Lowcostbeds chief executive Paul Evans has said that this week’s merger with Resorthoppa will help differentiate the bedbank in an increasingly commoditised sector by enabling it to add transfers to hotel bookings.
“Part of the rationale of the deal is a customer service proposition,” he told Travolution.
“We’ve got the beds and the transfer on the same feed ,and customers like to know in advance that their pick up and return is arranged.”
Evans believes that the transfer-only model is unsustainable, although Lowcosttravel Group will continue to operate its lowcosttaxis brand alongside Resorthoppa, with Resorthoppa inventory added to its new stablemate.
“It would have taken us three to five years to get Lowcosttaxis up to where Resorthoppa is now,” he said.
Evans is also interested in Resorthoppa’s strong presence with the trade in Germany and Scandinavia, where Lowcosttravel group has yet to make its mark.
“We’re looking at Resorthoppa to help us grow in these areas,” he said.
Similarly, Resorthoppa’s ski brand, Skihoppa, will form part of a redeveloped ski product, while Cityhoppa fits nicely with Lowcostbeds’ city bed business.
Resorthoppa is the second recent deal by Lowcosttravel, following October’s move for Ideal Cruising.
“We’re looking for counter-cyclical revenue streams, higher basket values and the ability to drive incremental sales,” he said of the group’s acquisition strategy.
The deal is expected to complete before Christmas, with the beds and transfers put onto the same feed in time for the post-Christmas peak.