Asia’s largest low cost carrier AirAsia has acquired a 50% stake in Malaysia-based online travel planner, Touristly, through an asset injection and loan deal valued at RM11.5 million (US$2.6 million).
Launched in June 2015, Touristly describes itself as a “travel platform that helps travellers plan unforgettable holidays at amazing prices”. It currently offers more than 13,000 travel deals in 70 destinations around Asia Pacific.
The acquisition will strengthen AirAsia’s ancillary portfolio by offering its guests Touristly’s on-ground activities such as restaurants, theme parks, attractions, spas and tours.
AirAsia guests will have more travel activities via Touristly (Image credit: Touristly)
The transaction sees AirAsia inject the digital platform of its Travel 3Sixty inflight magazine, worth RM6.5 million (US$1.47 million), into Touristly via AirAsia Investments.
The deal also extends a RM5 million (US$1.13 million) convertible loan to Touristly for working capital and development.
Travel 3Sixty’s digital platform consists of the online brand for the inflight magazine, touchpoints on airasia.com and online advertising assets. With these assets Touristly will be able to reach AirAsia’s 60 million guests annually.
Touristly, which will operate under the Travel 3Sixty brand following the acquisition, will also gain access to AirAsia’s offline advertising assets including the physical version of the inflight magazine, overhead cabins and seat trays on AirAsia aircraft.
Touristly will operate under the Travel 3Sixty brand.
AirAsia group CEO, Tan Sri Tony Fernandes, will serve as chairman of the board for Touristly upon completion of the acquisition.
“We see enormous potential in Touristly, which perfectly complements AirAsia’s existing travel offering. Our guests will be able to choose from thousands of activities when purchasing a flight and this brings us a step closer to becoming a truly one-stop digital airline,” he said.
Added Touristly CEO Aaron Sarma: “Working with AirAsia has been on our minds since our inception. The insight we can gain from AirAsia’s 15 years in the travel industry will help us better understand the Asia Pacific market and quickly adapt to deliver real value to our customers.”
In August last year AirAsia made its first “strategic investment” in Touristly through Tune Group’s startup incubator and accelerator, Tune Labs that is headed by Fernandes; Datuk Kamarudin Meranun, AirAsia X’s group chief executive officer; and Lim Kian Onn of the ECM Libra Group.
Touristly’s Sarma had said then the company would grow its base to “shadow AirAsia and AirAsia X’s 120 destinations” to complete the travel experience of guests of the two carriers.
Touristly was also one of the two startups selected at the inaugural Pitch@Palace Malaysia in June last year to represent the country at Pitch@Palace Global at St James Palace in London, UK in December.