“Agent hub could be a billion-dollar business for us in the next couple of years.” That was one of several bold growth signals from Adam Schwab, co-founder and CEO of Luxury Escapes, during an on-stage interview with Cameron Daddo at TravMedia’s IMM Sydney yesterday.
Schwab said the trade-facing platform is now one of the fastest-growing channels in the business, underscoring a significant shift in the company’s relationship with agents.
“We now sell to agents and it’s one of our fastest-growing parts of the business,” he said.
Luxury Escapes launched agent hub in March 2024 following strong demand from the trade and has since expanded the platform into the UK. Thousands of agents now use the program across both markets to access commissionable rates on the company’s limited time exclusive offers, cruise and tour products.
Market share and profitability focus
Schwab also pointed to strong performance across the broader business, referencing the recent reporting season including results from Flight Centre Travel Group.
Rather than focusing purely on total transaction value, he said Luxury Escapes prioritises contribution margin and long-term profitability.
“It’s easy to grow top line if you spend a lot on marketing. What we focus on is growing contribution margin,” he said, adding the company believes it has continued to take market share in a competitive environment.
Taking risk on aviation
Beyond distribution, Schwab talked about how Luxury Escapes is launching direct Melbourne to Maldives charter in mid-May, initially running for six months.
UPDATE: Luxury Escapes adds air-only Agent Hub direct bookings to its Maldives offer
Notably, Luxury Escapes is taking capacity risk on the program.
“We’re on risk, so if we don’t sell out, it’s on us,” he said.
Schwab said one in two Australians travelling to the Maldives already books through Luxury Escapes. The non-stop overnight service aims to remove the friction of transiting via Singapore or the Middle East, while negotiated inclusions such as early check-in and late check-out are designed to maximise time at resort.
The move signals a deeper vertical integration play as the company increases control over air capacity tied to its packaging model.
Corporate and SME push
Corporate travel is another area of expansion, particularly among SMEs.
Schwab outlined a gamified corporate model that allows employers to set travel budgets while enabling employees to share in any savings if they travel under budget, receiving part of the difference back as Luxury Escapes credit.
“It’s certainly an area of growth for us,” he said, positioning the model as a way to better align employer and traveller incentives.
Loyalty strategy and credit card
On loyalty, Schwab acknowledged the dominance of Qantas in the Australian market, describing it as the benchmark for switching costs.
Luxury Escapes’ Society program is designed to increase customer lifetime value through earn-and-burn functionality across its full product range. A co-branded credit card is expected to launch in coming months, with Schwab claiming it will be among the more generous earn-rate offerings in the market.
Retail stores outperforming expectations
Despite a broader industry shift away from bricks and mortar, Schwab said the company’s Bondi Junction and Chatswood stores have exceeded expectations.
He claimed the Chatswood location is tracking towards close to $100 million in annual sales, positioning it among the highest-performing travel stores globally.
AI trip planner on the horizon
Looking ahead, Schwab flagged the imminent launch of an AI-powered trip planner integrated directly into the Luxury Escapes booking environment.
Rather than functioning as a standalone chat interface, the tool will allow users to build itineraries, adjust plans and transact within the same ecosystem, which he described as a significant step forward in travel planning functionality.
While embracing AI to improve efficiency, Schwab defended the ongoing importance of human-generated travel content, arguing it remains difficult to replicate the nuance and emotion of experienced travel writers.
