Industry Archives: Travel and Tourism


Partnership and Investment with the Largest Golf-travel Operator in Bulgaria

The Company is the largest golf-travel operator in Bulgaria, and it dominates local incoming traffic of Golfers from Europe and all over the world who come to Bulgaria for a golf vacation.

— The global golf-travel market around the world generates turnover of over $2 Billion per year.
— Bulgaria with its newly built 6 golf courses is turning to become a destination with huge potential for inbound golf travel.
— In 2012 Bulgaria was rewarded as the Undiscovered Destination of the year by the International Golf Travel Market fair.
— On November 15, 2015, our company was rewarded for the Best Inbound Golf Operator in Bulgaria by “World Golf Awards”3.

The Product “Golf in Bulgaria” is very well accepted by all foreign golfers who have visited Bulgaria. The golf courses are among the top 50 in Europe (Thracian Cliffs #30 in Europe).

The top target markets for Bulgaria are: UK – with more than 850’000 golfers, Germany with more than 600’000 golfers, France over 400’000 golfers, Netherlands over 350’000 golfers, Finland over 140’000 golfers, and Austria over 100’000 golfers.

The current combination of 6 golf courses (on 2 distinctive destinations) and over 20 Internationally accepted hotels, the area can easily handle over 10’000-12’000 golf packages (week long), sold per year.

Our company is currently in possession of some 40-50% of the inbound golf travelers (the rest is shared between the golf resorts and few small non-golf hotels). With a proper Investment and management, the Company can easily increase the number of the packages sold, and in 3-5 year period, generating turnover of over €5 Million per year.

In addition, there are plans for building more golf courses in the Sofia (Capital) area and on the seacoast that will further increase the interest to Bulgaria as Golf destination.

The Company is looking for strategic partnership with financial group or individual to further expand its operations.
Funds required €450’000 in exchange of 20% of the company
The major part of the funding to be used for marketing activities and operations expansion.

— The company growth rate varied from 20% to 35% over the last 5 years.
— Exclusivity contracts signed with over 40 renowned agencies all over world, as the only Bulgarian Golf travel operator to handle their clients in Bulgaria.
— Contracts signed with the local suppliers securing special prices.
— Special contracts signed with the top four airlines operating flights from Europe to Bulgaria.
— The company is in possession of private proprietary Software (custom built) for managing the business process, and giving possibility for operating and managing from all over world via Internet.

For more information please contact:
Boris Borissov – MBA, MSEE
+359 888 303 915
[email protected]

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Sub Saharan Africa Travel Services Merger Seeks Private Equity

Existing travel services businesses in Sub Saharan Africa(SSA) plan to merge their travel management companies to form a leading travel group (the “Group” or “TCI”) for the region. TCI will be a growing force in the travel industry in Africa, operating competitively throughout SSA.

TCI is a Mauritius-based travel services group, invested in a portfolio of mostly franchised, category specialist and formula driven, high touch and high tech travel service outlets, tour operations, global travel retail brands and support services operating throughout SSA.

TCI manages a number of leading global travel Brands – Uniglobe Travel, First Car Rental (East Africa), GSA agents in East Africa for Air Mauritius, Air Sudan, Air Zimbabwe, Yemeni Airways, Pakistan Int. Airways, Turkish Airlines

TCI’s growth will be primarily driven by a combination of key company owned outlets and franchisee owned outlets, (thereby also reducing the capital requirements of the group), allowing TCI Management to focus on building brand equity through aggressive marketing, and unlocking value within its own travel operations and the franchise system through vertical integration and shared services initiatives and group volume opportunities.

The group currently manages $80 million in third party sales through 20 outlets, with $40 million being managed through 5 outlets under the direct control of management. Segmental sales are roughly as follows:
Total Group Under Direct Control
• Corporate travel – $60million $30 million
• Leisure travel/tours – $17million $7million
• Car rental – $1million $1million
• Airline GSA – $2million $2million

The economies of SSA are expected to continue growing at double digit figures until 2020, on the back of a commodities and infrastructure development boom and a huge migration of people (4.5% pa) from rural to urban areas.Travel is expected to continue to grow at a multiplier of this economic growth in SSA.

SSA’s strategic holdings of key mineral , metals and oil are huge and it is one of the top producers of almost every category. Africa has a population almost equal to India and a higher number of middle class than India and is undergoing faster urbanisation than India. Travel and Tourism is a leading beneficiary of this growth and development and still in an early phase of its deregulation and developent as a key sector of the African economy, compared to mature declining industry in the Western world.

Travel and tourism accounts for approximately 10% of the GDP of most SSA countries and corporate travel is estimated to be worth over $10billion in total. Spending on business travel in SSA has been growing at double digit annual rates for the last two decades, and growth seems set to continue and accelerate in line with growing economic activity.

TCI is expected to grow organically and through acquisitions in SSA, while also improving performance through the adoption of advanced systems and shared services needed to provide unique valued added services to its diverse regional client base of midsized, relatively big spenders on business travel and discerning leisure travelers.

TCI will be one of the top Regionally based sophisticated travel management service companies geared to manage its clients business and leisure trips more efficiently, effectively and economically, providing unbeatable travel experiences, logistical and marketing support to industry airlines and other suppliers. TCI will be able to achieve substantial cost savings and greater effectiveness through centralisation of marketing, administration, accounting and some operational activities.

