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There’s nothing quite like a headline figure with many zeros to get the industry’s attention, and Gurugram-based TBO (NSE: TBO TEK) has done just that. The company has signed a deal worth up to USD $125 million to acquire Classic Vacations, the luxury travel wholesaler that’s been whispering sweet nothings to America’s travel advisors for the past five decades.

If there was ever an example of East meeting West in the most elegant circumstances, this is it. TBO, armed with its formidable technology platform and globe-spanning inventory, now joins forces with Classic Vacations, a brand with heritage, trust, and a Rolodex of more than 10,000 advisors who would happily book a palace over a penthouse.

A marriage of opposites (and equals)

On paper, it looks like a perfect fit: one side offering reach and digital muscle, the other offering prestige and a brand name that still gets travel agents nodding knowingly at conferences. Together, they make a rather formidable duo.

Classic Vacations isn’t just a name in the industry; it’s a talisman of trust. In the fiscal year ending December 2024, it posted USD $111 million in revenue and an operating EBITDA of $11.2 million. These are respectable numbers, considering the company isn’t exactly flogging budget coach tours.

TBO co-founder Gaurav Bhatnagar was understandably jubilant. “We’re thrilled to bring Classic Vacations into the TBO family. The company’s longstanding delivery of outstanding services has earned the trust of its more than 10,000 travel advisors in the U.S., and their end customers,” he said. In other words: Classic is posh, polished, and perfectly primed for TBO’s ambitions.

Keeping the Classic in Classic

The big question, of course, is whether Classic Vacations will be allowed to keep its elegant identity. After all, nobody wants to see a venerable luxury brand repackaged with the personality of a tech start-up.

Fear not, says Bhatnagar: the brand will continue as an independent operation, while enjoying the perks of TBO’s technology and reach. It’s the corporate equivalent of getting your own butler while the housekeeping staff goes digital.

Meanwhile, TBO’s other co-founder, Ankush Nijhawan, assured the industry that this is just the beginning: “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.” Translation: keep your phones handy, other boutique operators TBO might be calling.

A CEO with her eyes on the prize

This deal is a windfall for Melissa Krueger, CEO of Classic Vacations. “TBO connects us to its first-class technology platform unlike what the wholesale market has ever had access to, allowing us to bring even more resources, tools and insider connections to our valued travel advisors,” she explained.

It’s not hard to see the appeal. Travel advisors live and die by their ability to deliver exclusivity, and if TBO’s tools give them an edge, then Classic Vacations’ already-loyal network will only deepen. As Krueger added, “Together, we’re strengthening Classic Vacations’ position as the premier luxury partner in the market while extending our reach onto the global stage.”

Najafi bows out gracefully.

Spare a thought for The Najafi Companies, which picked up Classic Vacations from Expedia Group in 2021 and now exits the stage with a satisfied smile.

“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,” said Jahm Najafi, founder and CEO. In other words, they polished it up, kept the brand shiny, and passed it along to a buyer willing to invest even more.

Why it matters

Luxury travel is not just about caviar breakfasts and champagne sunsets (though there’s plenty of that). It’s also where margins are higher, customers are more loyal, and expectations are sky-high. With global demand for luxury travel projected to soar over the next decade, this deal positions TBO and Classic Vacations as an international powerhouse and a relatively well-heeled.

Behind the glamour, it’s also a practical move: technology without trust doesn’t win advisors, and heritage without scale can wither. Together, TBO and Classic Vacations bring the best of both.

Signed, sealed, and advised

No acquisition is complete without a few sharp-suited names to keep it tidy. Moelis & Company LLC was the exclusive financial adviser, while Ballard Spahr LLP looked after Classic Vacations’ legal paperwork. On TBO’s side, Cooley LLP played the legal hand, and PWC ensured the tax man was satisfied.

The result? A deal that doesn’t just reshape balance sheets but may well redraw the map of luxury travel distribution.

And if you’re a travel advisor, you might find your job about to get a little easier with more tools, connections, and perhaps even more of those lovely perks Classic Vacations is famous for.