Crystal Holidays and Jetsave, the travel operators which own the Dublin-based American Holidays, have been purchased by the group's senior management for £150 million sterling (£166 million).

The management buy-out of the companies owned by the Viad Corporation of Phoenix, Arizona, was headed by Crystal Holidays chairman and managing director Mr Peter Dyer.

The new group will be called Crystal International Travel Group and will become one of Britain's largest specialist tour operators following the merger. Combined, the two companies will have a turnover of £200 million carrying 400,000 passengers a year.

The Crystal International Travel Group will include Crystal Holidays, Jetsave, Greyhound International, Tropical places and American Holidays.

The company said yesterday that Mr David Hennessy would remain as managing director of American Holidays and that the management buy-out would allow the company to develop its business in the future.