Last-Minute Hotel Booking Apps Fuel M&A in Spain

Last Minute Hotel Booking Firms Fuel Spain M&A

Last-Minute Hotel Booking Apps Fuel M&A in Spain

The tourism and travel industry continues to be big business across the globe. Although the economic crisis has forced consumers to tighten their belts, a chance to escape from the daily routine, even for a few days, remains a priority.

But travellers have smartened up, and now they are not prepared to pay over the top for a hotel room, so last-minute booking companies that offer lodgings at discounted prices are becoming increasingly popular.

To target potential travellers on-the-go, many of these companies have traded websites in favour of mobile phone applications to offer their services. With the popularity of smartphones is on the rise, especially in Spain – 63,2% of Spanish mobile phone users have a smartphone – the formula is proving to be successful.

SPAIN LAST-MINUTE DEALS SURGE

The revival in Spain’s tourism industry has inspired several entrepreneurs to develop mobile apps for last minute hotel bookings. The offer ranges from urban boutique hotels to luxury beach resorts.

The growth potential of this business has fuelled M&A in Spain as start-ups join forces to expand in the domestic market and overseas. Spanish company Hot.es’ recent buy of of its competitor in Spain, ReallyLateBooking, is one such example.

ReallyLateBooking, an app for same-day hotel bookings, won the backing of business angels through its participation in the networking group Seedrocket. With similar aims to the Chamberi Valley alliance, Seedrocket provides financial support for start-ups involved in new technologies.

Online travel portal eDreams came on board as an industrial partner for ReallyLateBooking, attracted by the potential for synergies with its own business. In the last three years, ReallyLateBooking’s app has been downloaded over 300,000 times, making it an attractive acquisition target for peer Hot.es, with ambitions to become a sector leader in Europe.

CROSS-BORDER M&A HEATS UP

But Hot.es faces stiff competition from Groupon, the global leader in “deals of the day.”

Last month, Groupon acquired last-minute travel app Blink to bolster its Groupon Getaways travel business. Madrid-based Blink offers deals on same-day hotel bookings. Its easy-to-use mobile app caters to on-the-go travellers looking for unique hotels across Europe. It complements Groupon’s existing European travel offerings.

With Spain’s hotels set to continue to benefit from the recovery in tourism, the potential for further investment in developing apps for last-minute bookings is significant. Further corporate activity is also likely as competition grows!

For more information on the last-minute booking companies in Spain, contact corporate law firm Argali Abogados.

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