Plusgrade, a Montreal-based company that helps travel businesses persuade travelers to spend more, has acquired UpStay, a growing provider of upgrade and ancillary revenue solutions for hotels, Plusgrade said Tuesday. Financial details of the transaction were not disclosed.

Ancillary revenues refers to revenues generated apart from a company’s primary products and services, such as advertisements or secondary products. These sources of income can enhance or differ from the company’s main offerings.

Plusgrade, the global leader in ancillary revenue solutions, is adding hotel upgrades to its existing portfolio of ancillary revenue and loyalty products. This follows the company’s acquisition of Points, a loyalty ecommerce platform, which closed at $385 million in June 2022. The brand, backed by various private equity firms, hopes to become a global ancillary revenue powerhouse through acquisitions.

“We have been accelerating this mission through a series of innovations, launches and acquisitions, and have come into 2023 as a powerhouse for the global travel industry,” said Ken Harris, Plusgrade CEO. The company plans to use Upstay’s hospitality expertise and technology for upselling additional on-property amenities or services to deliver more value for its 200+ travel and financial services partners across the globe.

Upstay, founded in 2019, has received the 2022 World’s Best Hotel Tech Startup at the World Travel Tech Awards and the 2021 People’s Choice Innovation Award at the Phocuswright Travel Awards for its innovative technology. Its solutions are two-way integrated with over 30 PMS [property management system] vendors, booking engines, and channel managers.

Ancillary sales have propelled the travel industry’s pandemic recovery. Car Trawler projected a 56 percent year-over-year increase in ancillary revenue from 2021 to reach $102.8 billion in 2022. Almost half of all travelers are using ancillary services to improve their travels.

The two companies will operate under Plusgrade going forward.

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Tags: acquisitions, ancillary revenue, hotels, plusgrade