UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549




                                    FORM 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934




          Date of Report (Date of earliest event reported) JUNE 2, 1998

                       TRAVEL SERVICES INTERNATIONAL, INC.
             (Exact name of registrant as specified in its charter)

    DELAWARE                           0-29296                  52-2030324
(State or other juris-               (Commission              (IRS Employer
diction of incorporation)            File Number)            Identification No.)

           220 CONGRESS PARK DRIVE, DELRAY BEACH, FLORIDA    33445
            (Address of principal executive offices)       (Zip Code)



         Registrant's telephone number, including area code 561-266-0860


<PAGE>

                    INFORMATION TO BE INCLUDED IN THE REPORT

ITEM 2.  ACQUISITION OR DISPOSITION OF ASSETS.

LEXINGTON SERVICES ASSOCIATES, LTD.

On June 2, 1998, Travel Services International, Inc. (the "Company") completed
the acquisition of all of the partnership interests of Lexington Services
Associates, Ltd. ("Lexington"), a Texas limited partnership (the "Partnership"),
pursuant to a Purchase Agreement dated as of June 1, 1998 (such acquisition
being referred to as the "Lexington Acquisition"). Lexington is an electronic
hotel reservation services company providing electronic reservation capabilities
to over 2,100 independent and chain hotels in 48 countries, including the United
States, Canada, Australia and various European countries. Lexington provides its
hotel customers a conduit for electronic bookings by travel agents through all
of the major computerized reservations systems, including Sabre, Amadeus and
Worldspan. In addition, outsourced voice reservation services are provided to
certain customers. Lexington operates in Irving, Texas. The Lexington
Acquisition represents the Company's first acquisition in the lodging market,
and offers cross selling opportunities with the other operations of the Company.

The aggregate consideration for the acquisition is $30.0 million, consisting of
$20.0 million in cash and 285,714 shares of common stock of the Company, plus
contingent consideration based upon future earnings. The contingent
consideration will be an amount equal to the excess, if any, of 7.0 times the
Partnership's earnings, as defined in the Purchase Agreement, for the twelve
months following the acquisition, up to a maximum of $7.5 million. The
contingent consideration is payable in cash and common stock. Of the $20.0
million in cash, $10.0 million was funded with advances on the Company's
revolving credit facility with NationsBank, N.A., and $10.0 million was funded
with the Company's operating capital. The acquisition will be accounted for
using the purchase method of accounting.

Prior to the Lexington Acquisition, the partnership interests of Lexington were
owned by Lexington Services Corporation, a Texas corporation, as general
partner, and various trusts for the benefit of members of the Wilkins family, as
limited partners. Following the Lexington Acquisition, Zolon A. Wilkins, Jr. and
Zolon Wilkins, III, will be executive officers of the Partnership. There are no
other material relationships known to the Company between the sellers of the
Partnership interests and the Company or its affiliates, directors or officers,
or associates of such directors or officers.

The assets of Lexington include hotel customer contracts, customer lists,
accounts receivable, personal property, computer systems, toll-free telephone
numbers and certain intangibles. The Partnership expects to continue to utilize
these assets in a manner consistent with that of their historical usage.

The foregoing descriptions are qualified in all respects by reference to the
full text of the acquisition agreement which is included as an exhibit to this
report.

                                       -2-

<PAGE>

ITEM 7 FINANCIAL STATEMENTS AND EXHIBITS

(a)  Financial Statements of Business Acquired
     
     Audited Balance Sheet as of December 31, 1997, and Related Statements of
     Income, Partners' Capital, and Cash Flows for the Year then Ended for
     Lexington Services Associates, Ltd.

(b)  Pro Forma Financial information

     Unaudited Pro Forma Condensed Combined Financial Statements and Notes.

(c)  Exhibits

     Purchase Agreement, dated as of June 1, 1998, among Travel Services
     International, Inc., Lexington Services Associates, Ltd., and the partners
     named therein.

     Consent of Ernst & Young, LLP.



                                       -3-


<PAGE>



                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                            TRAVEL SERVICES INTERNATIONAL, INC.
                                        (Registrant)

Date: June 17, 1998


                            /S/ JILL M. VALES
                            ----------------------------------------------------
                            Jill M. Vales
                            Senior Vice President and Chief Financial Officer
                            (as both a duly authorized officer of the registrant
                            and the principal financial officer or chief 
                            accounting officer of the registrant)




                                       -4-
<PAGE>

                                  EXHIBIT INDEX

EXHIBIT NO.                DESCRIPTION
-----------                -----------

1                          Audited Balance Sheet as of December 31, 1997, and   
                           Related Statements of Income, Partners' Capital, and 
                           Cash Flows for the Year then Ended for Lexington     
                           Services Associates, Ltd.                            

2                          Unaudited Pro Forma Condensed Combined Financial 
                           Statements and Notes

3                          Purchase Agreement, dated as of June 1, 1998, among 
                           Travel Services International, Inc., Lexington 
                           Services Associates, Ltd. and the partners named 
                           therein.
                           
