Butterfield & Robinson Takes Anti-Scale Approach to Luxury Tours
Photo Credit: CEO of Butterfield & Robinson, Mike Scarola, on his bike in Tuscany in a recent September. Butterfield & Robinson
Skift Take
Private equity would probably look at the contrarian hands-on approach of Butterfield & Robinson and say it's too costly and unscalable as a tour operator business. But consider the payoff: Record revenue, and over half of customers coming back for high-margin seconds.
Butterfield & Robinson says its on track to exceed $50 million in revenue this year, a record for the luxury tour operator, as wealthy travelers increasingly abandon packaged group tours for bespoke experiences that can cost tens of thousands per person.
"This will be a record year for us despite what's happening in the global economy now, thanks to our ultra-high-net-worth focus," said CEO Mike Scarola.
The Toronto-based company's transformation mirrors a generational shift in wealthy consumers away from cookie-cutter vacations and toward personalized ones. Bespoke trips now account for 70% of revenue, up from 50% just 15 years ago. The traditional group tours that built the brand? Down to 30% of sales.
While mainstream travel companies chase scale, Butterfield & Robinson says unique experiences that algorithms can't replicate deliver higher margins. Think group cycling tours through Burgundy's vineyards, river tours through the floating marke
