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Harvey World parent to buy Global Travel Group
Major consolidation in the UK independent agency sector has been signalled with Stella Group – the Australian parent of Harvey World Travel – set to acquire Global Travel Group.
Global’s 650 outlets and Indpendent Options branches will join Harvey World’s 80 shops to create a chain of 1,100.
Global is also expected to conclude a merger with Worldchoice to bring a further 450 agencies into the network in the new year.
Stella’s other interests in the UK include Travel 2/4 and Travelbag, while Global and Worldchoice are part of the Triton Travel Group.
Global Travel Group chief executive Andrew Botterill is to remain with the business along with other senior management.
Stella Group managing director Rolf Krecklenberg said the purchse of Global was expected to add A$54 million to the group’s EBITDA over the next three years.
Stella Travel Services chief executive Keith Stanley told Australian media that the acquisition would cement the company’s position as a leading player in the UK travel market
“The acquisition fits perfectly into our virtual vertically integrated global travel business model and will make Stella UK approximately the same size as Stella Group’s Australian domestic operations,” he said.
“The UK business will now mirror what we have successfully created in Australia and New Zealand, and the group can capitalise on opportunities provided by our retail distribution network, along with our accommodation and travel products.
“We firmly believe there are significant opportunities and organic growth potential available through the indepedent sector in the UK.
“Global’s network of franchisees and affliates, along with the 80 agencies that we already have under the Harvey World Travel brand, has allowed us to create a market-leading travel business in the UK.”
Botterill was quoted as saying: “Our franchisees and affiliates will receive a number of benefits from being part of a larger combined group, including greater buying strength from increased scale and synergies from access to Stella’s world-class wholesale and consolidation platform.
“Franchisees and affliates remain the key to the continued success of our business and we will do everything to ensure a streamlined transition into the Stella business.”
*Trade reaction to follow
by Phil Davies
Phil Davies
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