New Zealand's inbound tourism sector could have a new player: travel agent Flight Centre

Flight Centre is expanding as a destination management company in Vietnam. Photo/File

Flight Centre is expanding as an on-the-ground travel operator in Asia and is scoping opportunities to buy into inbound tour businesses in this country.

The agent mainly sells holidays to customers who travel with different operators in the countries they visit.

However, in an effort to diversify its revenue streams, Flight Centre is keen on expanding its role as an inbound operator.

Last week it outlined plans to create a new global business that will provide in-destination services to travellers in Asia.

It will create a destination management company (DMC) by combining TMG's Buffalo Tours business in Vietnam with the smaller, joint venture DMC businesses the two companies operate in 10 other countries.

It will buy or launch similar businesses in other key regions in the short- to medium-term to create a world-wide DMC network.

Services provided by the DMC will include transfers, excursions and day-trips, arrangements for meetings and incentive groups, and land arrangements for cruises and other tour groups.

Flight Centre NZ managing director David Coombes said the announcement was indicative of the strategic direction for the company.

"[It was] leading the way toward us being able to offer our customers an even more inclusive end-to-end travel experience, something we know our Kiwi customers will benefit from," Coombes said.

Although the New Zealand business is performing strongly, group profit has been hit by heavy discounting among airlines, particularly in Australia

For the last half year, Flight Centre reported a 36.2 per cent slide in net profit to A$74.4 million ($80.5m) despite record first half sales of $9.34 billion.

The Asia DMC was part of expanding in-destination travel experiences network, which also includes the company's tour operating businesses, Top Deck and Back-Roads Touring.

Hotel management opportunities were also a possibility in the future.

Flight Centre NZ's general manager of product Sean Berenson said there was no question that destination management businesses opened up new revenue streams.

''We're in 21 countries and looking for opportunities in all of them and New Zealand is no exception to that. We're keen to explore any or acquisition opportunities there might be.''

The forerunner to Flight Centre, Top Deck Travel was a tour operation where tickets were sold and bus expeditions run by the company.​