Press Release

STA Travel Transforms its Business Model Reduces Retail Locations in the U.S.

FOR IMMEDIATE RELEASE

Contact: Gail Whitcomb

The Powell Group

214/522-6005 ext. 103

gw@powellgroup.net

DALLAS – STA Travel, Inc., a division of the world’s largest student and youth travel organization, today announced a new operating structure that includes a reduction in its U.S. retail locations.  The company’s decision is part of a strategic transformation that will enable it to increase its cost efficiencies in today’s difficult economic environment and focus its future growth strategy on its call center, Web site, strategic retail locations and new alternative retail concepts.  The store closings, combined with the launch of new online capabilities later this year, will enhance the company’s ability to succeed in an increasingly competitive marketplace by embracing the industry trend towards researching and buying travel online, while continuing to offer personal service for the complex travel needs of its customers.

“The student travel industry represents a vibrant niche in the overall U.S. travel market,” said Scott Hyden, president of STA Travel.  “While we regret the impact of this decision on our employees, we are confident that this transformation will support our long-term strategy to provide a richer, multi-channel experience for our customers.”

STA Travel is closing 48 of its 65 U.S. retail locations and is reducing staff in its corporate office and at the national service center in Tempe, Arizona.  The changes will result in the elimination of approximately 200 positions company-wide.  These changes will not affect STA Travel’s other retail locations around the world, where STA Travel operates over 350 branches in 85 countries.

STA Travel will continue to offer in-person service through its retail network in  Los Angeles (two), Irvine, San Diego (two), Palo Alto, and Davis, Calif.; Washington, D.C.; Evanston, Ill.; Columbus, Ohio; Cambridge, Mass.; Ann Arbor and East Lansing, Mich.; two locations in New York City; Seattle, Wash.; and Madison, Wis.  

Stores closing today are listed below:

• Arizona: Tempe, Tucson
• California: Berkeley (two), Fullerton, Los Angeles, La Jolla, Northridge, Sacramento, San Diego, San Francisco (two), Santa Barbara
• Colorado: Boulder, Denver, Fort Collins
• Connecticut: New Haven
• Florida: Coral Gables, Gainesville, Tampa
• Georgia: Atlanta (two)
• Iowa: Ames
• Illinois: Chicago
• Indiana: Bloomington, West Lafayette
• Kansas: Lawrence
• Kentucky: Lexington
• Louisiana: Baton Rouge
• Massachusetts: Amherst, Boston (three)
• Minnesota: Minneapolis
• North Carolina: Chapel Hill
• Oregon: Eugene, Portland
• Pennsylvania: Philadelphia (two), Pittsburgh, University Park
• Rhode Island: Providence
• Tennessee: Knoxville
• Texas: Austin, Dallas, Houston
• Washington: Seattle

About STA Travel

STA Travel is the largest student and youth travel organization in the world serving over two and a half million students each year. With retail locations in the United States, a 24-hour call center and an online presence on www.statravel.com, students have access to comprehensive travel products and services including discounted student airfare, accommodations and tours, discount cards, student travel loans, travel insurance, foreign currency exchange, international cell phones and visa application services.  STA Travel is the exclusive distributor of the ISIC card and the Blue Ticket™ in the United States.  STA Travel also has extensive resources and expertise to service group clients with its International Programs and Group Services division.