Helloworld Travel has acquired a controlling stake in Perth based wholesaler, Asia Escape Holidays.
The fast-growing outbound wholesaler specialises in 16 destinations throughout Asia, the Indian Ocean and the Pacific.
In a statement released on the ASX, Helloworld said its reasons for acquiring the business is twofold.
Firstly, it compliments their existing wholesale range, the travel company owns and operates a range of travel wholesale brands in Australia, New Zealand and the US including Qantas Holidays, Viva Holidays, Sunlover Holidays, Insider Journeys and Territory Discoveries.
And secondly, Asia Escape has the ability to offer greater mid-haul, all-inclusive package range. According to Helloworld, demand is increasing for all-inclusive packages (flight/ hotel/ transfer/meals) in retail leisure markets and Asia Escape Holidays has considerable expertise in creating and delivering these packages throughout the region.
“Asia Escape Holidays is an excellent strategic fit to Helloworld Travel’s existing wholesale businesses and provides the group with a trade-focused brand that has the expertise and speed to market to compete in the growing package and impulse buying market for travel throughout the Asia Pacific region,” said Andrew Burnes, CEO and Managing Director of Helloworld Travel Limited in the ASX statement.
The acquisition included 60 per cent of Keygate Holdings Pty Ltd (the owner of Asia Escape Holidays) for consideration of $2.88 million with the option to increase to 100 per centin 4 years.
Asia Escapes Holidays will continue to be run by Managing Director, Mason Adams – who will retain the remaining 40 per cent ownership in the business and become part of the Helloworld Senior Management Team.
“This investment is a significant milestone for Asia Escapes and being a part of the Helloworld Travel Group will provide the business with fantastic opportunities to continue to build our business,” said Mason Adams, Managing Director Asia Escapes Holidays.
The transaction is expected to be completed by the end of the month.
Since the beginning of 2017, Helloworld has completed five other acquisitions in its three operating divisions of leisure travel, corporate travel and wholesaling, including cruise data manager the Cruise Factory, wholesaler Seven Seas Cruising, home-based travel agency MTA, Magellan Travel Group and most recently, buy web-based flight booking company Flight Systems.