All-paper deal creates group valued at in excess of $500m.
Web Reservations International, owners of the Hostelworld.com and Hostels.com brands, has agreed the acquisition of HostelBookers.com. The all-paper deal will require regulatory clearance before it can complete.
Commenting on the deal, WRI’s Chief Executive, Feargal Mooney said: “We are delighted to have agreed the purchase of HostelBookers with its owners. We have long admired the business, and can see real opportunities for our customers and property owners in this combination.
“WRI’s mission is to be the fastest-growing online provider of great value accommodation, using innovative technology to inspire independent-minded travellers everywhere.
“The accommodation services sector is fiercely competitive. Indeed, the pace of change is such that the market today is unrecognisable from that which prevailed just 18 months ago.
“To compete head-to-head with the “big beasts”, like Expedia and Booking.com, we need to invest. The capacity to inject more resources into online marketing and technology is absolutely key to this sector, and our increase in scale will enable us to ramp that activity up in the face of some very large and dominant competitors.
“We want to provide a service that both competes head to-head with the large online travel agents, and retains the personal service and sector knowledge that comes from being a smaller, budget-focused player – meeting the needs of hostels, B&Bs and smaller hotels, and providing enhanced service to our customers and partners.”
All-paper deal creates group valued at in excess of $500m.
- WRI delivers online reservations to over 35,000 properties in 180 countries from hostels to budget hotels, B&Bs, guesthouses, campsites and apartments.
- WRI is 85% owned by private equity investment firm Hellman and Friedman LLC (acquired 2009)
- Increased critical mass and resources will underpin ability to compete head to-head with both the larger and more expensive “big beast” OTAs like Booking.com and Expedia (in particular) and the smaller, budget-focused players in the market will result in
– more investment in marketing and services attracting more consumers to the web-sites and to properties
– increased investment in technology platforms to improve the efficiency and ease of use of our systems and sites, for both property owners and consumers
– A wider range of deals on all forms of budget accommodation, including hostels, hotels and B&Bs
– More choice of properties and more destinations - Senior team of both businesses stay and assume senior roles in enlarged group.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
