When one half of a couple works together in business, how do they keep work and home separate? The answer, according to Merit Travel founders Michael Merrithew and Louise de Grandpre It's easy to say, “That's not true.”
“Honestly, it’s really impossible,” says Louise, known as Lulu. “Every night at the dinner table, on the days we could be together as a family, we talked about the day, about work and the industry. It was a part of our lives.”
That's true of Michael and Lulu's three sons, all of whom have been involved in the business in some capacity over the years. My oldest son, Jason, was still handing out pamphlets at ski shows when he was 5 years old.
Michael Merrithew and Louise de Grandpré. (Photo by Michael Merrithew)
“Our kids thought all the parents were working together. When they saw moms and dads in the neighborhood going to work in separate cars, they asked why they didn't drive together. And they thought each family had their own business,” says Michael.
Michael and Lulu's story begins all the way back in 1978, when they met while attending the University of New Brunswick. Lulu earned a degree in physics. Ed. Michael earned a degree in business and then completed his MBA in Switzerland.
They both worked in the corporate world, with Michael bringing his sales and marketing skills to major companies of the time, including Xerox and Nortel Networks.
Merit Travel is undergoing a leadership transition as Merit founders Louise de Grandpre and Michael Merritheux (pictured) announced their intention to leave the company. (Photo provided by: PHOTO: Merit Travel)
Despite his success in business, Michael had entrepreneurial instincts and traits. “I wanted to have my own business. So I started looking for something affordable to buy. We didn't have much money. I looked at all kinds of businesses. Among them… It also included a company suggested by Lulu's father, which made coffin handles, but we briefly thought about it for about 10 minutes before deciding we wanted something more uplifting.''
One day in 1991, while waiting for a reservation, Michael saw an ad for Uniglobe Travel in The Globe and Mail. “Be your own boss!” screamed the headline. We had traveled quite a bit together, including during Michael's study abroad in Switzerland and several years in the UK with Nortel, so this seemed like a possible idea.
“I called Uniglobe Eastern Canada and spoke to a guy named Frank Dennis,” says Michael. “I thought, 'This is a businessman,' and I liked what I heard. Travel was already a big industry and I thought it would continue to grow.”
Uniglobe Advantage is a Mississauga-based franchise whose owners John and Joan Simmons were ready to sell. “I always thought it would be easier to take over an existing business and make it my own,” says Michael. “So it made a lot of sense to buy a franchise from a group that offers a lot of training and a strong owners association.”
It was around this time that Michael was introduced to Jerry Heifetz, a lawyer specializing in the travel industry. “We got on incredibly well and he became an important mentor. He guided us through purchases and helped us with things like IATA and TICO. He gave us incredibly valuable advice, and we couldn't have done it without him.”
Uniglobe Advantage was a typical Uniglobe franchise at the time, with two full-time agents and one part-time agent, and a business structure of 85-90% corporate and some leisure sales. was. Michael quickly realized an important fact. He said, “Traveling a lot has nothing to do with running a travel business.”
Merit Travel is undergoing a leadership transition as Merit founders Louise de Grandpre (pictured) and Michael Merrithew announced their intention to leave the company. (Photo provided by: PHOTO: Merit Travel)
Le Roux hadn't planned to work with her husband at the company, but she changed her mind about three weeks later when an employee asked: “How often do you get paid?” Michael answered. “Well, usually every week,” the employee said.
“I never thought about payroll,” Michael said. “So I asked Rule, 'How do you do that?' She said, 'Go to Grand and Toy and get the payroll ledger.' “Can you do that for me?'' said Michael. “So she did, and she never left.”
Michael quickly realized that success in retail travel requires critical mass. That could be achieved organically over time, but he thought the process could be accelerated through acquisition. Jerry Heifetz is here again. “He knows everyone and introduced us to a lot of people who were looking to sell.”
Merit Travel donated $30,000 to WaterAid. (Photo provided by: PHOTO: Merit Travel)
Michael was instrumental in founding Merit Travel, one of Canada's largest independent travel companies, with annual revenue of $2 billion, advising and booking travel for up to 350,000 travelers annually. says the acquisition was an important turning point.
