Flight Centre Travel Group (FCTG) is closing down GOGO Vacations, a U.S. wholesaler with more than 70 years of history.
In a statement on its website, GOGO Vacations says it is no longer accepting new reservations.
“From the entire team at GOGO Vacations, we extend our heartfelt gratitude to the travel advisor community and our industry partners for over 70 years of unwavering loyalty,” GOGO says.
“Your partnership and collaboration is deeply appreciated and we wish you much success in your future endeavors!
“Rest assured, all existing bookings, both Groups and FIT, will continue to be honored and serviced via Online Support and our Groups Team. There is no need to cancel existing bookings.”
Acquired by FCTG in 2007, New Jersey-based GOGO has offered packaged holidays for travel agencies since 1951, so the business is (now was) an icon of sorts in the American travel industry.
In its half-year financial report, FCTG confirmed the closure of the “loss-making United States wholesaler GOGO, which incurred $7.3 million in non-recurring 1H losses”.
“It was a difficult, but logical decision to close GOGO,” Flight Centre Travel Group Americas President Charlene Leiss said in a statement.
“With the wholesale model struggling in recent years, it has become increasingly difficult to justify the high costs of maintaining this brand.”
“Effectively, we are playing to our strengths and doubling down in our best performing sectors and where we see exciting future growth potential.
“We are also bringing the U.S. business into line with the leisure and corporate structures we have elsewhere in the world.”
The move to close GOGO comes as FCTG ups its focus on the luxury and independent contracting market in the US.
Its recently acquired Scott Dunn luxury travel business opened in New York during H1 of the financial year, giving it a US east and west coast presence.
“The business overall continues to trade in line with expectations and will generate the bulk of its FY24 profit during its peak 2H booking periods,” FCTG said in its presentation of half-year results.
Elsewhere, the group will begin the rollout of its new Envoyage brand for FCTG Independent agencies in the United States in March, before it launches in Canada, South Africa, Australia and New Zealand.
Today, FCTG reported total transaction value (TTV) of $11.3 billion for H1 FY24 – a 15 per cent rise on the year before and its second-best start to a year ever (behind FY20) – as well as a $106 million underlying profit before tax (PBT).