Berlin-based company Escapio has been able to attract the holding company of Hubert Burda Media, Burda Digital Ventures, and the Canadian company w media ventures as investors.
The capital providers have acquired a significant minority stake, the amount of which has not been disclosed. At the same time, Burda and w media ventures are increasing their share in TripsByTips as part of second round financing.
The transactions have created a uniform ownership structure for both companies which allows the tourism segments of Escapio and TripsByTips to be closely interlinked.
Escapio is the booking platform for exceptional, handpicked hotels. Hotels are selected according to stringent criteria, such as their remarkable atmosphere, setting or outstanding facilities. 3,000 hotels have signed up so far.
Escapio is synonymous with quality and saves discerning travellers time, as well as offering them peace of mind when searching for the right hotel to suit their individual requirements. The hotels pay commission for bookings made through the website. The Berlin-based company was founded in 2004 by Uwe Frers and employs 12 staff.
TripsByTips is the online travel guide with the best recommendations from travellers. Its members have published more than 40,000 tips since its launch in May 2007.
Revenue is generated from advertising, preferred partnerships with destinations, and transaction interfaces to providers of tourism services. The Berlin-based company was founded in June 2006 by Uwe Frers and Boris Wertz and employs seven staff.
Harald Ebrecht, investment director at Burda, commented: “Long-term success in the online tourism industry can only be achieved by those who are present throughout the entire process, from information, transaction and evaluation, through to sending reminders for future trips.
TripsByTips generates information and Escapio generates transactions. We see extensive potential for acquiring customers and being able to contact customers cost-effectively through all stages in the close interlinking of both business models.”