Qantas will complete its acquisition of online travel business TripADeal this month, announcing last week it would purchase the remaining 49 percent of the Byron Bay business.
Qantas Loyalty CEO Andrew Glance said the deal would accelerate Qantas Loyalty’s exposure to the growing $13 billion online holiday packages market.
Qantas acquired a majority stake in TripADeal in 2022.
Mr Glance said the remaining 49 per cent would be purchased for $211 million, with the transaction expected to be completed by the end of June.
“Through the full acquisition, Qantas expects combined cost and revenue synergies to build to at least $50 million annually across the Group, over time,” he said.
Mr Glance said TripADeal’s ability to curate on-trend holidays coupled with the reach of Qantas’ 15.8 million members had seen sales and revenue growth exceed expectations.
“Bookings have surpassed $450 million in the last 12 months, doubling pre-COVID levels,” he said.
Mr Glance said TripADeal would continue to operate as an independent business, working with a range of travel partners and airlines.
He said the purchase would see founders of TripADeal, Norm Black and Richard Johnston, depart the business, with Matt Wolfenden, who has been with the company for seven years, promoted to CEO.
Mr Glance said the investment was expected to deliver a strong result for shareholders with returns “exceeding the Qantas Group’s internal hurdles”.
“Qantas Loyalty continues to perform strongly and retains its $800 million – $1 billion target for 2030.
“Following this acquisition, Qantas Loyalty still expects to deliver Underlying EBIT in FY24 of $500 – $525 million before returning to growth of at least 10 per cent in Underlying EBIT in FY25.”
Mr Glance said the acquisition cost of $211 million would be captured within existing Qantas Group capex guidance of $3 – $3.2 billion.
