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Donnelly, centre, signs deal with HWT finance |
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 AS you read this you may be thinking ‘Harvey World A generation of Australians grew up mindlessly singing the HWT With an annual turnover in excess of £650 million and more Like most Antipodeans, the Harvey boys love a challenge. In 1951 the Harvey family established a family-run shop in the |