Intrepid expands into accommodation as it chases growth

Intrepid CEO James Thornton said the accommodation strategy would help create new ways to engage with new and existing customers.

Intrepid has bolstered its accommodation portfolio as part of the brand's strategy to drive growth beyond its core group travel experiences.

Intrepid Travel has expanded into accommodation, purchasing two new properties as the sustainable tour operator aims to drive growth through new audiences.

The Melbourne-based international travel company has acquired a property in Tasmania and another in Morocco as part of a plan to grow a portfolio of 20 accommodation properties in the next three years.

The latest acquisitions add to existing properties in tropical north Queensland and Vietnam and signal the firm’s intention to diversify its travel business beyond its core experience-based tour offering.

Intrepid Travel chief executive James Thornton told The Australian the strategy aimed to leverage the one million accommodation room nights that the operator books every year, while also creating new ways to engage with ­existing and new customers.

“One of the realities of the Intrepid style of travel is that it’s not an experience that people do every couple of months. Indeed, sometimes it’s an experience that people do once a year, even some of our most loyal customers might only travel with Intrepid once every 700 days or so. These people go off and have these wonderful experiences, but then unfortu­nately, they go back to their real world and Intrepid is no longer a core part of their lives.

“So part of our 2030 strategy is about how we can have a more regular relationship with a customer that goes beyond the big trip or tour once every 700 days.”

Intrepid Travel CEO James Thornton

The accommodation portfolio aims to help boost business growth by providing existing and new customers with more ways to engage with the brand, without having to book a tour. “We see this as a great opportunity for our existing customers to experience the Intrepid brand in a different way than they would in the traditional tour experience. But also hopefully to attract new customers to our brands that might not otherwise have necessary appeal to go on an Intrepid’s trip experience and they can see our approach to accommodation, which reflects our approach to tour operations.”

Mr Thornton said the properties would aim to offer “immersive” experiences that “act as a gateway to explore the destination and connect meaningfully to its community, culture and environment, while providing a comfortable base to relax.”

It comes as Intrepid continues to experience strong growth in the post-Covid travel market, where the travel business’s focus on sustainable, unique travel experi­ences has resonated strongly with people.

Mr Thornton said the business was now 50 per cent bigger than before the pandemic and was growing at a compound average growth rate of 20 per cent year on year. “Our revenue this year is on track to exceed $800m,” he said.

“The first quarter of this year, we grew at 27 per cent in Australia. And this is a company that’s been going for 36 years. I don’t think there are too many 36-year-old companies that would grow at 27 per cent. And that comes off a year where we grew at 18 per cent the year previously.”

Last year, Intrepid posted revenue of $626m, crediting its “aggressive global expansion strat­egy” for the growth as well as an increased demand for solo travel from consumers. While word-of-mouth remains the brand’s biggest driver of new customers – Intrepid boasts an Net Promoter Score of 82 – the brand also invests in digital marketing to provide inspiration and attract customers when they are planning a holiday.

The company has recently benefitted from a strategic marketing shift that has seen Intrepid divert advertising budgets from its previous majority digital focus to invest more money in traditional channels, particularly out-of-home and outdoor media. The move has helped the business report strong growth in brand awareness and advertising return on investment.

Intrepid has also launched several sports marketing partnerships with the Melbourne Stars and the Big Bash, the North Melbourne Football Club and women’s US NBA team the Seattle Storm. Mr Thornton said the business selected partnerships that aligned with its brand.

“The North Melbourne Football Club has an all-female leadership team and they’re on a journey to hopefully become the first B-Corp sports team in Australia,” he said.

Intrepid has invested in a publishing strategy to help bring its travel experiences to life through story telling. This year, Intrepid is on track to provide unique experiences to 300,000 travellers.