2. 1. Introduction
2. Macro view
3. Strategic landscape
4. Funding & valuation data
2
Table of contents
3. Who is Dealroom.co
■ Dealroom is Europe’s leading online resource for rich
data and analytics on private tech companies
■ Natural language processing and algorithms are used
to capture real-time insights on 500K companies
■ Data is verified and curated by an internal team of
analyst and by our community of 10K+ founders, VCs,
accelerators, journalists
■ Founded in 2013 by a team with backgrounds in
investment banking, data science and IT
3
About this report
Curation & research
by Dealroom’s team
10,000+ contributors
(founders, VCs, …)
Big data analytics on
500,000+ companies
This report
■ This report combines algorithmic and funding data
from Dealroom with industry research and insider
interviews, to provide a 360° view on the online
travel space
■ The scope is global, but with European emphasis
■ In addition to this presentation, the full report also
consists of an online database with curated lists,
which are references throughout this presentation
■ For more information, also check dealroom.co’s blog
4. Yoram Wijngaarde
Founder of Dealroom.co
Former tech, media and telecom M&A advisor at Lehman Brothers and NOAH
Advisors
Authors and contributors
4
Julien Puls
Content curator
With Dealroom since 2014. Formerly at CMB Capital
Université Jean Moulin, Lyon
Contributors
John Erceg (private investor, hotelier, serial entrepreneur)
Founder of Budgetplaces, sold in 2011 to private equity.
MBA from IESE business school, Worldwide Market
Development Manager for HP. From California, lived in
Barcelona since 1994.
Avi Meir (Co-founder and CEO, TravelPerk)
Founder of Hotel Ninjas, sold to Priceline in 2014. MBA
from IESE Barcelona. Former Senior Product Owner at
Booking.com and Product Vice President at
budgetplaces.com
Joe Haslam (Chairman & Co-founder, Hot Hotels)
HotHotels offers discount, mobile only rates up to 7
Days in advance of your stay. In 55 Countries & 333
cities in Europe, Africa, Middle East, Asia & the
Americas (Techstars Boston, Summer 2015 class).
Patrick Martin (Partner - LD&A Jupiter Corp Finance)
M&A advisor in media & tech since 1993. Former Head of
Media at Alegro Capital, Co-CEO of 2k Media, and Managing
Partner of Helkon Media.
Chris Moller (Campanda CEO & founder, Möller Ventures)
Campanda is a booking platform for RVs which raised €5m
series A last year. Chris is also the former CEO and founder
of erento, a marketplace for renting goods and services,
sold in 2011 to Russmedia.
Axel Schmiegelow (CEO, iTravel)
Serial entrepreneur focused on the web, social
media, and software. itravel is an experience-based
online and mobile tour operator that offers leisure
travelers a platform to fully customize trips.
Jaime Novoa (Data Analyst at Tech.eu)
Also owner of Novobrief, an English language blog covering the Spanish startup
ecosystem. Previously a writer for StartupXplore, Weblogs and We Are Social.
Jose Luis Martinez (CEO, HundredRooms)
Former Head of Kayak in Spain, and Managing
Director of Spain and Portugal. Former Director for
Spain eDreams ODIGEO. Advisor to Board of
Directors in Minube. In 2008 founded Viamedius.
Jan Wegenaar (CEO, Advalley.io)
Direct marketing & travel entrepreneur. Launched voucher
concept, sold to WTA in 2007. Founded Advalley.io in 2011,
a B2B voucher marketplace for merchants and advertisers.
Robin Wauters (Founder at Tech.eu)
Advisor / minor shareholder of several tech starups such as Checkthis
(Frontback), Maily.com, Argus Labs (Jini.co), Showpad.com and Oxynade.com.
Former Editor at The Next Web, Vitualization.com and TechCrunch.
Editors
RJ Friedlander (Founder & CEO, ReviewPro)
Over 17 years experience in Internet and technology
in Europe, the US and Asia. Led projects that have
generated more than $300 million in revenue. Senior
executive at Grupo Planeta for about 10 years.
Philipp Brinkmann, (Founder and CEO, Tripsta)
Tripsta is a leading OTA in Greece and operates in 50+
markets. Philipp has also been on the board of several
companies in the travel, e-commerce, and media
industries.
Carlos Rodríguez-Maribona Andrés (COO, Minube)
Minube is a leading UK based travel guide, a community
of over 1.5 million like-minded travelers. Carlos was
formerly an Associate at the investment division of
Axon Partners Group.
Elliott Pritchard (CMO, Triptease)
Former Chief Marketing Officer at Travel Republic, he
has assumed leading positions at P&O Cruises,
Kuoni, and MarketingNet.
