Expedia and Decolar.com the Latin American online travel company that operates the Decolar.com and Despegar.com branded websites have expanded their partnership to include deeper cooperation on hotel supply and a $270 million minority equity investment by Expedia.
Building on the commercial relationship the two companies have had since 2002, the expanded agreement broadens Expedia’s powering of Decolar’s hotel supply and introduces the opportunity for Decolar to provide Expedia access to its hotel supply in Latin America. The customers of both companies will benefit from the broad, shared selection of hotels, and hotel partners will gain increased access to travelers in Latin America and around the world.
Expedia’s equity investment further strengthens the relationship between the two companies and will help each company grow by better serving customers in the highly competitive global travel market. The overall investment of $270 million, which will be accounted for on a cost basis for Expedia, comprises a mix of primary and secondary investments.
“Decolar is a clear online travel leader in the highly attractive Latin American market,” said Dara Khosrowshahi, President and Chief Executive Officer, Expedia, Inc. “We are incredibly excited to grow our exposure to customers in Latin America through our investment, and to power Decolar’s growing outbound lodging demand through our global supply team.”
“Partnering with Expedia gives our customers access to differentiated international hotel supply. Decolar customers will be able to access more hotels at even better prices around the world. Having one of the leading global players as a shareholder will surely help us continue expanding the reach and quality of our services,” said Roberto Souviron, Chief Executive Officer, Decolar.com, Inc. “We look forward to accelerating our growth together with the Expedia team.”