Booking Holdings (BKNG) announces the acquisition of the Etraveli group
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Reservation Holdings Inc. BKNG signed a definitive agreement with private equity firm CVC Capital Partners to acquire Swedish group Etraveli in exchange for € 1.63 billion in cash.
Etraveli Group is a leading platform that offers flight reservation services around the world. The company is equipped with various technological solutions, thanks to which it provides reliable flight information to customers or associated companies.
The latest move bodes well for Booking Holdings’ growing efforts to build a global flight platform to deliver an enhanced experience for customers.
Once the deal is done, the acquisition will help Booking Holdings expand its reach to travelers planning to book airline tickets. This, in turn, will generate more bookings and therefore drive revenue growth.
Takeover in the travel industry
With the latest move, Booking Holdings is working to maintain momentum in improving the travel industry, which has seen a severe slowdown due to the coronavirus pandemic.
The growing vaccination campaign and the ease of restrictions in many parts of the world are improving this industry. This, in turn, builds the confidence of travelers and online travel agencies.
According to the Tripadvisor Travel Index for 2021 by TripAdvisor TRIP, 55% of reported travelers plan to travel in winter. Additionally, 30% of those surveyed have already booked their trip, while 74% plan to do so later this year.
Apart from this, according to a report by Verified Market Research, the global online travel market is expected to reach $ 1.81 billion by 2028, with a CAGR of 9.7% during the period 2021-2028.
In addition, a report from ResearchandMarkets reveals that the global mobile travel reservation market is expected to register a CAGR of 12.2% from 2021 to 2029.
Competitive travel scenario
Recently, TripAdvisor collaborated with the official Orlando Tourism Association, Visit Orlando, and created its first immersive audio experience in North America with the help of Amazon’s virtual assistant technology named Amazon Alexa.
On the back of Amazon Alexa, TripAdvisor aims to provide travelers with innovative ways to learn more about Orlando and generate demand for trips to the city.
Meanwhile, Expedia has been chosen as the official travel companion for WE LOVE NYC: The Homecoming Concert presented by New York City, Clive Davis and Live Nation on August 21.
With the move, the company shone a spotlight on popular New York City hotels, flights and activities, offering 1,000 concert tickets to Expedia Rewards members.
Additionally, Airbnb has partnered with Visit Bloomington to promote safe travel with a focus on local attractions, stays and unique experiences to drive demand for travel to Bloomington.
The partnership also aims to support local businesses, restaurants and city workers who depend on the local tourism industry.
Nonetheless, the acquisition of Etraveli Group should help Booking Holdings – a Zacks Rank # 3 (Hold) company – gain a competitive advantage over its peers. You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.
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