Duluth Travel Exits Bankruptcy, Contends With Partial Federal Shutdown

Corporate and government travel management company Duluth Travel this month emerged from Chapter 11 bankruptcy protection after about 10 months, only to face the effects of the partial U.S. federal government shutdown.

Reorganization allowed the Atlanta-area company to “realign its partnerships” and “grow its client base, while keeping its focus on customer service,” according to a prepared statement.

Future projections show continued growth, the company claimed. This is despite an approximately 22 percent reduction in travel volume from last year at this time. “We have adjusted our staff to compensate for the shutdown,” according to Duluth Travel CEO Arthur Salus. “Our pool of agents is working together with our management team to keep up the current business at hand. For example, Duluth Travel handles all of Veterans Affairs. It seems like VA is almost fully funded and is less likely to be affected.”

The bankruptcy filing brought visibility to Duluth’s financial position, offering insights into how a TMC — albeit one with outsized exposure to government travel — makes and spends money.

Duluth last year dropped its appeal of a court decision in favor of AdTrav Travel Management, an Alabama-based TMC with which Duluth had once partnered to serve the VA. AdTrav prevailed in related breach of contract lawsuits.

Duluth employs about 55 personnel.

Author: Jay Campbell

Jay Campbell in 2004 created travel business newsletter The Beat, in 2006 co-founded Travel Procurement magazine and in 2010 integrated them with Business Travel News. He served as editorial director until 2013. Jay made his travel industry media debut in 1993 at the Air Travel Journal of Boston while earning his undergraduate degree in journalism at Boston University.

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