he said.

Respected as one of AltonÕs largest employers, Travelbag has a 600-strong workforce, about 200 of whom are based in the town.

The hope is that these jobs will be secure, but it is early days.

ÒAt the moment we do not know exactly how the two companies will be integrated. All we do know is that it will be very much about growth, about sharing knowledge and experience, and growth means change.Ó

With annual sales of £200m in its own right, Travelbag Holdings is one of the UKÕs top non-package travel companies, and has three well-known and established brands, Travelbag, Bridge the World and Travelbag Adventures.

According to ebookers plc the acquisition of Travelbag Holdings will give a combined group gross sales figure of approximately £500m, the aim being to reach £1bn within two years through organic and acquisition growth.

With over 98 per cent of its sales in long haul, Travelbag Holdings will bring with it a strong working knowledge of the Australian and New Zealand markets, combined with selling of adventure holidays, to supplement ebookerÕs main strength which is in the USA.

Even more important for Travelbag, it will provide major scope to increase internet sales of Travelbag brands, with the local company being able to draw on ebookerÕs experience of internet technology and marketing expertise.

While it is expected that the brands will retain their separate identities, head office and UK back officers will be merged.

Travelbag staff have recently moved into a new head office at Omega Park which, assured Mr Whaley, will continue as the Travelbag brand office. The company also has a training and sales facility at Barclay House in Amery Street and a shop - one of 12 across the UK, on Crown Hill in Alton High Street.

While Travelbag will continue to expand its services both at home and abroad, selling by telephone and in shops, it is the online provision which is expected to rocket.

According to a statement by ebookers plc, as a result some functions will be transferred to ebookers low cost Business Process Outsourcing facility in India, as was the case in 2002 following the integration of Flightbookers.

An aspect of the take-over which could be viewed as disturbing news, the Indian base, explained Mr Whaley, provided a lot of process-type functions and was largely used as an over-flow facility to cope with increased volume of work generated by a large online company.

ÒTraditionally, growth of travel companies in the UK is between two and ten per cent per year but ebookers has been growing at 60 per cent, and you have to control the cost of that growth,Ó he said.

Set up in Alton in 1979 by Australian entrepreneur Peter Wade, Travelbag has since grown into one of the biggest independently owned non-package deal travel companies in the UK.

For the past two years Mr Wade has taken a lower profile in the business, and has returned to Australia leaving managing director Peter Liney in charge.

Following the merger with Bridge the World in 2000, Mr Liney took over the running of Travelbag Holdings plc and now looks to expand his role further by becoming Group MD with ebookers.

ÒThis will be good for Travelbag. It will mean that we will be very much part of the new group and will be in a position of influence right there at the top,Ó said Mr Whaley.

Commenting on the acquisition, Dinesh Dhamija, chief executive officer for ebookers plc told The Herald: ÒTravelbag, Bridge the World and Travelbag Adventures are successful, profitable travel businesses, whose management I have always viewed with respect over the years.

ÒBy combining our organisations, we expect to increase buying power and broaden our product offering, accelerating ebookers towards our target of £1bn sales within two years.

ÒBy using our expertise to grow online sales in the Travelbag brands, and to reduce costs through integration and the transfer of functions to India, we expect to create significant value for shareholders.Ó

Peter Liney, managing director of Travelbag Holdings, added: ÒWe are very excited at the prospect of joining the ebookers group.

ÒI believe that this transaction represents a fantastic opportunity for Travelbag Holdings and that there is major scope to rapidly increase the sales for the Travelbag brands using ebookersÕ internet technology and expertise.Ó