Helloworld to acquire cruise package wholesaler CruiseCo, renews Qantas contract

Helloworld to acquire cruise package wholesaler CruiseCo, renews Qantas contract

Helloworld Travel (ASX: HLO) is betting on heavy demand for cruises in 2022 after entering into an agreement to acquire Phil Hoffman-founded cruise wholesaling specialist CruiseCo today.

The travel distribution company has also announced the renewal of its partnership with Qantas (ASX: QAN) with a new three-year partnership signed today.

CruiseCo is a cruise package wholesaler founded 20 years ago by Phil Hoffman, Kevin Dale and Steve Lloyd.

The business was turning over around $70 million annually prior to the onset of COVID-19 from its member agents throughout Australia.

According to Helloworld the acquisitions aligns with the company's strategy of expanding its cruise offerings in Australia and New Zealand.

Further, HLO said CruiseCo would be complementary to its existing cruise wholesale business Seven Oceans Cruising, which prior to COVID-19 had annualised total transaction value  (TTV) of approximately $110 million.

"These two businesses, when combined, provide Helloworld Travel with a comprehensive range of cruise options for our retail agencies in Australia and New Zealand," HLO executive director Cinzia Burnes said.

"Given the recent demand for some 2022 specials in the market, the positive news around both the development of a vaccine and rapid testing capabilities, we are confident that demand for cruising will come back strongly from 2022 and we look forward to working with our cruise partners and agencies to capture that demand."

The acquisition of CruiseCo will be funded from existing cash reserves and the purchase price is not considered material.

Helloworld has also renewed its partnership with Qantas signing a deal to sell the national carrier's fares and products until 2023.

Managing director Andrew Burnes said the long term agreement provides commercial certainty for Helloworld and its agency networks.

"We have had a longstanding partnership with Qantas and the continuation of that was an important component in securing our position as their leading travel agency partner and ensures our owned businesses and agency networks can continue to sell Qantas with confidence," Burnes said.

Shares in Helloworld are up 3.35 per cent to $2.78 per share at 11.55am AEDT.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

How communications technology can raise the bar on customer service, employee experience
Partner Content
From capturing feedback early to providing messages with a higher rate of cut-through, ...
Advertisement

Related Stories

Car subscription software company Loopit eyes global markets after $3.6m seed round

Car subscription software company Loopit eyes global markets after $3.6m seed round

In a bid to enter new global markets and capitalise on the growing ...

Fashion-tech startup Citizen Wolf uses data to tailor tees, alleviate landfill

Fashion-tech startup Citizen Wolf uses data to tailor tees, alleviate landfill

As a consequence of our addiction to fast fashion, Australia sends ...

Dexus awards John Holland building contract in $2.1b Waterfront Brisbane project

Dexus awards John Holland building contract in $2.1b Waterfront Brisbane project

After securing an $830 million contract from Dexus (ASX: DXS), Melb...

'The largest event since the Olympics': SXSW goes Down Under with Sydney offshoot

'The largest event since the Olympics': SXSW goes Down Under with Sydney offshoot

For the first time in its 36-year history, the famed SXSW (South by...