G Adventures remains on the acquisition trail

Poon Tip said G Adventures was “still on the acquisition trail” and was “looking at some options”.

“We look for companies which can offer opportunities for us and add value, as and when they arise. You will probably be hearing from me again before too long,” he added with a smile.

He continued: “Our business in the UK now represents hundreds of millions of dollars in turnover and at the moment the pound is at the right exchange rate for shopping.”

Agents worried about the changes should feel reassured though, Poon Tip confirmed they would see more support from Just You and Travel-sphere after the recent acquisition.

He said while the immediate priority was “to stabilise the businesses”, after extracting them from the holding company, the next step would be to ramp up relations with the trade.

“Previously I don’t think Just You and Travelsphere offered enough in terms of agent support,” he said.

For G Adventures in the UK, 80% of business comes through wholesalers or retail, but Just You and Travel-sphere are about 90% direct.

“We want to change that message and do more,” he said, adding that ALG’s business model was “very different” from G Adventures’.

“Agents can expect to be supported and hear from us more. We will expand the sales teams.”

Poon Tip revealed the acquisition of Just You and Travelsphere had taken G Adventures’ proportion of UK sales from 26.5% to 45%.

“Travelsphere and Just You are both profitable brands,” he pressed. “If they were burning cash we would have had to come in and do major cost cutting, but we haven’t had to, and we’re keeping all the jobs.”