Insights

Why the Helloworld (ASX:HLO) share price is climbing higher today

The Helloworld Travel Ltd (ASX: HLO) share price is up 5.2% today on news of an acquisition and major partnership renewal.
The post Why the Helloworld (ASX:HLO) share price is climbing higher today appeared first on Motley Fool Australia. –

asx share price rise represented by red paper plane flying away from other white paper planes

The Helloworld Travel Ltd (ASX: HLO) share price is climbing higher today. This comes after the company released news about an acquisition of CruiseCo and renewed partnership with Qantas Airways Limited  (ASX: QAN). At the time of writing, the Helloworld share price is up 5.2% to $2.83.

Acquisition of CruiseCo

Helloworld advised it has entered into an agreement to acquire cruise wholesale company, CruiseCo.

Founded 20 years ago, CruiseCo is a specialist cruise package wholesaler led by Kevin Dale, Phil Hoffman, and Steve Lloyd. The company has over 250-member travel agencies with access to more than 50 global cruise lines. Prior to COVID-19, the company had an annualised total transaction value (TTV) of $70 million throughout Australia.

The acquisition will align with Helloworld’s strategy of expanding its cruise offerings in Australia and New Zealand. Furthermore, the takeover will compliment Helloworld’s existing cruise wholesale business, Seven Oceans Cruising. The latter recorded an annual TTV of around $110 million before COVID-19 hit the tourism market.

The acquisition will be funded from the company’s cash reserves and the purchase is not considered material.

Commenting on the acquisition, Helloworld executive director Cinzia Burnes said:

These two businesses, when combined, provide Helloworld Travel with a comprehensive range of cruise options for our retail agencies in Australia and New Zealand.

Given the recent demand for some 2022 specials in the market, the positive news around both the development of a vaccine and rapid testing capabilities, we are confident that demand for cruising will come back strongly from 2022 and we look forward to working with our cruise partners and agencies to capture that demand.

Renewed Qantas partnership

The Helloworld share price is also reacting to news today that Helloworld has renewed its partnership with Qantas.

The new commercial agreement will promote and sell the national carrier’s fares and products until 2023. The multi-year deal is said to provide confidence to Helloworld in the recovery of the ailing sector.

Helloworld CEO and managing director Andrew Burnes welcomed the deal, saying:

We have had a longstanding partnership with Qantas and the continuation of that was an important component in securing our position as their leading travel agency partner and ensures our owned businesses and agency networks can continue to sell Qantas with confidence.

Qantas global sales and distribution executive manager Igor Kwiatkowski said the agreement helped cement a long-standing relationship with Helloworld Travel “as their number one airline supplier in Australia”.

Despite the devastating impact of COVID-19 on the industry, we’re starting to see really positive momentum from the trade as domestic travel restrictions start to ease.

We are pleased to be working together to focus on opportunities that benefit our businesses – including joint marketing and sales activities – as the travel industry starts to recover.

Helloworld share price summary

The Helloworld share price has been soaring since the start of November. Its shares reached from a low of $1.67 to now $2.79, representing a gain of 67% in just 3 weeks. However, the Helloworld share price is still down on a high of $5.03 in January before the onset of COVID-19. The company fell to an all-time low of 67 cents in March.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Helloworld Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the Helloworld (ASX:HLO) share price is climbing higher today appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!