Published on Friday, December 28, 2012
Expedia has announced it is to buy 61.6% of European hotel price comparison and booking site Trivago for €477 million.
In a statement, Expedia pointed to Trivago's growth and strong brand as a reason for the purchase.
Trivago was launched in 2005 by Dusseldorf-based founders Peter Vinnemeier, Malte Siewert, and Rolf Schrömgens.
Expedia said revenue had doubled every year since 2008. The site expects to deliver about a €100 million in net revenue for 2012.
"The Trivago team built one of the largest, fastest growing and most well known travel sites in Europe conducting more than 100 million hotel searches annually through a culture focused on developing great products, building a strong brand and promoting partners' businesses," said Expedia president and CEO Dara Khosrowshahi.
"These attributes closely align with our Expedia, Inc. strategy and values and we are thrilled to have them join our portfolio."
The deal is expected to close in the first half of 2013 pending approval from relevant competition authorities. After the deal is completed, Trivago will continue to function independently from its original headquarters in Dusseldorf.
"We are very excited to join the Expedia, Inc. portfolio and eager to learn from their experience, having built-up some of the world's most trusted travel brands," said Rolf Schromgens, Trivago co-founder and MD.
"Our passion and focus will remain on independently evolving our comprehensive and individualized hotel search. We will stay committed to our mission: To empower consumers to find their ideal hotel at the lowest possible rate."
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The recent insolvency of Low Cost Travel Group, one of the large players in the travel industry had a big impact on the travelers, hotels and all related players from both wholesale & retail arms. There were about 27,000 people on a holiday who had booked through the company comprised of a €200 million wholesale arm and €500 million OTA / retail arm.