The Lowcost Travel Group is to buy cruise specialist travel agency Ideal Cruising for an undisclosed sum.
The deal was signed in principal today and is subject to shareholder approval. It is expected to complete before Christmas, depending on final legal negotiations and due diligence.
The agency will be kept as a subsidiary of the bed bank, which operates lowcostbeds.com among its brands. The move will give the bed bank guaranteed distribution for its products, which can be dynamically-packaged with cruises.
The online agency, which is four years old, has around 35 staff, including a call centre and management. It is based in Camberley in Surrey. There are no plans for any redundancies or a relocation and all current management are being retained. This year total sales, in terms of the transaction value of bookings, are expected to exceed £28 million and the company is profitable.
Lowcost Travel Group director Lawrence Hunt said: “We see cruising as still growing and we think our business model lends itself very well to cruising. Cruise companies are going to need help and we are very good at driving business aggressively. We also have a small cruise-only business and this will allow us to grow that as well.”
Chief executive Paul Evans said there were plans to invest in Ideal Cruising’s management team, technology, staff and marketing to grow the business further. “Its trading cycle complements the seasonality of lowcostbed.com’s core beach and city holidays and together we will create a stronger group,” he said.
Ideal Cruising managing director and shareholder Tony Youster added: “We see huge opportunities in the growing cruise sector to further add value to the cruise operators’ distribution models. We are delighted to have reached agreement with lowcostbeds.com and the opportunity to further invest in our business and brand.”