Bowing to investor pressure, travel retailer Flight Centre has announced it will distribute its highest special dividend in anticipation of Labor's franking credits abolition policy.

The travel agency business, which usually operates with a "conservative" amount of cash on its balance sheet, will dip into its cash reserves to give $210.7 million to shareholders through a fully franked special dividend of $1.49 a share and an interim fully franked dividend of 60¢ on April 12.