Global hotel search platform Trivago has invested in Holisto, an online travel booking platform that uses AI technology to power its hotel rate aggregation services.
The transaction involved trivago’s initial acquisition of a 30% stake in Holisto for $10m.
Trivago also has the option to acquire the hotel rate aggregator’s remaining 70% interest within the next 15 months for a maximum consideration of $60m.
This additional amount can be settled partly in cash and trivago shares, though the shares cannot constitute more than 50% of this consideration.
The latest investment follows the companies’ partnership in 2022, which saw the launch of trivago Book & Go, a branded booking channel that increased Holisto’s presence on the search platform.
This move is set to expand trivago Book & Go across all of trivago's advertising partners, with the aim of boosting conversion rates and providing a more uniform booking experience for users.
The initiative is part of trivago's larger strategy to attract price-conscious travellers and refine its metasearch functionality.
Trivago CEO Johannes Thomas said: “The investment and stronger partnership will allow us to offer 'trivago Book & Go' to all our advertising partners. Our goal is to provide a more consistent booking experience for our users and help our advertising partners to drive conversions. Holistos' footprint in rate optimisation and price accuracy is best in class.
“Their team is leveraging AI to optimise rate exposure and dynamic pricing, delivering tangible value to travellers. We are impressed by their tech teams and expansion in recent years.”
In recent months, trivago is said to have escalated its efforts to retain cost-aware users by enhancing its primary product and adding new features.
It aims to use Holisto’s technology and establish stronger synergies to more effectively optimise the aggregation of hotel rates from a wide network of chosen suppliers.
The collaboration with Holisto is expected to improve the conversion of potential customers into actual bookers and to standardise the user experience on trivago.
Furthermore, trivago intends to offer exclusive deals to its members, encouraging them to use trivago over other search engines.
Holisto CEO Eran Shust said: “We are thrilled to further strengthen our partnership with trivago, leveraging Holisto technology to enhance their booking experience and entire marketplace. This collaboration will allow us to showcase our capabilities and drive value to travellers across trivago`s global platform.”
Concurrently, trivago reported its performance for the second quarter of 2024.
The company registered a net loss of €4.9m for the quarter ended 30 June 2024, as against a net income of €5.8m in Q2 2023 while its total revenues dipped 5% year-on-year to €118.6m.
