TBO TEK surges 15%, hits 6-month high; what's driving travel related stock?

TBO TEK stock rallied today after the company announced its plan to acquire US-based Classic Vacations from The Najafi Companies to expand its global reach into North America.

TBO TEK share price today

 

Shares of TBO TEK (TBO) hit six-month highs at ₹1,591.55, as they rallied 15 per cent on the BSE in Wednesday's intra-day trade after the company said it will acquire US-based Classic Vacations from The Najafi Companies to expand its global reach into North America.

 

The stock price of the travel related company was quoting at its highest level since February 17, 2025. In the past three trading days, the stock has surged 21 per cent. The stock had hit a 52-week high of ₹2,000 on September 4, 2024.

 

TBO made its stock market debut on May 15, 2024. The company allotted equity shares in initial public offer (IPO) at issue price of ₹920 per share.

 

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TBO is one of the leading global travel distribution platforms that aims to simplify the travel-related buying and selling needs of travel partners across the world.  READ STOCK MARKET LATEST UPDATES TODAY LIVE

What's driving travel related stock today?

 

TBO, based in Gurugram, India, announced its agreement to acquire US-based Classic Vacations from Phoenix-based investment firm, The Najafi Companies, for an estimated total purchase of up to $125 million.

 

TBO in an exchange filing said the acquisition 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. Classic Vacations delivered revenue of $111 million and an operating EBITDA of $11.2 million in the fiscal year ended December 31, 2024.

 

TBO’s expansion into serving the premium outbound travel market aligns strategically with Classic Vacation’s exclusive B2B brand and elite, high-value advisor network enhanced by its nearly five decades of success and brand recognition, the company said.

 

This next phase in TBO and Classic Vacations’ operations will leverage the combined strength of both companies - accelerating growth as a global leader of the luxury travel market while ensuring continuity for customers, suppliers, and employees. With global demand for luxury travel projected to expand significantly over the coming decade, this partnership creates a stronger platform to meet evolving traveler expectations and drive sustained value.  ALSO READ | Why Nomura prefers large banks over mid-tier peers? Key reasons here

TBO TEK Outlook

 

TBO in its FY25 annual report said the company is well-positioned to harness the robust expansion of the global travel industry, which is expected to grow at a compound annual growth rate of approximately 8.2 per cent, reaching nearly $2.6 trillion by 2027. In FY25, the company reported strong results, backed by strategic acquisitions like Jumbonline and a strengthened B2A platform, underscoring the efficacy of our expansion strategy across Asia-Pacific, the Middle East, Africa, and Latin America.

 

Looking ahead, TBO anticipates continued momentum fueled by key industry drivers - including rising outbound passenger traffic projected to reach 42 million by 2027 and the outbound market growing at an 11.1 per cent CAGR. The company’s expansion roadmap includes further investment in regional offices (notably in Asia-Pacific), doubling local sales and operations teams, and deepening partnerships and integrations to enhance personalization and platform scalability. 

 

With strong liquidity from our recent IPO, minority investment banking, and ongoing macro-industry tailwinds, the company is poised for sustainable, profitable growth as a leader in global B2B travel distribution, TBO said.