During the pandemic, specialist tour operators were brought together out of a need to work out how to get the industry they loved back on its feet and keep up each other’s spirits.
At the time, the move was driven by a need for ‘mutual therapy’, recalled Experience Travel Group managing director Sam Clark.
Three years on the brainstorming has led to a fully-blown merger between ETG and tour operator Holiday Architects, with the creation of a new umbrella travel brand, Inquisitive Traveller.
“We started talking to each other during the pandemic. As a group of tour operators, we were just trying to put the show on the road and keep our spirits up,” said Clark, who added: “Out of that, we thought, is there a way we can build a broader base to develop from, to have a more resilient base with more destinations. That was the key thinking.”
As well as creating a way to protect their companies from events in destinations by having a broader product range, the operators recognised they had similar values at heart, with sustainability and technology both key to their businesses.
“Sustainability is incredibly important to us as a B Corp,” explained Clark, who stressed sustainability was not an area it wanted to “be unique in” as an operator.
He added: “The challenge [with sustainability] is you really need to measure where you are and work to improve in your impact in terms of carbon on the ground and positively on the ground.
“The challenge is the same whether you are a small or large business and it’s extra challenging from a resources perspective.
“We felt if we could work together we could have a big impact. Sustainability is important to Holiday Architects too and they have ambitions to be a B Corp.”
In addition to working together on sustainability, the operators will combine in-house resources, from technology platforms to training and recruitment. The aim of Inquisitive Traveller is to leverage the strengths of each brand, harness their combined expertise and share best practice and resources.
“Our brands will not be affected on a day-to-day level. Our staff are excited to be part of something bigger. We will slowly introduce some collaboration in finance, sustainability and IT. The key is that this not about cost-cutting.
“We are both under-resourced [in terms of staff]. We are too lean. We need to recruit up. What we are looking to do is use that additional scale to develop quicker,” said Clark, who is confident the larger group will help to attract talent and investment as well as weather any future challenges.
The merger means the combined group currently has 40 employees, with staff in ETG’s London office and Holiday Architects’ Cheltenham office as well as overseas across more than 30 countries.
The merger will also introduce Holiday Architects to a new distribution channel – the trade. The tailormade, long-haul operator is poised to join The Specialist Travel Association (Aito), of which ETG is already a member.
Through ETG, the brand will also begin to get exposure to new trade partners for the first time to sell its product, which includes destinations such as Costa Rica, Jordan and South Africa.
“We will very much be recommending Holiday Architects as our sister brand,” said Clark, who added: “We have very little crossover in terms of our audience.”
The two companies – which are retaining their individual brands, Atols, locations and staff despite the merger – now also hope to acquire or set up further brands under the Inquisitive Traveller umbrella.
Clark and Holiday Architects managing director Andrew Hunt, who has been in the industry for 22 years at companies including Cox & Kings and Audley Travel before founding Holiday Architects, will sit on the Inquisitive Traveller board.
The board will be chaired by Chad Lion-Cachet, who has more than 25 years’ experience in senior executive roles in the travel, sports and events sectors. Lion-Cachet, who bought sports travel business Sportsworld and sold it on to Tui, has been working as a consultant for Holiday Architects in recent years.
The group, which aims to cater for the 50-plus medium-to-long haul tailor-made market, has an ambitious growth plan.
It anticipates turnover of £16 million by the end of this year, rising to £40 million to £50 million through acquisition and organic growth with the addition of a further two brands under the Inquisitive Traveller umbrella over the next three to five years.
Over time, Inquisitive Traveller will seek investment opportunities to build a group of leading brands that deliver immersive experiences for the inquisitive traveller market, while ensuring a lasting positive impact on local communities, said Clark.
Now the merger has been formally completed, “the fun starts” as the companies look at opportunities to add new similar, which are engaged in destinations and focused on sustainability, or start up new businesses from scratch.
Clark pointed to a potential gap in the market serving the 50-plus demographic, with the industry up to now very focused on baby boomers, now in their mid-70s.
“There is a ‘demographic bulge’ coming up; they have a bit less time but are less likely to be impacted by the financial situation and want to make the most of their time and engage with destinations rather than retire,” he said.
Clark sees the timing of the deal as just right. “It’s a good moment to expand and build back with this more resilient platform. At the moment demand is outstripping supply and people appear to be very keen to travel.”