Summit Partners invests over $2 million in Web Reservations International
Summit will take a minority stake in Web Reservations, which is backed by U2 manager Paul McGuinness, and one of its partners - Scott Collins - will take a seat on the company’s board.
It was not disclosed yesterday how much Summit has invested in Web Reservations, although Summit’s website says its minimum investment is $2 million (€1.67 million).
Web Reservations International runs a number of websites to provide hostel bookings and reservations technology for the budget, independent, and youth travel markets.
WRI is owned by a number of individuals, including chief executive Ray Nolan, president Tom Kennedy, former Baltimore Technologies executive Paddy Holahan and U2 manager Paul McGuinness.
“WRI has developed the winning business model for serving the budget and youth traveler segment. The company brings affordable, global distribution capability to this large, internet-savvy customer segment,” Mr Collins said yesterday.
The Irish firm earns a fee for each booking it takes and values the worldwide reservations market at $4.5 billion annually. WRI said its turnover grew by 156% in 2003 and that profits were ahead by 414%. It expects to sell 20,000 bed nights every day in 2004 and has more than 400,000 subscribers to its website.
Last year, WRI bought the US company Hostels.com for a reported $6m, which added $10m in sales to the Irish company.
It also acquired Brussels-based Hostels of Europe earlier this year.
“Our industry is moving online rapidly. This investment from Summit Partners will help us to continue to expand our business,” Mr Nolan said.
