Flight Centre buys into hotels, DMCs to nab “larger share of travel wallet”

Flight Centre buys into hotels, DMCs to nab “larger share of travel wallet”

Just days after Flight Centre updated its forecast for its financial year pre-tax profits to as high as $330 million, as well as announcing a number of job cuts to mid-high end support roles, comes this announcement.

Flight Centre Travel Group now does hotels, after they aqcuired a hospitality management company that they’re calling a “low-risk entry” to the market.

And hey, while they’re at it, they’re adding to their destination management company (DMC) offering, which already got a headstart by expanding its stake in its 2014 Buffalo Tours venture.

The company today announced it has secured separate deals to acquire Olympus Tours, a leading Mexico-based DMC, and Bespoke Hospitality Management Asia (BHMA), an emerging Thailand-based regional operator of design and lifestyle leisure hotels.

Wowza!

Both businesses will become key additions to Flight Centre’s rapidly expanding in-destination travel experiences network, headed by Brisbane-based Nick Lucock.

Founder and Managing Director Skroo Turner had hinted at the new business ventures in the latest financial outlook, saying the areas of hotel management and DMCs hold great opportunity for expansion and revenue.

Today, he added, “Expanding our in-destination network is a key global strategy and we are starting to develop strong foundations in this sector through our tour operators, DMCs and hotel management businesses.

“Olympus is an important addition to this network and gives us a DMC in the Americas, to complement our recently expanded presence in Asia, while BHMA provides us with a low-risk entry to hotel management, a sector that we have identified as a key future growth opportunity.”

Turner added that by expanding in this in-destination area, they gain a number of advantages, with possibly the most important being “the opportunity to capture a larger share of the travel wallet”, with Turner admitting FC has not typically captured the biggest chunk of in-destination spend.

In addition, Turner said the acquisitions meant the company had “greater control over the customer offering” and the “opportunity to capture additional margin through vertical integration”.

It also provides the capacity to create new and unique products which Turner says can be sold through FC’s global channels.

Turner was also excited about the “access to new external revenue streams”, which include sales to other travel groups and providing DMC services to tour companies and groups.

Flight Centre has been tiptoeing into the DMC market since 2014, when it initiated a joint venture with Vietnam’s Thien Minh Group. It operated in 10 Asian countries, and also included TMG’s buffalo Tours business in Vietnam.

Earlier this year, FC bought a bigger – 58.5 per cent bigger – stake in the venture, and put plans in place to increase this ownership in 2018.

The company has also been pursuing hotel management in key global markets, but not actioned anything yet.

“This is a logical step into hotel management and will deliver numerous benefits,” Turner added.

Turner explained that through acquiring BHMA, FC will snag a business that’s been growing steadily since it started, and has recently taken on larger properties, meaning it fits with FC’s long term expansion goals and is globally scalable.

The acquisition also comes with the expertise of “people and processes that we can draw upon to expand our hotel management operations in Asia and into other key regions, including Australia, the South Pacific, Europe and the Americas,” Turner added.

Flight Centre’s in-destination products also include the Top Deck and Back-Roads touring businesses. With the combination of Buffalo Tours and Olympus Tours DMCs, the revenue of both hits around US$100 million annually.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

Bespoke Hospitality Management Asia buffalo tours dmc flight centre graham turner olympus tours Skroo Turner

Latest News

  • Road & Rail

Ingenia Holiday Parks powers its very own EV Superhighway throughout NSW

Ingenia Holiday Parks has started plans to make it easier for electric vehicle drivers to explore Australia’s east coast with their expanded EV charging network. By the end of 2024, Ingenia Holiday Parks will have installed 44 new EV charging ports across 11 of its parks, enabling seamless travel from Brisbane in Queensland to Eden […]

