Skift Take
If this deals truly helps Despegar better focus on its core services — selling travel — then it would seem to make sense. In the process, Despegar gets leaner.
Despegar, the largest online travel company in Latin America, sold its destination management unit, BDExperience, to World2Meet, a division of Spain-based tourism company, Iberostar Group.
With the sale — the financial terms of which were not disclosed — nearly 600 Despegar employees, about 13% of its workforce, will become World2Meet employees. The deal closed August 1, but Despegar announced it Thursday.
Despegar Chief Financial Officer Amit Singh said its divestment of BD Experience would have a “material” impact on the company’s financials. He added that the revenue per BD Experience employee is “slightly lower” than the average.
As part of the deal, Despegar and World2Meet entered into a long-term strategic alliance in which World2Meet will provide Despegar with destination services in Mexico and the Dominican Republic, Despegar said.
Despegar CEO Damian Scokin said in a statement Thursday that his company did the deal so it could streamline its operation and focus on its core services.
What Is a Destination Management Company?
Destination management companies use a network of travel providers in a given destination to handle the needs of tourists, including things such as airport transfers, logistics support, and special events, for example.
As a Despegar brand, BDExperience, which has a 30-year track record, helped tourists with group and private tours, airport transfers, and “personalized assistance,” Despegar said.
Iberostar Group is a global tourism company specializing in hotels and resorts, a vacation club, and destination services.