Flight Centre Travel Group Moves Upscale by Buying UK Tour Operator Scott Dunn for $150 Million
Skift Take
Key Points
- Flight Centre Travel Group is buying UK-based Scott Dunn for $148 million.
- Scott Dunn specializes in luxury travel and reported strong financials for 2022.
- The acquisition will be funded by an equity raise and completed by February 2023.
Summary
Australia's Flight Centre Travel Group is acquiring UK-based luxury tour operator Scott Dunn for $148 million to enhance its presence in the U.S. and UK markets. Founded in 1986, Scott Dunn specializes in luxury travel and ski operations and reported significant revenue and EBITDA margins for 2022. The acquisition will be funded by an equity raise and is expected to be completed by the end of February 2023, with Scott Dunn continuing to operate independently under its current management team.
Australia’s Flight Centre Travel Group is buying UK-based tour operator Scott Dunn for $148 million (A$211 million), in a bid to expand into the U.S., as well as the UK.
The luxury-focused brand, which was founded in 1986 as a luxury ski operator, will now act as an “entry point into the UK and U.S. luxury market to complement the existing global leisure offering in a segment where Flight Centre is underrepresented,” Flight Centre said in a statement on Tuesday.
Flight Centre said Scott Dunn achieves higher revenue and EBITDA (earnings before interest, taxes, depreciation, and amortization) margins in comparison to Flight Centre’s existing leisure operations. For the 12 months to Dec. 31, 2022, Scott Dunn reported a total transaction value of $138 million with revenue of $35 million.
The tour operator also has a presence in Singapore.
The operator’s management team, headed by CEO Sonia Davies, will be retained, and the brand will continue to operate as an independent unit, with corporate support provided by Flight Centre.
The agreement to acquire 100 percent of Luxury Travel Holdings Limited (the trading name for Scott Dunn) is being funded by an equity raise and will complete by the end of February 2023.
In August last year, Flight Centre played down media speculation it was poised to buy U.S. travel management company Altour.
Flight Centre will release its first-half results on Feb. 22, 2023.
CORRECTION: An earlier version of this article stated the acquisition was $120 million.
Up Next
The State of Corporate Travel and Expense 2025
New Skift Feature: Uncovering Tech Vendor Opportunities Using AI Analysis
New Skift Podcast Mini-Series: How I Travel
Japan Airlines Under Cyberattack, Flights Delayed
