Western Cape Business News

Send  Share  RSS  Twitter  23 Oct 2014

HOSPITALITY: Cullinan Shines In Cape Town


Recent Western Cape Business News

TRAVEL and tourism conglomerate Cullinan is continuing to invest heavily in its Cape Town operations.

The company – which is controlled by the global leisure giant Travel Corporation (TravCorp) – recently established a new coach depot in Cape Town.

The sprawling property in Voortrekker Road in Salt River houses Cullinan’s huge fleet of touring buses as well as its smaller mini-bus sight seeing vehicles.

Cullinan CEO Michael Tollman describes the depot – which has large office component as well – as state of the art. The depot opened in November last year, and Tollman says Cullinan’s various travel brands operating in Cape Town will also be moving into new and improved reservations offices in Cape Town in the year ahead.

Although corporate spending on new headquarters is often frowned on as frivolous spending, Tollman is certain the new offices will improve the quality and efficiency of the Cape Town operations.

Cullinan operates in five major segments of travel and tourism - Outbound Tour Operating, Inbound Tour Operating, Retail Travel, Coach Charter and Touring and Marine and Boating.

Aside from new operating premises in Cape Town, Cullinan also bolstered its Cape-based operations with the acquisition of Ikapa Coach Charter in October 2012. Ikapa operates a fleet of luxury coaches out of depots in Cape Town and Johannesburg, targeting the mid-price range customer. The acquisition adds a new dimension to the Coach Charter and Touring division.

The deal also follows hard on the heels of Cullinan’s late 2011 acquisition of Cape-based Ikapa Inbound Tours division, a niche Inbound Tour Operator and destination management company which services mainly foreign tour operators.

Cullinan paid R14.5m for Ikapa Inbound Tours, which has since added some R17m to group turnover.

Cullinan certainly seems to have a liking for the Cape tour bus companies. A few years earlier Cullinan acquired control of Hylton Ross Exclusive Touring, the well established Cape Town touring company.

Hylton Ross generates a chunk of Cullinan’s Coach Charter and Touring division’s revenue, which increased by around 25% to R123m in the year to end September 2012.

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