23                         Consent of Ernst & Young, LLP.
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UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

          Date of Report (Date of earliest event reported) JUNE 2, 1998

                       TRAVEL SERVICES INTERNATIONAL, INC.
             (Exact name of registrant as specified in its charter)

    DELAWARE                           0-29296                  52-2030324
(State or other juris-               (Commission              (IRS Employer
diction of incorporation)            File Number)            Identification No.)

           220 CONGRESS PARK DRIVE, DELRAY BEACH, FLORIDA    33445
            (Address of principal executive offices)       (Zip Code)

         Registrant's telephone number, including area code 561-266-0860
INFORMATION TO BE INCLUDED IN THE REPORT

ITEM 2.  ACQUISITION OR DISPOSITION OF ASSETS.

LEXINGTON SERVICES ASSOCIATES, LTD.

On June 2, 1998, Travel Services International, Inc. (the "Company") completed
the acquisition of all of the partnership interests of Lexington Services
Associates, Ltd. ("Lexington"), a Texas limited partnership (the "Partnership"),
pursuant to a Purchase Agreement dated as of June 1, 1998 (such acquisition
being referred to as the "Lexington Acquisition"). Lexington is an electronic
hotel reservation services company providing electronic reservation capabilities
to over 2,100 independent and chain hotels in 48 countries, including the United
States, Canada, Australia and various European countries. Lexington provides its
hotel customers a conduit for electronic bookings by travel agents through all
of the major computerized reservations systems, including Sabre, Amadeus and
Worldspan. In addition, outsourced voice reservation services are provided to
certain customers. Lexington operates in Irving, Texas. The Lexington
Acquisition represents the Company's first acquisition in the lodging market,
and offers cross selling opportunities with the other operations of the Company.

The aggregate consideration for the acquisition is $30.0 million, consisting of
$20.0 million in cash and 285,714 shares of common stock of the Company, plus
contingent consideration based upon future earnings. The contingent
consideration will be an amount equal to the excess, if any, of 7.0 times the
Partnership's earnings, as defined in the Purchase Agreement, for the twelve
months following the acquisition, up to a maximum of $7.5 million. The
contingent consideration is payable in cash and common stock. Of the $20.0
million in cash, $10.0 million was funded with advances on the Company's
revolving credit facility with NationsBank, N.A., and $10.0 million was funded
with the Company's operating capital. The acquisition will be accounted for
using the purchase method of accounting.

Prior to the Lexington Acquisition, the partnership interests of Lexington were
owned by Lexington Services Corporation, a Texas corporation, as general
partner, and various trusts for the benefit of members of the Wilkins family, as
limited partners. Following the Lexington Acquisition, Zolon A. Wilkins, Jr. and
Zolon Wilkins, III, will be executive officers of the Partnership. There are no
other material relationships known to the Company between the sellers of the
Partnership interests and the Company or its affiliates, directors or officers,
or associates of such directors or officers.

The assets of Lexington include hotel customer contracts, customer lists,
accounts receivable, personal property, computer systems, toll-free telephone
numbers and certain intangibles. The Partnership expects to continue to utilize
these assets in a manner consistent with that of their historical usage.

The foregoing descriptions are qualified in all respects by reference to the
full text of the acquisition agreement which is included as an exhibit to this
report.

                                       -2-
ITEM 7 FINANCIAL STATEMENTS AND EXHIBITS

(a)  Financial Statements of Business Acquired
     
     Audited Balance Sheet as of December 31, 1997, and Related Statements of
     Income, Partners' Capital, and Cash Flows for the Year then Ended for
     Lexington Services Associates, Ltd.

(b)  Pro Forma Financial information

     Unaudited Pro Forma Condensed Combined Financial Statements and Notes.

(c)  Exhibits

     Purchase Agreement, dated as of June 1, 1998, among Travel Services
     International, Inc., Lexington Services Associates, Ltd., and the partners
     named therein.

     Consent of Ernst & Young, LLP.

                                       -3-
SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                            TRAVEL SERVICES INTERNATIONAL, INC.
                                        (Registrant)

Date: June 17, 1998

                            /S/ JILL M. VALES
                            ----------------------------------------------------
                            Jill M. Vales
                            Senior Vice President and Chief Financial Officer
                            (as both a duly authorized officer of the registrant
                            and the principal financial officer or chief 
                            accounting officer of the registrant)

                                       -4-
EXHIBIT INDEX

EXHIBIT NO.                DESCRIPTION
-----------                -----------

1                          Audited Balance Sheet as of December 31, 1997, and   
                           Related Statements of Income, Partners' Capital, and 
                           Cash Flows for the Year then Ended for Lexington     
                           Services Associates, Ltd.                            

2                          Unaudited Pro Forma Condensed Combined Financial 
                           Statements and Notes

3                          Purchase Agreement, dated as of June 1, 1998, among 
                           Travel Services International, Inc., Lexington 
                           Services Associates, Ltd. and the partners named 
                           therein.
                           
23                         Consent of Ernst & Young, LLP.