The share price of online travel agent Travel.com.au (TVL) slumped 12.5% following news that it was buying outright control of the Lastminute brand in Australia and NZ for A$4.75 million. TVL bought the 25% it didn’t already own in this market from Travelocity “subject to maintaining certain brand values”. Travelocity will continue selling its products through the Aussie and NZ sites for the time being. There was an expectation among some investors that the reverse would occur with Travelocity buying out TVL, resulting in a cash windfall for the ASX-listed company. TVL is aiming for total revenue growth of 30% to 35% over the next year.
Travel Trends: July 4, 2007