FLIGHT CENTRE IGNITES LEISURE MARKET WITH ACQUISITION

FLIGHT CENTRE IGNITES LEISURE MARKET WITH ACQUISITION

FLIGHT Centre Travel Group (ASX:FLT) has invested in a Gold Coast-based travel retailer to bolster its presence in the leisure market.

The Brisbane-based business acquired a 49 per cent stake in Ignite Travel Group, which specialises in curated holiday packages, travel vouchers and reward programs, for an undisclosed amount.

2012 Gold Coast Young Entrepreneur of the Year Randall Deer (pictured) founded Ignite in 2005, with the business expected to tip $100 million in total transaction value in FY17.

Flight Centre managing director Graham Turner says the deal will open new distribution opportunities for the company, as well as fast-track Ignite's growth.

"Ignite has innovative consumer products and distribution models with strong potential across its core business units in Australia and overseas in the future," Turner says.

"In particular, we see strong and rapid growth opportunities for the Exclusives voucher business, which operates in a market that is exciting and growing rapidly."

Ignite will continue to manage its three businesses MyHoliday Centre, RewardsCorp and Holiday Exclusives from its Broadbeach head office.

The partnership will initially focus on exclusive limited time travel voucher deals that allows customers to be able to redeem online and instore, with Ignite managing fulfilment.

Following the deal's completion, managing director Deer will chair a four-person board comprising two Flight Centre executives and an additional Ignite representative.

Deer says Ignite's customers and suppliers will reap the most benefits of the partnership as the company expands.

"We're always looking for ways to deliver on our supplier's objectives to increase incremental visitors, length of stay and spend and this partnership is a fantastic fit, while allowing us to maintain our exclusive supply chain relationships," he says.

"Flight Centre is an incredible business with unmatched market penetration. This landmark deal will massively increase distribution and access to new customer segments for our suppliers, giving them incremental business at times when they need it in addition to offering customers new and exclusive holiday deals."

Flight Centre will use general cash to fund the acquisition, with provisions in place to extend its holding in the future based on results.

 

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

Telix Pharmaceuticals (ASX: TLX), one of the nation’s largest...

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

In an effort to reduce the number of SMS phishing scam victims...

Stralis Aircraft secures funding to make commercial hydrogen planes a reality

Stralis Aircraft secures funding to make commercial hydrogen planes a reality

Brisbane-based Stralis Aircraft has become one step closer to its a...

‘Gone the long yards’: Luxury boatbuilder Maritimo a stayer in local manufacturing

‘Gone the long yards’: Luxury boatbuilder Maritimo a stayer in local manufacturing

In an era when Australia’s mass-production car industry is a ...