Summary
- Helloworld reveals acquisition of CruiseCo and partnership renewal with Qantas Airways Limited.
- The Company stated that the acquisition aligns with its strategy of expanding its cruise offerings across Australia and New Zealand.
- The new multi-year agreement with Qantas provides HLO with the confidence to sell products of Qantas.
A leading Australian & New Zealand travel distribution company Helloworld Travel Limited (ASX:HLO) announced today that the Company has acquired CruiseCo and has renewed partnership with ASX-200 listed Qantas Airways Limited (ASX:QAN).
Following the announcement, the share price of HLO inched higher by 4.089% with the stock trading at A$2.80 (at AEDT 12:35 PM). The Company’s market capitalisation stood at A$417.02 million.
Acquisition of cruise wholesaling specialist- CruiseCo
On 23 November 2020, ASX-listed travel operator Helloworld Travel Limited stated that the acquisition aligns with its strategy of expanding its cruise offerings across Australia and New Zealand. The Company also stated that the business is complementary to Helloworld’s existing cruise wholesale business, Seven Oceans Cruising, which had annualised TTV of around A$110 million prior to COVID-19.
Helloworld is a leading Australian & New Zealand travel distribution company. Helloworld operates by its retail travel networks, destination management services (inbound), wholesale travel services, online operations, corporate travel management services, and air ticket consolidation.
CruiseCo is a cruise package wholesaling specialist and was founded 20 years ago by Kevin Dale, Phil Hoffman, and Steve Lloyd. Prior to the onset of COVID-19, CruiseCo had annual TTV of approximately A$70 million from its member agents across Australia.
Acquisition of CruiseCo will be supported by existing cash reserves of HLO, and the purchase cost is not considered material.
HLO Executive Director Cinzia Burnes said-
Renewal of Qantas Partnership
Helloworld also disclosed that the Company has renewed its partnership with Qantas. The Company has signed a new three-year commercial agreement with Qantas to sell its fares and products until 2023.
The new multi-year agreement provides HLO with the confidence to sell Qantas products in the present and as the industry begins to recuperate.
CEO and Managing Director of Helloworld Andrew Burnes stated that the long-term agreement offers Helloworld and its agency networks commercial certainty, also allows the business to take the lead with opportunities to sell products of Qantas.
Mr Burnes added-
Adding to this, Igor Kwiatkowski Executive Manager, Global Sales & Distribution, Qantas stated that the new agreement was representative of the long-term collaborative partnership Qantas had with Helloworld Travel. Mr Kwiatkowski also said that this agreement would help reinforce the long-standing relationship of Qantas with HLO as their leading airline supplier in Australia.
