Skift Take
The Australian group is turning to the U.S. for its next stage of expansion, but remarkably believes the very best avenue for that is through a British luxury brand name.
Matthew Parsons
Australia’s Flight Centre Travel Group is purchasing UK-based trip operator Scott Dunn for $148 million (A$ 211 million), in a bid to broaden into the U.S., in addition to the UK.
The luxury-focused brand name, which was established in 1986 as a luxury ski operator, will now function as an “entry point into the UK and U.S. luxury market to match the existing international leisure offering in a section where Flight Centre is underrepresented,” Flight Centre stated in a declaration on Tuesday.
Flight Centre stated Scott Dunn attains greater profits and EBITDA (incomes before interest, taxes, devaluation, and amortization) margins in comparison to Flight Centre’s existing leisure operations. For the 12 months to Dec. 31, 2022, Scott Dunn reported a total transaction worth of $138 million with profits of $35 million.
The trip operator likewise has a presence in Singapore.
The operator’s management group, headed by CEO Sonia Davies, will be maintained, and the brand name will continue to operate as an independent system, with business support provided by Flight Centre.
The contract to obtain one hundred percent of Luxury Travel Holdings Limited (the trading name for Scott Dunn) is being moneyed by an equity raise and will complete by the end of February 2023.
In August last year, Flight Centre soft-pedaled media speculation it was poised to purchase U.S. take a trip management company Altour.
Flight Centre will release its first-half results on Feb. 22, 2023.
CORRECTION: An earlier variation of this article specified the acquisition was $120 million.