RACQ buys Suncity Travel

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11/12/2008

RACQ buys Suncity Travel
Michael Bruce

The Royal Automobile Club of Queensland has revealed plans for a major expansion of its travel business after acquiring Brisbane-based travel agency, Suncity Travel.

RACQ currently operates 9 travel offices in the state but has been looking to expand its business for a number of months.

Suncity Travel, owned by Trevor Worth, is based in Brisbane’s CBD and also includes Cruising Travel and Suncity Business Travel. Under the terms of the deal, Worth will join the RACQ Travel team and head up the firm’s combined travel business, taking over from the retiring Peter Darby.

Mitchell told Travel Today negotiations had taken place over a few months, with RACQ keen to tap into its 1.2 million members in Queensland after admitting its travel division “could be performing better”.

“Now is as good an opportunity as ever to get our future right, We want to grow the number of members that transact with us,” Mitchell said, estimating that only 1.1 per cent of members transact through RACQ’s 10 retail travel stores. “Over the next few years we should be able to push that up to five per cent.”

RACQ is weighing up more changes to its distribution channels, Mitchell added, including possibly establishing an online booking engine.

He said more stores could be sought, saying there were “gaps” in the portfolio, particularly in Cairns, Mackay and Rockhampton. “Our view is that over the next year or two there will be opportunities for us to further expand,” Mitchell added.

11 December 2008

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