There is something of a trend these days with very successful online companies making bids to buy out established companies that are best known for their brick and mortar operations, and it would appear the Airbnb are also looking at diversifying into such market places too.
You are probably aware that Airbnb are the leaders in regards to acting as middle men for anyone wishing to rent out their spare rooms, houses, flats or any type of residential property to people looking for a short term rental and holiday rentals of those properties.
They take a small commission and/or fee out of every single deal they manage to achieve, and over the last few years they have made some huge profits doing just that.
However, being in such a cash rich position it would appear that they are now looking for established holiday companies to snap up and buy, and their attention is currently on making a bid for Hoseasons.
Hoseasons are a UK based holiday company that have been in business for over 70 years now, and are at the top end of that market place and they also operate a range of additional holiday sites including James Villa Holiday and the Cottages.com brand too.
The potential cost of snapping up that company is certainly not cheap, for they have put in a bid for around £700million, which will make it one of the biggest deals in the holiday market place in recent years if they are successful.
However, as you would expect there are a handful of other companies that are also showing an interest in buying Hoseasons, and both CVC Capital and Blackstone, both of which are private equality firms are also taking an interest, and it is likely to be the company with the deepest pockets that is most likely to complete the deal.
This is not in fact the first time that Airbnb have showed interest in another holiday company, for recently they purchased Luxury Retreats International that is a Montreal based holiday company, and that purchase cost them £224million.
It would appear that Airbnb certainly do have the financial resources to complete that deal in fact a recent report showed that UK Airbnb visits had risen by 81% in just one single year, and with the trend of people now looking to stay in other people’s homes instead of much costlier hotels, Airbnb are going to be raking in the cash.
Airbnb is estimated to be worth a huge £24billiomn with the owner and founder of that company Brian Chesky having amassed a person fortune from it of a huge £2.8billion.
With such huge amount of cash being made, and with Airbnb now established as solid and obviously very profitable brand I am expecting to see several other companies being snapped up by it in the next few years, all of which will somehow be related to the holiday market place, which is something Airbnb haven proven they are fully experienced in and are prepared to invest heavily in.