TUI Intrepid Travel deal: sustainable business as usual

sustainable travel still at core after recent announcement of massive 340k pax adventureco say partners

Darrell Wade of Intrepid says that sustainable and responsible travel will remain at the core of PEAK Adventures.

"It’s business as usual for the businesses – all the brands will continue to operate as they currently do, using the same suppliers.  Sustainable and responsible travel will remain at the core of PEAK Adventures.  Darrell Wade, CEO of PEAK Adventures, has long been passionate about sustainable travel and in his previous role at Intrepid Travel was central to the company taking a lead position on climate change as well as heading up its philanthropic arm, The Intrepid Foundation."

The proposal will combine Intrepid Travel with TUI Travel’s international portfolio of adventure brands to create PEAK Adventure Group.

The new group will consist of over 20 businesses with a combined revenue of circa £230 million / AUD $400 million. Together they will take 340,000 passengers to all seven continents.
Brands included in the venture are Adventure Center, The Adventure Company, Adventure Tours Australia, Country Walkers, Exodus, Gecko’s, Guerba, Headwater, Imaginative Traveller, Intrepid Suntrek, Intrepid Travel, Oz Experience, Peregrine, Pinnacle Tours, Sawadee, TrekAmerica and WesternXposure.

The businesses forming PEAK Adventures will operate a multi-channel and multi-brand strategy which will provide new opportunities for growth including new products, markets and destinations.

Commenting on the announcement, Darrell Wade, CEO PEAK Adventures, said: "With the adventure travel market set to grow significantly in the coming years, this new venture will firmly position PEAK Adventures as the sector’s global leader.

“In addition to providing a one-stop shop for adventure experiences, the  creation of an independently managed company offers enormous potential to introduce new products for agents to sell while cost synergies across the business will potentially deliver greater value holidays to a fast-growing sector."
Tui Travel and Intrepid Travel’s new joint venture will be surprisingly “painless”  say the new partners and “drive synergies through system integrations not redundancies” according to chief executive Darrell Wade.
Tui and Intrepid’s adventure companies will continue to operate as separate businesses under the umbrella of the newly-formed PEAK Adventure Group, which will not be used as a consumer brand.

It is targeting £10 million in annual synergies. The group of more than 20 businesses will have a combined revenue of £230 million and carry 340,000 passengers to all seven continents.
Wade said: “It’s a painless integration. There will not be any redundancies.”

John Wimbleton, who will sit on the board of PEAK Adventure Travel, said some companies had been guilty of swallowing up newly acquired businesses.

He added: “What we have done very successfully over the last few yeas within Tui is kept the integrity of the businesses.”

Wimbleton stressed the strategic venture was focused on growth. “It’s about using our scale to grow in markets and products we are not in. It’s very much about expanding the marketplace and we want to play a substantial part of that.”

The venture is likely to include Tui’s operators tapping into Intrepid’s ground handling companies in destinations and Intrepid selling destinations featured by Tui.

Valere Tjolle
Valere Tjolle is editor of the Sustainable Tourism Report Suite – special offer www.travelmole.com/stories/1146486.php