Travel Agents

Helloworld reveals impact from Tempo and Bentours collapse

Huntley Mitchell

Huntley Mitchell

Helloworld has detailed the financial impact it expects to absorb as a result of the shock collapse of Tempo Holidays and Bentours last month.

In a quarterly trading update this morning, the travel agency giant said it expects to incur net costs of under $1 million in relation to the collapse of the two Cox & Kings-owned brands.

“Helloworld Travel and its network members have ensured that no customers were out of pocket as a result of the collapse, and while some customers had to pay again for accommodation in the first few days following the collapse, they have either been or will be reimbursed on return to Australia,” the company said.

Travel Weekly had previously contacted Helloworld for comment over the Tempo/Bentours collapse, but it declined.

Meanwhile, the collapse of legacy travel brand Thomas Cook just a few days later in September has had no impact on Helloworld.

The company’s unaudited earnings before interest, taxes, depreciation and amortisation (EBITDA) for the first quarter of FY20 was $24.7 million – up 7.7 per cent on the prior corresponding period.

Helloworld’s total transaction value (TTV) grew 10.4 per cent to $1.878 billion in Q1, and was up 9.2 per cent excluding the impact of business acquisitions and disposals.

The company’s Australian retail network TTV grew seven per cent on a ticketed basis during the quarter, while Helloworld’s Flights Systems B2C business experienced a whopping 92 per cent growth in TTV.

Helloworld’s Australian wholesale businesses, including Viva Holidays, Ready Rooms, SevenOceans Cruising, and Asia Escape Holidays, saw TTV grow 5.7 per cent.

Australian inbound TTV declined 9.7 per cent due mainly to a decline in UK and Asian OTA business

Helloworld’s Australian corporate travel management division’s TTV grew 14.3 per cent, including the impact of the Show Group acquisition, but with no impact from the recent TravelEdge acquisition.

The company’s TTV in New Zealand was up 31.1 per cent for the quarter, including a 58.8 per cent increase in retail network TTV on a ticketed basis, and a 1.5 per cent increase in corporate travel management business.

Wholesale TTV in New Zealand fell 14.2 per cent, which Helloworld noted was mainly due to “the elimination of unprofitable contracts”, the net outcome of which was a five per cent increase in EBITDA for that business.

“We are very comfortable”

In good news for Helloworld shareholders, the company has increased its earnings guidance range for FY20 from $83 million to $87 million, to $86 million to $90 million, off the back of the TravelEdge acquisition.

“Our trans-Tasman corporate, wholesale and retail businesses are going very well and not subject to exposure to other source markets,” Helloworld CEO Andrew Burnes (pictured above) said.

“Given the state of both economies and the recent uplift in the International Monetary Fund growth forecasts for Australia, we are very comfortable with our position in the market and our focus on Australia and New Zealand.

“We have the scale to continue to deliver great outcomes for our customers and profitability for our shareholders.”

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Breaking News

Travel Agents

Flight Centre restructures leadership team, appoints two global CEOs (and a new Aussie MD)

Flight Centre has just dropped some HUGE news about its executive team. Find out who’s moving where here.

Share

CommentComments

Technology

Why the travel industry needs take cybersecurity seriously

by Ali Coulton

Cybersecurity isn’t the sexiest topic, but it can have massive implications for your business, your brand and of course, yourself. Here’s what you can do to counter data theft.

Share

CommentComments

Technology

“That middle-man model needs to evolve”: Troovo CEO says blockchain can solve inefficiencies

by Christian Fleetwood

It’s a technology that boasts a quarter-trillion-dollar industry gradually growing in importance, but why should the travel industry join in the blockchain craze? All is explained here.

Share

CommentComments

Technology

People the “most important” part of a digital tech strategy, says Jetstar’s digital chief

by Huntley Mitchell

It may sound weird, but Jetstar’s head of digital and delivery believes people are the most important element of a successful digital technology strategy.

Share

CommentComments

Technology

“It’s going to be a messy time”: Flight Centre on the scalability of NDC

by Huntley Mitchell

Still haven’t got the the faintest idea what NDC is? Play catch-up with this informative read.

Share

CommentComments

Technology

The biggest challenge facing Booking.com and other OTAs

by Huntley Mitchell

Booking.com’s regional boss kicked off the Travel Tech. Summit 2019 with an insightful keynote. Find out what she had to say here.

Share

CommentComments

Technology

Another Luxury Escapes bidder enters the fray

by Huntley Mitchell

It appears Luxury Escapes has pretty hot property right now, with yet another potential suitor showing interest in the online travel player.

Share

CommentComments

Hotels

Marriott to debut more than 30 luxe hotels in 2020

Much like the waistline of Travel Weekly’s editor (thanks to some early office Christmas gifts), Marriott’s presence is set to expand significantly.

Share

CommentComments

Cruise

“No survivors”: Royal Caribbean passengers feared dead after New Zealand volcanic eruption

by Ali Coulton

Multiple Australian travellers are feared dead after one of the world’s most active volcanos erupted in New Zealand during a cruise ship shore excursion.

Share

CommentComments

Aviation

Qantas inks new frequent flyer deal with Air France-KLM

Proving customer loyalty programs are big business comes this freshly-inked partnership between two aviation giants.

Share

CommentComments

Destinations

Queensland to bid for 2032 Olympics and Paralympics

Queensland is hoping to score the Olympics and Paralympics. No word yet though on whether Toowoomba or Mount Isa have been mooted to host the opening ceremony.

Share

CommentComments

Destinations

The safest and most dangerous destinations for LGBTQ+ travellers

As we approach 2020, it’s difficult to believe that for LGBTQ+ people, planning a trip can still be a minefield. Check out this helpful list to help keep your clients safe.

Share

CommentComments