Indian travel giant TBO acquires US-based Classic Vacations for $125 million

Dubai: Gurugram-based TBO, an NSE-listed travel distribution platform, is making a major push into the high-end outbound travel market in North America with its acquisition of Classic Vacations from Phoenix-based investment firm, The Najafi Companies.

The deal, valued at up to $125 million, can be considered a significant move by the Indian company as it expands its global footprint by acquiring the American luxury travel brand.

According to the company, the acquisition also highlights the increasing international ambition of Indian tech companies and the growing potential of the luxury tourism sector.

Classic Vacations delivered a revenue of $111 million and an operating EBITDA of $11.2 million in the fiscal year ended December 31, 2024. Classic Vacations was bought by The Najafi Companies in 2021 from Expedia Group.

"This acquisition and partnership is a natural next step for our portfolio company Classic Vacations, and we’re happy to have worked successfully with them for the last four years, maximizing the company’s strengths and expertise in luxury travel," said Jahm Najafi, founder and CEO of The Najafi Companies.

TBO plans to merge the company’s extensive global network and technology platform with Classic Vacations’ five-decade-long reputation and deep connections in the U.S. luxury market.

Classic Vacations brings to the table a network of over 10,000 travel advisors and strong relationships with high-value suppliers.

Gaurav Bhatnagar, TBO’s co-founder and Jt. managing director, said, “Classic Vacations is led by a strong team of experts and will continue as an independent brand while leveraging TBO’s technology and distribution capabilities to grow their business.”

The deal is a clear signal of TBO’s strategy to expand beyond its core B2B travel distribution business by targeting the premium end of the market.

Instead of focusing solely on inbound tourism to India, TBO is now positioning itself to capitalize on the lucrative outbound travel market from the U.S.

“This acquisition continues to further our strategy to invest in both organic and inorganic growth opportunities. As we start working on integrating Classic Vacations with TBO, we will remain open to similar strategic alliances going forward,” said Ankush Nijhawan, co-founder and Jt. managing director of TBO.

For Classic Vacations, now a TBO subsidiary, the acquisition provides access to TBO’s “first-class technology and global distribution capabilities,” which its CEO, Melissa Krueger, says is “unlike what the wholesale market has ever had access to.”

This will enable Classic Vacations to enhance its offerings and better serve its high-value B2B customers, the travel advisors, she explained.

In 2022, TBO's subsidiary, Tek Travels DMCC, acquired a 51 per cent stake in BookaBed AG, a B2B accommodation provider based in Switzerland with a strong presence in the Irish and UK travel industries.