An investment group led by LVMH’s private equity arm is purchasing a 20% stake in Flexjet, a private jet company, for $800 million. The luxury industry’s move into travel reflects a growing trend among wealthy consumers to spend on experiences. LVMH acquired Belmond in 2018 and is expanding its hospitality and resort brands.

Global luxury goods sales dipped 2% last year, while luxury hospitality grew by 4%, fine dining by 8%, and sales of yachts and private jets by 13%. Flexjet aims to differentiate itself in the competitive private jet industry by offering exclusive membership club experiences. The deal will fund infrastructure improvements and fleet expansion.

Flexjet plans to use most of the deal proceeds to enhance its infrastructure, expand its fleet of long-range planes, and improve international operations. The company expects to increase earnings to $425 million this year and grow its fleet to 340 aircraft by the end of 2025. Flexjet offers fractional ownership, leasing, and jet card options.

L Catterton, a private equity firm backed by LVMH, sees the future of luxury as time and approached Flexjet with the deal. Flexjet’s partnership with Belmond provides a model for future collaborations and brand partnerships. The company’s bespoke aircraft cabins are a key competitive advantage in the private jet industry.

Flexjet plans to focus on offering luxury experiences and creating a community of exclusive travelers. The company aims to provide members with curated events, special deals at luxury hotels, and individually designed aircraft cabins. Flexjet strives to be a boutique service provider in the private jet industry, differentiating itself from larger competitors like NetJets.

Read more at CNBC: LVMH-backed L Catterton takes 20% Flexjet stake