TravelPerk Acquires AmTrav, Fueling U.S. Expansion with AI and Debt Financing
European corporate travel booking platform, TravelPerk, has announced the acquisition of Chicago-based startup AmTrav, marking a significant step in its U.S. market expansion. This move comes alongside a $135 million debt financing round led by private equity firms Blackstone and Blue Owl, further bolstering TravelPerk’s growth strategy.
Key Takeaways:
- Strategic Acquisition: TravelPerk’s acquisition of AmTrav strengthens its foothold in the U.S. market, a move expected to double the company’s U.S. revenues and elevate the region to its largest revenue generator by 2026.
- Debt Financing: This $135 million debt financing, in addition to a previous $104 million round in January 2024, provides TravelPerk with substantial capital to execute its global growth strategy.
- AI Focus: TravelPerk intends to leverage AI to enhance its offerings, automating tasks and facilitating a more efficient and personalized travel experience for users. The company believes that AI will not replace human interaction but rather enhance it, leading to increased demand for in-person meetings facilitated by business travel.
- AmTrav Integration: AmTrav will continue to operate under its own brand, and its entire team will join TravelPerk. The acquisition will create a unified platform with expanded reach and enhanced offerings for customers.
- Strong Industry Growth: The global business travel sector is projected to rebound strongly, with the U.S. corporate travel market estimated to be worth $329 billion in 2023. This provides a fertile ground for TravelPerk’s expansion efforts.
A Match Made in Travel Tech:
The acquisition represents the culmination of two years of talks between TravelPerk and AmTrav. Jeff Klee, AmTrav’s CEO, emphasized the importance of finding a partner that would ensure the continuity of his firm’s operations, particularly the value of human interaction in travel.
"The bar for me to do a deal was pretty high," Klee told CNBC. "One of things that both companies have in common is we’re both at our heart software companies—but we both recognize that in the travel industry, there’s still a huge service component from travel."
Klee expressed confidence that TravelPerk’s commitment to human interaction aligns with AmTrav’s values. He also assured that all AmTrav employees will remain in their roles, preserving the company’s unique culture.
Beyond the Deal: A Look at the Future:
TravelPerk’s commitment to AI integration is significant, as it reflects a broader trend within the travel industry. According to a TravelPerk survey, 38% of CEOs believe AI will fuel an increase in in-person meetings facilitated by business travel. The company plans to leverage AI to automate back-end tasks and provide a more personalized and efficient travel experience, rather than replacing humans.
Avi Meir, TravelPerk’s CEO and co-founder, highlighted the importance of human connection in the travel industry, stating, "For TravelPerk, AI is about making humans more efficient, rather than replacing them. I believe in human connection. This is why we exist as a company."
A Global Network of Travel Tech Expertise:
This acquisition marks another milestone for TravelPerk, which has consistently raised capital to fuel its expansion, including a $104 million round in January 2024, supported by investors such as SoftBank Vision Fund 2, Blackstone, and Blue Owl. TravelPerk now boasts a global team of over 1,200 employees, with its U.S. team set to grow by 35% by the end of 2024.
Kurt Tenenbaum, managing director at Blue Owl Capital, expressed his confidence in TravelPerk’s future: "We are pleased to provide capital that will enable TravelPerk to further execute on the company’s global growth strategy. Avi and the rest of the management team have demonstrated a track-record of success, and we are excited to see what they can accomplish over the long-term."
As the global travel industry continues to rebound, TravelPerk’s acquisition of AmTrav and its strategic focus on AI signal a commitment to innovation and growth. The company is well-positioned to capitalize on the burgeoning corporate travel sector and drive its own expansion across the globe. Its approach, combining technology with a human-centric focus, promises a future where travel is not just automated, but truly optimized for both individual needs and business goals.
