Thursday, July 18, 2024

Qantas expands its reach in online travel with acquisition of TripADeal

Qantas has announced its plans to acquire the remaining 49 per cent stake in Byron Bay-based online travel company TripADeal, further solidifying its presence in the flourishing $13 billion online holiday packages market. The move is set to enhance Qantas Loyalty’s engagement with travelers and capitalize on the growing trend of curated tour experiences.

Since acquiring a majority stake in TripADeal in 2022, Qantas has enabled its Frequent Flyers to utilize Qantas Points for a diverse range of holiday packages, from African safaris to European getaways. Now, with the full acquisition, Qantas aims to deepen synergies between its extensive network and the curated tour market, offering a more integrated experience for its Frequent Flyers.

The acquisition, valued at $211 million, is expected to be finalized by the end of June 2024, with anticipated annual synergies of at least $50 million across the Group. Qantas members can also look forward to exclusive benefits, including a 30 per cent discount on bookings made with points during July 2024.

Founded by Norm Black and Richard Johnston, TripADeal has witnessed remarkable growth, with bookings surpassing $450 million in the last twelve months. As part of the acquisition, Matt Wolfenden has been appointed CEO, leading the 150-strong team in Byron Bay and tour guides across 30 countries.

With TripADeal’s proven success and the integration opportunities across Qantas and Jetstar, Qantas Group anticipates significant returns on its investment, underscoring its commitment to delivering value for shareholders.

In a statement, Qantas Loyalty CEO Andrew Glance expressed optimism about the deal, highlighting the alignment between TripADeal’s offerings and Qantas’ commitment to providing exceptional travel experiences for its customers. Co-founders Norm Black and Richard Johnston also expressed pride in TripADeal’s journey and confidence in Qantas’ stewardship of the business moving forward.

Financially, the acquisition aligns with Qantas Loyalty’s robust performance, with expectations to deliver strong shareholder returns and maintain its growth trajectory. The transaction cost will be accommodated within Qantas Group’s existing capex guidance for FY24.

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