Despegar.com, Corp. announced a strategic partnership with HBX Group. This collaboration marks a relevant step towards expanding Despegar?s service offerings, particularly by integrating HBX Group?s European and North American non-air inventory into Despegar?s platform.
Through this partnership Despegar plans to offer its customers?both B2C and B2B?wider access to HBX Group?s diverse range of accommodations and travel solutions. By leveraging HBX Group?s inventory, Despegar aims to further enhance its travel packages and lodging offerings, providing more value and options to travelers seeking quality and affordability. Under the terms of the agreement with HBX Group, (i) HBX Group undertook to make an advance payment to Despegar; and (ii) Despegar is required to meet certain booking targets relating to HBX Group originated products booked through Despegar?s platform over an anticipated period of approximately eight and a half years.
The failure by Despegar to meet such booking targets over the course of certain pre-established measurement periods may result in Despegar being subject to certain penalties, including the payment to HBX Group of a percentage of the shortfall amount. The outsourcing agreement also contains other customary covenants, representations and undertakings. The potential impact of the outsourcing agreement was considered by the Transaction Committee and Board of Directors of Despegar in their evaluation of the proposed transaction with Prosus.
Key Benefits of the Partnership: Expanded Inventory: Despegar customers are expected to gain access to a broader range of hotel options, enhancing the ability to customize travel experiences with competitive lodging rates. Enhanced Travel Packages: The integration with HBX Group´s inventory intends to allow Despegar to offer more comprehensive travel packages, appealing to both leisure and business travelers. This long-term partnership is expected to enhance travel options available to Despegar?s customers, providing them with more flexibility and choice than before, while also providing HBX Group?s accommodation suppliers with access to Despegar?s full range of high-value distribution channels.
This collaboration reaffirms Despegar?s and HBX?s mutual dedication to innovation and customer satisfaction in the travel sector.
