TBO Tek’s investor presentation highlights a structural upswing in the luxury travel market. The presentation outlines the company’s progress through strategic investments leading to growth and operating leverage. Furthermore, TBO Tek is focusing on future readiness for an AI-led world. Key figures include 37K+ transacting advisors and an average hotel daily rate of $320+.
Luxury Travel Market Opportunity
The luxury travel market is outpacing general travel, driven by approximately 60 million affluent millionaires. Wealth growth is concentrated at the top of the pyramid, leading to increased discretionary spending. Luxury tourism is growing approximately 2x faster than the general market.
Financial Performance
TBO Tek reported strong financial results. They have 37K+ annual transacting advisors and a hotel average daily rate of $320+. Also, 40%+ of GTV comes from bookings greater than $5K, supported by approximately 30K direct hotel relationships. For H1 FY2025-26, transacting buyers (monthly) were 30,116, with GTV at INR 17,020 Cr and revenue at INR 1078.8 Cr.
Growth Initiatives
Hotel business demonstrates strong growth over the past three years. TBO Tek is focused on margin expansion through continued growth, highlighting a trajectory of improvement. New business acquisitions drive step-change, supported by Key Account Manager (KAM) additions and efficiency improvements.
Strategic Acquisition
The Classic Vacations (CV) acquisition provides scale and brand strength, driven by offline relationships. The US business GTV is $0.6B+, with approximately 13K transacting advisors and a 70%+ share of direct supply.
Technology and AI Integration
TBO Tek is leveraging technology and automation to enhance efficiency. People Managers are integrating Epicenter across supply, finance, customers, and operations. There is 72% automated resolution of supplier-initiated tickets. Furthermore, TBO Tek is building a ‘Better than OTA’ platform integrating AI driven solutions to improve usability for advisors.
Expanding Proposition
TBO Tek is strengthening its proposition through the Platinum program, scaling fast to approximately 160 hotels. Expansion is from Umrah to Academy, creating differentiated lock-ins for partners. In addition, they have launched Connected Trips to improve the user experience for all.
Future Outlook
TBO Tek is focusing on opportunities within the market. They aim to build an AI-enabled solution that caters to the advisor and customer, in order to remain competitive.
Source: BSE