TripADeal, will soon be wholly owned by Qantas, with the Australian national carrier today announcing its plans to acquire the remaining 49% stake in the online travel business for $211 million.

The move marks a significant expansion for Qantas into the $13 billion online holiday packages market, allowing the airline to Qantas to combine its extensive network with the growing curated tour market to create a more integrated experience for its Frequent Flyers.

The acquisition will result in the departure of TripADeal founders Norm Black and Richard Johnston. Matt Wolfenden, who has been with the company for seven years, will become the new CEO.

"As founders of a home-grown business that has made it easier for millions of Australians to take amazing holidays at the click of a button, this is a proud moment for us. We have worked hard to build and grow TripADeal from the ground up and know Qantas will take it into a new era of success," said Black and Johnston.

Qantas initially acquired a majority stake in TripADeal in 2022, enabling its Frequent Flyers to earn and use their Qantas Points on various holiday packages. The remaining 49% stake will be purchased for $211 million, with the transaction expected to be completed by the end of June 2024.

Qantas expects the full acquisition to generate at least $50 million annually across the Group over time. Since the Frequent Flyer integration, billions of Qantas Points have been earned and used, including a record 3.9 million points used by one member to book a 35-day round the world tour.

In July 2024, Qantas members will receive a 30% discount on bookings made with points. TripADeal's sales and revenue growth have exceeded expectations, with bookings surpassing $450 million in the last twelve months, doubling pre-COVID levels.

TripADeal will continue to operate as an independent business, working with various travel partners and airlines, including Qantas and Jetstar. The platform recently added cruises to its offerings, expanding the itinerary options for travellers.

"TripADeal has been building on-trend and well-priced holiday packages for over a decade and has delighted millions of holidaymakers in the process. This success has only been turbocharged by the Qantas partnership, and the opportunity for our members to earn and use their points," said Qantas Loyalty CEO Andrew Glance. "Norm and Richard should be congratulated for building an incredibly successful, Australian-born business, and we couldn't be more pleased to be custodians of TripADeal moving forward."

Qantas Loyalty expects to deliver Underlying EBIT in FY24 of $500 - $525 million before returning to growth of at least 10% in Underlying EBIT in FY25. The acquisition cost of $211 million will be captured within existing Qantas Group capex guidance of $3 - $3.2 billion for FY24.