Qantas takes majority stake in TripADeal to offer online packaged holidays

Qantas has taken a 51 per cent stake in online travel company TripADeal, allowing its frequent flyers to use their points to buy holidays. The airline said the stake allows Qantas Loyalty to immediately expand its exposure to the estimated $13 billion online packaged holiday booking market, which is experiencing significant growth as leisure demand booms and the shift to e-commerce continues. TripADeal packages cover a host of holiday options from African safaris, Japanese ski trips and exploring Antarctica to South Australian wine tasting tours and Bali beach holidays. Qantas said the ready-made holidays could be booked using Qantas Points, regardless of which airline is part of the package. Frequent Flyers will also earn three points for every $1 they spend with TripADeal and can also use “points plus pay”. SEE the podcast: Flight Safety Detectives dissect the Netflix doco “Downfall”. READ: Boeing will bounce back says world’s largest leasing company READ: How the Airbus A350 went from defeat to victory READ: Ukraine's President wants to build another AN-225 Pre-COVID, TripADeal had an annual growth rate of more than 40 per cent and in the 12 months prior to the pandemic, bookings were in excess of $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 have not been disclosed. The agreement provides a mechanism for Qantas to acquire the remaining 49 per cent of TripADeal in four years at an agreed multiple of TripADeal’s bookings at the time. Qantas chief executive Alan Joyce said it was the perfect time to make the investment. “Coming out of the pandemic, people want a holiday experience that is special but also tried and tested, and there is a huge shift to booking online,” Mr Joyce said. “That’s exactly what TripADeal does. It’s an Aussie success story built on delivering ready-made holidays at very sharp prices, and their level of repeat customers shows how well they do it. “Partnering with TripADeal means we can make Qantas points part of the equation, which is great news for our Frequent Flyers and for our loyalty business more broadly. Buying a majority stake at the same time means we can benefit from the strong growth that’s going to follow as a result. TripADeal, based in Byron Bay, was established in 2011 by co-founders Norm Black and Richard Johnston to specialise in packaged holidays with set itineraries including flights, hotel accommodation and tours. The company employs around 100 people in Byron Bay and the Gold Coast, with dedicated personnel in more than 30 countries to manage the experience on the ground.