Naveen Sharma (CMO, Lodgify)
Lodgify enables vacation rental owners and managers
to easily create a website for their properties and
manage their reservations. Former Senior Consultant at
Cloudbridge.
Friedrich von Scanzoni (CEO, Burda Asia)
Broad management experience in digital media (13 years),
in start-up, growth and restructuring environments. Former
Managing Director International at HolidayCheck and VP of
VP Corporate Development at Tomorrow Focus.
Nico van der Veen (Founder & CEO, MaxMind)
MaxMind is an independent connector between
hotels and OTA's, delivering real-time
rate and availability data, reservation software suite
and reservation API essentials.
5. 5
Introduction
Online
migration
■ Most travel segments (hotels, tour operators, traditional flights, cars, rails) are still over 60%
dependent on offline and other channels. The exception are low cost airlines, at 90% online
■ However, “offline and other channels” does not necessarily equal “old-fashioned”. It includes
personally individualised travel, using Google, and then booking locally, via email, etc
■ The next frontier in online migration likely involves: customisation, on-demand, and convenience
Market power
■ Following a consolidation wave, Priceline and Expedia now have over 60% European market share of
Online Travel Agents (OTAs). That is about 13% of the total online & offline European market
■ Booking.com (Priceline) dominates lucrative hotel distribution, mainly via Google paid search
■ The remaining 40% of the OTA market is fragmented, consisting of regional OTAs and meta-search
■ Meta-search is still on the rise in Europe, both in flights and hotels, surpassing regional OTAs
■ Airlines have maintained direct distribution power, by consolidating and investing in online presence
New
developments
■ In April ‘15 Booking.com was forced to abandon certain price-parity clauses, allowing hotels to offer
lower prices via smaller OTAs. This also plays into the hands of price comparators (meta-search)
■ Meanwhile, Google is deploying a cost-per-click (CPC) model for hoteliers (Hotel Ads / Hotel Finder).
Trivago (Expedia), too, is experimenting with a direct CPC model for hotels
■ Hotel chains are seeking to regain control, via consolidation (AccorHotels, Marriott), by investing in
startups (Hyatt, Wyndham, AccorHotels), and their own booking platforms (AccorHotels)
■ Travel was originally among the first industries to get digitised, but disruption keeps happening and
online migration still has a lot of ground to cover
6. Meta-search
■ Flight meta-search is benefiting from regional fragmentation of flight OTAs. Skyscanner is also testing a direct distribution model
with airlines, thus becoming a quasi-OTA. An OTA’s take-rate adds up to 5-10%, whereas for Skyscanner the CPA is as low as 2-3%
■ Hotel meta-search is also on the rise, as consumers look to compare across all types of accommodations, not just hotels.
Abandonment of price parity means that usefulness of price comparison increased, revealing price differences on single properties
Booking
■ New hotel booking platforms face high entry barriers, requiring both inventory and distribution. Plus, Booking.com already
dominates. But there is still is a $58 billion offline hotel opportunity in Europe and hotels keen to reduce Booking.com dependency
■ Other attractive segments include: cruise lines ($40B(2)
), trains ($33B), campings ($10B(1)
), activities, and business travel ($1.2T ! (3)
)
■ In flights, the OTA model is crowded and being challenged by the meta-search model and airlines
P2P
■ Airbnb created an entirely new category and is leading the space with close to $9B in bookings. Since then, Booking.com already
established a strong position in apartment rentals
■ Other attractive segments include camper vans (Campanda), boats (Sailsquare), and cars (Blablacar)
Packaged tours
■ Packaged tours made a comeback via new discount-driven models such as clubs, email, and deep-discounting (Travelbird, others)
■ Traditionally the domain of TUI, Thomas Cook etc, this $55B market is still is 75% offline ($41B). Much anticipation now comes
from highly personalised travel solutions using human and artificial intelligence (Lola, iTravel, HeyJude) and on-demand models
■ More traditional OTAs in Germany have been pursuing consolidation strategies (7Travel, Unister). Several local mid-market online
tour operators seek scale via strategic combinations, exits or private equity sponsored roll-up
B2B tools
■ The hotelier software space has traditionally been crowded due to low entry barriers. Recently however, hoteliers are keen to regain
control over their distribution and thus willing to invest in online presence, guest management, CRM, loyalty
■ Booking.com is rolling out its hotel management software suite (called BookingSuite) and has made acquisitions in this field (Hotel
Ninjas, PriceMatch, Buuteeq). However, some hoteliers are disinclined giving Booking.com more power over their reservations,
creating anopportunity for independent B2B tools
Apps
■ The default online travel model has been “search & book”, but there is still a huge underserved “on-demand” consumer market
■ Also, app based personal assistants could soon replace tour operators (powered by human and/or AI)
■ Mobile is so far only 15% of total online volume but expected to grow rapidly
6
1. Market industry interviews. 2. Statisa. 3. PhocusWright.
Core travel segments
8. 1. Introduction
2. Macro view
3. Strategic landscape
4. Funding & valuation data
8
Table of contents
9. Bookings of $1.3 trillion globally
of which over $450 billion online ...
