TBO Tek Limited: Europe held 36% as North America grew 185%

TBO Tek Limited reported that Europe contributed 36% of hotels-and-ancillaries gross transaction value, or GTV, in Q2’FY2027, after regional GTV rose 36% year on year to Rs 2,855 crore. North America was the fastest-growing disclosed region, with GTV rising 185% to Rs 1,355 crore, while the Middle East and Africa remained a 23% contributor amid fluid conditions.

How large was TBO’s Europe business in Q2’FY2027?

TBO’s Europe business was the largest disclosed hotels-and-ancillaries source region, generating Rs 2,855 crore of GTV in Q2’FY2027 and representing 36% of segment GTV. This was Rs 752 crore higher than Rs 2,103 crore in Q2’FY2026, equivalent to 36% year-on-year growth. Management said Q2 is the seasonal peak for Europe, and growth from this large base drove the region’s 36% share of company hotels-and-ancillaries GTV.

Europe had 6.4K transacting agents, feet-on-street operations in 29 countries and 54 source markets in the quarter. The United Kingdom, France, Italy, Romania and Spain continued to show healthy growth, according to management, while Germany and Portugal recorded rapid growth from smaller bases. Europe’s stated business salience was also 36%.

Europe generated more than twice North America’s Rs 1,355 crore of Q2’FY2027 GTV, but North America added Rs 879 crore year on year, compared with Europe’s Rs 752 crore increase. These are hotels-and-ancillaries figures. The presentation states that Classic Vacations GTV is captured on a check-in basis, consistent with its revenue accounting method, and that prior-year regional allocation figures may differ following refinements to intercompany eliminations while total GTV remained unchanged.

Why did TBO’s North America GTV rise 185%?

TBO’s North America hotels-and-ancillaries GTV rose 185% year on year to Rs 1,355 crore in Q2’FY2027 from Rs 476 crore in Q2’FY2026. The region accounted for 17% of segment GTV and had 5.1K transacting agents, with the presentation noting that Classic Vacations agents are calculated on a check-in basis. North America had feet-on-street in two countries and two source markets.

Management said North America remains a key market covering both the organic TBO operation and Classic Vacations. The organic business is focused on premium to early-luxury travel, while Classic Vacations targets ultra-luxury travel. TBO did not disclose a regional GTV split between the two operations, so the presentation does not quantify their separate contributions to the 185% increase.

Classic Vacations reported Rs 873.7 crore of GTV in Q2’FY2027 on a check-in basis and Rs 11 crore of adjusted earnings before interest, tax, depreciation and amortisation, or Adj. EBITDA. Its Adj. EBITDA was 1.3% of GTV in Q2’FY2027, compared with 3.4% in Q1’FY2027 and 2.5% on a trailing 12-month basis. Management said Q2 is the weakest seasonal quarter for North American check-ins, while Q1 is the seasonal peak, and that a partially fixed selling, general and administrative cost base created reverse operating leverage in Q2.

How did TBO’s Middle East, Latin America and APAC compare?

TBO’s Middle East and Africa, or MEA, business generated Rs 1,830 crore of hotels-and-ancillaries GTV in Q2’FY2027, up 20% from Rs 1,524 crore a year earlier, and represented 23% of segment GTV. On a constant-currency basis, management reported 10% GTV growth. TBO defines constant-currency GTV by translating current-period international GTV at the prior period’s average daily exchange rate.

MEA had 5.8K transacting agents, feet-on-street in 16 countries and 46 source markets. Management said the Middle East business recovered during the quarter and that the performance likely indicated market-share gains linked to service differentiation and reliability. It also said the underlying market was unlikely to have fully recovered, with competitive intensity elevated and the subsequent escalation in Saudi Arabia adding to regional fluidity.

Latin America recorded Rs 566 crore of GTV in Q2’FY2027, up 9% from Rs 517 crore in Q2’FY2026, making it the slowest-growing disclosed region. It had a 7% segment share, 4K transacting agents, feet-on-street in seven countries and 25 source markets. Management cited currency fluctuations and Brazil’s IOF as challenges, although it said Mexico and Colombia continued to show healthy growth trends.

Asia Pacific, or APAC, generated Rs 701 crore of GTV, up 33% from Rs 527 crore a year earlier, and accounted for 9% of segment GTV. APAC had 3K transacting agents, feet-on-street in 16 countries and 20 source markets. Management identified rapid growth in Hong Kong and Thailand, while Australia and Indonesia continued to contribute as larger markets.

What does the regional mix mean for TBO’s hotels-and-ancillaries results?

TBO’s Q2’FY2027 regional mix was led by Europe’s 36% segment share, followed by MEA at 23%, North America at 17%, APAC at 9%, and Latin America and India at 7% each. India’s hotels-and-ancillaries GTV rose 12.2% year on year to Rs 581 crore from Rs 518 crore, while India’s overall GTV, including air, increased 14.1%. India also had 23.1K transacting agents, 69 cities with feet-on-street and 21 regional sales offices.

At the group level, reported GTV, including organic TBO and Classic Vacations, was Rs 11,695 crore in Q2’FY2027, up 31% year on year. Organic GTV was Rs 10,890 crore, up 22%, while organic constant-currency GTV growth was 16%. The regional figures therefore show that reported growth included Classic Vacations, while organic growth excludes that acquisition.

The geographic mix also featured in management’s explanation of hotels-and-ancillaries profitability. Organic gross profit as a percentage of GTV recovered to 5.5% in Q2’FY2027 from 5.2% in Q1’FY2027, but remained below 5.6% in Q2’FY2026. Management attributed the earlier contraction to MEA’s share of GTV and its decision to preserve volume in a market where demand had contracted and competitive intensity had increased.

Conclusion

Europe was TBO’s largest disclosed hotels-and-ancillaries market in Q2’FY2027, combining Rs 2,855 crore of GTV, 36% year-on-year growth and a 36% segment share. North America delivered the fastest expansion, reaching Rs 1,355 crore after 185% growth, while MEA remained the second-largest region at Rs 1,830 crore despite management’s warning that the underlying market had not fully recovered.

The next disclosures to watch are management’s assessment of the fluid Middle East environment after the Saudi Arabia escalation, because MEA represented 23% of segment GTV. TBO’s future updates can also show whether Classic Vacations’ Q2’FY2027 Adj. EBITDA conversion of 1.3% moves toward or away from its 2.5% trailing-12-month level as North American check-in seasonality changes.