New era for backpacking industry

The two heavyweights of the Australian and New Zealand backpacker industry have today announced their intention to merge. ACB Group Holdings Limited, known locally as Beyond Backpackers and controlled by leading Australasian private equity investor Ironbridge Capital, and base Backpackers, have joined forces to offer the largest and most dynamic network of privately owned hostels in Australasia.

Beyond Backpackers and base Backpackers are both industry leaders in their own right, specialising in high quality, purpose built hostels and innovative backpacker products and services.

Beyond Backpackers is a two-time NZ Tourism Awards winner in the budget accommodation category and a leading force in the New Zealand backpacker industry. base is named one of the world’s top 10 ‘Hip Hostels’ in Lonely Planet’s recently released Blue List and owns the renowned Backpackers World Travel adventure travel agency.

Operating under the auspices of the base brand, the new entity will be the leading privately-owned operator of quality backpacker accommodation, bars, travel outlets and job placement services in Australia and New Zealand numbering over 3000 beds, 10 bars and 34 travel outlets.

Beyond Backpackers and base pioneered the development of quality budget accommodation for discerning backpackers who travel the world in search of new experiences, friends, fun and adventure. A typical base or Beyond Backpackers hostel offers dorm beds and private ensuite rooms, Bars, high speed internet café, travel centre, job search services, modern kitchen and laundry facilities, and plenty of space for travellers to interact with each other.  Some properties include a solarium, spa pool and swimming pool.

In a joint statement, Campbell Shepherd, New Zealand CEO, and John Osborne, Group CEO, said, “This merger is a natural progression for both businesses. We have been pursuing similar business models and have complementary physical and human resources. Together we can deliver an even better experience for our travelers and this, in turn, will assist to grow the industry as a whole”.

The new organisation will operate in major gateway sites, including Auckland, Christchurch Sydney and Melbourne, with a total of eight backpacker hostels in New Zealand and three in Australia.

Major investors including Ironbridge Capital, Accor Asia Pacific Hotels and Ivany Investments say they are “delighted with the merger, which creates a market leader in Australasian backpacker accommodation and delivers a wealth of opportunities for travellers, staff, suppliers and business partners”.

After consolidating the merger, the group intends to pursue further expansion opportunities with emphasis initially in Australia and then further a field.

“Bringing our two businesses together means we will have the skills, experience and ability to offer backpackers the highest quality accommodation, travel booking and job search offerings in Australia and New Zealand,” said Campbell Shepherd, New Zealand CEO. “Growth in the backpacker market is a global trend driven by the increasing popularity of backpacking across a wider range of nationalities and age groups and we are committed to realising this opportunity.”