In a strategic move aimed at capitalizing on the resurgent business travel market, Spain-based TravelPerk has announced the acquisition of Chicago-based business travel platform AmTrav. This acquisition represents a pivotal step in TravelPerk’s expansion into the U.S., a market projected to reach $329 billion in business travel spend in 2023, according to the Global Business Travel Association (GBTA).
Known for its innovative technology and AI-driven solutions, TravelPerk aims to double its U.S. revenue following this acquisition, building on a remarkable 65% year-over-year growth in the American market. The acquisition will also strengthen TravelPerk’s presence with expanded offices in Boston, Chicago, Los Angeles, and Miami. Importantly, AmTrav will continue to operate under its existing brand, with its team remaining onboard to contribute to the combined company’s growth trajectory.
This expansion is bolstered by a new credit facility of up to $135 million, led by Blackstone Credit & Insurance and Blue Owl Credit, following a substantial $104 million investment from SoftBank Vision Fund 2 earlier this year. These significant financial infusions signal strong investor confidence in TravelPerk’s ability to navigate and thrive in the competitive U.S. business travel sector.
The acquisition arrives at a time when the business travel industry is experiencing a robust rebound. Recent industry discussions, including insights from the NYU International Hospitality Industry Investment Conference, indicate a shift towards domestic travel for corporations, while small- to medium-sized businesses (SMBs) are driving frequent, local trips. This trend aligns perfectly with TravelPerk’s enhanced focus on the U.S. market, providing tailored solutions for both large and small enterprises.
Moreover, companies like American Express Global Business Travel (Amex GBT) and American Airlines report a significant rise in business travel, particularly among global multinationals and SMBs. Amex GBT CEO Paul Abbott highlighted notable growth across various sectors, including technology and professional services, indicating a broader economic recovery.
As TravelPerk integrates AmTrav’s capabilities and expands its footprint, it is positioned to offer enhanced services and innovation in the dynamic and rapidly evolving business travel landscape. This acquisition not only solidifies TravelPerk’s position in the U.S. market but also underscores the industry’s optimistic outlook on the resurgence of business travel.
