By Lea Mira, HTN staff writer - 1.6.2024
Serko is expanding into the North American market through its acquisition of Sabre Corporation’s GetThere business travel management solution. The acquisition, which forms part of a long-term strategic partnership between Serko and Sabre, establishes Serko as the second-largest online booking tool provider in North America. It also marks a pivotal step in Serko’s efforts to strengthen its position within the $400 billion corporate travel market, a sector poised for transformation in the post-pandemic world.
The acquisition includes not only the GetThere platform and its associated intellectual property but also the expertise of a seasoned team based across the United States, Australia, the United Kingdom, and India. By integrating these assets, Serko will expand its operational capabilities and enhance its product offerings, further solidifying its reputation as a leader in travel technology. Importantly, Serko plans to maintain the GetThere brand alongside its existing Zeno brand, ensuring a seamless transition for customers while leveraging the distinct strengths of both platforms.
GetThere has long been recognized for its comprehensive features tailored to the needs of corporate travel management. The platform’s high traveler adoption rate—80% among its North American clients—underscores its effectiveness in driving compliance with corporate travel policies. Its capabilities in rate control, demand management, and granular policy enforcement make it a valuable resource for travel managers seeking cost efficiency and operational consistency.
The platform also integrates extensive hotel booking functionality, offering access to more than 750,000 non-GDS hotels through partnerships with leading aggregators such as Booking.com, HRS, and Expedia Partner Solutions. Additionally, GetThere supports API and web services integration with HR, ERP, and expense management systems, making it a versatile tool for enterprises aiming to streamline their travel operations.
For Serko, these capabilities align perfectly with its strategy of creating a unified travel management ecosystem that integrates diverse content and services. This acquisition positions the company to meet the complex needs of modern businesses, which increasingly demand seamless, data-driven solutions to navigate the challenges of corporate travel.
The partnership with Sabre adds another layer of opportunity. Sabre’s North American sales team will play a crucial role in co-selling and marketing Serko’s solutions, with performance incentives tied to revenue growth. Plans for co-development and co-investment are also in place, leveraging Sabre and Google’s co-innovation framework to drive advancements in corporate travel technology.
Darrin Grafton, Serko’s CEO, emphasized the strategic importance of this acquisition and partnership. He described the move as a logical step in Serko’s North American expansion and highlighted the size of the opportunity in the region. Grafton noted that the acquisition sets out a compelling path to deliver long-term value for shareholders, partners, and customers. He also pointed to Serko’s commitment to investing in its products and technology, with $40 million allocated for advancements over the next four years. These investments aim to position Serko at the forefront of the industry, focusing on automation, artificial intelligence, and data capabilities to meet evolving market demands.
The acquisition has notable implications for the hotel industry. With GetThere’s robust hotel booking capabilities, Serko is poised to influence corporate lodging strategies. Hotels that partner with platforms like GetThere stand to gain increased exposure to corporate travelers, particularly as businesses resume travel and prioritize cost-efficient, policy-compliant lodging options.
GetThere’s emphasis on dynamic rate control and detailed policy enforcement reflects broader trends in corporate travel, where organizations are increasingly leveraging technology to optimize their lodging spend while ensuring compliance. For hotels, this underscores the importance of aligning with advanced booking platforms to capture demand and utilize data-driven insights for revenue management.
While the acquisition cost of $12 million is a significant investment, Serko’s leadership is confident in its long-term value. The transaction is expected to be earnings-dilutive in the near term, with integration costs estimated at $3 million over the next two fiscal years. However, the broader strategic benefits, including an expanded market presence and enhanced technological capabilities, are expected to outweigh these initial costs.
By acquiring GetThere, Serko not only gains a highly regarded platform but also a talented team with deep expertise in global travel and the North American market. The acquisition is expected to broaden Serko’s customer base and accelerate its growth trajectory. Through its partnership with Sabre, Serko will also benefit from co-development and co-marketing initiatives, enabling it to reach new heights in innovation and market penetration.
The acquisition, combined with the strategic partnership with Sabre, represents a major milestone in Serko’s journey to redefine corporate travel management. By expanding its market presence, enhancing its technology offerings, and fostering collaboration with Sabre, Serko is positioning itself as a leading innovator in corporate travel management. This move not only cements its status as a major player in North America but also sets the stage for future growth across global markets.