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In the years during which Trailways was a subsidiary of Holiday Inn, television commercials for Holiday Inn frequently showed a Trailways bus stopping at a Holiday Inn hotel. In 1968, under the leadership of major stockholder Kemmons Wilson, Holiday Inn acquired Continental Trailways, which remained a subsidiary of Holiday Inn until 1979, when Holiday Inn sold Trailways to private investor Henry Lea Hillman Sr., of Pittsburgh, Pennsylvania.

During the 1950s and 1960s, consolidation among bus operators resulted in four of the five original Trailways members becoming part of a new company, Continental Trailways, which eventually operated the majority of Trailways routes. He had entered the business on a small scale during World War II as the Interurban Transportation Company of Alexandria. Walker, Sr., of Alexandria, Louisiana, became head of the southern division of the company. Unlike Greyhound, which centralized ownership, Trailways member companies became a formidable competitor while staying an association of almost 100 separate companies.

Greyhound Lines had grown so quickly in the 1920s and 1930s that the Interstate Commerce Commission encouraged smaller independent operators to form the NTBS to provide competition. The system originated with coast-to-coast service as the National Trailways Bus System (NTBS). The predecessor to Trailways Transportation System was founded February 5, 1936, by Burlington Transportation Company, Santa Fe Trails Transportation Company, Missouri Pacific Stages, Safeway Lines, Inc., and Frank Martz Coach Company.

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