The Flight Centre Travel Group Ltd (ASX: FLT) share price is on the rise on Thursday.
In morning trade, the travel company’s shares are up 0.5% to $21.82.
Why is the Flight Centre share price rising today?
Investors have been bidding the Flight Centre share price higher today following the release of a promising announcement this morning.
According to the release, Flight Centre has launched an innovative new joint venture with Goldman Travel and the Spencer Group focused on premium and business travel.
The joint venture, named Link Travel Group, is an invitation-only members’ group dedicated to partnering with high quality travel companies to provide an innovative and compelling offering via travel supply, technology, and business operations.
The release reveals that Flight Centre will initially hold a 60% interest in the joint venture and will provide Link members in both the high-end leisure and corporate sectors with a range of services. This includes access to its leading product and distribution capabilities at a time when considerable change is taking place.
Goldman Travel’s joint managing director Anthony Goldman and Spencer Group founder Penny Spencer will sit on the joint venture’s board of directors. This will be alongside Flight Centre’s Danielle Galloway, who is the executive general manager of the company’s premium brands.
An independent general manager, Scott Darlow, has been appointed to oversee the business’ day-to-day operations.
“Create change in the Australian travel industry”
Flight Centre’s Danielle Galloway spoke very positively about the joint venture. She commented:
“Link will create change in the Australian travel industry. Our combined goal is to shape the future of travel by uniting the industry’s progressive thinkers As invitation-only partners, businesses will benefit by leveraging Australia’s largest travel agency group, while maintaining their own powerful brand identity and independence.
‘We look forward to welcoming members to our exclusive Link Travel Group. We are also delighted to have secured Scott as our inaugural general manager. He is highly regarded nationally by both suppliers and agents alike and with high level experience across multiple agency business models, he knows which ones work the best for all parties.”
No financial details have been provided. Though, given that the announcement was not labelled as price sensitive, the joint venture looks unlikely to move the needle in the immediate term.
The post Flight Centre share price higher amid premium and business travel joint venture news appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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