Qantas has purchased a 51 percent stake in TripADeal, a fast-growing online travel business. The carrier plans on growing the business through a close partnership with Qantas Loyalty, and frequent flyers can now use Qantas Points to book TripADeal holidays.
On Tuesday (May 24, 2022), Qantas announced that they have acquired a 51 percent stake in fast-growing Australian online travel business TripADeal. The airline plans on growing TripADeal’s revenue through a close partnership with Qantas Loyalty, and Qantas Frequent Flyers can now use their points to book a large range of TripADeal holiday packages. Over the last decade, TripADeal has built thousands of supplier relationships with hotels, tour operators and other vendors, facilitating the offer of well-priced domestic and overseas holiday packages, as well as their proprietary guided tours to over 30 countries. TripADeal packages range from African Safaris, ski trips in Japan or a tour of Antarctica, to South Australian wine tasting tours and Bali beach holidays.
In Tuesday’s announcment, Qantas Group’s CEO, Alan Joyce, said,
“This is a great opportunity at the perfect time. Coming out of the pandemic, people want a holiday experience that is special but also tried and tested, and there is a huge shift to booking online. That’s exactly what TripADeal does. It’s an Aussie success story built on delivering ready-made holidays at very sharp prices, and their level of repeat customers shows how well they do it. Partnering with TripADeal means we can make Qantas Points part of the equation, which is great news for our Frequent Flyers and for our loyalty business more broadly. Buying a majority stake at the same time means we can benefit from the strong growth that’s going to follow as a result.
“Qantas Loyalty performed extremely well during COVID. Despite the lack of flying, members earned and used large volumes of points on the ground, customer satisfaction reached record levels and the business delivered strong earnings for the Group. I don’t think any other airline loyalty program managed to do that. The ways to earn points on the ground keep expanding and we know that the number one thing people want to spend those points on is travel. That’s why the opportunities that TripADeal opens up for our Frequent Flyers will be so positive.”
Also commenting on the new partnership, TripADeal’s Founder, Norm Black, said,
“We’re an Aussie business that is very proud to now be in a close partnership with the national carrier. Qantas understands why TripADeal is different and what makes it a success, which is why we chose to do this deal with them.”
TripADeal’s Co-Founder, Richard Johnston, added,
“This business is about making it easier for people to take amazing holidays essentially at the click of a button. It’s taken a decade for us to build the relationships direct with suppliers to be able to offer all the experiences we have, and the ability to now use Qantas Points for that is really going to drive our growth in the years ahead. And frankly, it’s great news for anyone wanting to take a special trip.”
All TripADeal ready-made holidays can now be booked using Qantas Points, regardless of which airline is part of the package. Additionally, Qantas Frequent Flyers will earn three points for every $1 spent with TripADeal, and customers can also use ‘points plus pay’ to book a holiday. During the pre-pandemic period, TripADeal’s revenue was increasing by over 40 percent annually, growing to more than $200 million in the 12 months prior to the onset of COVID-19. Qantas now joins TripADeal’s existing shareholders including the founders, and the private equity firm BGH capital, which acquired a stake in the company in 2020. As part of the confidential all-cash deal, Qantas reserves the right to acquire the remaining 49 percent of the company in four years at a multiple of TripADeal’s bookings at that time.
Byron Bay-based TripADeal was founded in 2011 by Norm Black and Richard Johnston and specializes in packaged holidays with set itineraries including flights, hotel accommodations and tours. Currently, the company employs approximately 100 team members in Byron Bay and the Gold Coast, and maintains dedicated personnel in over 30 countries to manage the destination guest experience.
Source(s): Qantas, TripADeal