Why Luxury Travel is Becoming a Global Trend in Tourism Industry?

Thursday, September 19, 2024

Luxury travel is rapidly becoming a global trend in the tourism industry, driven by increasing demand for personalized and exclusive experiences. Today’s travelers seek more than just a vacation; they desire tailor-made itineraries, immersive cultural encounters, and top-tier services. This shift is fueled by rising disposable incomes, especially among millennials and Gen Z, who prioritize experiences over material goods.

Luxury travel now encompasses eco-friendly, wellness-focused retreats, private tours, and opulent accommodations, appealing to affluent and discerning travelers. Destinations offering bespoke experiences, such as multi-center tours, exclusive stays, and high-end adventure trips, are booming.

The growth of digital platforms also plays a pivotal role, making it easier for consumers to access and book customized luxury experiences. As global travel continues to recover, the luxury sector is expected to see sustained growth, positioning itself as a major force in shaping the future of tourism.

In a significant move for the travel industry, Travel Seen, an emerging player in luxury travel, has announced the acquisition of a majority stake in Manchester-based luxury tour operator eShores. This acquisition marks the company’s third major investment within the past 12 months, solidifying its position as a growing force in the industry. Prior to acquiring eShores, Travel Seen also acquired a majority stake in Aquilium Travel, a luxury travel agency, and invested in the sports and lifestyle travel start-up Vedere in November 2023.

Expanding Footprint in the Luxury Travel Market

eShores, renowned for its expertise in tailor-made, multi-centre long-haul trips, brings a turnover of approximately £12 million to the Travel Seen portfolio. The acquisition aligns with Travel Seen’s strategy of expanding its footprint in the luxury travel market by targeting businesses with high growth potential. The investment reflects the company’s commitment to building a robust portfolio of travel brands, particularly in the high-end, custom travel segment.

Despite the acquisition, Nadine Brown and Gavin Lapidus, the directors of eShores, will retain their positions and maintain a significant equity stake. This move ensures that the company will continue to offer the same high level of personalized service that has helped it thrive in the competitive luxury travel market. According to Lapidus, the investment from Travel Seen represents “an exciting new chapter in the continued growth of the business.”

Jen Atkinson’s Vision for Travel Seen

Founded by Jen Atkinson, former CEO of ITC Travel Group, Travel Seen is backed by Arete Capital Partners and supported by several North West entrepreneurs. Atkinson, a prominent figure in the travel industry, has a proven track record of scaling luxury travel businesses. Her previous success in growing ITC Travel to a £90 million total travel value (TTV) company has instilled confidence in her leadership at Travel Seen.

Atkinson describes the acquisition of eShores as part of a larger vision to create a “social-first” luxury travel group, where the focus is on building strong, customer-focused brands with unique propositions. In discussing the acquisition, Atkinson expressed enthusiasm about the quality of the eShores team, praising Brown and Lapidus for their leadership during a challenging trading period for the travel industry. She commented, “One of the most important factors when investing is the quality of the team, and what Gavin and Nadine have built is enviable.”

Strategic Growth Through M&A

Travel Seen’s approach to growth has been centered around a robust Mergers and Acquisitions (M&A) strategy. Atkinson’s vision involves targeting high-growth, experienced travel businesses with strong leadership teams that have the potential for expansion. This strategy mirrors her previous success at ITC Travel and demonstrates her ability to identify and scale niche travel brands.

Mike Fletcher, joint managing partner of Arete Capital, highlighted the success of the M&A strategy, stating, “Since our initial investment in Q3 2021, we have backed Jen’s vision to build a challenger brand in the travel industry.” He further emphasized that the strategy plays to Atkinson’s strengths, with Travel Seen’s rapid growth being a testament to her ability to execute this vision.

Briony Fagan, investment director at Arete Capital, added that Travel Seen’s M&A approach leverages existing relationships and trust with management teams, targeting companies with “pent-up growth potential” in off-market transactions. By offering fair valuations and allowing founders to retain operational roles post-acquisition, Travel Seen creates an environment where businesses can continue to thrive while benefiting from centralized support and resources.

What This Means for eShores and the Industry

For eShores, this acquisition opens the door to new resources, capital, and expertise that will enable the business to scale further. With Travel Seen’s backing, the company is poised to enhance its offering of luxury, tailor-made tours, with the potential for expanding its customer base and exploring new markets. The partnership with Travel Seen also ensures that eShores can continue its focus on personalized service, a hallmark of its brand, while benefiting from the operational efficiencies that come with being part of a larger group.

Travel Seen’s acquisition of eShores also signals a broader trend in the travel industry, where luxury and bespoke travel experiences are becoming increasingly sought after by consumers. The pandemic has shifted traveler preferences toward high-value, personalized experiences, and companies like eShores that specialize in these kinds of offerings are well-positioned to capitalize on this demand. As part of Travel Seen’s portfolio, eShores will likely benefit from shared resources and expertise, enabling it to better cater to the growing luxury travel market.

Jen Atkinson’s M&A Success Story

Jen Atkinson’s leadership and strategic vision have been key drivers of Travel Seen’s success. Atkinson’s previous experience at ITC Travel, where she led the company to significant growth, has informed her approach at Travel Seen. The company’s M&A strategy has allowed it to scale quickly while maintaining a focus on quality service and brand integrity.

Atkinson’s emphasis on creating value for both investors and customers is a cornerstone of Travel Seen’s business model. The company’s ability to identify undervalued travel brands with strong potential and bring them into the fold reflects Atkinson’s deep understanding of the travel industry and her knack for fostering growth in competitive markets.

The Role of Arete Capital Partners

Arete Capital Partners plays a significant role in Travel Seen’s growth, providing the financial backing necessary for these acquisitions. Mike Fletcher’s confidence in Jen Atkinson’s leadership and vision has helped fuel the company’s rapid expansion. Arete Capital’s strategic involvement in sourcing deals and providing centralized support for Travel Seen’s acquisitions has allowed the company to grow efficiently, leveraging the strengths of each acquired business.

Briony Fagan’s remarks on the M&A strategy highlight how the company benefits from a long-term approach, focusing on acquiring companies that offer substantial growth opportunities. This strategy has allowed Travel Seen to scale without compromising the quality of service that is essential in the luxury travel sector.

Future Growth for Travel Seen

Travel Seen’s acquisition of eShores is likely just the beginning of its M&A strategy. The company has made clear that it intends to continue growing both organically and through further investment, with a focus on high-growth businesses in the luxury travel market. Atkinson’s track record suggests that we can expect to see further acquisitions in the coming months, as Travel Seen continues to build a portfolio of travel brands that cater to the discerning traveler.

With the backing of Arete Capital and a clear vision for the future, Travel Seen is well-positioned to become a major player in the luxury travel industry. As the demand for bespoke travel experiences continues to rise, companies like eShores and Aquilium Travel will likely benefit from the expertise and resources provided by Travel Seen, enabling them to scale and thrive in a competitive market.