Scott Dunn — Acquisition by Flight Centre Travel Group
UK luxury tour operator acquired by Flight Centre Travel Group, illustrating the premium valuations achievable by established specialist travel businesses with affluent customers, strong repeat bookings and international growth opportunities.
Acquirer
Flight Centre Travel Group
Year
2023
Enterprise Value
£121m
Revenue
£29m
Adjusted EBITDA
~£12.6m (forecast)
EBITDA Multiple
~9.6×
Industry
Tour Operator
Transaction
In 2023, Australian-listed Flight Centre Travel Group acquired UK luxury tour operator Scott Dunn from private equity investor Inflexion for an enterprise value of £121 million. Scott Dunn specialises in tailor-made luxury holidays, offering bespoke travel experiences to affluent customers across international destinations. The business generated approximately £29 million in revenue for the twelve months ended December 2022, with total transaction value of approximately £112 million. The acquisition price represented approximately 9.6× adjusted EBITDA for the twelve months ending June 2023, based on a combination of actual and forecast financial performance. The transaction supported Flight Centre's expansion into the premium leisure travel market, particularly in the UK and United States.
Why the Premium?
- Established luxury travel brand with a strong reputation
- Affluent customer base and high average booking values
- Strong repeat bookings and customer relationships
- Specialist expertise in bespoke, high-value holidays
- International presence and opportunities for US market expansion
- Established operational infrastructure and personalised customer service
SME Takeaway
Scott Dunn demonstrates how a specialist tour operator with a differentiated brand, loyal customers and a strong position in the premium travel market can command a substantial valuation premium. The approximately 9.6× EBITDA multiple is based on the £121 million enterprise value and approximately £12.6 million of adjusted EBITDA for the twelve months ending June 2023. This EBITDA period included six months of actual results and six months of forecasts. The transaction is significantly larger than a typical independent SME tour operator and reflects Scott Dunn's established international operations, premium positioning and strategic attractiveness to a major industry buyer. Smaller, owner-operated tour businesses may achieve considerably lower multiples, particularly where customer acquisition depends heavily on the founder or business performance is seasonal.
Sources
Disclaimer: Case study figures are based on publicly available information and are provided for illustrative purposes only. Transaction values, EBITDA figures and implied multiples may reflect different reporting periods, definitions and deal structures, and some multiples are calculated from disclosed figures rather than reported by the parties. They are not formal valuations, investment advice or a substitute for independent professional advice.