TUI Travel PLC of the UK and Australia-based Intrepid Travel announced Thursday that they were combining their operations in a bid to become a global leader in specialist adventure travel.

The new travel and tourism venture will be 60 percent owned by TUI Travel and 40 percent by Intrepid Travel, and the companies said they anticipate that the venture will deliver cost synergies of £10 million per annum during the first three years of the venture.

TUI Travel runs a portfolio of adventure travel businesses in the UK, North America, Australia and the Netherlands and its wider group serves over 30 million holiday-makers and travllers. It also operates a pan-European airline. Intrepid Travel caters to over 100,000 adventure travellers per year.

The travel groups announced their tie up, which has no cash component, as a new industry report, entitled "City Travel Briefing - Sydney - Market Report", covers the factors affecting Sydney's performance and reviews the city's efforts to improve its positioning as a prime holiday destination, for its key markets.

Sydney is the largest, oldest and most cosmopolitan city in Australia and seen as one of the world's most attractive cities. However, a strong Australian dollar and the global economic downturn have made Sydney an expensive destination, especially for UK and US visitors, which has created a drop in occupancy rates drop. 

The research reviews inbound, domestic and outbound tourism flows along with the main categories of travel accommodation, transportation and tourist attractions. It also identifies the major trends and operators shaping the local market and offers strategic analysis of key factors influencing demand, including disposable income and connectivity, among other insights.

Author: Mike King, analyst.