TBO Tek is well positioned to capture the growing and high-value luxury travel opportunity in North America, according to Jefferies.
TBO Tek operates a global B2B travel distribution platform focused on consolidating the fragmented outbound travel market. It operates as a wholesale engine in the travel tech space and is focused on expanding share of margin-accretive Hotels business and business outside India.
Last year, TBO acquired Classic Vacations, giving it exposure to North America's travel advisor market. The deal expanded TBO Tek's distribution reach, connecting its global inventory with North American advisors.
According to the foreign brokerage firm, Classic Vacations provides TBO Tek with an established gateway to the region's advisor-led distribution network, positioning it to capture the growing, high-value luxury travel opportunity.
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“Luxury is emerging as a key growth engine for Travel, with leading North American consortia highlighting strong growth (double-digit) in premium travel and increasing importance of advisors,” Jefferies said.
The brokerage firm has a ‘Buy' rating on TBO Tek shares, with a target price of Rs 1,905 apiece, based on 35x September 2028E P/E.
Key risks include increased competition from OTAs, any adverse change in agreement with suppliers and any new Al/tech disruption in the travel space, Jefferies added.
On Tuesday, TBO Tek share price ended 0.37% higher at Rs 1,706.85 apiece on the BSE.
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