Australian-based global tour operator Intrepid Travel’s revenue hits $626m
Intrepid Travel’s global expansion strategy is gathering pace as the privately-owned tour operator opens another overseas office and races towards its goal of $1bn in annual revenue.
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Privately owned international tour operator Intrepid Travel is pushing ahead with an aggressive global expansion strategy, having posted a 17 per cent increase in revenue last year to $626m.
The Melbourne-based company, which now gets most of its revenue from non-Australian travellers, has reported a 24 per cent increase in earnings before interest and tax to $42.9m for 2024. Total customers for the year rose by 12 per cent to 287,113.
In an interview with The Australian, chief executive James Thornton said the 2024 results reflected the first full year of markets in Asia reopening after the Covid pandemic, as well as the company’s expanding footprint in the British market.
The company last week opened its 31st global office, in Copenhagen, as a base to expand its operations into northern Europe, as travellers look for alternatives to hot summers in southern Europe.
It is launching its first tours to Greenland in the northern summer, despite the lack of infrastructure on the island, with interest in the location boosted by President Donald Trump’s threats to take it over. This follows the launch of other destinations in Saudi Arabia, the Maldives and west Africa.
Mr Thornton said the company’s expansion plans included opening an office in Seattle as the headquarters of its US operations, potential acquisitions of other tour operators in Europe following its recent acquisition of a Dutch company, and operating its own hotels.
He said revenue growth was driven by the strong performance of the Australian and British markets. “Some of the growth in Australia was attributed to the bounce-back of travel from Covid,” he said. “We thought 2023 was big, but 2024 was the first full year that Asia came back online.
“Asia is important to the Australian market.
“The profitability was driven by an improvement in our gross margin. Asia has historically had a higher gross margin for us.
“The UK performed really strongly in general as we continued to strengthen our brand presence and investment into the UK market.”
He said the introduction of a new revenue management system had also given it “the ability to price our products more effectively”.
Mr Thornton said the increase in travel to Asia was more profitable for the company, as it had a strong on-the-ground presence, including 10 offices. Intrepid Travel was founded in Melbourne 35 years ago.
Its customer base includes 40 per cent from Australia and New Zealand, 30 per cent from Britain and Europe and 30 per cent Americans and Canadians.
Some 90 per cent of its customers came from Australia 20 years ago.
“The big growth we have had is the presence we’ve got now in the British and North American markets,” Mr Thornton said.
“Australia’s a country of 25 million people. If we can get 40 per cent of our customers from a country with 25 million, then we have a lot more growth in the UK with its 60 million and the US with its 300 million.
“We’re targeting specific types of customers in these markets, but we believe the addressable market in the US for our products is about 10 times the size of our Australian market and the addressable market in the UK is about four times the size of Australia.
“The growth opportunities in those markets are massive.”
In 2024 its advertising included a focus on New York, with billboards at Madison Square Garden and Penn Station.
It has also moved this year to sponsor the North Melbourne men’s and women’s AFL teams to boost awareness in the Australian market. Mr Thornton said the company’s goal was to boost its revenue to well over $1bn by 2030.
The company’s current compound average growth rate in revenue is about 15 per cent.
Revenues in 2025 will also be significantly boosted by its recent acquisition of Netherlands-based tour company Sawadee Reizen, which currently turns over $100m a year with 20,000 customers.
The deal was the largest in its history, following acquisitions in Australia, New Zealand and the US in recent years, including Kimberley Wild Expeditions and Haka Tours in New Zealand in 2024 and Wildland Trekking in the US in 2022.
Mr Thorton said the company could earn more than $800m in revenue in 2025. “So the aim to exceed $1bn is not too far away now.” Sixty per cent of the company’s shares are owned by the original co-founders, Darrell Wade, and Geoff Manchester.
The writer travelled to Copenhagen as a guest of Intrepid
Originally published as Australian-based global tour operator Intrepid Travel’s revenue hits $626m
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