Intrepid Bets on Australian Expansion

Good morning from Skift. It’s Tuesday, September 13. Here’s what you need to know about the business of travel today

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Episode Notes

Domestic tourism is poised for a major surge in Australia, with the country’s federal and state governments having eased travel restrictions recently. Intrepid Travel, one of the world’s largest tour operators, is banking on such a surge with its acquisition of Australian destination management company JOOB, reports Editorial Assistant Rashaad Jorden.

Intrepid CEO James Thornton said his company, which purchased a 60 percent stake in JOOB, will increase its Australia offerings from 66 to 96. Thornton believes Intrepid is well-positioned to take advantage of Australian consumers increasingly looking to travel domestically due to soaring international airfares. Domestic tourism in Australia is expected to recover to pre-pandemic levels during the 2022-23 fiscal year.

The acquisition is Intrepid’s fourth in the last 12 months. Thornton said Intrepid expects to
take a 100 percent stake in JOOB, provided the two companies hit performance targets.

We turn next to a bridge on the U.S.-Mexico border that has reshaped California-Mexico travel. The Cross Border Xpress has transformed Tijuana Airport from a mid-size Mexican facility to one of its busiest gateways, reports Edward Russell, Editor of Airline Weekly, a Skift brand.

The bridge has been the driving force in passenger traffic at Tijuana roughly doubling from 2015, the year it opened. Tijuana Airport saw nearly 10 million passengers last year. Russell notes Cross Border Xpress has become an even more popular option for travelers entering the U.S. since the start of the pandemic. Cross Border Xpress entries to the U.S. were up close to 28 percent during the first seven months of this year compared to 2019.

Finally, London-based hostel brand Generator has announced it will manage the Paramount Hotel in New York, reports Senior Hospitality Editor Sean O’Neill.

As O’Neill writes hostels have been attracting more interest from hospitality companies, Generator is the latest hotel chain to expand. CEO Alastair Thomann believes two ingredients make hostels profitable. He said, amidst his company’s push to grow, that Generator only opens such properties in cities lacking affordable hostels. Thomann added Generator works to include offerings popular with local residents in its hostels.