FCM’s parent company, Flight Centre Travel Group (FCTG) has moved to increase its leisure and corporate travel market-share in New Zealand with the acquisition of two leading businesses: Executive Travel Group and Travel Managers Group.
Founded in 1978, Executive Travel Group has grown from a boutique business travel agency to become New Zealand's largest independent corporate travel managementcompany with a total transaction value of $NZ60 million during the 2016 calendar year. The acquisition consolidates FCTG’s position as one of the leading business travel providers in this market.
Travel Managers Group was established in 2002 and is predominantly leisure-focused, providing systems and support services to a network of more than 180 individual brokers. The group generated total transaction value of $NZ120 million during its 2017 financial year. It also operates a 22-shop franchise network, which includes 12 TravelSmartshops and 10 non-branded stores. The acquisition will give FCTG a strong broker and franchise network to complement its omni-channel leisure offerings.
Flight Centre managing director Graham Turner said the acquisitions would strengthen FCTG’s New Zealand operation, which is now the company's fifth largest business globally by sales behind Australia, the USA, the UK and Canada. “These are both profitable businesses, generating earnings before interest, tax, depreciation and amortisation in excess of $NZ3million annually, with solid growth trajectories and good track records of success," he said.
“With their addition, Flight Centre New Zealand will go close to becoming a $NZ1.5billion per-year sales company during the 2018 fiscal year (FY18).Executive Travel Group will enhance our already strong corporate travel offering in New Zealand and will give the business additional scale and expertise.Through Travel Managers Group, we will gain access to new business models and leisure revenue streams to complement our offerings across our other key channels, which include online, contact centres, our community and flagship shop network and our expo and event program,” added Turner.