News

It’s a g’day for the high street

(28 October 2004)


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.