This week’s Update features a number of stories on growing online travel platforms – including the launch of an entirely new travel application and the possible resurrection of an old familiar travel application.
Blackrock Embraces Hotel Technology Space
(“SiteMinder Gets Funding Boost as Financial Titan BlackRock Bets on Hotel Tech,” Skift Travel News, January 16, 2020)
Another billion-dollar unicorn is possibly in the making. Last week, Blackrock, the world’s largest money manager, led an investment round in channel manager, SiteMinder, that values SiteMinder at a staggering $750 million. To put this in perspective, SiteMinder reported revenues of only $67 million in its most recent fiscal year that ended on June 30, 2019. To justify such a large valuation (and Blackrock’s bet on the channel manager), SiteMinder will need to find a variety of new products and services to offer its existing and prospective hotel customers. So why SiteMinder? Why now? Is Blackrock’s embrace of this relatively small channel manager an anomaly or the sign of more things to come?
With 2020 now upon us and 2019 in the rearview mirror, I thought this would be a good time to take a look back at the stories (and the themes that the stories represent) we covered in 2019 that I believe will have the largest impact on hotel owners and operators in 2020 and beyond. I hope that you will enjoy.
Greg Duff founded and chairs Foster Garvey’s national Hospitality, Travel & Tourism group. His practice largely focuses on operations-oriented matters faced by hospitality industry members, including sales and marketing, distribution and e-commerce, procurement and technology. Greg also serves as counsel and legal advisor to many of the hospitality industry’s associations and trade groups, including AH&LA, HFTP and HSMAI.