Tours tech land grab intensifies as TripAdvisor acquires Bokun
It wasn’t that long ago that TripAdvisor boss Steve Kaufer was talking about making much more of its non-hotel division.
In line with that strategy it has announced with acquisition of Iceland-based tours and activities distribution platform Bokun.
A statement from the reviews giant says the acquisition expands its offering by providing suppliers with technical solutions.
Many will remember that TripAdvisor acquired Viator for $200 million just under four years ago, and the company has talked recently how well its non-hotel business, which also includes vacation rentals, is doing.
In its statement, TripAdvisor president Experiences and Rentals Dermot Halpin says:
“We’re committed to taking the experiences sector far beyond its current online penetration of just 20%, and Bokun will play a critical role in this mission.”
He adds that this signals a new phase for the company which aims to simplify distribution for suppliers and improve the shopping experience for travellers.
CEO Kaufer said during its Q4 2017 earnings call that the company will invest in mobile growth and product enhancements for its non-hotel segment. Revenue for the division increased 24% for $360 million for the full year.
That just leaves Expedia to ramp up its own ambitions in this sector.
Bokun was founded in 2012 and has grown its business recently through partnerships with airlines and tourist boards.
Neither Booking or TripAdvisor disclosed terms of their respective acquisitions but one interesting element is that both online travel players are looking at automating the segment from both ends.
Bokun CEO Hjalti Baldursson says of the acquisition:
“TripAdvisor gives us the opportunity to serve customers in every corner of the world, and we’re excited about the significant growth that’s to come.”
The statement also says Bokun will remain in Iceland and plans to expand the team.
Phocuswright has estimated the tours and activities sector will double to $27 billion gross bookings in 2020.
So, who is left?
Then, there’s Peek, which announced its own $10 million funding round in mid-2016, and then last year acquired its troubled rival Zozi.
And, what of TrekkSoft which has been quietly snapping up companies in the space including Acteavo and more recently Myobis.
The Asia market is also interesting to watch. Klook announced $60 million in Series C in October 2017 saying it had plans to expand to Europe and North America.
And, also in the sidelines is BeMyGuest which has raised $11.5 million in funding having decided to focus on the B2B market in 2016.
And, companies such as Ctrip and Fliggy, will no doubt be closely watching moves from their US-based OTA rivals in tours and activities.