Despegar and HBX Group Enter Into a Strategic Partnership
Despegar (NYSE: DESP), Latin America's leading travel technology company, has announced a strategic partnership with HBX Group, a prominent B2B travel technology marketplace. The collaboration aims to integrate HBX Group's European and North American non-air inventory into Despegar's platform, expanding options for both B2C and B2B customers.
The agreement includes an advance payment from HBX Group to Despegar and requires Despegar to meet specific booking targets over approximately eight and a half years. Failure to meet these targets may result in penalties, including paying HBX Group a percentage of the shortfall amount.
Key benefits include expanded hotel inventory with competitive rates and enhanced travel packages for leisure and business travelers. The partnership is expected to provide Despegar's customers with greater flexibility and choice while giving HBX Group's accommodation suppliers access to Despegar's distribution channels.
Despegar (NYSE: DESP), la principale azienda di tecnologia turistica in America Latina, ha annunciato una partnership strategica con HBX Group, un importante mercato di tecnologia turistica B2B. La collaborazione ha l'obiettivo di integrare l'inventario non aereo europeo e nordamericano di HBX Group nella piattaforma di Despegar, ampliando le opzioni per i clienti sia B2C che B2B.
L'accordo prevede un pagamento anticipato da parte di HBX Group a Despegar e richiede a Despegar di raggiungere specifici obiettivi di prenotazione nell'arco di circa otto anni e mezzo. Il mancato raggiungimento di questi obiettivi potrebbe comportare penalità, incluse il pagamento a HBX Group di una percentuale dell'importo mancante.
I principali vantaggi includono un inventario alberghiero ampliato con tariffe competitive e pacchetti di viaggio migliorati per i viaggiatori di piacere e business. Si prevede che la partnership fornisca ai clienti di Despegar una maggiore flessibilità e scelta, mentre consente ai fornitori di alloggio di HBX Group di accedere ai canali di distribuzione di Despegar.
Despegar (NYSE: DESP), la principal empresa de tecnología de viajes de América Latina, ha anunciado una asociación estratégica con HBX Group, un destacado mercado de tecnología de viajes B2B. La colaboración tiene como objetivo integrar el inventario no aéreo de HBX Group en Europa y América del Norte en la plataforma de Despegar, ampliando las opciones para clientes B2C y B2B.
El acuerdo incluye un pago anticipado de HBX Group a Despegar y requiere que Despegar cumpla con objetivos específicos de reservas durante aproximadamente ocho años y medio. El incumplimiento de estos objetivos podría resultar en penalizaciones, incluidas el pago a HBX Group de un porcentaje del monto faltante.
Los beneficiarios clave incluyen un inventario hotelero ampliado con tarifas competitivas y paquetes de viaje mejorados para viajeros de ocio y de negocios. Se espera que la asociación ofrezca a los clientes de Despegar una mayor flexibilidad y opciones, al mismo tiempo que proporciona a los proveedores de alojamiento de HBX Group acceso a los canales de distribución de Despegar.
Despegar (NYSE: DESP)는 라틴 아메리카의 주요 여행 기술 회사로, HBX Group과 전략적 파트너십을 발표했습니다. 이 협력은 HBX Group의 유럽 및 북미 비항공 재고를 Despegar의 플랫폼에 통합하여 B2C 및 B2B 고객 모두에게 옵션을 확대하는 것을 목표로 합니다.
이 협정에는 HBX Group이 Despegar에 선불금을 지급하는 내용이 포함되며, Despegar가 약 8년 반에 걸쳐 특정 예약 목표를 충족해야 합니다. 이러한 목표를 달성하지 못할 경우 HBX Group에 부족분 금액의 일정 비율을 지불하는 등의 처벌이 따를 수 있습니다.
주요 이점은 경쟁력 있는 요금과 향상된 여행 패키지를 갖춘 호텔 재고 확대입니다. 이 파트너십은 Despegar의 고객에게 더 큰 유연성과 선택을 제공하며, HBX Group의 숙소 공급자는 Despegar의 유통 채널에 접근할 수 있게 됩니다.
Despegar (NYSE: DESP), la principale entreprise de technologie de voyage en Amérique Latine, a annoncé un partenariat stratégique avec HBX Group, un marché de technologie de voyage B2B de premier plan. Cette collaboration vise à intégrer l'inventaire non aérien européen et nord-américain de HBX Group à la plateforme de Despegar, élargissant ainsi les options pour les clients B2C et B2B.
L'accord inclut un paiement d'avance de HBX Group à Despegar et exige que Despegar atteigne des objectifs de réservation spécifiques sur une période d'environ huit ans et demi. Le non-respect de ces objectifs pourrait entraîner des pénalités, y compris le paiement à HBX Group d'un pourcentage du montant manquant.
Les principaux avantages incluent un inventaire d'hôtels élargi avec des tarifs compétitifs et des forfaits de voyage améliorés pour les voyageurs d'affaires et de loisirs. On s'attend à ce que ce partenariat offre aux clients de Despegar une plus grande flexibilité et des choix, tout en donnant aux fournisseurs d'hébergement de HBX Group un accès aux canaux de distribution de Despegar.
Despegar (NYSE: DESP), das führende Reise-Technologieunternehmen in Lateinamerika, hat eine strategische Partnerschaft mit HBX Group angekündigt, einem bedeutenden B2B-Reise-Technologiemarkt. Die Zusammenarbeit zielt darauf ab, das nicht-luftgebundene Inventar von HBX Group aus Europa und Nordamerika in die Plattform von Despegar zu integrieren und damit die Optionen für sowohl B2C- als auch B2B-Kunden zu erweitern.
