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Hotelbeds to buy HolidayTaxis to expand transport offering

Date:2018-11-17 13:19Source: ReadingNumber: Times

Hotelbeds is buying UK-based transport distributor HolidayTaxis Group for an undisclosed sum.The acquisition expands Ho

Hotelbeds is buying UK-based transport distributor HolidayTaxis Group for an undisclosed sum.

The acquisition expands Hotelbeds’ existing ancillary portfolio and will give it access to 21,000 transfer routes, spanning 150 countries.

HolidayTaxis generated revenue of USD 11.3 million (£8.7 million) and a pre-tax profit of USD 2.6 million (£2 million), according to documents filed at British company registrar Companies House. Accommodations wholesaler Hotelbeds is buying the business from its founding shareholders.

The deal is a continuation of the process Hotelbeds recently announced with its rebranding. HolidayTaxis will sit within its Beyond the Bed product line, which looks after ancillaries such as tours, activities, car service, and transfers.

The deal won’t see Hotelbeds becoming a transport operator as HolidayTaxis is a distributor rather than a provider of transfers.

The HolidayTaxis brand will remain separate from Hotelbeds. Current CEO of HolidayTaxis, Ian Coyle, will report to Javier Arévalo, Director of Beyond the Bed.

Hotelbeds expects to complete the acquisition by the end of the year but it will need to clear the usual regulatory hurdles.

“In recent years our ancillaries business has grown substantially as the strength of our technology platform and global distribution network has positioned us effectively to take full advantage of the increasing demand for in-destination activities worldwide,” said Joan Vilà, executive chairman of Hotelbeds.

Hotelbeds is the market leader in the accommodations wholesale sector, well ahead of second place WebBeds, which has been on its own buying spree recently.

Since buying Hotelbeds in 2016 for USD 1.3 billion, private equity firm Cinven and the Canadian Pension Plan Investment Board have looked to add scale to the business, buying rivals Tourico Holidays and GTA.

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