9
Source: PhocusWright 2015 estimates and 2010-2015 % CAGR. Eurostat. Dealroom.co analysis. Excludes managed business travel.
Booking volume by type Booking volume by geography
10. Booking, Kayak,
OpenTable, Agoda, ...
$ 60B firm value
= 13 x $ 4.6B EBITDA
Expedia, Trivago, HomeAway,
Orbitz, Travelocity, Wotif, ...
$ 17B firm value
= 10 x $ 1.7B EBITDA
eDreams, Opodo
Govoyages
$ 25B firm value
$ 1B firm value
$ 625M firm value
= 6.4 x $ 94M EBITDA
Online travel is dominated by
Priceline, Expedia, Airbnb, and Google
10
Source: PhocusWright 2015, adjusted for acquisitions, equity research, Dealroom estimates.
$ 68B gross bookings
$ 78B gross bookings
$5B
$12 B
$ 9B
11. But there is still plenty of room to
grow, via existing and new channels
11
Source: PhocusWright 2015, adjusted for acquisitions, equity research, Dealroom estimates. Excludes managed business travel.
Global market share UK, France, Germany
12. Offline still accounts for over 60% of
bookings (except for low cost airlines)
12
Source: PhocusWright 2015, adjusted for acquisitions, equity research, Dealroom estimates. Excludes managed business travel.
As percentage
European booking volume by channel
Already 90% direct online
Via GDS, direct phone, travel agents, ...
Booking.com etc.
$58 billion opportunity for:
- Booking.com and other OTAs
- Hotelier’s direct online channel
- On-demand apps
Traditionally the domain of TUI, Thomas Cook etc
A $41 billion opportunity for innovative, flexible and
customisable travel solutions
Skyscanner etc.
Lastminute, Unister etc.
13. 13
Source: PhocusWright 2015, adjusted for acquisitions, equity research, Dealroom estimates. Excludes managed business travel.
Booking volume % volume growth
UK and Germany stand out in size, but
Southern Europe offers more growth
14. 14
Mobile bookings are still nascent
European online booking volume European mobile booking volume
Online
15. 1. Introduction
2. Macro view
3. Strategic landscape
4. Funding & valuation data
15
Table of contents
16. Expansion of accommodation types
16
City
$180B bookings (3)
Rural
$10B (3)
Beach | Ski
$180B bookings (3)
Hotels
B&B
1 million properties (1)
(= 25 million rooms)
Bookable
Apartments, Rooms, Villas
1.5 million properties (2)
(= circa 2 million rooms)
Hostels
Campers / Campings (€10B)
Cruises
Booking.com
Hostelworld
Airbnb, Homeaway, Wimdu
Expedia
TUI
Lastminute
Unister
7travel
Campanda, Motorhome Republic
Dreamlines
Source: Dealroom.co, Euromonitor.
1. Of which about 250K in Europe.
2. Of which about 500K in Europe.
3. Europe: $50B in cities, $50B in beach & ski, $5B in rural. Excludes managed business travel.
Meta-search: Trivago, Kayak, Hometogo, HundredRooms, Holidu, ….
Airbnb’s rise is displacing city residents and even impacting housing market
prices, but so far “only” about 5% of new rooms were added to the total pool.
17. GuestsHotels
Booking dominates hotel distribution
chain, mainly via paid search
17
circa
€80 €100
Hotel
Search
Trivago
Kayak
HundredRooms
AllTheRooms
HomeToGo
HoliduHotelier Stack:
Loyalty & CRM
PMS
(Property Management System)
Booking Engine
Channel Manager
Reputation management
Direct
MaxMind, Avvio, Triptease, Advalley
Expedia, Airbnb ...
Tour Operators
TUI, Thomas Cook, ...
GDS
HotelBeds
Consumer Stack:
Google search
(and Google Hotel Finder)
circa
€20
Source: Dealroom.co
Note:€20 is indicative cost per booking. Booking commission typically ranges from 10-30%.
