Travel booking specialist the Flight Centre Travel Group (ASX: FLT) has strengthened its Australian leisure business with the 100% acquisition of Gold Coast-based Ignite Travel Group.
Flight Centre previously held a 49% stake in the award-winning company and the parties have agreed to strategically bring forward the full purchase of Ignite’s Australian and New Zealand businesses to capitalise on its highly successful “readymade” holiday package model.
FLT managing director Graham Turner said this will allow full deployment and integration of Ignite’s product suite through FLT’s leisure network, beyond the recently launched “Flight Centre Exclusives” product range, to include its market-leading My Holiday Centre brands such as MyFiji, MyHawaii and MyCruises.
Mr Turner said the readymade package model was growing rapidly in Australia, with Ignite’s unique IP and skills making the company pioneers and a market leader in the exciting new sector.
Ignite has been hugely successful, growing sales more than 40 per cent per annum for the past two years, and we are excited by its future potential in Australia and overseas,” he said.
“Full ownership of the business will allow for streamlined integration of Ignite’s innovative products and will deliver new offerings and choices to our customers.
“The acquisition will also allow Ignite to expand internationally, with its founder and managing director, Randall Deer, set to work with us in a 50-50 joint venture partnership to develop the company’s unique models in desired international markets,” Mr Turner said
The readymade package/flash-sale model was one of four new and emerging leisure business streams that FLT has highlighted as future growth drivers.
The other rapidly growing leisure business streams were:
- Online – FLT’s online leisure brands generated $1.3billion in total transaction value (TTV) during FY19 and have continued to grow strongly during FY20
- Independent contractor/home-based agents; and
- Flight Centre brand’s specialist businesses, which focus on small corporate accounts (Flight Centre Business Travel), group travel, cruise, first and business class flights and round-the-world airfares
Mr Turner said Ignite would continue to operate within FLT’s Emerging Brands division, would remain a separate entity on the Gold Coast, under the stewardship of current CEO Ryan Thomas, and would maintain the operating models that had underpinned its success.
