PROS buys fast-growing EveryMundo to help airlines sell direct to travelers
All airlines need to strike a balance between direct sales and third-party online sales. PROS’s acquisition of fast growing technology provider EveryMundo highlights the opportunity to change the mix.
“We have about a 45% overlap between our airline customers and theirs,” said Andres Reiner, CEO of PROS.
The acquisition announced Tuesday is PROS’s third in the aerial arena since 2017 after the takeover of Vayant and Travelaer.
PROS, which has a Market capitalization of $ 1.6 billion, started by helping airlines with pricing. But PROS also has many customers outside of the airline industry, and it plans to offer EveryMundo’s tools to those customers as well.
Miami-based EveryMundo was founded in 2006, but has found its place more recently with the sale of new products to client airlines such as American and United. Since the start of the pandemic, EveryMundo has increased its workforce by about half to 140 employees.
“Airlines had a lot of shackles before the pandemic, but the crisis has forced them to focus on improving their online marketing skills,” said Seth Cassel, president of EveryMundo. “It was a happy coincidence for us.”
Executives said the merger would help airlines sell online by removing pages from the playbooks of e-commerce giants such as Airbnb, Booking.com, Expedia and Trip.com Group. Customers will benefit from greater scale, flexibility and efficiency in online selling and generate more sales through brand.com channels.
“The crisis has prompted airlines to better understand the importance of taking ownership of the customer relationship and fostering loyalty and lifelong value,” Cassel said. “They have found that the concept of price marketing, or putting prices in front of customers at every touchpoint, is the most effective way for them to drive large numbers of high quality leads to their websites and applications. “
For example, if a U.S. resident Google searches for “flights from Miami to New York,” one of the organic, or non-advertising, search results is a link to the American Airlines website, which has an interface showing the cheapest days of the month to travel and sample deals for specific budgets.
Another example of a product relates to digital marketing. Some members of the American Airlines loyalty program have recently received emails presenting offers.
“If there is anything in this email to the effect of ‘Check out our new destinations’ or ‘Look at our offers below a certain dollar amount’, it will almost always be related to the technology we provide, ”Cassel said.
Initiated by CEO Anton Diego, EveryMundo has never taken on outside venture capital.
“Acquisitions are not easy,” Reiner said. “But we see this deal not as an absorption of a brand, but as a support for its growth strategies as an extension of us. If you have the right team and the right people and create a common vision that we are all aligned to execute, you can drive significant value, as we’ve seen with past acquisitions.