Travel Agents

Flight Centre acquires two travel management groups

Hannah Edensor

So Flight Centre is on one hell of a roll right now, making two more acquisitions in the New Zealand corporate and leisure travel market.

Flight Centre has announced it will acquire Travel Managers Group (TMG), a largely leisure-focused group that provides systems and support services to a network of over 180 individual brokers, with 22-shop franchises, including 12 TravelSmart shops and 10 non-branded stores.

And because that wasn’t already enough, it’s also acquiring Executive Travel Group (ETG), New Zealand’s largest independent corporate travel management company.

The addition of ETG takes Flight Centre to basically one of the biggest corporate travel management companies in NZ, while the TMG acquisition gives Flight Centre a strong broker and franchise network to complement its multiple other leisure offerings.

The acquisitions set up Flight Centre’s Kiwi operations to become the fifth largest business globally by sales, behind Australia, the US, UK, and Canada.

“Executive Travel and Travel Managers are profitable businesses, generating earnings before interest, tax, depreciation and amortisation in excess of $NZ3 million annually, with solid growth trajectories and good track records of success,” Flight Centre’s Managing Director Skroo Turner said.

“With their addition, Flight Centre New Zealand will go close to becoming a $NZ1.5 billion-per-year sales comapny during the 2018 fiscal year (FY18).

“ETG will enhance our already strong corporate travel offering in New Zealand and will give the business additional scale and expertise.

“Through TMG, we will gain access to new business models and leisure revenue streams to complement our offerings across our other key channels, which include online, contact centres, our community and flagship shop network and our expo and event program.”

Flight Centre Travel Group has previously flagged its intention to expand in the broker or home-based sector within its key travel markets globally, with TMG the company’s first acquisition in the sector.

The Group recently secured acquisitions of hotel management company, Bespoke Hospitality Management Asia, and Mexico-based DMC Olympus Tours.

It also upped its stake in the DMC acquisition, Buffalo Tours, while simultaneously streamlining APAC operations and making some redundancies.

“The home-based or broker offering has strong growth potential and is attractive to us for a number of reasons,” Turner added.

Turner said it will deliver “access to a talent pool of highly experienced travel experts” and “new career opportunities for our sales people”.

It will also deliver “added convenience for customers, greater efficiencies, as the home-based or broker model has a lower cost base than a traditional shop”.

“It will deliver new distribution channels for our manufactured products, which includes a rapidly expanding range of unique airfares, packages and in-destination offerings.

“We look forward to working together with TMG to deliver exciting new opportunities, services, benefits and products to its network of expert sales consultants and their customers.”

Former Flight Centre NZ employee Kevin Weston co-owns ETG, and is a major shareholder in TMG.

Weston and his business partners, Nicola Jamieson and Dave Wallace, will continue to oversee both businesses’ day-to-day operations and report to Flight Centre’s NZ MD David Coombes.

The price tag of the acquisitions has not been disclosed, however in addition to an upfront payment, the ETG deal includes additional performance-related payments that the owners will be entitled to if the business achieves future profit-related targets.

The deals are set to officially wrap up during the first quarter of FY18.

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

You must be logged in to post a comment.

Destinations

Bali rocked by off-shore earthquake

by Christian Fleetwood

An off-shore earthquake has struck the south of the Indonesian tourist hotspot, with reports of damaged and evacuated hotels.

Share

CommentComments

Travel Agents

Brisbane lands Flight Centre’s Global Gathering in 2020 + pics from this year’s big event!

Do you wish you could’ve attended Flight Centre’s recent Global Gathering? Live vicariously through this collection of candid pics.

Share

CommentComments

Aviation

Boeing ‘renames’ Ryanair’s 737 MAX

by Christian Fleetwood

If images posted on social media are anything to go by, in the era of deepfakes, it looks like the embroiled 737 MAX brand is getting a cosmetic touch-up.

Share

CommentComments

Tourism

Two Australians gored by bulls at controversial San Fermin festival

by Christian Fleetwood

Two Aussies who have obviously read too much Hemingway have been gored by a bull on the final day of the controversial San Fermin Festival.

Share

CommentComments

Aviation

Aussie model avoids 21-year jail sentence for assaulting flight attendant

A former Miss Universe Australia finalist has broken down crying in a US court after avoiding a 21-year jail sentence for assaulting a flight attendant.

Share

CommentComments

Aviation

Aviation wrap: Emirates’ global sale, Royal Brunei Airlines’ new Brisbane flights + more

We do hope that you’re so wrapped about this week’s aviation wrap that you write a rap about it.

Share

CommentComments

Destinations

Hundreds of protesters storm famous Paris monument

Police on the scene said 200 to 300 protesters entered the well-known landmark where French national heroes including Voltaire and Victor Hugo are buried.

Share

CommentComments

Events

How to win at The Travel Awards

Planning to enter The Travel Awards this year? Consider this a very handy cheat sheet of sorts.

Share

CommentComments

Wholesalers

Thomas Cook rescue deal could do more harm than good, says expert

by Huntley Mitchell

Were you under the assumption that Thomas Cook was extinct? Well, as this story proves, the dinosaur of the travel industry is still clinging on – but only just.

Share

CommentComments

Aviation

Wild winds and IT outage wreak havoc at Sydney Airport

by Christian Fleetwood

Travellers flying from Sydney Airport have been met with massive delays due to an Australian Border Force outage and gale force winds.

Share

CommentComments

Wholesalers

Wholesaler wrap: Viva Holidays says hello to Harry Potter, Wendy Wu’s early bird specials + more!

It’s Monday, folks, and that means two things: it’s time for our weekly wholesaler wrap, and for some hair-of-the-dog treatment for Travel Weekly’s editor at the local pub.

Share

CommentComments

Destinations

“How ridiculous”: Pauline Hanson likens Uluru climbing ban to closing Bondi Beach

by Huntley Mitchell

In an interview that is sure to have many an Aussie giving themselves a face palm, outspoken One Nation leader Pauline Hanson has provided her take on the Uluru climbing ban.

Share

CommentComments