TBO Acquires Classic Vacations to Expand Global Luxury Travel Reach

TBO Expands Global Reach with Classic Vacations Acquisition

In a strategic move aimed at enhancing its footprint in the luxury travel sector, TBO (NSE: TBO TEK), headquartered in Gurugram, India, has announced its intent to acquire Classic Vacations, a leading U.S.-based luxury travel wholesaler. This acquisition, valued at up to $125 million, is set to significantly bolster TBO's offerings in the premium outbound travel market.

Classic Vacations has been a notable player in the luxury travel landscape, reporting a revenue of $111 million and an operating EBITDA of $11.2 million for the fiscal year ending December 31, 2024. The company, backed by The Najafi Companies, has forged strong connections with over 10,000 travel advisors across the United States, making it an appealing asset for TBO as it looks to expand its reach and resources.

Gaurav Bhatnagar, co-founder and joint managing director of TBO, expressed his excitement about the acquisition, highlighting that Classic Vacations' stellar reputation for delivering exceptional services aligns perfectly with TBO's long-term vision in the rapidly evolving travel industry. The strategy is to leverage TBO's robust technology platform alongside Classic Vacations' extensive network of luxury travel advisors and suppliers to create a new era of service delivery in the luxury travel market.

“Bringing Classic Vacations into the TBO family is a thrilling step,” said Bhatnagar. “Their commitment to quality service has solidified their status among travel advisors and end customers alike. This fits seamlessly into our plan as we move forward.”

The acquisition signifies a concerted effort from TBO to capitalize on both organic and inorganic growth opportunities. Ankush Nijhawan, co-founder and joint managing director, emphasized that by integrating Classic Vacations into TBO’s framework, they will significantly enhance the service capabilities available to their travel advisor community. He also noted the potential for future partnerships that could further enrich TBO’s market position.

Melissa Krueger, the CEO of Classic Vacations, is equally optimistic about the merger, noting it will allow her company to access TBO’s unparalleled technology resources. “TBO's tech-centric solutions will enable us to provide more tools, insider connections, and resources to our travel advisors,” she stated. This collaboration is expected to strengthen Classic Vacations' position as a premier luxury travel partner while expanding TBO’s global influence.

The anticipated expansion into the luxury market is significant, particularly as global demand for luxurious travel experiences is expected to surge over the next decade. This partnership aims to not only enhance service delivery but also adapt to the evolving expectations of luxury travelers, thus driving sustained growth for both companies involved.

Classic Vacations has previously undergone ownership changes, having been acquired by The Najafi Companies in 2021 from Expedia Group. Jahm Najafi, founder and CEO of The Najafi Companies, commented on the acquisition, acknowledging the successful collaboration over the last four years and expressing confidence in Classic’s position to continue leading the luxury travel sector.

With Moelis & Company serving as exclusive financial adviser and Ballard Spahr LLP as legal advisor to Classic Vacations, alongside Cooley LLP and PWC advising TBO, this acquisition marks a new chapter in the operations of both entities. As they prepare for integration, both companies remain committed to ensuring a smooth transition for employees, customers, and suppliers alike.

As TBO and Classic Vacations embark on this journey together, they aim to create a formidable platform in the luxury travel market capable of meeting the sophisticated needs of today’s travelers. The merger encapsulates a blend of history, innovation, and strategic foresight, promising exciting developments in the luxury travel landscape.