Sealink deals out $12m for Captain Cook Cruises as it eyes Elizabeth Quay
Sealink Travel Group (ASX:SLK) announced on Wednesday that it was shelling out a cool $12 million to acquire family-owned Captain Cook Cruises Western Australia, a deal which gives it a chance to expand its business on the Swan River in WA.
The deal will see the owner of Sydney Harbour Cruises bring seven more vessels into its fold to make a total fleet of 69, as well as plant equipment, IP, licenses and existing contracts. This means Sealink will now operate Captain Cook’s Swan River wine cruise tours, and Perth to Fremantle ferry services.
“We are delighted to expand our business footprint into WA, a State set for strong tourism expansion,” SeaLink managing director Jeff Ellison said.
“We see significant upside with the opening in January of Elizabeth Quay. This development will reconnect the city and the Swan River, bringing public spaces, business opportunities and much needed accommodation to Perth.
“There is potential to provide marine transport to the new football stadium and the expanded casino and the ability to offer further commuter services in Perth.”
Captain Cook Cruises WA’s turnover in FY2015 was $10 million, and the acquisition will be funded by existing undrawn bank facilities, Sealink said on Wednesday. Settlement is expected to be in April 2016.
Recent statistics show that Australia is the fastest growing cruise market in the world. The Cruise Lines International Association (CLIA) found that Australia experienced a 20.4 percent increase in cruise passengers in 2014, putting it six years ahead of its goal of reaching 1 million passengers by 2020.
According to the CLIA report, the South Pacific attracted more than 390,000 passengers in 2014, giving the region 39 percent of the Australian cruise market. However, river cruising was also in high demand with Australian travellers, with total passenger numbers swelling by 62 percent to almost 80,000.
With this rate expected to continue to grow, there is more demand being placed on companies to provide better cruise experiences, from how bookings are made through to on-board features.
Websites such as CruiseAbout and CruiseOffers have become well known for their competitively cheap prices, but there is increasing competition within the digital realm with competitors such as online retailer Kogan, who recently launched a Travel component allowing Australian online shoppers to grab great travel deals with more options - including Kogan Cruises.
Not one to be beat by competition though, Cruise About have notched up their game by providing customers with Virtual Reality boat inspections, which allows a ‘try before you buy’ experience from select stores.
