Helloworld confirms 36 members in New Zealand will leave the network.
Helloworld says the mass resignation of 36 United Travel franchisees in New Zealand (TD today) is “not material to the financial results at a Group level,” according to a statement just issued to the Australian Stock Exchange.
The move follows confirmation earlier this week that HLO will launch the helloworld brand in NZ next year, with today’s statement saying the company plans to “consolidate a number of franchisees currently trading under the Harvey World Travel and United Travel brands and expand the network and geographical footprint with up to 10 retail stores it intends to acquire from Air New Zealand”.
Outgoing Helloworld ceo Elizabeth Gaines said “the ever changing nature of our industry means it is increasingly difficult for agents to individually invest in technology and marketing in this rapidly growing digital environment where brand awareness is so important to the travel consumer.
“Being part of a strong and large-scale network like helloworld delivers individual agents the many advantages of Helloworld’s ongoing investment in proprietary technology, training, product and profile which means our agents can focus on doing what they do best – sell travel and run successful businesses,” she said.
Stella Travel Services NZ Greg Leighton said some franchisees had decided that helloworld is not for them, and “while that is disappointing, we are confident that we have a broad network footprint and a strong platform from which to launch helloworld in New Zealand”.
Under the terms of the franchise agreement the departing agents will remain with the Group until the end of March 2016, “and will continue to source product from, and participate in, our Group supply agreements until November 2016,” Leighton said.
More information in Tuesday’s issue of Travel Daily.
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