£86m-revenue rail holiday firm swoops for US counterpart
York-based Great Rail Journeys (GRJ), a provider of escorted and independent rail holidays, is to acquire Vacations By Rail (VBR) – an independent US provider of escorted and independent rail holidays.
The acquisition of VBR will enhance GRJ’s position as the world’s leading escorted rail company and is a key part of its plans to expand both internationally and into new product areas, such as its newly launched Rail River Cruise range.
GRJ’s latest full year accounts show the firm achieved a turnover of £86m in the year ended 31 October 2018. Pre-tax profit for the period stood at £10m – an £8m increase from the £2m it reported in the previous year. Great Rail Journeys employs over 150 people and offers almost 400 itineraries to over 50 countries globally.
The combined business will offer customers an unrivalled global portfolio of escorted rail itineraries as well as an expanded collection of independent rail holidays to customers in both the United Kingdom and the United States. It will also provide the UK market with exclusive access to unique VBR products in North America’s breathtaking National Parks and Alaska.
Over the last five years GRJ has performed strongly, tapping into new source markets for its rail tours including Australia and more recently the US. Furthermore, 2018 saw the launch of a new river cruise offering and its Summer 2020 programme has been extended to include exclusive small group tours.
Established in 2004, Vacations By Rail employs a team of 30 and offers North American customers the largest selection of independent rail vacations, escorted rail tours, luxury rail journeys and custom train vacations to destinations in North America. VBR has established a unique and differentiated product with specific expertise in the US National Parks, Alaska, the Rockies and cross-Canadian rail journeys.
Heather Leisman, GRJ’s current President of North America, will assume leadership of the combined North American operation. VBR co-founders Todd Powell and Cole Dannewitz will join the existing GRJ Executive Team and transition into new roles which focus globally.
Peter Liney, CEO of Great Rail Journeys, said: “This acquisition is the first step of many as we look to enhance our position as the world’s leading rail holiday company. At a time of market uncertainty, it signifies our scale and ambition within the market and at one stroke makes us market leader for escorted rail holidays in the USA.
“Building on recently launched programmes such as “Rail River Cruise” and “Small Group Tours”, this deal will present the customer with added benefits and an unrivalled rail portfolio range, giving greater choice for all of our customers. From product expansion to investment in technology and strengthening both our escorted and independent travel business, the combination of our two businesses is very exciting for us all.”
Todd Powell, Co-founder and CEO of Vacations By Rail, added: “We are delighted to be growing our partnership with GRJ, building on our strong working relationship to date.
“The combination of our two companies represents a significant opportunity to grow our footprint in the rail vacation sector domestically and internationally, as well as accelerate into new markets. We look forward to formally becoming part of the GRJ family.”