“You can grow faster and have a better chance of making a profit. You can also buy a business with a certain down payment and pay the rest over time. And the bigger you get, the more support and overrides you need. This will also increase the attention of suppliers,” says Michael.
Merritt was an early adopter of niche specializations such as golf and ski packages and small boat and river cruises. “We sold a lot of European river cruises in 1996 and 1997, when bus tours were still big,” says Michael. “By specializing, we have the potential to sell wholesale as well as retail.”
The 1990s were a time of growth and success for Merit Travel, but then 9/11 happened. The company still derived 75% of its revenue from corporate travel, and business travel was effectively halted for about four months.
“It was brutal. But we kept everyone employed at the same pay,” says Le Roux. “That loyalty paid off, and the staff followed us. There was a City Hall before there was a City Hall. We met in one of his offices and discussed issues openly and honestly. It really made a huge difference.”
Merritt's next major milestone occurred during the recovery period following 9/11. Just He Vacations' owner contacted Michael and told him they were considering selling. In the end, a deal was struck and Merritt entered a new realm of loyalty and affinity travel.
“Just Vacations fulfilled the CIBC points card, which led to the CIBC Aventura travel credit card. That became the biggest part of our business,” says Michael. The acquisition also included affiliated accounts such as the Canadian Association of Retired Persons and a leading cruise agency. “It was an incredible deal,” says Michael. A subsequent transaction brought student travel company TravelCuts into the Merit Group.
Private equity firms have been hurting for years as Merritt continues to grow. But Michael and Lulu had been “tempted” for years, but not enough to relinquish control. “If you have a partner, they have an equal say, regardless of their percentage,” says Michael. “We had a great staff, but private equity partners will want to cut staff when the going gets tough. We wanted to unite our staff and team to build the company.”
Providing employment to hundreds of Canadians is something Michael and Le Roux are proud of. “It feels really great,” Lou Lou says. “We had a lot of dual-income families where both parents worked at Merritt. For a long time, I was the only one doing recruiting, and we were like a family. We bought the company. We wanted to retain our people and our customers. We wanted our employees to grow with us. Our turnover rate was very low. ”
Over the years, Michael shared his expertise with the industry in a variety of ways, including as a member and chair of the TICO Board of Directors, a member and chair of the ACTA Board of Directors, and a director on the ASTA International Chapter Council.
Michael Merrithew immerses himself in one of his passions. (Photo by Michael Merrithew)
Twenty-five years later, in 2016, Michael was considering a new challenge, while Lulu and his son Jason were content to continue their roles at Merritt.
“Suddenly, I received a call from a law firm saying that they had a client in Japan who wanted to meet with me about a possible area of collaboration. They asked me to meet them in New York City, so I went by myself. There were about a dozen of us around the table in the boardroom. We talked about the company, got to know each other, and headed home. Later, my lawyer called me and asked how the meeting was going. The lawyer said, “They want to buy your company.''
Michael said he was not interested in negotiating multiples or EBITDA, just saying, “Here are the numbers.” HIS Travel, a major Japanese travel conglomerate, agreed.
“As a family, we said this was the right decision,” Ruhl said. “There were a lot of ups and downs along the way, and along the way our house was on the line. And in the travel industry you never know what's going to happen.”
Michael, Lulu, and Jason stayed on for a while after signing the contract, with Jason serving as president of Merit Travel from 2016 to 2018.
John Kirk, founder and president of TravelPulse Canada and founder of the Canadian Travel Hall of Fame, has followed Michael and Lulu's careers for decades.
Michael Merrithew and John Kirk of Travelpulse Canada. (Photo by John Kirk)
“I have known Mike and Lulu throughout their careers in the travel industry. Their leadership throughout their careers has been selfless and the contributions they have made through their roles on various boards including ACTA, TICO and ASTA. Their contributions don't stop there; their family has a scholarship program and scholarships at the University of New Brunswick in their name and in Mike's father's name. .”
Michael, Louise and Jason continue to work together in a family-run private equity and venture capital investment firm with holdings in the travel and tourism, technology and real estate sectors.
When asked how he took the news of being inducted into the Canadian Travel Hall of Fame, Michael said, “Many people don't think I'd be easily humbled, but it's a real honor to be a part of this event.” LouLou added: “We represent the people at Merit Travel. This honor is a reflection on those who helped us get there.”
