Despegar Licenses its AI Technology to Karisma Hotels & Resorts

Rhea-AI Summary

Despegar (NYSE: DESP) announces its first Software as a Service (SaaS) partnership with Karisma Hotels & Resorts, licensing its AI Travel Assistant, Sofia. This collaboration will enhance Karisma's existing chatbot functionalities, offering personalized assistance to guests. The partnership represents Despegar's strategic expansion into SaaS offerings, positioning the company to tap into new revenue streams while strengthening its B2B partnerships. By integrating Sofia, Karisma aims to improve customer travel planning and booking experiences, setting new standards for digital engagement in hospitality.

Positive

• First SaaS partnership establishing new revenue stream
• Strategic expansion into B2B technology licensing
• Diversification of business model beyond traditional travel services

Negative

• None.

Insights

Technology Strategy Analyst

This SaaS licensing deal represents a strategic pivot for Despegar, marking its entry into B2B technology licensing. The monetization of their AI assistant Sofia creates a new revenue stream beyond their core travel booking business. Key advantages include:

• Recurring revenue potential from SaaS licensing
• Scalable business model with minimal marginal costs
• Market differentiation as an AI technology provider

The partnership with Karisma Hotels validates Despegar's AI capabilities and could pave the way for additional licensing deals in the hospitality sector. However, the immediate financial impact may be given Karisma's relatively modest size. The long-term success will depend on Sofia's performance metrics and ability to secure larger enterprise clients.

BRITISH VIRGIN ISLANDS--(BUSINESS WIRE)-- Despegar.com, Corp. (NYSE: DESP) (“Despegar” or the “Company”), Latin America’s leading travel technology company, announces its first Software as a Service (SaaS) partnership with Karisma Hotels & Resorts. Through this innovative collaboration, Despegar will license its cutting-edge AI Travel Assistant, Sofia, to enhance the existing chatbot functionalities of Karisma Group, setting a new standard for digital engagement in the hospitality industry.

This partnership marks a key milestone in the relationship of both companies as it will allow Karisma’s customers to interact with a digital travel assistant powered by Sofia, benefiting from a range of distinct advantages designed to improve their travel planning and booking experience. By integrating Despegar’s leading AI technology, Karisma Hotels & Resorts aims to offer seamless, personalized assistance to guests, setting itself apart as a forward-thinking hospitality brand.

“Our partnership with Karisma is an exciting step forward for both companies. By integrating our AI Travel Assistant, Sofia, we will not only deepen our collaboration with a valued partner but also position Karisma at the forefront of technological innovation in the hospitality industry. As we move forward, we’re eager to explore new ways to enhance Karisma’s travel assistant, expanding its capabilities to offer even more value to travelers,” commented Damian Scokin, CEO of Despegar.

"We are thrilled to partner with Despegar and integrate their innovative AI Travel Assistant, Sofia, into our services. This collaboration is a true testament to our commitment to leading the hospitality industry in technological advancement. With Sofia, we aim to provide personalized, seamless, and comprehensive assistance, making travel planning as enjoyable as the journey. Together, we are setting a new standard for digital engagement in hospitality," said Miguel Ortiz, Chief Strategic Officer for Karisma Hotels & Resorts.

This collaboration marks the first step in Despegar’s broader strategy to expand its SaaS offerings, setting the company apart from other travel technology firms. Despegar's focus on licensing AI-powered travel solutions like Sofia positions it as a leader in delivering personalized, seamless customer experiences. This differentiation enables Despegar to deepen B2B partnerships and tap into new revenue streams while enhancing customer engagement for its partners. By introducing this innovative service to Karisma’s customers, Despegar strengthens its position in the market and solidifies its reputation for technological leadership in the travel industry globally.

About Despegar.com

Despegar is the leading travel technology company in Latin America. For over two decades, it has revolutionized the tourism industry in the region through technology. Despegar operates in 19 countries in the region, accompanying Latin Americans from the moment they dream of traveling until they share their memories. With the purpose of improving people's lives and transforming the shopping experience, Despegar has developed alternative payment and financing methods, democratizing the access to consumption and bringing Latin Americans closer to their next travel experience. Despegar’s common shares are traded on the New York Stock Exchange (NYSE: DESP). For more information, visit Despegar’s Investor Relations website https://investor.despegar.com/.

About Karisma Hotels & Resorts

Karisma Hotels & Resorts is an industry innovator and award-winning luxury hotel collection renowned for its premier guest experiences. Boasting an impressive portfolio of properties, including Margaritaville Island Reserve® by Karisma; Azul Beach Resorts by Karisma; and Nickelodeon Hotels & Resorts, Karisma Hotels & Resorts continues to lead the industry with groundbreaking hospitality experiences that include the revolutionary Gourmet Inclusive® philosophy and cutting-edge seasonal programming. Karisma’s unwavering commitment to remain an industry innovator has earned the hotel collection a host of top accolades, including Travel Weekly's Best Boutique Hotel Chain, Travvy Award Gold for Best Hotel Chain Overall, Conde Nast Traveler's Top 100 Hotels in the World, and AAA's Five Diamond Award.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241024892714/en/

IR Contact

Luca Pfeifer, Investor Relations

Phone: (+1) 305 481 1785

luca.pfeifer@despegar.com

Media Contact

Malaika Hollis, Alliance Connection

malaika@allianceconnection.com

Source: Despegar.com, Corp.

FAQ

What is Despegar's new AI technology partnership with Karisma Hotels & Resorts?

Despegar (DESP) is licensing its AI Travel Assistant, Sofia, to Karisma Hotels & Resorts, enhancing their existing chatbot functionalities for improved customer experience in travel planning and booking.

How will Despegar's Sofia AI technology benefit Karisma Hotels?

Sofia will provide Karisma's customers with personalized assistance, improving their travel planning and booking experience while positioning Karisma as a technologically advanced hospitality brand.

What is the significance of the Karisma partnership for Despegar (DESP)?

This partnership marks Despegar's first SaaS offering, representing a strategic expansion into technology licensing and opening new revenue streams while strengthening B2B partnerships.