TUI embarks on great adventure

The tour operator TUI Travel has signed a strategic venture with an Australian company to create one of the world's biggest adventure travel companies. TUI has teamed up with Melbourne-based Intrepid Travel to create a new company, Peak, of which the operator of Thomson Holidays will own 60 per cent. The new venture will combine both groups' portfolio of brands, but the deal involves no exchange of cash.

The two companies aim to improve margins and realise savings of least £10m over the next three years. For the financial year to 30 June, Intrepid Travel delivered pre-tax profits of £5.3m, on revenues of £69.4m.

Peter Long, the chief executive of TUI Travel, said: "This deal with Intrepid Travel will significantly enhance our position in the fast-growing adventure travel sector."

The nearest rivals are Explore, owned by Holiday Break, and Gap.