ASX-listed Helloworld Travel has announced that a number of mid- to large-sized corporate agencies have joined, or committed to join, its New Zealand retail network, following the break-up of First Travel Group.
Gilpin Travel, Barlow Travel and Atlas Corporate, with a combined annual total transaction value (TTV) of NZ$130 million ($123.6 million) have all now joined the Helloworld network.
NZ Travel Brokers, which has an annual TTV of NZ$125 million ($118.8 million), together with a number of other agencies with a combined annual TTV of NZ$46 million ($43.7 million), have entered into agreements to join from June 2019.
As announced last week, Helloworld has also acquired sports and event travel specialists Williment Travel.
The total combined annualised TTV coming from this expansion under Helloworld’s Kiwi network is approximately NZ$300 million ($285.3 million), representing over 65 per cent of the former First Travel Group’s TTV.
Discussions are continuing with several other former First Travel Group members, according to a Helloworld statement to shareholders this morning.
With the addition of these new members to Helloword’s New Zealand network, the company now has a total of 580 agency members across the ditch, including 280 travel brokers.
Helloworld CEO and managing director Andrew Burnes said: “The New Zealand acquisitions and network expansion has given our NZ business the size and resulting economies of scale to assist the group to achieve our targeted EBITDA to revenue of 25 per cent in FY20.
“The team in New Zealand has done an outstanding job of building a strong value proposition which, in turn, has attracted these new agencies to our networks.”