Travel industry shake-up as agent to the stars moves into New Zealand

Tag arranges travel for stars such as Taylor Swift. Photo / Getty Images

A British-based travel management company that handles some of the world’s biggest entertainment acts is moving into New Zealand, buying two businesses and promising to shake up the market.

Tag group has bought two prominent New Zealand travel businesses - corporate travel specialists, Red Hot Travel and Events, and entertainment specialist, Sound Travels.

These strategic moves mark Tag’s entry into the New Zealand market, as the 35-year-old private equity-owned company continues its global expansion.

Tag has offices around the world and it organises the itineraries of stars and their entourages. Its Australian business is believed to be involved in arranging travel for Taylor Swift to that country this month and the firm has worked with stars such as Lady Gaga and Rihanna.

It was founded in 1988 and operates 19 offices around the world across six specialist divisions - touring, production, corporate, investment management, events, and private travel.

It is a small, but potentially lucrative part of the travel sector in this country where Flight Centre’s Corporate Traveller Stage, Screen and Sports is another player.

Red Hot Travel and Events was started in 2019 by Adair Cameron, who had a background in hospitality and tourism in Switzerland but has been living in Wellington since 2008.

She said the sale to Tag was opportune for growth and collaboration.

“We are exceptionally proud of our client relationships and achievements since we established. Now, as the next phase of our journey, partnering with Tag opens new doors for growth and opportunities.“

For now Red Hot will continue to be run as a separate business unit in New Zealand under the same brand but “Powered by Tag”.

Over time, the Red Hot Travel and Events brand will transition to the Tag brand as part of the global events division of Tag.

Sound Travels was started by Paula Pram in 2001 and has arranged travel for music tours, including Robbie Williams and Coldplay, TV series, feature films such as Z for Zachariah with Margot Robbie as well as an expansion into luxury holiday travel, encompassing everything from African safaris to expedition cruising or luxurious getaways to the Maldives.

Like Red Hot, Sound Travels will continue to be run as a separate business unit, “Powered by Tag”.

Tag is not disclosing what it paid for the New Zealand businesses.

In the past four years, Tag has bought several businesses globally, including the Australian travel and event management group, CCM Travel, last year. In Asia-Pacific (APAC) it has experienced 300 per cent growth since the depths of the pandemic as more artists are touring to meet strong demand from fans who want to go to live shows.

Shane Barr, managing director of Tag, APAC, said the acquisitions in New Zealand were pivotal for its growth.

Barr, from Newtownards, County Down in Ireland, played club rugby in Hamilton 20 years ago and knows New Zealand well. He said the demand for big acts in this country was strong and he expected more tours to be announced soon.

‘’Last year was the biggest year we’ve (Tag) had since inception. The appetite from consumers for live bands, certainly since Covid has just grown. Everybody wants the experiential - they want to be with other people and create memories.“

Tag was itself a takeover target late last year.

It is majority-owned Apiary Capital and attracted interest from other private equity firms late last year for a reported $200 million to $300m. No sale has happened.

Grant Bradley has been working at the Herald since 1993. He is the Business Herald’s deputy editor and covers aviation and tourism.