Last month, India-based TBO acquired U.S.-based Classic Vacations from The Najafi Companies for an estimated US$125 million.

At the time of the acquisition, the companies said the move “brings together the power of TBO’s first-class technology platform and worldwide inventory with Classic Vacation’s vast network of luxury travel advisors and suppliers.” TBO’s expansion into serving the premium outbound travel market, it said, aligned strategically with Classic Vacation’s exclusive B2B brand and high-value advisor network.

LATTE caught up with Classic Vacations CEO Melissa Krueger this week to get the latest on the acquisition—including what it means for advisors and suppliers and what’s next for the company.

“The primary motivation for joining the TBO family was access to advanced technology and the opportunity to be a global brand—one capable of serving a broader range of travel advisors and their clients worldwide, at the same time,” Krueger said. “From a strategic standpoint, the move perfectly aligns with where Classic is and has been heading.”

First-Class Technology

That technology was a focal point of both the initial announcement by TBO and Classic Vacations in September and again this week in speaking with Krueger. “TBO brings us first-class technology platform that the wholesale market has never had access to,” she told LATTE.

Specifically, this looks like multiple different aspects. Krueger mentioned TBO will afford Classic Vacations:

• “New levels of connectivity for advisors from a global scale and inventory perspective”
• “The infrastructure to service advisors globally”
• “Expanded destination knowledge and inventory”
• “Faster, smarter, more intuitive booking tools, [making] it easier for advisors to find and customize the perfect trip, either on their own or in conjunction with one of our res agents”
• “AI-driven personalisation, helping advisors better anticipate client preferences and access insider experiences tailored to each traveller”
• “Improved back-office systems”
• “Smoother processing, streamlined support [and] real-time data visibility”

Classic Vacations, according to Krueger, had already being undergoing a “digital transformation,” and this will now speed that process up. In our conversation, she even borrowed a favorite maxim of Virtuoso’s Chairman and CEO, Matthew Upchurch: “automate the predictable to humanise the exceptional.”

Benefitting Advisors and Suppliers

Krueger told LATTE that advisors have nothing to fear with the acquisition, as it won’t change “what defines us,” which she described as high-quality and personalised service.

Beyond improved service – through new booking and AI tools, for instance – Classic Vacations will also benefit from the existing global coverage of TBO. “With TBO’s scale, we now have the ability to match the global footprint of the consortia that we partner with and to support the advisors whose clients are traveling anywhere in the world,” explained Krueger.

She also mentioned that the move will allow Classic “to expand into new source markets,” adding, “we’ll no longer just be leading the U.S. luxury wholesaler market; we’re becoming a global luxury platform.”

In addition, Krueger noted that the acquisition and new technology will not only benefit advisors, but Classic Vacations’ supplier partners. “This (the acquisition) benefits not only our customers, but also our suppliers – and I think this is really a key differentiator for Classic,” she said. “We have never, ever been about just shifting share; that kind of transactional approach to growth only hurts suppliers. Our goal is to grow the supplier business alongside ours.”

Krueger continued: “We’re not interested in growth just by stealing market share. We’re interested in growth truly by supporting our suppliers and our customers.”

“Everybody wins,” she said.

Potential Future Acquisitions by TBO

Changing hands is nothing new to Classic Vacations. Since its founding 47 years ago, it has had five different owners. It was privately held, then joined a publicly traded company. In 2002, Expedia Group acquired Classic Vacations, where it remained part of the portfolio until Phoenix, AZ-based private investment firm Najafi Companies purchased it. Then, in September, The Najafi Companies sold it to TBO.

Speaking on the numerous changes in ownership, Krueger said, “what gets you through your first 50 years is not going to be what gets you through the next 50 years.”

She added: “Now, I believe we have found our forever home.”

Beyond Classic Vacations, TBO appears to be on the lookout for additional acquisitions. In the September announcement, Ankush Nijhawan, Co-Founder and Joint Managing Director of TBO, said, “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,”

When asked about what these “strategic alliances” could look like, Krueger told LATTE she won’t speak for Nijhawan, but said, “I would emphasize that the statement if very self-explanatory.”

Should another brand or company become available that “makes sense for our customers and it makes sense for our suppliers, we are in a very, very good position to take a look at it,” Krueger explained. “It’s a very exciting time for us.”

Setting Classic Vacations Up for Success

What’s most exciting, Krueger said, is that “all of this comes at a time when luxury travel is thriving.”

She pointed to Future Market Insights, which values the global luxury travel market at US$2.6 trillion in 2024 and projects it to reach US$4.24 trillion by 2032 – a compound annual growth rate of 6.5%. “So, appetite for curated, meaningful experiences has never been higher,” said Krueger. The acquisition, she added, will position Classic “to meet that demand globally.”

As for what’s driving business, Krueger pointed to Europe. “Southern Europe remains incredibly strong,” she said, calling out Italy and Spain in particular. She also noted Scotland and Ireland have seen “surges” this year. Beyond Europe, Japan and Southeast Asia are “making an impressive comeback.”

Krueger also mentioned the increasing importance of wellness. She again pointed to Future Market Insights’ reporting that global wellness tourism will reach US$1.2 trillion by the end of 2025. The sector is growing at 10.4% annually and is on track to reach US$3.3 trillion by 2035.

Overall, though, “anything that brings connection, presence and authenticity is going to check the boxes,” Krueger said.

Her goal as CEO of Classic Vacations, under the new ownership of TBO, is to set the company up for success—to take advantage of those strong projections for the future of the global luxury and wellness travel industries. Krueger told LATTE that she’s confident in the direction the company is heading.

“Classic and TBO are building what we believe will be the premier global luxury travel platform,” she said.