Flight Centre has continued its acquisition spree by buying a 49% stake in the Ignite Travel Group, which operates the Holiday Exclusives, MyHolidaycentre and RewardsCorp businesses.
FLT managing director Graham Turner said he was particularly bullish about the Holiday Exclusives brand, a player in the booming flash sales sector, dominated by brands such as Scoopon, Luxury Escapes and TripADeal.
“We see strong and rapid growth opportunities for the Exclusives voucher business, which operates in a market that is exciting and growing rapidly,” he said.
“Ignite has innovative consumer products and distribution models with strong potential across its core business units in Australia and overseas in the future.”
Ignite was founded in 2005 by Managing Director Randall Deer, is based on the Gold Coast, has 120 staff and is expected to turnover $100m this financial year.
MyHolidayCentre, specialises in hand crafted and value added luxury packaged holidays across 14 specific destinations and sectors. Examples include MyFiji, MyHawaii, MyQueensland and the recently launched MyCruises.
Holiday Exclusives, sells exclusive, limited time “flash sale” travel vouchers that represent extreme savings to consumers. Vouchers are available through third party websites and databases (B2B) and also directly to consumers via the Exclusives website (B2C); and
RewardsCorp , a business that deploys patented models to design and implement unique rewards and promotions programs, predominantly travel, for corporate clients (B2B) to offer to their customers. Also manages customer redemption (B2C).
Randall Deer will continue managing the business and chair a four-person board including two FLT executives and another from Ignite.
“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,” Mr Deer said.
FLT will use general cash for the acquisition and has the option to increase its stake subject to various performance hurdles.