Flight Centre won’t buy Helloworld
Flight Centre is stacking up sales, with reports that it will acquire five separate travel groups both at home and internationally.
Despite the leisure sector sorting through tougher times, news from The Australian quote managing director Graham Skroo Turner saying the acquisitions would cost as much as $50 million, but that he was confident two or three of these purchases would come through for the company in the short term.
“Probably in the next year two or three of these (deals) will come to fruition,” Skroo said, adding they “will contribute to our company.”
Flight Centre’s acquisition spree comes despite a slow in outbound travel growth, per The Australian, which in the past year sagged 2-3%, well down on the 7% produced from 2013/14.
“It’s certainly a bit quieter but it’s still a growth market. We have plenty of opportunity to take market share off other people,” Skroo said.
But despite adding international travel specialist Top Deck to its basket last year, as well as a corporate travel group in Mexico earlier this year, Flight Centre has no plans to nab troubled competitor Helloworld, according to The Australian.
The Qantas-backed company produced a profit of just $6.9 million for the year to 2015, but while this was a solid turnaround against a $1.7 million loss the year before, was not enough to tempt Flight Centre.
“Obviously we heard about it and we thought about looking at Helloworld and decided against it,” Skroo said.
“I don’t think it falls into our portfolio. It would have been a bit of a distraction, but we are looking at others that are smaller and more strategic for us.”
Apart from a slowing outbound market, Flight Centre was also hit by lower leisure travel margins.
The travel agency said it had also heavily invested in new systems and strategies as well as a new wage structure for front-end consultants, at significant cost to the company.
And as a result of stopping short of its ambitious profit targets for 2015, Flight Centre’s senior exec salaries were slashed, including that of Skroo, The Australian reported.
Per Flight Centre’s 2015 annual report, Skroo’s total remuneration was $518,238, down on the $657,073 he earned in 2014.
But as the owner of the global brand, he also raked in more than $23 million in fully franked dividends this year from the 15.244 million shares he owns in the company. Not too shabby.
“It’s not that unusual (to have a low base salary) when you have a significant parcel of shares in the business,” Turner said.
Flight Centre’s chief operating officer, Melanie Waters-Ryan, took home a pay packet of $986,127 in 2015, down from $1.082 million the previous year, while executive general manager Rob Flint received $580,068, down from $795,219.
“The average Flight Centre senior executive earned less during 2015 when bottom-line results did not meet initial expectations,” the company stated in its annual report.
Skroo has long been judged one of Australia’s best value CEOs, and was identified as the second lowest paid CEO in an ASX S&P 100 company for the 2014 fiscal year.
Image: Flight Centre
Email the Travel Weekly team at traveldesk@travelweekly.com.au
-
Latest comments
Latest News
Australia fails to make top 10 destination list for American travellers
Australia's top cities have failed to make the grade with American travellers this northern summer, with no local city in the top.
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 […]
ANZAC Battlefield travel on the 2025 bucketlist
As Anzac Day dawns, agents prepare for a surge in bookings for the 110th anniversary of the Anzac Cove landings.
Former Channel 9 Getaway host and founder of TRIBE Jules Lund to speak at Travel DAZE
From blond-tipped travel reporter to Travel DAZE speaker, Jules Lund cuts through the BS.
HX’s Roald Amundsen finds aliens in the Antarctic
Forget whales, HX's MS Roald Amundsen captures aliens in the Antarctic - and they're not pretty.
Mayhem in France as 70% of flights face cancellation
I mean it wouldn't be France if there wasn't at least one strike.
Etihad Airways launches double-decker service with world’s only in-air three-room suite
We imagine falling asleep in the three-room suite is superior to falling asleep on your neighbour's shoulder.
Norwegian Cruise Line launches 2024 Europe travel season
Europe certainly has a lot of ports. Its time for Australia to up its game.
“The power of travel for positive change” – Intrepid’s Jenny Gray hails controversial all-women Saudi Arabia trip
There is an awful lot to love about this tour from Intrepid. Where do we sign up?
Princess names the Sun, unveils Sanctuary Collection + Star Princess to Alaska in ’26
A huge bottle of Veuve was smashed into the side of the ship to make things official. So no, we couldn't snag a glass.
Collette special offers across peak northern summer season
If you are craving a trip to Europe then grab this deal with both of your grubby hands.
Air India and All Nippon codeshare between the two countries
Here at TW we agreed that the photo would have worked better if they had swapped planes.
A&K offers minimum 18 weeks paid parental leave
Contrary to what the photo suggests this benefit is only applicable for humans. Back to work Mrs Jumbo.
