TBO Tek, a Gurugram-based travel tech platform, has completed the acquisition of US luxury travel wholesaler Classic Vacations for $125 million, as announced on October 1, 2025. The move significantly boosts TBO’s position in the North American premium travel segment and reflects its strategy to grow as a global travel-tech leader.
TBO Tek’s Major Acquisition and Strategy
The acquisition, executed via step-down subsidiary TBO LLC, brings Classic Vacations’ strong luxury brand and extensive network of over 10,000 travel advisors under TBO’s umbrella. Classic Vacations will continue to operate independently, led by CEO Melissa Krueger, while leveraging TBO’s data-driven tech platform and distribution reach to expand its offerings.
TBO used a combination of inter-corporate loans, internal accruals, and bank credit to fund the deal, even approving up to INR 350 crore for its Dubai arm Tek Travels DMCC to help finance the transaction. The acquisition is aimed at harnessing network effects—deepening engagement in both the supplier and buyer ecosystems, connecting more travel advisors, and unlocking long-term value through larger inventory and enhanced platform features.
The strategic fit is strong: Classic Vacations specializes in personalized luxury packages worldwide, and its exclusive B2B model aligns with TBO Tek’s goal to serve the premium outbound travel market, complementing TBO’s existing focus on dynamic packaging, white-label solutions, and robust hotel and airline booking APIs.
TBO Tek’s Expansion and Recent Financials
It has been on an acquisition spree, previously buying Jumbonline Accommodations & Services (Spain) for INR 219.6 Cr in 2023, and expanding into new markets like Poland, Canary Islands, Indonesia, Greece, and Australia. Its network and product portfolio continue to diversify across the globe.
Financially, TBO Tek reported operating revenue of ₹17,375 crore for FY25, up 25% year-on-year, with an EBITDA of ₹3,039 crore (margin of 17.5%), and net profit reaching ₹2,299 crore, a nearly 15% increase. The company’s market capitalization currently stands at about $1.9 billion, reflecting strong investor appetite and stock market momentum—shares surged over 15% after the Classic Vacations deal was announced. TBO’s free cash flow also grew to approximately ₹2.4 billion in FY25, providing financial flexibility for future deals.
Classic Vacations: Profile and Recent Performance
Founded almost five decades ago, Classic Vacations is a renowned luxury travel wholesaler focused on delivering customized vacation packages, working mainly with travel advisors across the US. The company closed FY24 with revenue of $111 million and operating EBITDA of $11.2 million, boasting a loyal base and strong supplier relationships.
Market Context: Competitors and Trends
Globally, travel tech is in a rapid phase of innovation, with new companies leveraging AI, travel bots, SaaS, and big data analytics to enhance booking experiences and operational efficiency. TBO competes with startups like Navan (corporate travel), AltoVita (corporate housing), Way (hotel), and others; the sector has seen over 1,800 new travel companies founded in the past five years, with an average funding of $31 million per round.
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Major incumbents like Expedia, Booking.com, and Amadeus continue to invest in tech solutions for seamless B2B and consumer travel management, virtual experiences, and sustainability features. With luxury travel demand expected to expand rapidly, platforms like TBO Tek, leveraging integrated technology and global reach, are well-positioned for market leadership.
In summary, TBO Tek’s acquisition of Classic Vacations marks a pivotal step toward expanding its premium travel business in North America and globally. The company’s healthy financials, acquisitive growth strategy, and commitment to tech-driven customer and supply chain solutions signal its potential to shape the future of travel distribution amidst strong competition and evolving market trends
