Kinki Nippon Tourist Co. and Nippon Travel Agency, Japan's second- and third-largest travel agencies, announced Thursday that they have agreed to merge in January 2003.

The in-house travel agency of West Japan Railway Co., known by its brand name TiS, will also join the merger, brining the new firm's total turnover to more than 1.3 trillion yen.

The size of the company will be almost equal to that of the nation's No. 1 travel agency, JTB Corp., which boasts a turnover of 1.4 trillion yen.