It’s a g’day for the high street

October 28, 2004, 12:00


Donnelly, centre, signs deal with HWT finance director Tim Dodds, left and HWT MD Barry Mayo

TRAVEL industry entrepreneur John Donnelly has signed a £6.5
million joint venture deal with Australian travel giant Harvey
World Travel to bring the brand to the UK.

Donnelly, managing director of travel agency and affinity
business Travel Factory, will run the UK arm of HWT with the aim of
building a 400-strong network within the next three years.

HWT is the largest franchise agency in the southern hemisphere
with around 360 Australian branches, 50 in New Zealand and 110 in
South Africa.

Donnelly, who is best-known for creating the Holiday Hypermarket
concept, is selling Travel Factory to HWT and will take a 12.5%
stake in the Australian company. He will be MD for the joint
venture in the UK from November 1.

“HWT will be another multiple, but with a difference,” he
added.

Donnelly will offer UK agents his own Travel Factory computer
system and dynamic packaging software used by HWT members.
Franchisees will also benefit from the group’s buying power
and ‘local shop’ advertising and marketing kits.
Roadshows will be launched next year.

Donnelly declined to reveal which agents were joining him, but
said he had some “ready to go”. He is also recruiting senior UK
industry heavyweights to work on the joint venture.

Donnelly’s assault on the high street is in contrast to
the multiples’ efforts to scale down their retail estates.
“Let them say I’m mad,” he said. “The multiples have an issue
with independent agents at the moment, but just look at how well
Flight Centre is doing.”

UK HWT outlets will be ‘lifestyle’ agents, selling
85% holidays as well as cars and properties abroad – products
Donnelly has sold at Travel Factory.

“We’ll approach the tour operators who want to work with
us – some will, some won’t,” he said.

HWT chief executive Barry Mayo said: “Combining our franchise
model and proven brand with the experienced leadership of John
Donnelly will enable us to quickly gain a share of the UK travel
market and provide a 30% return on our investment within three
years.”

Anyone interested in being a franchise partner should contact
the hotline number on 08712 080516.

Travel Weekly’s Caroline James gives the lowdown
on Harvey World Travel

AS you read this you may be thinking ‘Harvey World
who?’ As an ex-pat Aussie, let me assure you the name will
soon be familiar.

A generation of Australians grew up mindlessly singing the HWT
ditty every time one of the chain’s TV ads came on our
screens. Looking at the agency’s finances today it seems
those goofy homegrown jingles paid off.

With an annual turnover in excess of £650 million and more
than 500 franchised outlets across the southern hemisphere, it
comes as no surprise Harvey’s astute board of directors
– led by chief executive Barry Mayo – have set their
sights on the highly competitive UK market.

Like most Antipodeans, the Harvey boys love a challenge.
HWT’s roots are squarely working-class and a culture of hard
work and top-quality service will travel well to the UK.

In 1951 the Harvey family established a family-run shop in the
Sydney suburb of Cronulla. Thirty years later, Paul Fleming, an
outspoken ex-pat Kiwi, bought the Harvey family’s then six
outlets including its first franchised agency and we got a glimpse
of things to come. Fleming steered the group to the opening of its
400th outlet in 1998 and its 1999 listing on the Australian Stock
Exchange. He resigned in 2002.