Home Travel News

Flight Centre takes a 'significant step' towards becoming a global DMC

Flight Centre continues to step outside the confines of the agency to take-on the world with a new business plan which will establish the Travel Group as an in-destination service provider.

Flight Centre continues to step outside the confines of the agency to take-on the world with a new business plan which will establish the Travel Group as an in-destination service provider.

That’s right, Flight Centre Travel Group is becoming a destination management company (DMC).

Working with Vietnam’s Thien Minh Group, the company is aiming to handle all its own in-destination transfers, excursions, day-trips, arrangements for meetings, land arrangements for cruises and other tour groups.

According to Flight Centre Travel Group’s Managing Director Graham Turner, becoming a DMC will give the business greater control over product offerings and customer experiences while also creating opportunities to offer new and unique products through its global distribution channel.

Graham 'Skroo' Turner, CEO Flight Centre Travel Group Limited

Turner said he also sees it as a means of tapping into new revenue streams as the group has “not traditionally targeted in-bound travellers during their holidays”.

“We believe that there are huge opportunities in the in-destination sector and it has become one of our key strategic growth areas for the future.”

Graham Turner, Managing Director, Flight Centre Group

“[The] agreement will fast-track our growth in this sector and establish the foundations for a global DMC that will deliver essential and valued services to travellers when they arrive at their destinations.”

So how is Flight Centre going to go global with the DMC?

the-oc-summer-i-have-a-plan-animated-gif

It all starts in Asia where Flight Centre will work with the Thien Minh Group to create a larger DMC by combining Buffalo Tours in Vietnam with a smaller joint venture. This will give the Group access to 10 countries.

From there, Flight Centre will increase its equity by acquiring or launching similar businesses in other key regions, creating a worldwide DMC network.

But that’s not all, the company has also signaled intentions to consider hotel management opportunities or joint ventures in key markets in the future – meaning Flight Centre won’t just sell travel, it’ll operate it and maybe even operate the hotels holidaymakers stay in.

What do you think of the latest news? Another game changer for Flight Centre? Share your thoughts below.