Die Vereinbarung umfasst eine Vorauszahlung von HBX Group an Despegar und verlangt von Despegar, spezifische Buchungsziele über einen Zeitraum von etwa acht Jahren und sechs Monaten zu erreichen. Das Nichterreichen dieser Ziele kann zu Strafen führen, darunter die Zahlung eines Prozentsatzes des Fehlbetrags an HBX Group.
Zu den wichtigsten Vorteilen gehören ein erweitertes Hotelinventar mit wettbewerbsfähigen Preisen und verbesserte Reisepakete für Freizeit- und Geschäftsreisende. Die Partnerschaft wird voraussichtlich den Kunden von Despegar mehr Flexibilität und Auswahl bieten, während den Unterkunftsanbietern von HBX Group der Zugang zu Despegars Vertriebskanälen ermöglicht wird.
- Strategic expansion into European and North American markets through HBX Group's inventory
- Advance payment received from HBX Group
- Enhanced product offering with broader hotel options and travel packages
- Access to additional distribution channels for accommodations
- Risk of financial penalties if booking targets are not met over the 8.5-year period
- Long-term commitment with performance obligations (8.5 years)
Insights
This strategic partnership between Despegar and HBX Group represents a significant transformation in Despegar's business model, with both opportunities and calculated risks. The deal's structure reveals sophisticated financial engineering: HBX provides upfront capital through an advance payment, while Despegar commits to long-term booking targets over an 8.5-year period.
The partnership's strategic value lies in three key areas:
- Market Expansion: By integrating HBX's European and North American non-air inventory, Despegar significantly expands its serviceable market without the capital expenditure typically required for such growth.
- Revenue Optimization: The integration of HBX's inventory into Despegar's platform enables more competitive and diverse travel packages, potentially increasing average transaction values and margins.
- Risk Management: The booking target structure includes penalty clauses that create a balanced risk-reward mechanism, incentivizing performance while maintaining accountability.
However, investors should note the presence of penalty clauses tied to booking targets. These penalties, calculated as a percentage of shortfall amounts, create a financial obligation that could impact profitability during economic downturns or travel industry disruptions. This risk is partially mitigated by the extended timeline of 8.5 years, allowing for market cycle adjustments.
The timing of this partnership is particularly strategic, as it coincides with the ongoing Prosus transaction evaluation, potentially enhancing Despegar's negotiating position and enterprise value. The deal strengthens Despegar's competitive moat in Latin America by offering a more comprehensive travel solution, particularly appealing to the growing middle-class segment seeking international travel options.
Through this partnership Despegar plans to offer its customers—both B2C and B2B—wider access to HBX Group’s diverse range of accommodations and travel solutions. By leveraging HBX Group’s inventory, Despegar aims to further enhance its travel packages and lodging offerings, providing more value and options to travelers seeking quality and affordability.
Under the terms of the agreement with HBX Group, (i) HBX Group undertook to make an advance payment to Despegar; and (ii) Despegar is required to meet certain booking targets relating to HBX Group originated products booked through Despegar’s platform over an anticipated period of approximately eight and a half years. The failure by Despegar to meet such booking targets over the course of certain pre-established measurement periods may result in Despegar being subject to certain penalties, including the payment to HBX Group of a percentage of the shortfall amount. The outsourcing agreement also contains other customary covenants, representations and undertakings. The potential impact of the outsourcing agreement was considered by the Transaction Committee and Board of Directors of Despegar in their evaluation of the proposed transaction with Prosus.
Key Benefits of the Partnership:
- Expanded Inventory: Despegar customers are expected to gain access to a broader range of hotel options, enhancing the ability to customize travel experiences with competitive lodging rates.
- Enhanced Travel Packages: The integration with HBX Group´s inventory intends to allow Despegar to offer more comprehensive travel packages, appealing to both leisure and business travelers.
“We are excited to partner with HBX Group and bring their outstanding inventory into our platform,” said Damian Scokin, CEO of Despegar. “We expect this partnership not only to enhance our product offerings but also reinforce our commitment to providing the best travel experiences at great value to our customers.”
“At HBX Group, we are committed to delivering world class travel solutions, and this partnership with Despegar allows us to take that commitment to the next level,” said Nicolas Huss, CEO at HBX Group. “By integrating our extensive inventory into Despegar’s platform, we are jointly redefining the travel experience for millions of customers, offering unparalleled choice and value.”
This long-term partnership is expected to enhance travel options available to Despegar’s customers, providing them with more flexibility and choice than before, while also providing HBX Group’s accommodation suppliers with access to Despegar’s full range of high-value distribution channels. This collaboration reaffirms Despegar’s and HBX’s mutual dedication to innovation and customer satisfaction in the travel sector.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. We base these forward-looking statements on our current beliefs, expectations and projections about future events and trends affecting our business and our market. Many important factors could cause our actual results to differ substantially from those anticipated in our forward-looking statements, including those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 20-F for the year ended December 31, 2023, which was filed with the
About Despegar.com
Despegar is the leading travel technology company in
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IR Contact
Luca Pfeifer, Investor Relations
Phone: (+1) 305 481 1785
E-mail: luca.pfeifer@despegar.com
Source: Despegar.com, Corp.
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