Expedia has made a $350 million primary minority investment in south east Asian travel search site Traveloka.
The move was announced in Expedia’s Q2 results and the companies say the deal will “strengthen” their hotel supply relationship.
Over the course of Jakarta-based Traveloka’s last two funding rounds, East Ventures, Hillhouse Capital Group, JD.com and Sequoia Capital also invested, bringing the total to around $500 million in the last year.
“Traveloka is the clear online travel leader in Indonesia, and is expanding aggressively throughout Southeast Asia. Our partnership will benefit from each side’s expertise and local knowledge, and accelerate our mutual growth,” said Dara Khosrowshahi, president and chief executive officer, Expedia, Inc. “We are incredibly excited to continue to expand our presence in Asia, to learn from the talented Traveloka team and to unlock a more diverse offering of travel choices for Traveloka and Expedia travellers around the globe.”
Ferry Unardi, co-founder and chief executive officer, Traveloka, added: “Partnering with the world’s leading online travel company will allow us to focus on our continued growth in the online travel space to meet our goal of providing travellers the best travel options and highest quality booking experience.
“The expanded partnership gives Traveloka travellers access to a unique and diverse set of international accommodations and we are looking forward to working with Expedia to expand our services in Asia and beyond.”
Expedia will account for this investment on a cost basis.
In its Q2 results, the global travel giant said gross bookings had increased 12% year-over-year to $22.8 billion, when bookings on HomeAway were factored in.
Revenue increased 18% year-over-year, to $2.6 billion.
Room nights, including HomeAway, were up 21% and hotel booking site trivago increased its revenue 64% to $328 million.
On its own, HomeAway was 31% up on revenue against the previous year, with $224 million turnover.