Qantas has bought a majority shareholding in Byron Bay-based online travel booking website TripADeal for an undisclosed sum, as it targets double-digit earnings growth in its frequent flyer segment this financial year.
The deal also includes options for the airline to buy the rest of the business in four years time from other shareholders in the business, includingQantas said the deal would be accretive to earnings targets for the frequent flyer business which, in addition to the growth targets for the year ending June 30, is aiming to earn from $500 million to $600 million by the 2024 period.“Qantas Loyalty performed extremely well during COVID=19.
TripADeal was founded in 2011, and had an annual growth rate of 40 per cent in bookings in the 12 months before the pandemic, the statement to the ASX said.Co-founders Norm Black and Richard Johnstone, two Byron Bay shop owners, both welcomed the deal. “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,” Mr Black said.
“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,” Mr Johnstone said.