Despegar has sold its destination management unit, BDExperience, to Iberostar Group’s World2Meet. This strategic move allows Despegar to focus on its core travel sales operations and enhance financial efficiency.
Nearly 600 employees are transferring to World2Meet as part of this sale, broadening its capabilities in providing destination services. The alliance will specifically target Mexico and the Dominican Republic.
Strategic Shift in Business Focus
Despegar’s decision to divest BDExperience, a key destination management unit, signifies a strategic shift towards refining its core business model. By shedding these operations, Despegar aims to streamline processes and concentrate on enhancing travel sales services. The reallocation of resources is expected to better align with Despegar’s long-term growth objectives.
This sale to World2Meet, a subsidiary of the Iberostar Group, signifies an opportunity for BDExperience to leverage World2Meet’s established market presence. The transition not only relocates almost 600 employees but also integrates destination management expertise with a wider network.
Implications for Destination Services
BDExperience, with its 30-year track record, has been pivotal in offering group and private tours along with personalized assistance. World2Meet stands to gain significant expertise and experience from BDExperience’s seasoned workforce. This transition is expected to enhance service quality and operational efficiencies.
Financial and Workforce Implications
The financial particulars of the transaction remain undisclosed, however, Despegar’s Chief Financial Officer, Amit Singh, has indicated that the divestment will have a ‘material’ financial impact. The revenue per BDExperience employee has been cited as slightly lower than Despegar’s average, implying potential financial relief and increased profitability.
Approximately 13% of Despegar’s workforce is being transferred to World2Meet. This realignment reflects a significant operational change aimed at focusing more intensely on core functionalities within Despegar’s business framework.
According to Despegar’s CEO, Damian Scokin, this divestment is a calculated move to concentrate efforts on primary services, thus enabling the company to streamline its operations and achieve heightened efficiency.
Insight into Iberostar Group’s Expansion
The acquisition of BDExperience aligns with Iberostar Group’s broader strategy of expanding its global tourism footprint. By incorporating BDExperience, Iberostar enhances its existing portfolio, which includes hotels, resorts, and destination services. This move is expected to strengthen its market position in the Caribbean and Latin American regions.
The synergies created from integrating World2Meet’s existing capabilities with BDExperience’s services are anticipated to drive growth and innovation. This strategic move enables Iberostar Group to offer a more comprehensive service suite, appealing to a broader customer base.
Industry Perspectives on the Move
Industry analysts view this transaction as a positive maneuver for both companies. Despegar’s focus shifting primarily towards travel sales is considered a prudent decision, while World2Meet’s enhanced capabilities in destination management are seen as a step forward in expanding its service offerings.
Experts suggest that such divestments can lead to improved service quality and customer satisfaction as companies align operations more closely with their strategic goals and strengths.
Future Prospects for Despegar
By selling BDExperience, Despegar is better positioned to enhance its digital travel platform and other core offerings. This move will likely enable the company to invest more in technological advancements and customer experience enhancements.
As Despegar narrows its focus, the expectation is that it will innovate more freely and deliver improved services tailored to the evolving demands of the travel market.
The divestment of BDExperience marks a pivotal moment for Despegar, enabling it to focus on core travel services and reinforcing its market position. This strategic move aligns with Despegar’s long-term goals and strengthens its operational framework.