#USA #San Francisco #Classic Vacations #Najafi Companies #TBO

TBO's Strategic Move in Luxury Travel

In a significant development within the luxury travel sector, TBO (NSE: TBO TEK), headquartered in Gurugram, India, has announced its acquisition of Classic Vacations, a renowned American luxury travel wholesaler. This partnership stems from a deal with The Najafi Companies, based in Phoenix, for a total estimated amount of up to $125 million. The acquisition marks TBO's commitment to expanding its global presence, particularly within the North American market, to enhance its offerings and reach a broader audience.

Classic Vacations has built a solid reputation as a B2B2C company specializing in luxury travel, boasting an extensive network of travel advisors and suppliers. In the last fiscal year ending December 31, 2024, Classic generated revenues of $111 million with an operating EBITDA of approximately $11.2 million. The synergetic combination of TBO's first-rate technology platform and Classic Vacations' established connections in the luxury travel space promises to redefine premium travel services on a global scale.

As Gaurav Bhatnagar, co-founder and CEO of TBO, enthusiastically stated, "We are thrilled to welcome Classic Vacations into the TBO family. Their track record of delivering exceptional services has earned the trust of over 10,000 travel advisors across the United States, making them an ideal fit for our forward-thinking vision in the evolving travel and tourism industry." This merger aligns with TBO's strategic approach to integrating organic and inorganic growth opportunities in the travel sector.

TBO aims not only to leverage Classic Vacations' brand recognition and expertise but also to empower its travel advisor community. Melissa Krueger, CEO of Classic Vacations, expressed her excitement for this new chapter, noting, "TBO connects us with a state-of-the-art technology platform that the wholesale market has never had access to, enabling us to provide even more resources, tools, and expert contacts to our valued travel advisors.”

This acquisition is expected to solidify Classic Vacations' position as a leading partner in the luxury sector, all while expanding its global reach. The combined strengths of TBO and Classic Vacations will accelerate growth in the luxury travel market, ensuring sustainability for clients, partners, and employees alike.

The demand for luxury travel is projected to see substantial growth over the next decade, creating a favorable environment for this alliance. With changing traveler expectations and an active pursuit of superior client experiences, this strategic partnership not only broadens the market capabilities for both companies but also creates an even more attractive proposition for luxury-focused consumers.

Founded in 2006, TBO has emerged as a prominent global travel distribution platform, aiming to simplify the complexities inherent in travel trading for partners worldwide. Through innovative technology, TBO connects over 159,000 buyers and a million travel suppliers across more than 100 countries. Likewise, Classic Vacations, which has been under The Najafi Companies' ownership since 2021, specializes in luxury travel arrangements, offering tailored services for high-end clients.

As the travel industry continues to evolve, collaborations such as this signify a concerted effort by TBO to innovate and expand, meeting the needs of both travel advisors and their discerning clientele. Jahm Najafi, founder and CEO of The Najafi Companies, echoed the enthusiasm surrounding this acquisition, stating, "This partnership is a natural progression for Classic Vacations, and we are thrilled to have worked successfully with them over the last four years, enhancing their luxury travel strengths.”

As TBO and Classic Vacations embark on this promising journey, industry observers and clients alike eagerly await the new heights this partnership will achieve in the luxurious landscape of global travel.