It will take at least and year and a half for Hotelbeds to integrate Tourico and GTA onto ne single platform, according to the bed bank’s executive chairman.
Joan Vilà told this week’s Phocuswright Europe conference in Amsterdam while scale was important it was not the only benefit from such deals.
He said scale and efficiency was important in a fragmented hotel market for properties that need B2C intermediaries to compete with the big players.
Vilà said the sale of Hotelbeds in June by Tui Travel to private equity investors Cinven and CPPIB meant it now had owners that has the firm at their core.
“They have really added growth in strategic positions,” he said. “They are very supportive and saw an opportunity in consolidating the bed bank marketplace.”
Orlando-based Tourico, the deal for which is expected to close in June, brings good management and technology and access to US hotel stock to Hotelbeds, said Vilà.
GTA was said to be strong in the APAC and Middle East regions. Vilà said the companies were very similar and would be brought onto a single technology platform, which is likely to be a combination of all three.
“We will be one single company,” said Vilà who added work to integrate them would take “18 months at least”.
Hotelbeds will look to increase its presence in the tours and activities sector but believes there is plenty of potential growth in its core hotel sector.
Vilà said he was confident firm will drive the sort of growth in the market that has been seen in recent years among OTAs.
“There is plenty of room to grow in the things that we are already doing. There is plenty of work to do before we think about what is the new thing we should do.”