Hornblower Group, a leader in travel experiences, is expanding rapidly through strategic acquisitions, enhancing its global presence.
Supported by Crestview Partners, Hornblower is evolving its business model to encompass a diverse range of travel experiences worldwide.
Crestview’s Strategic Faith in Hornblower
Four years ago, Crestview Partners seized control of Hornblower through a leveraged buyout, marking a pivotal moment in the company’s journey. Initially categorised as part of the media industry, Hornblower’s evolution has been akin to media companies acquiring brands strategically. This alignment has allowed for cohesive branding and marketing efficiencies, essential to its growth.
When Kevin Rabbitt took charge as CEO in July 2020, succeeding founder Terry MacRae, Hornblower already boasted a comprehensive range of water-based experiences, particularly in North America. Rabbitt saw an opportunity to expand, advocating for a diversification strategy that included land-based experiences and tapping into international markets.
Expanding Global Experiences
Hornblower has been on an acquisition spree, including the recent closure of a $430 million deal for Journey Beyond, an Australian company renowned for its diverse travel offerings. This acquisition aligns with Hornblower’s ambition to become a global leader in travel experiences and transportation.
The Journey Beyond acquisition adds an array of experiences to Hornblower’s portfolio, such as scenic rail rides, Great Barrier Reef tours, and Melbourne skydeck adventures. “Our strategy is to be the premier global experiences and transportation leader,” Rabbitt emphasised. The inclusion of these experiences marks a significant step towards realising this vision.
Technology and Brand Cohesion
Hornblower’s commitment to technology is evident in its ongoing investment in its Anchor ticketing system, a proprietary digital platform aligned with modern consumer expectations.
This system, already adopted by over 15 private experience providers, facilitates ticket sales and offers point-of-sale hardware options. Hornblower’s technological initiatives extend to environmentally conscious upgrades, such as electric vehicles for tours in sensitive environments like Alcatraz, and operating hydrogen-powered ferries.
In terms of branding, the establishment of umbrella brands like City Experiences and American Queen Voyages is crucial. These brands aim to connect different experiences under one cohesive identity, enhancing cross-marketing capabilities and leveraging customer loyalty.
Hornblower’s Resilience During the Pandemic
The pandemic posed unprecedented challenges to Hornblower, but the resilience of its private equity backers was pivotal. With operations severely hindered, the company faced a financial crunch. However, investors Crestview Partners and Caspian Capital provided a $90 million loan, bolstering Hornblower’s $675 million privately placed loan.
This financial backing enabled Hornblower to navigate through the pandemic, focusing on long-term strategies. “We don’t view this as a sprint but a long-distance run,” Rabbitt stated, highlighting the strategic foresight in maintaining operational momentum and exploring global opportunities.
Diversified Market Strategy
Hornblower’s market presence now spans 112 countries, with a keen focus on expanding further across Europe and Asia. This geographical diversification is designed to fortify the company’s position as a leader in global travel experiences.
Hornblower’s customer base is characterised by a significant overlap across different experiences, reflecting the potential for cross-selling. A customer enjoying an American Queen steamboat trip might also be interested in Hornblower’s other offerings, like Australian rail journeys or Niagara ferry rides.
Developing complementary tours, such as Walks’ guided tours, exemplifies Hornblower’s strategic focus. These tours not only enhance existing offerings but also encourage multi-day travel, a growing segment of interest for the company.
The Role of Data in Customer Engagement
Centralising customer data underpins Hornblower’s strategy for enhanced engagement. This unification enables the company to track customer interactions across its brands, providing valuable insights into purchase behaviors and satisfaction.
By analysing transactional data alongside customer feedback, Hornblower can refine its offerings and deliver seamless experiences. The aim is to make interactions effortless, from booking to experiencing, thereby fostering customer loyalty and satisfaction.
Hornblower’s data-driven approach is aligned with contemporary business models, where data integration plays a vital role in decision-making processes and strategic planning.
Future Prospects and Strategic Vision
Hornblower’s future lies in fine-tuning its branding and expanding its portfolio of experiences. The recent acquisitions and technological advancements are stepping stones toward achieving a unified brand experience across its offerings.
As Hornblower continues to innovate, the focus remains on enhancing customer journeys, utilising data insights, and leveraging its established brands. This approach not only strengthens Hornblower’s market position but also ensures it remains at the forefront of the global travel experience industry.
Hornblower’s strategic expansion marks a transformative phase, leveraging acquisitions to enhance its portfolio and global impact.
By integrating technology and focusing on customer experience, Hornblower aims to redefine global travel experiences.