Dubai’s dnata takes stake in Destination Asia

dnata, the Dubai-based ground handling company, has reached an agreement to acquire a stake in the Destination Asia Group, the destination management company.

This acquisition marks Emirates-backed dnata’s first foray into Asia’s inbound travel market. Following the deal, which is yet to close, Destination Asia will become part of dnata’s group of travel businesses, which also includes Stella Travel Services, Gold Medal Travel Group and Travel Republic, plus a stake business travel giant Hogg Robinson.

The latest acquisition also follows dnata’s purchase of a majority stake in Imagine Cruising in 2015.

Speaking to Travel Daily in Bangkok on Monday, Iain Andrew, divisional senior vice president of dnata’s travel business, said that the deal was complex, involving almost 50 owners from across the region. But once concluded he said that dnata would play a “very active role” in Destination Asia, providing it with platform on which to expand across the region.

“Our stake in Destination Asia opens the door to business opportunities in new markets, and will strengthen dnata’s position as a global player in travel,” said Andrew.

When asked about the future of Destination Asia following the acquisition, he said that the company would definitely retain its current brand name, and that dnata would work with the company “to understand what all the businesses need in terms of investment”.

“We’re not here to tell them how to run a DMC,” Andrew said. “[But we will] invest in current and new activities,” which he said would be prioritised by their potential return on investment and ease of implementation.

Destination Asia Group was founded in 1996 and now operates 33 offices in 11 Asian countries:  Thailand, Vietnam, China, Japan, Myanmar, Vietnam, Hong Kong, Singapore, Malaysia, Cambodia and Laos. Andrew stated that Korea was a potential area of expansion for the company, and that it could capitalise on dnata’s existing presence in the Philippines.

Elsewhere, Andrew revealed that dnata is on the verge of launching in Iran, starting with GSA operations, and that it is targeting the cruise  sector in Australia.

James Reed, CEO of the Destination Asia Group, said he was “very honoured” to be joining dnata.

“Our 700 plus award-winning staff are highly regarded in the industry and deliver the same high standards of service as dnata, every day of the year,” Reed said. “Our diverse, multi-market segment expertise, and our international market distribution systems will enable Destination Asia to continue to deliver creative and cutting edge travel experiences in Asia. With dnata as our partner, we are confident that the Destination Asia Group will achieve even greater success in the future.”