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Flight Centre buys into two companies in one day

It really is Christmas over at Flight Centre, as the travel group expands its business by buying into two travel companies in one day.

It really is Christmas over at Flight Centre, as the travel group expands its business by buying into two travel companies in one day.

 

Revealed this morning, the group completed its acquisition of StudentUniverse.com (SU) and purchased a majority stake in BYOjet.com.

Shareholder in the online youth company accepted Flight Centre’s $28 million bid to own 100 percent of the SU group – less than a week after the offer was made.

Student Universe

The acquisition will increase Flight Centre’s market share amongst younger travellers, which the group recently said it was keen on growing.

“StudentUniverse will give us a stronger presence in the student and youth demographic, both in the United States and globally, and will bring new expertise to FLT in a number of key areas, including online technology and digital marketing.”

Graham Turner, Flight Centre Managing Director

Additionally, Flight Centre purchased 70 percent interest in BYOjet.com – an emerging online travel agency specialising in low-cost airfares.

BYOjet

According to Turner, the majority share will give the company more control over BYOjet’s future and growth strategies.

For example, over the next year Flight Centre will focus on increasing sales through the website by introducing other products including hotels and insurance; improving its contracting; launch business in new markets; and use Flight Centre’s expertise to grow the business and raise its profile.

“BYOjet.com is a profitable business with a low cost model that allows it to deliver cheaper airfares to the travelling public… than many of its larger online rivals.”

Graham Turner, Flight Centre Managing Director

What are your thoughts on Flight Centre’s new buys?