SANTA FE, NM – NextTrip, Inc. (NASDAQ:NTRP), a prominent travel technology company, has announced its intention to acquire Five Star Alliance, a respected online luxury travel agency. The non-binding Letter of Intent (LOI) signals NextTrip’s move to expand its offerings in the luxury travel market, leveraging Five Star Alliance’s established relationships and proprietary search engine.
Five Star Alliance, founded in 2004, is known for its exclusive collection of luxury hotels and resorts, as well as its luxury cruise program and group travel services. The company’s proprietary search engine provides access to competitive rates at over 5,000 luxury hotels worldwide. With a customer satisfaction score of 4.9 stars on Trustpilot, Five Star Alliance has established a strong reputation in the luxury travel sector.
NextTrip’s CEO, Bill Kerby, stated that the acquisition aligns with the company’s technology-driven approach and will enhance its platform by integrating key programs and creating new opportunities. The acquisition is expected to provide NextTrip with additional high-end cruise contracts and booking platforms, as well as in-house group travel booking leads, which are currently outsourced by Five Star Alliance.
John P. McMahon, CEO of Five Star Alliance, expressed confidence that the merger will benefit travelers by combining high-tech solutions with personalized service. Kerby further noted that the acquisition is anticipated to drive accelerated revenue growth and increase value for stakeholders.
The transaction, which is expected to close in Q4 2024, will be financed with a combination of cash and shares. The cash required for the purchase has been independently committed, and NextTrip plans to use its Series I Preferred shares for the acquisition. The transaction is expected to be accretive to earnings.
Both companies anticipate that the merging of their strengths will enhance their position in the luxury travel market and offer clients additional benefits, such as exclusive savings and complimentary services on luxury cruises.
This move marks a significant step for NextTrip in expanding its luxury travel offerings, potentially setting a new standard in high-end travel experiences. The information in this article is based on a press release statement.
In other recent news, NextTrip has been actively pursuing growth strategies and addressing compliance issues. The company has recently completed financial filings and is preparing for a capital raise between $5.0M and $10.0M, aiming to finance a ramp in marketing efforts. This is part of NextTrip’s broader strategy of expanding its offerings with new travel products and potentially acquiring established travel agencies. Despite these strategic moves, H.C. Wainwright has maintained a Neutral rating on NextTrip, citing uncertainty regarding the success of the company’s recapitalization and marketing efforts.
NextTrip also raised $290,000 from the sale of additional unregistered equity securities, selling a total of 66,225 shares of Series I Convertible Preferred Stock. This is part of a series of sales that began with a securities purchase agreement earlier this year.
However, NextTrip is facing potential delisting from the Nasdaq Stock Market LLC due to non-compliance with listing rules. The company’s equity levels have fallen below the required minimum of $2.5 million. NextTrip has until November 4, 2024, to submit a plan to restore compliance. Despite these challenges, NextTrip has resolved a previous deficiency regarding periodic filing requirements by filing its Annual Report for the fiscal year ended February 29, 2024, and its Quarterly Report for the quarter ended May 31, 2024.
InvestingPro Insights
As NextTrip, Inc. (NASDAQ:NTRP) moves to acquire Five Star Alliance, investors should consider some key financial metrics and insights from InvestingPro. The company’s market capitalization stands at a modest $2.63 million, reflecting its current position in the market.
Despite the ambitious acquisition plans, InvestingPro Tips highlight some challenges facing NextTrip. The company is operating with a significant debt burden and may have trouble making interest payments on its debt. This financial strain could potentially impact the execution of the Five Star Alliance acquisition and subsequent integration efforts.
On a positive note, analysts anticipate sales growth for NextTrip in the current year, which aligns with the company’s strategy to expand its offerings through this acquisition. The reported revenue growth of 541.48% in the last twelve months as of Q2 2025 is particularly striking, suggesting that the company’s growth initiatives may be gaining traction.
However, investors should be cautious. NextTrip’s stock has taken a significant hit recently, with a 34.63% decline in the past month and a 38.13% drop over the last three months. This downward trend might reflect market concerns about the company’s financial health and ability to successfully integrate Five Star Alliance.
It’s worth noting that NextTrip is not currently profitable, with a negative operating income margin of -883.08% in the last twelve months as of Q2 2025. This underscores the importance of the anticipated revenue growth and potential synergies from the Five Star Alliance acquisition in improving the company’s financial performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for NextTrip, providing a deeper understanding of the company’s financial position and market performance.
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