Web Reservations International (Hostelworld, Hostels.com) Up for Sale

[Hostels]

BREAKING NEWS: Web Reservations International (WRI), owner of Hostelworld and Hostels.com, is up for sale.

Original article:
http://business.timesonline.co.uk/to...cle6889091.ece

If Expedia or Priceline buy it, I doubt they will be knowledgeable about what is good for hostels. Whoever buys it, it will probably have a major impact on the hostel industry.

Scenarios:

• the buyer won't know much about hostels and will increase commissions, or start pushing hotels over hostels even more than Hostelworld is currently doing.
• the buyer will buy it and neglect it, leaving room for other competitors to take a larger share of hostel bookings
• the buyer will be hostel-friendly with great new ideas and make things better for hostels.

What do you think?

[bazt]

dun dun dunnnn!

[Canhostel]

275 million Euros. Yikes. Not sure if any of the big boys in a great position to purchase it as this time since travel bookings are down and they have all been in a price war to get customers. Should be interesting to watch. Wonder if Nomads or somebody like that would be interested or financially capable of it.

[Hostels]

I think only the hotel sites like Expedia would have that kind of money.

I wish I had 275 million pounds to spend on it -- I have a lot of ideas on how the company could increase income while becoming friendlier to hostels

[santa klaus]

It´ll raise way more than 275 millions, IMHO. I wonder why the sell it now, though - but our big Manitu has always moved in mysterious ways.

[Hostels]

Originally Posted by santa klaus

I wonder why the sell it now...

Maybe they want to retire? (or invest in other businesses like worky.com)

[santa klaus]

Maybe.

Originally Posted by Hostels

I have a lot of ideas on how the company could increase income while becoming friendlier to hostels

Me too. Let´s wait who´ll buy it and then call them. I´m sure they´ll hire new managers.

[Canhostel]

Granted this article is from a year ago but I think you can probably discount these as buyers unless it was shares and a little bit of cash.

http://blogs.barrons.com/techtraderd...itz-priceline/

[aboriginalhostel]

I don't like to polish myself and say "I told you" but it was obvious.

They have to pay taxes from next year and the recession DOES affects both BEs and hostels as well (which doesn't seem to be over very soon!).

Originally Posted by santa klaus

Me too. Let´s wait who´ll buy it and then call them. I´m sure they´ll hire new managers.

Don't we have too much "field experience"?

[Hostels]

Originally Posted by aboriginalhostel

Don't we have too much "field experience"?

A new perspective would help them take things to the next level. Hostel technology has a lot of room for improvement.

I think Boo.com has potential to take on the big sites like Tripadvisor. There is more money in hotels than hostels, but if they screw hostels over to sell hotels they are going to lose the hostels. IMHO, that's where they should be thinking differently. A buyer who is only familiar with hotels might end up wrecking Hostelworld.