Leisure and corporate travel agent Flight Centre Travel Group Ltd (ASX:FLT) has spent the last 12 months seemingly buying as many businesses as it can get its hands on, at the rate of almost one a month. Here are some of the acquisitions, including joint ventures and times when FLT increased an existing shareholding:
- 3Mundi (France, Switzerland, Spain)
- Bibam (Argentina)
- Buffalo Tours (Asia)
- Travel Tours Group (India)
- Les Voyages Laurier du Vallon (Canada)
- Travel Managers Group (New Zealand)
- Executive Travel Group (New Zealand)
- Olympus Tours (Mexico)
- Bespoke Hospitality Management Asia (Thailand)
There were also additional acquisitions in northern Europe and Scandinavia. These purchases follow on from several similar acquisitions in 2016 as Flight Centre rapidly diversifies all over the globe. Notably, in many cases Flight Centre has left the existing management in place. The acquisitions are also commonly of businesses that Flight Centre has dealt with for many years, giving the company a better insight into the opportunities and risks of its acquisitions.
The acquisitions may be an attempt to find uses for the company's cash, of which Flight Centre had more than $400 million at last count. It may also reflect increasing pressure on the company's core business model, such that the company needs to find alternative sources of income. Whatever the driver, the acquisitions show that Flight Centre is increasing its focus on in-destination experiences, rather than simply acting as the broker between the tourist and the leisure operator.
As we've written before, Flight Centre can use its wide network of travel agents to feed tourists into company-owned or operated tours, hotels, and other experiences. Flight Centre has also been using acquisitions to increase its presence online and in the corporate travel market.
