The Flight Centre Travel Group (FLT) has purchased 49 percent of Gold Coast-based leisure travel business, Ignite Travel Group.
Also known as Ignite, the business was founded in 2005 by current Managing Director, Randall Deer, and specialises in the development and distribution of innovative leisure market models including exclusively curated holiday packages, travel vouchers and rewards programs.
It has three key business units: MyHolidayCentre – a business that specialises in hand crafted luxury package holidays; Holiday Exclusives – a business that sells exclusive, limited time “flash sale” travel vouchers; and RewardsCorp – a business that designs and implements unique rewards and promotions programs.
Currently, the company is expected to earn some $100 million during FY17, however, Flight Centre’s Managing Director, Graham Turner, expects Flight Centre’s involvement in the business to fast-track Ignite’s growth while delivering new distribution opportunities to Flight Centre’s suppliers.
“Ignite has innovative consumer products and distribution models with strong potential across its core business units in Australia and overseas in the future.”
Graham Turner, Flight Centre Managing Director
“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.
“We also see exciting opportunities for FLT as a result of this closer relationship with Ignite.”
Ignite will continue to operate separately from FLT and Mr Deer will continue to oversee the business’s daily operations from its Broadbeach base. Following the deal’s completion, he will chair a four-person board that will also include two FLT executives and an additional Ignite representative.
Mr Deer said the relationship between FLT and Ignite would bring together two businesses with differing but complementary operating models and create a broad range of opportunities.
“FLT is an incredible business with an unmatched market penetration and network of stores and agents.”
Randall Deer, Ignite Travel Group Managing Director
“This represents an exceptional opportunity for us to grow market penetration for our unique products and models, both locally and globally, while maintaining our exclusive supply chain relationships.”
FLT will use general cash to buy its 49 percent interest in Ignite. Provisions are in place for FLT to increase its holding in the future subject to a series of mutual partnership performance requirements. Future payments will be based on the business’s results.
