Flight Centre to create DMC with Vietnam partner

By admin


Flight Centre is to take greater control of its on-the-ground product across Asia through the creation of a joint venture with a Vietnam-based destination management company.

The deal will see Flight Centre work with Thien Minh Group (TMG) to grow its Buffalo Tours destination business in existing markets and expand into Indonesia, Malaysia, Singapore, Hong Kong, China and Japan.

Buffalo Tours already operates in Thailand, Laos, Cambodia and Myanmar.

The move is in line with Flight Centre’s strategy to own and control the vertical chain rather than simply be a travel agent. The JV will replace arrangements Flight Centre has with a number of local DMCs.

Flight Centre and TMG will initially contribute $US1.5 million, with Flight Centre taking a 49% interest.

The JV will be based in Singapore and offer a range of tours, excursions and transfers across the region.

Flight Centre managing director Graham Turner said establishing a DMC has been of interest “for some time” and was a logical step for the group.

It will provide a new revenue stream for Flight Centre and give greater control of its product, he said.

“This move is aligned with both our acquisition strategy of expanding vertically into capital-light travel industry sectors and our aim of owning more of the product we sell, rather than always being an agent or middleman,” Turner said.

The JV does not include TMG’s Buffalo Tours Vietnam operation although the existing relationship will be extended. Flight Centre will work to “grow sales for Buffalo Tours in Vietnam and, in return, will receive a share of the profits generated”.

The JV is subject to conditions. The Thailand, Laos, Cambodia and Myanmar DMCs are expected to be transferred into the JV towards the end of the calendar year.

Latest News

  • Destinations
  • News

APT Launches 2025 Asia Adventures

APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]

  • Cruise
  • Luxury
  • News

Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit

Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]

  • Luxury

Malolo Island Resort opens brand new Spa

Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]