23 September 2009

Roamfree settles down with new owner

SYDNEY - Online travel company Roamfree has been thrown a lifeline by David Oliver, CEO of Tourism Holdings.

The acquisition of Roamfree by Tourism Holdings also covers Resonline, Roamfree advanced and BookEasy.

Ã¢â¬ÅâœWe are committed to growing the business within the Asia Pacific region while protecting the integrity of the brand,Ã¢â¬~ said Oliver, the new owner.

Ã¢â¬ÅâœRoamfree has a promising future, and we can confidently assure all customers and industry partners that it is business as usual for Resonline, Roamfree advanced, Roamfree.com and BookEasy.Ã¢â¬~

Roamfree, which was founded by travel industry veteran Tony Smith in 2006, was placed in the hands of insolvency firm Ferrier Hodgson in late August.

At the time Ferrier Hodgson said, "The current economic climate, resulting in reduced travel and accommodation bookings, has also negatively affected the performance of the group."

Smith shot to prominence in the early 2000s thanks to his first travel business, BreakFree, which he eventually sold to financial services, property and travel business MFS.

According to the SmartCompany website, Smith was valued at $103 million back in 2006, but much of his fortune was locked up in MFS shares. When the company collapsed in early 2008, Smith's fortune disintegrated and he was forced to sell many of its assets, including his Gold Coast mansion and stake in Roamfree.

Oliver was a co-founder of Resonline and Last Minute Manager, one of the innovators of online accommodation booking and distribution technology before selling the businesses to Roamfree in 2006.

Ã¢â¬ÅâœAs one of the founders I have always believed in this business, and I have underscored this belief with an investment in my familyÃ¢â¬â¢s future and as a small business operator the investment in Roamfree is not insignificant,Ã¢â¬~ Oliver said,

He added, Ã¢â¬ÅâœRoamfree is 100 percent secure and is backed up by the Travel Compensation Fund, and we will continue to provide fantastic rates and a platform of real-time bookings for our customers.Ã¢â¬~

Oliver said he was looking to bring efficiencies and enhancements to BookEasy, the reservation system for tourism information centres, with new distribution technology.