The Flight Centre Travel Group has finalised the acquisition of two New Zealand travel groups, which they agreed to buy on July 31 this year.
The company has officially signed off on the purchase of:
Travel Managers Group (TMG) – not to be confused with the Aussie TravelManagers.
TMG is a predominantly leisure-focused group that provides systems and support services to a network of more than 180 individual brokers.
It also operates a 22-shop franchise network, which includes 12 TravelSmart shops and 10 non-branded stores.
Flight Centre has also finalised its acquisition of Executive Travel Group (ETG).
ETG is New Zealand’s largest independent corporate travel management company.
It comes off the back of Flight Centre’s 2017 financials hitting $325.4 million in underlying profit before tax.
“We believe we are well placed to improve, given the investments we have made, the strategies that have been implemented and the benefits that we have started to see from the transformation program,” MD Skroo Turner said recently.
Flight Centre’s investment into Aussie based Travel Partners and TMG has delivered stronger growth platforms in these emerging leisure sectors, however as the businesses will continue to run independently, will have lower cost bases than traditional shops, given the different commission and occupancy models.
It wraps up one of Flight Centre’s biggest period of buy-outs in recent times, which scooped six companies in as many weeks.
“Flight Centre has started FY18 with solid momentum, which should lead to reasonable first quarter growth,” Turner added.