TravelPerk secures 5 million funding for expansion through acquisition of US competitor AmTrav

TravelPerk secures $135 million funding for expansion through acquisition of US competitor AmTrav

TravelPerk, a European corporate travel booking platform, made a significant move towards expanding its presence in the U.S. market by acquiring AmTrav, a Chicago-based startup specializing in the same industry. This acquisition, coupled with a $135 million debt financing from private equity firms Blackstone and Blue Owl, is expected to fuel TravelPerk’s growth in the United States and position it as the leading revenue-generating region by 2026.

The CEO and co-founder of TravelPerk, Avi Meir, expressed his excitement about the potential benefits of this deal, emphasizing the company’s focus on deep localization strategies in the U.S. market. By leveraging AmTrav’s existing partnerships with major airlines like American Airlines and Southwest, TravelPerk aims to offer customers better rates and inventory options through enhanced supplier relationships.

With over 200 employees already based in the U.S., TravelPerk plans to further expand its presence by increasing its headcount by 35% by the end of 2024. The company’s successful growth in the region, with a 65% year-over-year increase in U.S. revenues, reflects the immense potential of the corporate travel sector, valued at $329 billion in 2023 according to the Global Business Travel Association.

AmTrav’s CEO, Jeff Klee, highlighted the importance of ensuring business continuity and service excellence post-acquisition, emphasizing the commitment of both companies to delivering exceptional travel management solutions. The additional funding from Blackstone and Blue Owl, totaling $240 million in 2024, will further support TravelPerk’s global expansion and innovation efforts in the corporate travel industry.

Moreover, TravelPerk is aligning its business strategy with advancements in artificial intelligence (AI) technology to enhance user experiences and streamline travel management processes. By leveraging AI capabilities to drive in-person interactions and improve operational efficiency, TravelPerk aims to maintain its human-centric approach while embracing digital innovation.

Overall, the acquisition of AmTrav and the strategic financing from leading private equity firms signify a significant milestone for TravelPerk in its quest for market leadership and innovation in the corporate travel sector. With a strong focus on customer value, operational excellence, and technological advancements, TravelPerk is well-positioned to capitalize on the growing opportunities in the global travel industry.