What Happens to a Travel Company Owned by Private Equity for Too Long?
Audley Travel, a tailor-made tour operator, achieved record revenue of £482 million in FY2025 but reported a net loss of £23.3 million due to financing costs exceeding operating profit. The company has total borrowings of £610 million, including £434 million in shareholder loan notes with 10-15% annual interest. 3i Group, holding 48% equity, has owned Audley for nearly 11 years, launched a sale in late 2024, but shelved it by April 2025 after rejecting offers.
Impact and considerations
This case highlights the financial impact of prolonged private equity ownership on travel companies, where high leverage and compounding interest can erode profits, affecting operations and M&A dynamics.
Key points
- Audley Travel achieved record revenue of £482 million in FY2025 but reported a net loss of £23.3 million.
- Total borrowings of £610 million include £434 million in shareholder loan notes with 10-15% annual interest.
- 3i Group, holding 48% equity, has owned Audley for nearly 11 years, launched a sale in late 2024, and shelved it by April 2025.
Sources and time
- Primary source
- Skift
- Other sources
- 0
- First source publication
- 2 Sept 2026, 00:40
- Page published
- 2 Sept 2026, 01:02
- Last updated
- 2 Sept 2026, 00:40
- Original links
- Skift Feed：What Happens to a Travel Company Owned by Private Equity for Too Long? (opens in a new tab)Primary source · en · Published 2 Sept 2026, 00:40