Certares, a prominent travel and tourism investment firm, recently led a consortium in acquiring the FTI Group, the third-largest tour operator in Europe. This acquisition marks the conclusion of a restructuring process initiated in September to bolster FTI’s financial standing. As part of the deal, the consortium will gain ownership of all the share capital of FTI, while the company itself will receive a significant sum of around $130 million (€125 million). This influx of capital will be utilized towards advancing FTI’s digital transformation and fostering its growth in the sector. The CEO of the FTI Group, Karl Markgraf, expressed optimism about the collaboration with Certares, emphasizing the potential for exceptional growth with their support.
Certares, known for its strategic investments in various tour companies like G Adventures, Tripadvisor, AmaWaterways, and American Express Global Business Travel, has also made other significant acquisitions, such as Hertz and a number of hotels. Greg O’Hara, founder and senior managing director of Certares, was appointed as the chair of the World Travel & Tourism Council in November, further solidifying the company’s influence in the industry. The acquisition of FTI Group aligns with Certares’ broader expansion strategy and enables them to tap into the vast network and resources of a well-established European tour operator.
Based in Munich, the FTI Group operates 120 subsidiaries across German-speaking markets, the Netherlands, the UK, France, and other locations. With a customer base of 6 million as of the latest available figures in 2022, FTI Group has established itself as a significant player in the European tourism industry. Moreover, the company has entered into a memorandum of understanding to collaborate with Saudi Arabia in promoting increased multi-day tours in the Middle East. This partnership signals FTI’s commitment to expanding its operations beyond Europe and venturing into emerging markets with growth potential.
In a competitive landscape dominated by major players like TUI Group, DER Touristik, Kuoni, and Hotelplan, the acquisition of FTI Group by Certares positions the company for increased market presence and growth opportunities. By leveraging Certares’ industry expertise and financial resources, FTI aims to strengthen its position in the European tourism sector and enhance its digital offerings to meet evolving consumer demands. The acquisition also reflects a broader trend in the travel and tourism industry towards consolidation and strategic partnerships to navigate challenges and capitalize on emerging trends in a rapidly evolving market.
Overall, the acquisition of FTI Group by Certares represents a significant development in the European travel and tourism sector, with the potential to reshape the competitive landscape and drive growth for both companies. The strategic partnership between Certares and FTI Group showcases a commitment to innovation, digital transformation, and expansion into new markets, positioning them for success in a post-pandemic era where consumer preferences and industry dynamics are evolving rapidly. As the industry continues to recover and adapt to changing circumstances, collaborations and acquisitions like this one are likely to play a key role in shaping the future of travel and tourism on a global scale.
