Genstar Capital, a private equity firm has announced that it has acquired TravelCLICK.TravelCLICK’s interactive distribution solutions and marketing services
help independent and chain hotels maximize profitability by providing
insights into their competitive position, as well as enabling them to
increase room bookings and revenue per guest. TravelCLICK also helps
optimize hotel room inventory allocation and distribution across multiple
channels including the Internet, Global Distribution Systems (GDSs), Online
Travel Agencies (OTAs), and direct channels such as hotel websites.
“Hotels are becoming increasingly sophisticated in their use of
technology to market themselves over electronic channels-directly to
Internet consumers as well as to travel agents- which streamlines
operations and increases hotel margins. At the same time, travelers are
migrating towards direct online transactions with hotels as online business
reaches 50% of travel bookings by the end of 2007,” said Mark Hanson, a
Managing Director at Genstar. “TravelCLICK is uniquely positioned to take
advantage of these industry dynamics. We believe there are significant
opportunities to capitalize on the company’s strong brand reputation to
expand current solutions, as well as deliver additional services.”
Earlier this year, Genstar expanded its investments in the software &
software services sector by acquiring ConvergeOne, one of the largest
independent providers of business communications solutions in the U.S.
TravelCLICK represents Genstar’s second investment this year in this
Genstar is acquiring TravelCLICK from Bain Capital and co-founders
Richard Gray, Chairman of TravelCLICK, and Ray Cohen. Bain Capital Ventures
is participating in this transaction through a new investment alongside of
Genstar and will own a minority equity position, as will some members of
the senior management team.
“TravelCLICK has experienced tremendous growth over the past few years.
As the global market for our products and services continues to expand,
Genstar’s experience and knowledge will support our growth into its next
stage of development. Our aspiration is to be indispensable to our
customers-their most essential resource for increasing direct-to-hotel
bookings and achieving sustainable market leadership,” said Robert Post,
President and Chief Executive Officer of TravelCLICK.
A few of TravelCLICK’s recognized clients include the Ritz London,
Accor Hospitality, The Palms South Beach, Banyan Tree Hotels, Kimpton Hotel
& Restaurant Group, Harrah’s, The Kahala Resort, La Quinta Inns and Suites,
Loews Hotels and Trump Entertainment Resorts.