Qantas has announced that it will take a majority shareholding in the Australian-made travel business, TripADeal.
The stake allows Qantas Loyalty to immediately expand its exposure to the estimated AU$13 billion online packaged holiday booking market, which is experiencing significant growth as leisure demand booms and the shift to e-commerce continues.
Over the past decade, TripADeal has built thousands of direct supplier relationships with hotels, tour operators and other vendors that allow it to offer well-priced holiday packages both domestically and overseas. It also has its own tour guides based in over 30 countries.
TripADeal packages range from African safaris, Japanese ski trips and exploring Antarctica, to South Australian wine tasting tours and Bali beach holidays.
All of these ready-made holidays can now be booked using Qantas Points, regardless of which airline is part of the package. Frequent Flyers will also earn three points for every AU$1 they spend with TripADeal and can also use ‘points plus pay’ to make their holiday happen sooner.
The combination of TripADeal’s success at curating holiday packages together with the reach of Qantas Loyalty’s 14-million-member base, plus the opportunity to redeem and earn points, is projected to drive a significant increase in TripADeal’s revenue in the next few years.
Pre-COVID, TripADeal had an annual growth rate of more than 40% and in the 12 months prior to the pandemic, bookings were in excess of AU$200 million. Monthly bookings are now significantly higher.
Qantas joins existing shareholders, the founders of TripADeal and private equity firm BGH Capital, which bought a stake in 2020.
The full terms of the all-cash purchase are commercial in confidence. The agreement provides a mechanism for Qantas to acquire the remaining 49% of TripADeal in four years at an agreed multiple of TripADeal’s bookings at the time. (£1.00 = AU$1.77 at time of publication).
