TripAdvisor has acquired Icelandic tours, attractions and experiences booking engine Bokun.
The firm works by offering a platform for rival firms offering tours and experiences to cross-sell each other’s products.
Founded in 2012, Bokun also works as an inventory channel manager and price management tool. It started with Icelandic companies but now operates globally.
With the acquisition, TripAdvisor says it is now providing suppliers with technical solutions in addition to the sector’s largest distribution channel.
“As the industry leader, our opportunity in this space is enormous,” said Dermot Halpin, president, TripAdvisor experiences and rentals. “We’re committed to taking the experiences sector far beyond its current online penetration of just 20%, and Bokun will play a critical role in this mission.
“This marks a new phase for our business: we’re expanding beyond our core offering as the industry’s largest distribution channel. This product is part of a very bright future for the industry – one that eliminates fragmentation, significantly grows and simplifies distribution for suppliers, and dramatically improves the shopping experience for travellers.”
Bokun offers subscriptions for €100 per month. TripAdvisor says integrating Bokun will help it offer commission of a “fraction of a percent”, below what it called the industry standard of 5-6%.
“We’re thrilled to join the world’s largest attractions, tours and experiences business,” said Hjalti Baldursson, chief executive and co-founder of Bokun. “TripAdvisor gives us the opportunity to serve customers in every corner of the world, and we’re excited about the significant growth that’s to come.”
Bokun will remain based in Iceland and has immediate plans to expand the team.
Terms of the acquisition have not been disclosed.