Four major travel agencies in Nigeria just came together to form the Travel Investments Company Limited (TICO). The companies are Touchdown Travels, Quantum Travels, Finchglow Travels Limited and Dees Travels. Touchdown and Quantum Travels are one of the largest travels agencies in Nigeria catering to most of the large corporates. They have in their clientele the International Oil Companies, Commercial Banks, Conglomerates etc.
The reason for coming together to form such a formidable consortium is obviously and effort to face of the very competitive airline industry that has come under immense pressure as the world hops from one economic downturn to another. Nigeria boasts of thousands of travel agencies all looking to secure huge deals with travel hungry private and public sector of the economy. The airlines have also in recent times reduce or completely taken off the fees that some of the agencies earn making them rely mostly on service charge as the likely revenue stream.
It is unlikely, that this merger will lead to lower prices for most travellers as this move is aimed mainly at securing market share, leveraging on synergies and dominating the market. It will be interesting to see how this pans out as most Nigerian companies are not known to stay through to the goals of a consortium. The consortium is also such that whilst the they will probably share operations and adopt the TICO brand name, they still mostly operate individually.