On-Demand Apps:
HotelTonight
Touchotel
Dayuse
Polarsteps
Ulmon
TRAFI
Blink Booking (Groupon)
18. Buying traffic (cost per click)
- Google Hotel Ads (Hotel Finder)
- Trivago Direct Connect (Expedia)
- Still in somewhat experimental phase
- In theory, hotel could outbid OTAs, if it can
get conversion rates on par
Online presence
- Online suite & booking engine
(Avvio, BookingSuite)
- Conversion optimisation (TripTease)
Walk in (= on-demand)
Hotelier distribution stack
18
Source: Dealroom.co
OTAs (agency model):
- Booking.com (15-30% commission)
- TripAdvisor Instant Booking (15%)
- AccorHotels opened its booking platform
to independent hoteliers
- Other OTAs
Tour operators (merchant model):
- GDS / Bedbanks (Hotelbeds).
- Relationship with agent, not customer
Direct Online Channels
Intermediated Channels
Hoteliers of all sizes are keen to regain some control over their distribution,
and are willing to invest in online presence, loyalty, and guest management
Vistors
Hotel Management
Channel Managers
Matching inventory with multiple distributors
TravelClick, RateTiger
Siteminder, Channelrush
Customer Retention
- Reputation management
(ReviewPro, Revinate)
- Loyalty (Advalley)
Integrated PMS, revenue
management and booking:
Eviivo
BookingSuite
Guest management:
Alice (Expedia invested)
HotelCloud (app for guests)
Analytics dashboard:
Snapshot
19. Global Distribution Systems (GDSs)
still manage 20% of European travel
19
Amadeus Sabre Travelport Hotelbeds
GDS Amadeus
Sabre
Abacus (ownership stake)
Apollo Galileo Worldspan Hotelbeds
HQ Spain United States United States Spain
Market cap €18.3B $7.7B $1.7B
$1.3B
(April ‘16 acquisition price)
12 month share price
performance
+2% +6% -16% private
Net revenues
2015 and 2016
$3.9B $4.3B $3.0B $3.4B $2.2B $2.4B $1.1B $1.2B
EV / EBITDA
2016 and 2017
12.5x 11.5x 9.7x 8.6x 6.7x 6.0x 15x 12x
Ownership
Publicly listed
(BC Partners, Cinven sold down
ownershiP)
Publicly listed
(Silver Lake, TPG selling down
ownership)
Publicly listed
(Blackstone sold down most of
ownership)
Cinven, Canada Pension Plan
(acquired from TUI
in April 2016)
Source: PhocusWright 2015, Dealroom.co
21. Fragmented European OTA landscape
21
View underlying data »
https://app.dealroom.co/lists/10053
Mid-sized online tour operators will likely seek scale via strategic
combinations, exits or private equity sponsored roll-up
More data
available online
22. 1. Introduction
2. Macro view
3. Strategic landscape
4. Funding & valuation data
22
Table of contents
23. View underlying data »
https://app.dealroom.co/funding-rounds?industries=travel.must&locations=Europe.must
23
Quarterly funding is trending upward,
albeit skewed by a few large rounds
24. View underlying data »
https://app.dealroom.co/exits?industries=travel.must&locations=Europe.must
Selected recent exits
24
Date Target Acquiror
Transaction
Value
Selling Investors Previously Invested Capital
May-16 Splendia Voyage Prive n/a Omnes Capital, Alten Capital €4.3M
May-16 Hotelbeds Group Cinven (consortium) €1.2B TUI n/a
Apr-16 HouseTrip TripAdvisor n/a
Index Ventures, Balderton Capital, Accel
Partners
€54.3M
Apr-16 onefinestay Accor Hotels €148M
PROfounders Capital, Index Ventures,
Canaan Partners , Intel Capital, Accor
Hotels, David Magliano
€73.5M
Mar-16 Capitaine Train / Captain Train TheTrainline.com €165M
Oleg Tscheltzoff, Alven Capital, Index
Ventures, CM-CIC Capital Prive,
TheTrainline.com, Xavier Niel
€9.6M
Feb-16 Kuoni EQT Private Equity $1.4B
Veraison Capital AG, Schroders, UBS
Fund Management, Classic Fund
Management, Go Investment Partners
public
Nov-15 Hostelworld.com IPO €245M Hellman & Friedman €202.5M
(acquisition)
Oct-15 Etraveli ProSiebenSat1 Media AG €235M Segulah Advisor AB n/a
Jan-15 TheTrainline.com KKR €450M Exponent Private Equity n/a
Mar-14 CarTrawler
BC Partners, Insight Venture
Partners
€440M ECI Partners, founders €50M
(50% stake)
25. View underlying data »
https://app.dealroom.co/companies?hq_regions=Europe+incl+Israel.must&industries=travel.must&sort=-total_funding
25
The most funded companies
26. View underlying data »
https://app.dealroom.co/funding-rounds?industries=travel.must
26
The largest rounds
27. 27
The most active funds
View underlying data »
https://app.dealroom.co/markets/industries/travel/top-funds