NH Hotel Group rebrands as Minor Hotels Europe & Americas
Hang around the bends of the hotels. We imagine they will be full of a lot of branded content.
Scenic Eclipse II – the business of creating unforgettable life-changing memories
These cruise brothers from another mother offer a view of cruising on Scenic Eclipse II that is poles apart.
MSC builds new hospital ship with Mercy Ships
If you want to read a story that puts a smile on your face then this is the one for you.
“I peed on myself watching this” – Social media users squirm at Royal Caribbean’s Harmony of The Seas 55ft dive video
TW is not responsible for any involuntary actions your body might have after watching this video.
FLIGHT REVIEW: Qantas Boeing 787 Dreamliner business class
The real bonus is you're unlikely to be around screaming children. Hoorah!
Traveltek offers travel agents new rapid deploy cruise website
As always, if you have any issue with the platform, just turn it off and on again.
Experience whale watching & classical music at the Australian Festival of Chamber Music in Townsville
Disappointedly, the whales do not start singing in tune with the orchestra. Opportunity missed.
Fond, very Fond. London hotel famed for James Bond link adds ‘Classic Comforts’ lunch menu
James Bond author Ian Fleming was so fond if this hotel, it inspired the legendary phrase ‘shaken, not stirred’.
What sets Eclipse Travel apart with Africa expert Hilary Dubyk: Travel Weekly TV
If you want to know more about Africa, then Hilary Dubyk is your person.
Surge in Australians visiting Japan
Feel like all of your friends have just returned from Europe? Now it's Japan.
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 […]
Sydney named 17th best place to work remotely
If you struggle to get a seat within Sydney's coffee shops, you now know why.
W Melbourne grows sales team
We appreciate the thought that has gone into this team photo.
Cunard welcomes new ship Queen Anne
This might be the most impressive ship handover in ship handover history.
Intrepid Travel appoints Yvette Thompson as general manager sales & marketing ANZ
It isn't end-of-day Monday and Yvette Thompson has already nabbed herself an impressive promotion.
Anna Fawcett re-joins Global Touring in newly-created APAC role
With such an impressive CV, Global Touring is no doubt thrilled to have Fawcett back.
“We know our response has been far from perfect” – Emirates’ open letter following Dubai flooding
If you also need to write an apology letter, then this is a pretty good template.
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 […]
Virgin Australia’s HILARIOUS second instalment of the ‘Bring on Wonderful’ campaign
We don't use the word 'hilarious' lightly, but this is worthy of the title.
Visit Sunshine Coast reveals new brand identity
If you were looking for another reason to visit the Sunshine Coast then this is it.
Sofitel launches brand campaign starring Sex Education’s Gillian Anderson
We can confirm the content of this video is less spicy than Sex Education.
Holland America Line gives agents the chance to visit Alaska on 11-day Famil
If you've ever wanted to see a Polar Bear (and who doesn't?), now is your time.
More than 65 luxury agents gather in Sydney for Best of the Best dinner
This looks like a fabulous do. We imagine there may be a few (or maybe 65) sore heads this morning!
Tara, although you obviously have a personal axe to grind (you ignored a key point in the article – helloworld has had a significant turnaround and is trading profitably), regardless, there is no way FC will consider acquiring it as it needs a strong competitor to keep the ACCC off its back. No other brand in the market has that type of clout. That, Amy, is “relevance”.
Since when was helloworld even up for sale? Even if helloworld was selling, I highly doubt it would sell to its competitor.
Way to go Travel Weekly, constantly showing your bias…..
Tara, actually selling helloworld, is the only thing that will make that company relevant. Unless you have been living under a rock for the last 3 years, you will have noticed helloworld losing millions of dollars year on year. They have had more CEO’S than Australia has had prime minsters in that time, not one of them bringing anything to the company apart from bleeding the company dry with their crazy salaries, like the whole of the executive team. The board, who are mainly Qantas personnel have become a laughing stock in the industry and have made their competitors like Flight Centre, Webjet and Magellan laugh all the way to the bank. I have to ask the question, why on earth would you think helloworld would not sell to it’s competitor ? What a strange thing to say, who do you think whey would sell to, Woolworths or Coles? Dear oh dear.
Thanks for the comment Tara, but it wasn’t intended to show bias, merely report on the news and facts as they appear. Skroo was asked if he would consider buying Helloworld, to which he gave a detailed answer why it was in fact considered, and why they decided against it. We didn’t make this up. This was a newsworthy angle to run with and an interesting concept to consider.
That’s the way we saw it, so that’s how we wrote it. Sorry if you saw bias in this – but thanks as always for the feedback!