Qantas (QF, Sydney Kingsford Smith) has acquired a 51% stake in Australian online travel business TripADeal, expanding its foothold in the fast-growing AUD13 billion Australian dollar (USD9.2 billion) online packaged holiday market as leisure demand booms and the shift to e-commerce continues.

The full terms of the all-cash purchase have not been disclosed. Qantas will be able to acquire the remaining 49% of TripADeal in four years at an agreed multiple of the company's bookings at the time, the parties said in a combined statement.

Plans are to significantly grow TripADeal revenue through Qantas Loyalty, the national carrier's 14-million member frequent flyer programme. Qantas frequent flyers can use their loyalty points to book any TripADeal holiday package, regardless of which airline is part of the package. They also earn three points for every AUD1 (USD0.71) spent with TripADeal.

Pre-COVID-19, TripADeal had an annual growth rate of more than 40%. In the 12 months before the pandemic, its bookings exceeded AUD200 million (about USD150 million), with significantly higher monthly bookings at present.

Qantas joins existing shareholders, the founders of TripADeal and private equity firm BGH Capital, which bought a stake in 2020.

Qantas Group Chief Executive Officer Alan Joyce said Qantas Loyalty had performed well during the pandemic despite the lack of flying. Members had earned and used large volumes of points on the ground resulting in strong earnings for the Group. With a huge shift to booking holidays online, the stake in TripADeal meant Qantas would benefit from the strong growth that was going to follow as a result, he said.

Qantas Loyalty targets a return to double-digit growth in 2022 and the underlying EBIT of AUD500-AUD600 million (USD357-428 million) by Financial Year 2024. Earnings from the majority stake in TripADeal will be accretive to this target.

Qantas said its investment in TripADeal was in addition to the Group's previous capital expenditure forecast. Net debt was still projected to reach the bottom of the Group's target range by the end of Financial Year 2022.