Trivago has acquired a 30% stake in Holisto for $10M. Holisto uses AI to create hotel deals. Trivago can buy the remaining 70% within 15 months for up to $60M. Holisto, based in Israel, provides value to hotels by offering deals not available elsewhere. More details will be shared in Trivago's upcoming earnings call.
Trivago has announced the acquisition of a 30% equity stake in Holisto for $10M. Holisto is a travel technology platform based in Rishon LeZion, Israel. It uses artificial intelligence to aggregate hotel rates and provide booking services. This deal gives Trivago an option to acquire the remaining 70% of Holisto within 15 months for a maximum of $60M. The purchase can be made using a combination of cash and stock, but stock cannot exceed 50% of the total payment.
Holisto uses a "split and match" technology to combine multiple hotel bookings for travelers at various rates. This approach helps create attractive deals for customers. Additionally, Holisto enables hotels to offer new deals that may be listed as 'sold out' on other websites. This innovation provides significant value to both travelers and hotels, making Holisto a unique player in the travel technology space.
The 30% investment in Holisto closed on Tuesday, as stated in Trivago's financial filing. Trivago is expected to provide more details about this deal during its second quarter earnings call on Wednesday. The investment marks Trivago's second venture into hotel bookings, beyond referring customers to third-party websites, following its acquisition of Weekend.com in 2021.
Trivago, a Germany-based hotel price comparison site majority owned by Expedia Group, is expanding its portfolio with the Holisto deal. This strategic move aims to enhance Trivago's offerings by integrating AI-driven solutions. The partnership with Holisto is expected to improve Trivago's ability to provide competitive and exclusive hotel deals to its users, potentially increasing its market share in the travel industry.
Will Trivago's investment in Holisto pay off?
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