Qantas has announced it has bought a 51 per cent stake in Byron Bay-based online travel business TripADeal, with plans to “significantly grow the company’s revenue through a close partnership with Qantas Loyalty.”
Qantas says Frequent Flyers can now use their points on a huge range of holiday packages in a deal that sees the national carrier take a majority shareholding in the Australian-made travel business, TripADeal.
The stake will allow Qantas Loyalty to immediately expand its exposure to the estimated $13 billion online packaged holiday booking market, which is experiencing significant growth as leisure demand booms and the shift to e-commerce continues.
Over the past decade, TripADeal has built thousands of direct supplier relationships with hotels, tour operators and other vendors that allow it to offer well-priced holiday packages both domestically and overseas. They also have their own tour guides based in over 30 countries.
TripADeal packages range from African safaris, Japanese ski trips and exploring Antarctica, to South Australian wine tasting tours and Bali beach holidays.
All of these ready-made holidays will now be able to be booked using Qantas Points, regardless of which airline is part of the package.
Frequent Flyers will also earn three points for every $1 they spend with TripADeal and can also use ‘points plus pay’.
“This is a great opportunity at the perfect time. Coming out of the pandemic, people want a holiday experience that is special but also tried and tested, and there is a huge shift to booking online,” said Qantas Group CEO Alan Joyce.
“That’s exactly what TripADeal does. It’s an Aussie success story built on delivering ready-made holidays at very sharp prices, and their level of repeat customers shows how well they do it,” Mr Joyce said.
“Partnering with TripADeal means we can make Qantas Points part of the equation, which is great news for our Frequent Flyers and for our loyalty business more broadly.
“Buying a majority stake at the same time means we can benefit from the strong growth that’s going to follow as a result,” he said.
Qantas says the combination of TripADeal’s success at curating holiday packages together with the reach of its Loyalty’s 14-million member base, plus the opportunity to redeem and earn points, is projected to drive a significant increase in TripADeal’s revenue in the next few years.
Pre-COVID, TripADeal says it had an annual growth rate of more than 40 per cent and in the 12 months prior to the pandemic, bookings were in excess of AUD$200 million.
Qantas joins existing shareholders, the founders of TripADeal and the private equity firm BGH Capital, which bought a stake in 2020.
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