Qantas has announced that it will acquire the remaining 49% stake in online travel business TripADeal in a deal worth $211 million.
👉 Background: Qantas, is the third-oldest airline in the world, but since 2020 Qantas has been through a rollercoaster ride.
But with the new CEO coming in, Qantas has been on a mission to rebuild its reputation.
👉 What happened: Now, Qantas has announced that it will acquire the remaining 49% stake in online travel business TripADeal in a deal worth $211 million. This deal is expect to bring in at least $50 million annually.
👉 What else: This acquisition means Qantas is able to leverage TripADeal to offer its customers more ways to cash in on Frequent Flyer points, which are accumulating by the minute.
💡When a business offers a loyalty program, it needs to manage the risk of its growing liability.
💡Qantas’ customers have been earning their points at an increasing rate. We're talking about 200 billion points annually. In fact, points issuance shot up by 48% last financial year.
💡But, these unused points aren’t just an issue for customers, but they’re a liability on Qantas’ balance sheet too. Qantas' loyalty liability is worth about 13.8% of its’ overall revenue and this is why Qantas has been putting its efforts into finding better ways for customers to use their frequent flyer points:
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