Intrepid Travel has acquired the French tour operator Altai, strengthening its position as the world’s largest adventure travel provider and significantly expanding its presence in the European market.
Altai, based in Lyon and also present in Paris, serves more than 35,000 customers annually and is expected to add more than AUD 100 million to Intrepid’s revenue. The agreement, the price of which was not disclosed, may lead the group to total sales of more than AUD 1 billion per year.
The acquisition was made by the investment company of Julien Leclercq, the main shareholder of Intrepid and the president of Decathlon, who is also on the group’s board of directors.
The CEO of Intrepid, James Thornton, noted that the agreement gives direct access to the French market, which would be difficult to achieve organically, while leaving open the possibility of further investments in non-English-speaking markets, such as Germany and Scandinavia.
Altai employs 236 workers and operates in destinations such as Tanzania, Egypt, Patagonia, Indonesia, and Sri Lanka, with plans to expand its products to Australia.
At the same time, geopolitical instability in the Middle East is affecting demand. According to Intrepid, Australian travelers account for 67% of cancellations for trips to Egypt, while destinations such as Jordan remain out of service.
The group is recording a general slowdown in demand from Australia, with travelers turning to closer destinations due to flight cancellations and increased fuel costs.
However, there is a strong increase in other markets. Bookings from Australians to China increased by 38%, to Vietnam by 15%, to Peru by 20%, while bookings to South Africa increased by 60%. Meanwhile, there is an increased demand for travel within Australia and New Zealand.
As Mr. Thornton noted, the progress towards the $1 billion target will depend largely on developments in the Middle East and their impact on international mobility.
