Travelbag take over completed

The Australian Stella Group has taken over the UK-based long-haul travel retailer Travelbag for AUD 17 million. (See earlier posting)

The acquisition will further strengthen Stella's distribution capabilities in the UK, where it now has more than 90 retail outlets consisting of 83 Harvey World Travel shops and eight Travelbag outlets.

Stella has also purchased Travel 2 Travel 4 in the UK from Travelport, with extensive similarities between the businesses expected to aid integration.

The businesses will also be integrated with the Harvey World Travel network under Stella Travel Services umbrella.

Travelbag Managing Director Rick Weber and the senior management team will remain in the business.

Stella Group's existing Australian and New Zealand portfolio counts some 15,000 rooms under the Mantra, Peppers, BreakFree and Saville brands.

Takeover for Travelbag?

Stella Travel Services is said to be on the verge of tying up a deal for UK long haul specialist Travelbag in a move that would further expand its distribution in the British market.

Stella Travel Services is the largest integrated travel network in Australasia. Operating under four main ‘umbrella’ brands, its network includes retail travel agencies, wholesale air consolidators, wholesale packages and emerging online retailers

Observers say the UK deal could be completed before the end of the month following several weeks of discussion with Travelbag owner and Galileo parent company, Travelport

Travelbag, a leading direct-seller brand in the UK, owns seven large retail sites, including locations in London and Manchester.

It has been operating for around 30 years and is regarded as having particular expertise in tailor-made travel to Australia and New Zealand.

Observers said the deal would make sense for Stella, which is looking for maximum distribution for its Australian accommodation.

Stella has not commented on the deal, but a statement released to the Australian Stock Exchange late last month revealed that AUD 30 million had been set aside for two projects, including the “acquisition of a UK travel services business”.