Australian-owned Stella Travel Services UK has announced the acquisition of long-haul specialist Travelbag in a deal believed to be worth over £7 million.
As part of the deal, Stella will acquire eight high street travel agency branches in London, Solihull, Cheltenham, Winchester, Knutsford, Nottingham, Alton and Brighton.
Stella already owns 83 Harvey World Travel shops in the UK.
Travelbag’s managing director Rick Weber will continue in his role, along with the existing management team.
But the central management team and administrative departments will be moving from the existing offices to Stella offices in north London.
In addition, Travelbag employs approximately 200 administrative and retail staff.
Weber said: “There is no doubt that one of our biggest assets is our staff, many of whom have been with us for a long time. They are all knowledgeable, well travelled people and know the destinations they are selling, which has significantly contributed to making Travelbag a successful business.
“I know that everyone at Travelbag is excited about being part of Stella Travel Services (UK) and is looking forward to working with the management team to develop the business for the future.”
Travelbag was previously part of Orbitz Worldwide, a division of Travelport Ltd.
Steve Barnhart, CEO and president of Orbitz Worldwide, said: “Travelbag is a wonderful business, with experienced management and employees, which is more aligned with the Stella Travel Services’ business model.
“With this sale, Orbitz Worldwide can focus on its core competencies as a leading online travel provider that will innovate for our customers in the Americas, Europe and Asia Pacific.”
Andrew Laurie, managing director for Stella Travel Services (UK), said: “We are looking forward to growing the UK business and building Travelbag’s position in the market.
“The travel companies within our group specialise in long haul ‘big ticket’ destinations, especially Australia and New Zealand and the acquisition of Travelbag with its high profile retail presence will provide an opportunity for us to further develop the business.
By Bev Fearis