  • Destinations
  • Regional
  • Tourism

Warrawong on the Darling’s new ownership and summer savings

Outback holiday retreat, Warrawong on the Darling, has new owners marking a new era for the cabin, van and camping park near Wilcannia, and released savings for summer stays and a free roast dinner on Christmas Day. Nestled by a pristine billabong on the Darling River and surrounded by sand dunes, far horizons, rugged open […]

  • Aviation

Visit Sunshine Coast, Jetstar host Kiwi trade partners ahead of JQ Auckland-Maroochydore launch

Visit Sunshine Coast’s trade and international manager, Emily Zinowki, treated Auckland trade partners to a hosted lunch alongside Jetstar New Zealand. The lunch was in celebration of the imminent launch of the new JQ Auckland to Maroochydore direct service on 13 December. The year-round direct flights between Auckland and the Sunshine Coast are a first […]

  • Cruise

Celebrity Cruises opens new 2026/27 sailing bookings

Celebrity Cruises has opened bookings for its exciting new 2026/27 sailings, including the Grand Voyage, a 110-night journey, and the longest without repeating ports for Celebrity. Aussies will be able to book fan favourite Celebrity Solstice as she returns to Australia in the 2026/27 season as part of Celebrity Cruises’ Grand Voyage. When they aren’t taking […]

  • Cruise
  • Cruise Lines

Heritage Line launches 2025 early bird discount

Boutique river cruise operator, Heritage Line, has launched an early bird discount with up to US$200 (around AU$313) off on bookings for 2025. The offer is available until 31 December, making it ideal for those planning to gift a trip to someone for the holidays or for those ready to plan their 2025 vacations. The […]

  • News

Tragedy at Bali’s Ubud Monkey Forest as tree collapse kills two

A freak event claimed the lives of two tourists at the popular Ubud Monkey Forest in Bali on Tuesday afternoon local time when a large tree branch collapsed. A 32-year-old French woman and a 42-year-old Korean woman were fatally injured. At around 12:30 pm a sudden storm with strong winds and heavy rain arrived with […]

  • Aviation
  • Hotels
  • Travel Agents

Dorchester and Cathay Pacific advisor promotion winners enjoy luxury fam in Rome and Milan

Winners of a Dorchester Collection and Cathay Pacific travel advisor promotion enjoyed a luxury fam in Roma and Milan where they were wined and dined before enjoying a stopover in Hong Kong. The winners, Hema Desai (Spencer Travel), Ani Aladjadjian (ATPI), Mimi Romijn (Wentworth Travel), Emma Neely-Bartlett (Travel Beyond Group), Nicole Reber (Mosman Travel), Steve […]

  • Food & Beverage
  • Hotels

Lee Ho Fook chef Victor Liong adds another chapter with new offering Singapore’s Quenino Artyzen hotel

Melbourne chef Victor Liong, of the two-hatted Lee Ho Fook, has added to his culinary storytelling with Quenino by Victor Liong, in Singapore’s Artyzen hotel, where contemporary Asian cuisine is served with a relaxed fine-dining flair. Artyzen Singapore emerged from an iconic Singapore heritage landmark that was once the sprawling tropical-garden mansion named “Villa Marie” […]

  • Food & Beverage

Tolpuddle Vineyard opens Tasting Room in Coal River Valley

Tolpuddle Vineyard is opening its Tasting Room at their Coal River Valley property in Richmond, Tasmania, this Friday, 13 December. The Tolpuddle Vineyard Tasting Room, managed by Pip Anderson, previously general manager of hospitality at Mona, will be open from Friday to Monday, 11am to 5pm with appointments available online. Visitors can taste a flight […]

  • Aviation

Air Tahiti Nui celebrates big wins with 2025 APEX awards and Cash & Miles Program

Air Tahiti Nui has again been recognised for service to travellers being honoured with the prestigious Five Star Major Airline title for the 7th consecutive year. Announced at the APEX/IFSA Awards 2025 ceremony, the ranking is based on passenger reviews of over one million flights and 600 airlines. The flagship carrier of The Islands of […]