The Ticker has learned that Northern Michigan's largest travel agency has agreed to sell to a New York-based "global leader" in travel and travel services. What will the pending buyout of Passageways Travel mean for Traverse City travelers? We asked two who would know.

Passageways Chairman and Chief Executive Officer Tom McIntyre says the sale to ALTOUR International will "position Passageways to be the undisputed leader for travel services in the state of Michigan," noting in particular that getting bigger is an advantage in today's travel industry.

"In an age of increasing competitive challenges for small and mid-size travel agencies, this move offers Passageways Travel…volume buying power of one of the largest travel companies in the nation," he continued.

The two companies have signed a Binding Letter of Intent (LOI) for the sale. The LOI is an “agreement to agree,” and is the final step in moving the transaction to an anticipated March closing.

Passageways, headquartered on Cass Street in downtown Traverse City, will continue to operate its offices as a Michigan-based corporation under its own name. No job cuts are planned.

Tom Rockne, principal of Tom Rockne Travel Resources and a former Passageways president, agrees that an eventual lack of local ownership will be outweighed by the benefits of being part of an international organization.

"Really, this should result in more competitive rates and access to some travel packages and programs that are only available to those agencies with significant volume, so I see this as a net positive," said Rockne.

For his part, ALTOUR President Alexandre Chemla noted, "We are excited to have the opportunity to add a highly respected and successful company like Passageways to the ALTOUR family…we look forward to jointly serving customers in Michigan with the highest quality in travel services.”

ALTOUR employs 1,000 in sixty-eight offices on three continents. Passageways was founded in 1980 by McIntyre, and has grown to become the largest Michigan-based travel management company.