LDC, the private equity arm of Lloyds Banking Group, has invested £6.5m (€7.66m) for a minority stake in online travel agency Blue Bay Travel.

Founded in 2003, Blue Bay Travel specialises in long-haul holidays to the Caribbean, Mexico and Indian Ocean. The company provides holidays to more than 16,500 customers every year, with a 31 per cent increase in bookings in 2016.

According to LDC, the UK package travel industry is currently worth £33bn (€38.91bn) per year, as measured by annual turnover of ABTA members, while package holidays account for more than half of all holidays taken by UK consumers.

Following the investment, Blue Bay Travel plans to accelerate growth by investing in its proprietary price comparison technology and online booking platform, expanding its 60-strong team of travel experts, adding more homeworkers to the sales team and launching new products.

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