Flight Centre Becomes Largest Individual Shareholder in The Upside Travel Company
MONTVALE, NJ, April 7, 2019 /PRNewswire/ - Flight Centre Group (ASX: FLT), continues to strengthen its rapidly growing global corporate travel business, today announcing a strategic investment in The Upside Travel Company ("Upside"), the corporate travel company launched in 2017 by Priceline founder Jay Walker.
FLT's investment is for a 25% interest in Upside which will see it become the business's largest individual shareholder providing access to Upside's travel technology platform and software development resources. As part of the agreement, the parties also entered into a commercial deal that covers cooperation on various distribution initiatives that combine FLT's deep understanding of the corporate travel space with Upside's powerful technical assets.
With this deal, FLT improves its technology capabilities, specifically in the small-and-midsize corporate market. FLT plans to leverage Upside's technology platform to continue the digital enablement of its Corporate Traveler business, pairing the proficiency of its people with cutting edge artificial intelligence and machine learning models. The investment also adds Washington, DC to the expanding global list of FLT "Lab" locations following the recent investment in Bangkok-based 30SecondsToFly, and the acquisition of the award-winning mobile app Sam :] in Barcelona last month.
"We have been impressed by the capability and flexibility of Upside's technology and team to improve the business traveler experience. Its use of machine learning models to dynamically price business travel packages in real-time to save clients money while increasing traveler options is just one example of Upside's best in class technology," according to Dean Smith, President of FLT's Americas operations.
For Upside, the deal substantially bolsters the company's product offering to the small corporate market, where it will continue to operate under the Upside brand. Access to FLT's supplier relationships and global reach expands Upside's inventory and enhances its ongoing software development with a broader set of travel data inputs.
"FLT is the perfect partner for Upside as we get aggressive in serving small corporate clients. Not only does FLT's global scale, content, and experience immediately make our product more complete, but FLT's people and expertise also make us smarter, which is key as we accelerate into the future." said Jay Walker, CEO of Upside.
The Upside product will soon take advantage of the emerging standards called Next-Generation Storefront, which are being developed by ATPCO in collaboration with airline and industry leaders. Incorporating the new standards for product display is a top post-investment priority for both parties and is expected to take place in Q2 of 2019. "It's promising to see FLT and Upside work together on providing the best traveler experience possible by making NGS a priority so flight shoppers can compare like-type products on third party channels. We're inspired to see so many channels taking a step forward to transform flight shopping" said Gianni Cataldo, Head of Research & Development, at ATPCO.
Jefferies LLC served as the sole financial advisor to Upside.
About Flight CentreAfter starting with one shop in the early 1980s, Flight Centre Travel Group (FCTG) has enjoyed remarkable growth to become a $20 billion business consisting of more than 30 brands. One of the world's largest travel agency groups, it has company-owned operations in 23 countries and a corporate travel management network that spans more than 90 countries. FCTG was listed on the Australian Securities Exchange in 1995 (ASX: FLT). Flight Centre Travel Group employs more than 20,000 people globally and has a total of almost 2800 businesses.
About UpsideThe Upside Travel Company was created by veteran travel entrepreneurs to transform the world of corporate travel with new tools and new thinking. Upside's flagship product uses state-of-the-art technology to operate a corporate travel solution that makes it possible for smaller companies to benefit from travel management with a no-fee, no contract all-digital booking experience and high quality 24/7 customer service. The company's employees have rated the company culture so highly that Upside has received awards from Glassdoor and Entrepreneur Magazine. Upside is headquartered in Washington, D.C., with offices in Stamford, Connecticut.
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SOURCE Flight Centre Travel Group (Canada) Inc.