TCI’s Regional target market is one in which the promoters have been operating successfully for a considerable time (on average 10 years each and a combined 105 years in total). In the last three years they have achieved annual increases in aggregate sales of around 25 per cent per annum.

TCI will be equipped with the resources – human, marketing and business systems needed to continue to expand their sales at the annual compound rate of at least 25 per cent per annum called for in the forecasts. This growth will be both organic growth and acquisitions of other Uniglobe franchises or targetted travel management companies in the Region, as well as expansion of its niche tour operations, airline logistics and marketing support and car rental business.

Considerable improvements in sales and profitability are expected due to a combination of:
• Improved marketing and sales through centralised focus and sharing,
• Productivity improvement from improved business processes, shared services and automation
• Margins improvements from changes in product mix, bulk buyig discounts for early settlement and value based selling ,
• Cost reductions from shared services solutions and synergistic activities.
• Improved liquidity due to injection of private equity, enabling faster growth and related profitability over the next 4 years.

Gross Third Party Sales of TCI are currently at an annual rate of $80 million (i.e. approximately 1,2% of total estimated regional spend on travel of $10billion). This currenty yields an operating profit of $1million (on Revenue of $5million after operating expenses of $4 million. i.e 20% of Revenue)

TCI’s initial capitalisation is estimated at $5 million ( i.e. 5 * PBT ).
A private equity partner is being sought to provide $5 million for a 40% equity stake in order to have adequate cash to fund organic and acquisitive growth over the next 5 years. This will take the liquidity ratio from 0.4:1 to 1:1 and enable us to build a solid liquidity ratio of 2,5:1 over the next five years as profitability and growth improve.

The forecast – and the target – for 2020 is for total group sales to be $300million (i.e. only 3% of total expected travel spend of $20billion in SSA.)
Of this TCI will control directly $200 million and franchised offices $100million.

On an EV for TCI in 2020 of $60 million (PBT of $12.5 million x 5); a 40 per cent share for the private equity partner is $24million ( 5.8*cash); Dividends in Years 2 to 5 at the rate of 40 per cent of PAT generates equates to $10million cash; private equity partner’s 40% share equal to R4 million – (giving the private equity partner a total return of 6.8*cash)

On these assumptions and forecasts, annual IRR over five years on the private equity partner’s $5 million investment would be +/-35 per cent pa.
For more information contact:
Uniglobe Travel
Mike Gray
[email protected]

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airport-csp13927324-620 raises $5 million and switches to

East-West Digital News
Competition in the saturated Russian online travel sector is fierce, and one of the main players last week took the dramatic step of a complete rebranding as it seeks to differentiate itself from its rivals. Continue Reading →

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Toread Outdoor to Buy New Shares 15 Aug 2013
Beijing Toread Outdoor Products Co., Ltd. said today that it has signed an agreement to buy 40 million new shares in Holdings Ltd. Continue Reading →

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Alibaba Invests in Chinese Travel-Website Qyer

The Wall Street Journal
HONG KONG—Alibaba Group Holding Ltd. said Tuesday it has made an investment in travel website Qyer, in the latest in a series of deals by China’s largest e-commerce company. Continue Reading →

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HomeAway Expands Asia Pacific Presence with Acquisition of Asian Vacation Rental Start-up

AUSTIN, Texas–(BUSINESS WIRE)–HomeAway, Inc., the world’s leading online marketplace for vacation rentals, has signed an agreement to acquire majority control of travelmob™, an online start-up for vacation rental properties in Asia Pacific. Continue Reading →

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In Moscow, DEMO Europe searches for a new Russian start-up

Russia Beyond the Headlines
Demo Europe, a major start-up and venture conference, took place at Moscow’s Digital October center last week. On June 3 and 4, Russian start-ups presented their projects Continue Reading →

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Private-equity funds get control of Unidas for R$1,500

Valor Econômico International June 10 2013
For little less than R$1,500, private-equity funds of asset managers Gávea, Kinea and Vinci have taken control of rental-car company Unidas. Continue Reading →

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Online destination guide for St. Petersburg

The Company is selling the St. Petersburg site for a global destination website, part of a network of over 100 sites around the world which has been running for around seven years Continue Reading →

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Crimean Highland Recreational Complex

Invest in an eco-tourism development in a region that has a growing influx of tourists
The Business
The Project is the development of a Crimean highland recreational complex that is situated in a quiet natural area 600 meters above the sea not far from Sevastopol. The property is about 0.6 hectares. The complex will contain homes, a restaurant, sauna, two recreational areas, and a pool formed from natural water sources. In addition, excursions will be available with off-road vehicles to historical and other spectacular landscapes of the Crimean region.
Target customers of the recreational complex are those from Ukraine and abroad who seek wellness vacations, and who appreciate the peace and harmony of nature.

The Project Promoters are seeking USD 700,000 of financing for project construction.

Sector: Travel and Tourism
Segment: Eco-Tourism
Region: Central/Eastern Europe
Financing Size: $1m to $5m
Contact: Anna Gorbenko
Company: LINC Project
Telephone: +380 949 251 002
Email: [email protected]

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