Following reports circulating in November that Flight Centre Travel Group (FCTG) was in talks to buy UK cruise agency Iglu, confirmation of a $255 million deal was announced on Wednesday night.
The purchase agreement will see FCTG pay £127 million (A$254.5 million), comprised of an upfront payment of £100 million and £27 million in performance-based earnouts.
Part of the rationale for buying the UK business included accelerating FCTG’s growth prospects in the high-margin cruise sector, as well as expanding its footprint and technological access to the UK – the world’s third-largest cruise market.
Within the intermediary market, the London-based Iglu is a heavy hitter in the cruise space, accounting for 15% of the UK’s total cruise bookings and more than 75% of its online bookings.
While the UK brand also offers ski trips as part of its model, cruise bookings represent more than 90% of its sales.
The plan is to integrate Iglu’s platform across FCTG’s leisure brands to create a unified, omni-channel experience for customers, with FCTG predicting the new asset will propel its cruise-related TTV to over $2 billion annually during FY26.
A $3 billion FY28 stretch target is now in place, supported by what FCTG called a “rounded cruise network spanning online, offline and wholesale channels”.
“This acquisition delivers immediate shareholder value through EPS accretion and is a game-changer in terms of the future opportunities it unlocks in the global cruise market,” FCTG Managing Director Graham Turner said.
“Iglu brings a strong brand and a scalable technology platform that aligns with FCTG’s strategic objectives,” he added.
Further benefits of the acquisition listed by FCTG include being able to increase its buying power and broaden its global product range, drive procurement efficiencies, and reduce costs via shared technology infrastructure.
The purchase of Iglu is just the latest development in FCTG’s strong acquisitive approach to the UK, which already includes purchasing premium tour operator Scott Dunn and the Manchester-based Cruise Club UK.
Post acquisition, Iglu CEO David Gooch will remain in his role of the business founded in 1998.
