Qantas announces majority stake in online booking platform TripADeal

Qantas has announced its “biggest acquisition” ever – and if you’re one of the airline’s 14 million frequent flyer members, it’s good news for your next holiday.

Qantas has announced a major stake with online holiday booking platform TripADeal, announcing the airline has snapped up a 51 per cent stake in the Australian company.

The new partnership will directly benefit the airline’s 14 million frequent flyer members, who will now be able to use points to book any holiday package available on the TripADeal website, which covers tours, accommodation and even flights with different airlines.

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The new stake in holiday booking platform TripADeal means Qantas Frequent Flyer members can use their points to purchase tours, accommodation and more. Picture: NCA NewsWire/Andrew Henshaw

From African safaris to Japanese ski trips and Bali beach holidays, the stake means the carrier’s frequent flyer members will earn three points for every $1 spent with TripADeal, while paying part of their holiday with points and the other part in cash.

The deal, which Qantas CEO Alan Joyce unveiled at the airline’s headquarters in Sydney on Tuesday, comes at a time when Qantas is finally seeing an up-tick in domestic fares and even on certain international routes.

Qantas Frequent Flyer members will be able to redeem and earn points through TripADeal bookings. Picture: Saeed Khan/AFP

“With most of the travel restrictions relating to Covid removed, we are seeing massive growth in planning and massive growth in travel,” Mr Joyce said.

“We are seeing for places like Los Angeles, the UK, Bali and South Africa demand bigger than there was pre-Covid which is a great sign as our people are getting back to travelling the globe.

“We are also seeing huge demand domestically, and we are in a position where domestic demand is above 120 per cent of pre-Covid levels.”

Qantas CEO Alan Joyce said the new stake in TripADeal was the biggest Qantas Loyalty acquisition they’d ever done. Picture: NCA NewsWire/John Gass

Mr Joyce said the deal, for an undisclosed sum, seems fitting given the growth in customers using online booking platforms to meet their travel needs.

“What we’ve seen is a shift to people booking online,” he said.

“This is a very big deal for Qantas, the biggest acquisition [Qantas Loyalty] have ever done, and it’s an important one because it’s going to make a big difference to the business in the future.”

TripADeal, a local company which was founded in Byron Bay in 2011 by Norm Black and Richard Johnston, currently employs around 100 people.

In 2020, the duo sold a 55 per cent stake to BGH Capital.

Co-founders Richard Johnston and Norm Black outside the TripADeal headquarters in Byron Bay.

“Partnering with TripADeal means we can make Qantas Points part of the equation, which is great news for our frequent flyers and for our loyalty business more broadly,” Mr Joyce said.

“Buying a majority stake at the same time means we can benefit from the strong growth that’s going to follow as a result.”

Mr Black said they welcomed the deal, and were “very proud” to now be in a close partnership with the airline.

“Qantas understands why TripADeal is different and what makes it a success, which is why we chose to do this deal with them,” Mr Black said.

It is understood the deal allows the airline to buy the rest of the business in four years’ time from other shareholders in the business, including Melbourne private equity firm BGH Capital.