When the guys at Flight Centre Travel Group’s head office aren’t debating which celebrity to book for Global Gathering, ‘sliding’ out of the building or celebrating profits, they’re signing off on new acquisitions.
The ever-growing travel group has just made two new international investments, one in Mexico (arriba baby!) and one in Thailand.
You know what this means Flighties – potential transfers to Latin America and Southeast Asia!
The acquisition of Olympus Tours and Bespoke Hospitality Management Asia (BHMA) was confirmed this morning, with both businesses to be led by Brisbane-based Nick Lucock.
Although the purchases were made separately, they both serve Flight Centre’s goal of having greater control of customer offerings around the world.
“Expending our in-destination network is a key global strategy and we are starting to develop strong foundations in this sector through our tour operators.”
Graham Turner, Flight Centre Travel Group Managing Director
“Olympus is an important addition to this network and gives us a DMC in the Americas, to complement our recently expanded presence in Asia, while BHMA provides us with low-risk entry to hotel management, a sector that we have identified as a key future growth opportunity.”
So let’s take a closer look at Flight Centre’s new buys:
First there’s Mexico’s Olympus
As Flight Centre’s second destination management company (DMC), after Buffalo Tours, and second purchase in Latin America, Olympus will give the group control over wholesale, in-destination and retail sales in Mexico, the Dominican Republic and Costa Rica.
These services will include transfers, excursions and day-trips, arrangements for meetings and incentive groups and land arrangements for cruises and other tour groups.
This type of business will be particularly useful to Flight Centre in the coming years as more Aussies travel to the Latin American region.
“Olympus will also deliver immediate benefits and, in the long term, we will be able to draw on the team’s proven expertise in this sector as we expand our DMC offering globally and particularly in key markets within the Americas,” Turner said.
“For example, we will now have a footprint to further expansion into mainland USA and Hawaii and into neighbouring markets in the Caribbean and in South and Central America.”
And then there’s Thailand’s Bespoke Hospitality Management Asia
Acquiring a hotel management has also been in Flight Centre’s sights for some time and by purchasing BHMA, the Group inherited a portfolio of 14 properties in Bangkok, Phuket, Koh Samui, Pattaya and Chiang Mai, as well as an additional 19 properties currently under development.
Not to mention, the BHMA is planning to take on larger properties of up to 265 rooms and it’s poised to expand into Vietnam during the 2018 financial year.
Turner said BHMA was the “logical first step” for Flight Centre’s investment in the accommodation sector, and expects it will deliver “numerous benefits”.
“Through BHMA, we will gain access to: a hotel operating platform that is scalable globally; a business that has been growing steadily since inception…; expertise, in terms of people and processes…; [and] additional product in large and important international markets,” he explained.
Flight Centre Travel Group will acquire 100 percent of both businesses and will use company cash to fund the acquisitions, which are both expected to formally settle within the next 30 days.