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Dnata buys UK's Travel Republic

By Issac John DUBAI - Dnata , the world's fourth largest air services provider, on Tuesday announced acquisition of a majority stake in Travel Republic, the largest privately owned online travel agency in the UK.

The deal, the Dubai-based group's second overseas acquisition in less than 20 days, represents one of the biggest business transactions in Dnata 's 52-year history.

On December 17, 2011, Dnata , part of the Emirates Group, has acquired a 50 per cent interest in a South African inflight catering services company -- Wings Inflight Services.

Dnata did not disclose the value of these two transactions that are crucial to its ambitious global expansion drive. Travel Republic offers attractive prices on a choice of 120,000 hotels, and flights with some 100 airlines to 650 destinations worldwide.

The UK company's managing director Kane Pirie has said the deal would help the on line travel agency accelerate growth and that the agency would continue to expand and recruit.

"We are excited that Travel Republic has joined the Dnata family. Dnata is forward thinking and ambitious," he said in a statement.

"Travel Republic will complement our existing leisure and corporate travel services in Dubai and internationally," said Iain Andrew, divisional senior vice-president of Dnata 's travel business.

"The company has an impressive, dynamic management team and I am confident that together we can further develop the business, in line with the outstanding service and quality for which Dnata is renowned."

Travel Republic has been one of the fastest growing agencies in recent years moving towards dynamic packaging using low cost airlines. It offers business through its website in an increasing range of languages and helps over two million customers a year with their holiday plans. The company has recently launched sites in Ireland, Spain and Italy and with further expansion plans across the rest of Europe, Travel Republic is on target to become one of the largest travel companies in the European region.

The new investment will allow Dnata to capitalise on the increasing popularity of online travel booking, which has seen dramatic growth in the past year, a spokesman said.

The move will boost Dnata 's presence in the online booking market, which saw Travel Republic increase its annual turnover by 40 per cent to £400 million during 2011. It is now looking to boost the number of destinations offered by the travel agency, while retaining its current prices and customer services. Dnata will use the strength of its global travel network to expand on this further by offering a broader range of destinations whilst maintaining the same price competitive and high-quality customer experience.

The acquisition is effective from December 28, 2011, and the business will continue under the Travel Republic branding.

For Travel Republic, the Dnata acquisition marks the end of over eight years as an independent agency following its creation by co-founders Paul Furner and Chris Waite in 2003.

The company has grown steadily to become one of the leading online travel agencies in the UK alongside Expedia and Lastminute.com, pushing the likes of early movers Opodo and Ebookers into a second tier of web brands in recent years.

Focused primarily on the UK market, Travel Republic recently expanded operations into Spain with a dedicated office and website. In early-2011 it also had its first significant site redesign since formation of the company.

In recent years, Travel Republic found itself at the centre of a dispute over consumer protection rules in the UK after the Civil Aviation Authority attempted to punish it for allegedly flouting Air Travel Organisers' Licensing legislation. The CAA dropped the case and lost a subsequent appeal when Travel Republic and its managing director Kane Pirie were found not guilty.

Dnata 's acquisition of Wings Inflight Services last month represents its third investment in the airline catering industry and its interest in Wings will enhance its international network, which extends to 76 airports in 38 countries. Earlier last month, Dnata announced it had made its first foray into the Indian market.

Dnata , in partnership with Hogg Robinson Group, now offers corporate travel solutions in India with services including a 24-hour contact centre for reservations, online corporate booking tools, visa services, travel insurance, worldwide car rentals and event management.

© Khaleej Times 2012