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TBO Tek will acquire US-based Classic Vacations from Najafi Companies for up to $125 million. Investors loved the update as the stock soared 15%.
Classic Vacations connects luxury advisors and suppliers to offer high-end vacation packages worldwide. Meanwhile, TBO Tek is an Indian travel-tech platform that provides a global B2B marketplace for travel agents, offering flights, hotels, tours, and other travel services.
The deets: the deal combines TBO’s global tech platform with Classic’s network of 10,000+ luxury travel advisors and suppliers. Classic will keep running as an independent brand but will now tap TBO’s tech and distribution muscle to scale.
TBO’s board cleared a loan of over ₹350 crore to its unit Tek Travels DMCC to help fund the acquisition. Tek Travels will also provide guarantees to back $70 million in credit facilities from Standard Chartered Bank.
The why: Classic Vacations brings a strong luxury travel network of 10,000+ advisors and suppliers, while TBO Tek runs a tech-driven B2B travel marketplace with global inventory and distribution.
By acquiring Classic, TBO gets instant access to a high-spending premium customer base in the US. Classic can keep its luxury brand positioning, while plugging into TBO’s technology and supply chain to scale faster.
For TBO, this means expanding into the premium outbound travel market, diversifying revenue, and boosting margins, since luxury travel typically commands higher commissions and stronger loyalty.
