Flight Centre Travel Group is shuttering wholesaler Gogo Vacations, part of a shift in its U.S. leisure strategy to focus more on luxury travel and independent contractors.
While the wholesaler is closing, Flight Centre said a transition team will be put in place to service and support all existing bookings.
“It was a difficult, but logical decision to close Gogo,” said Charlene Leiss, Flight Centre president of the Americas. “With the wholesale model struggling in recent years, it has become increasingly difficult to justify the high costs of maintaining this brand.”
Gogo, along with retailer Liberty Travel, was founded in 1951 by Fred Kassner and Gilbert Haroche in New Jersey. Flight Centre acquired Liberty and Gogo in 2007.
Flight Centre did not release numbers, but Leiss said some jobs would be cut as a result of the closure.
“While we regrettably have to part ways with some of the Gogo staff, we thank all affected employees for their dedication, service and commitment over many years to the Gogo business and remain committed to supporting them during this time,” she said.
The shuttering of Gogo is part of Flight Centre’s larger strategy for the United States. On the leisure side, that includes an increased focus on independent contractors and luxury travel.
“Effectively, we are playing to our strengths and doubling down in our best-performing sectors and where we see exciting future growth potential,” Leiss said. “We are also bringing the U.S. business into line with the leisure and corporate structures we have elsewhere in the world.”
The luxury focus, Flight Centre said, is evidenced in its expansion of U.S. leadership for tour operator Scott Dunn. Last summer, Scott Dunn — acquired by Flight Centre in 2023 — opened its first office in New York City.
A new brand for independent contractors
Additionally, Flight Centre has launched a new brand for independent contractors: Envoyage.
The Independent division is a network of some 1,400 independent contractors and currently includes the brands Independent by Liberty Travel, Independent by Flight Centre, Travel Managers, Travel Associates at Home, Flight Centre Independent, and Travel Partners. Envoyage will replace those brands.
“Independent travel has been one of the fastest-growing divisions for us in recent years, and the investment in our new brand signals the significant role we expect the network to play in our future business model,” said Flight Centre global leisure CEO James Kavanagh. “It’s our ambition that Envoyage will become a global powerhouse — the most comprehensive, trusted and recognized independent travel brand in market.”
Envoyage’s U.S. rollout will begin in March. Rollouts in Canada, South Africa, Australia and New Zealand are to follow.
No changes will be made to the operation of Liberty Travel stores and youth travel specialist StudentUniverse, Flight Centre said.
On the corporate side of Flight Centre’s business, travel management company Corporate Traveler USA is escalating its pursuit of small and medium-size clients.
Corporate Traveler USA recently shifted to a regional approach, forming hubs throughout the country designed to identify prevalent industries and acquire clients. Right now, the TMC has hubs in the Boston and New York areas, Chicago and Southern California. Further expansion is planned.
Corporate travel in the U.S. has been “a major success story” for Flight Centre, Leiss said. She said Flight Centre’s North American corporate operation its largest globally.
In addition, FCM Travel (another TMC brand) is working on streamlining its mid and back offices, Flight Centre said.
A new sales leader for the U.S. will be sought in the coming months for FCM and Corporate Traveler USA.