TripAdvisor To Acquire Booking Platform Viator

by Ryan Rudnansky
Last updated: 12:09 PM ET, Fri July 25, 2014

Ever since TripAdvisor was spun off by Expedia in April, the travel site has been growing at an exponential level, acquiring many major sites used by travelers. TripAdvisor's agreement to acquire researching and booking resource Viator on Friday is another prime example. The $200 million purchase will now place Viator under TripAdvisor's ever-expanding umbrella, allowing TripAdvisor to offer more than 20,000 bookable tours and attractions and more than 600,000 reviews, photos and videos from travelers.

It will be TripAdvisor's fourth acquisition in 2014 alone, joining lafourchette, Tripbod, and Vacation Home Rentals. "Viator will be a great addition to the TripAdvisor family, as online and mobile bookings for attractions and activities represents a huge opportunity for our business," said Stephen Kaufer, president and CEO of TripAdvisor, Inc., via a press release. "Travelers want to explore local attractions while on their trip, and Viator's depth and breadth in global attractions combined with their seamless booking experience will provide immediate benefit to our community, whether in the planning phase or on the trip." "Our selection of tours and activities spanning 1,500 destinations are a strong complement to TripAdvisor's wealth of in-destination planning resources," said Ms. Barrie Seidenberg, CEO and president of Viator, via the release. "We share a vision for providing the resources travelers need to plan and have the perfect trip, and this deal would enable Viator to help more travelers experience the best activities their destination has to offer." Jason Hackett, Chief Marketing Officer of New York Cruise Lines, sees the value in the agreement. "Right off the bat, I think it's a great deal," Hackett said. "I think it's a fantastic win for the customer, which is where we all have to be thinking. As a customer, you want to be able to put that action step right next to your decision making." Hackett said anyone in the tourism activities sector doing business with Viator should expect to see an increase in volume as a result of the deal. He did acknowledge that "it's going to put some margin pressure on the tourism activities sector," but ideally the volume will make up for potentially offering lower prices to customers. Hackett groups New York Cruise Lines into that company. Viator sells all of New York Cruise Lines' products. NYCL also markets the awards and reviews it receives on TripAdvisor. "I see it ultimately driving volume for us," Hackett said. "I think a lot of that business will begin to go through Viator. It may not turn out overnight; I mean, this is a deal that's going to take a while for everyone to see the ramifications of. But ultimately I think it will be a big business driver." This could drive innovation in the tourism activities sector, as well. "This deal is catalytic for the entire space," Hackett said. "I do think that we will be seeing a lot more innovation in the tourism activities sector as a result of this." "It can only get better for customers," he added. "I think this space has not been paid enough attention to in the travel tech startup world. This deal just shows to the investment community, as well as to the technology community, that there is money to be made through innovation here like Viator has." Viator collaborates with locals to give travelers access to tours and activities in popular destinations across the globe. The site allows booking in 10 different languages and in 10 different currencies. Travelers can book in advance online or on the go with the Viator Tours & Activities app. Local experiences are also available to consumers, via more than 3,000 affiliate partners spanning airlines, hotels and travel agencies. Viator's workforce of more than 250 employees will continue to work at the company's headquarters in San Francisco, as well as in offices in Las Vegas, London and Sydney. The acquisition is expected to close during the third quarter of 2014.