Digital Booking Sites

Russian Hotel Booking Site Acquires Larger Travel Portal

@denschaal

Sep 04, 2013 8:34 am

Skift Take

The new website could be a distraction, or it could be a relatively cheap way for Oktogo to get a URL with lots of traffic, a great name, and lots of potential for improvement.

— Dennis Schaal

Sponsored by:

Discover the Top Travel Brands on Social Media

 / Oktogo.ru

Oktogo, a hotel site in Russia, has just acquired a larger travel information portal, Travel.ru. / Oktogo.ru


Venture-funded Oktogo, a hotel booking site based in St. Petersburg, Russia, has just acquired travel news and information portal Travel.ru for up to $2 million, including stock incentives.

With some $26 million in total funding from the likes of VTB Capital, Mangrove Capital Partners and Ventech, Oktogo competes against the even more heavily funded ($38.6 million) Ostrovok and Booking.com in the hotel-booking arena in Russia.

But, Oktogo’s acquisition of online travel portal Travel.ru will almost inevitably take some of Oktogo’s focus off its core hotel business as integration efforts get under way, and it seeks to attract travelers at an earlier stage of the travel research process.

Marina Kolesnik, co-founder and CEO of Oktogo, views it all as an advantage as Oktogo’s 1 million unique monthly visitors will get a big boost from the 2 million that visit Travel.ru.

“This moves allows us to accelerate market consolidation and secure our position as a major hotel booking service for independent travelers,” Kolesnik tells Skift.

“In addition to great content, we acquired a terrific brand, very well-known on the market with a large audience of independent travelers that are looking for a travel product,” Kolesnik says. “Travel.ru has already been offering booking (hotels, flights, cars), but with our technology and product expertise we will be able to make this product offer on Travel.ru much stronger.”

Kolesnik says that Travel.ru already boasts “extensive user-generated content from travelers” and will now be serving travelers throughout the travel funnel, including “the decision making cycle, from research (content) to shopping/booking to sharing reviews.”

Undoubtedly, at $2 million maximum, including stock incentives, the acquisition price was right for Oktogo.

Tags:

Follow @denschaal

Next Up

More on Skift

What Travel Marketers Can Learn From New Orleans’ Move to Digital Marketing
Norwegian Air CEO Uses Annual Report to Attack Critics and Alliances
Four Seasons Has Its Own Jet Now for Its High-End Tours
How to Find the ‘Holistic Traveler’ Trapped in Your Data

We're the Moneyball of the Travel Industry

We know what's coming next in travel. Subscribe to the newsletter and get all the goodness in your inbox daily.