Great Rail Journeys buys North American business

Great Rail Journeys has signed a deal to buy Vacations By Rail, a US-based provider of escorted and independent rail holidays, for an undisclosed sum.

York-based GBR, which already claims to be the world’s leading provider of rail holidays, said the acquisition was part of its plan to expand both internationally and into new product areas.

Last year, it launched a new river cruise offering and its summer 2020 programme has already been extended to include exclusive small group tours.

The combined business will offer a global portfolio of escorted rail itineraries and an expanded collection of independent rail holidays to customers in both the UK and the US.

It will also give the UK market exclusive access to Vacations By Rail’s products in North America’s National Parks and Alaska.

Great Rail Journeys employs over 150 people and offers almost 400 itineraries to over 50 countries globally. 

Established in 2004, Vacations By Rail employs a team of 30 and offers North American customers independent rail holidays, escorted rail tours, luxury rail journeys and custom train holidays to destinations in North America.

Great Rail Journeys’ president of North America Heather Leisman will assume leadership of the combined North American operation.

VBR co-founders Todd Powell and Cole~Dannewitz will join the existing GRJ executive team and move into new roles.

Great Rail Journeys said its commitment to its trade partners will be ‘stronger than ever’ with Lindsay Dixon continuing to provide support and education in the UK market.

CEO Peter Liney said: "This acquisition is the first step of many as we look to enhance our position as the world’s leading rail holiday company. At a time of market uncertainty, it signifies our scale and ambition within the market and at one stroke makes us market leader for escorted rail holidays in the USA.

"Building on recently launched programmes such as ‘Rail River Cruise’ and ‘Small Group Tours’, this deal will present the trade with added benefits and an unrivalled rail portfolio range, giving greater choice for all of our customers.

"From product expansion to investment in technology and strengthening both our escorted and independent travel business, the combination of our two businesses is very exciting for us all."

Liney said that as a result of the deal, its UK business would be handling ‘far more’ customers from North America. 

Some staff from the York office will be seconded to Chicago to help develop product, while some US staff will be seconded to York to assist with developing FIT trips, which is an area in which it is stronger than GRJ.

"There will be some linkage, but no wholescale job movements," said Liney.

As a result of the deal, agents in the UK will have acces to more North American product, in particular access to overnight stays in lodges in National Parks, he added. "We will get some really good product coming into the UK, which is great news for those agents who want to work with us."