Hostelworld is backing an Australian software company that builds digital services for hostels owners around the world.
Tipi, formed in Sydney in 2014, will take a $3 million "strategic investment" from Hostelworld as part of plan to provide tools and services for its portfolio of accommodation owners.
The investment includes a number of initiatives to integrate different areas of the two businesses.
Alongside pushing Tipi's technology to its customer base, Tipi's clients will have access to the Hostelworld inventory so that hostels can take bookings for a traveler's next hostel on their journey.
Tipi's tool kit includes digital key services, online check-in facilities and ancillary services - all via a property-branded mobile app.
The investment is the first major strategic initiative at Hostelworld since Gary Morrison took over as CEO in mid-2018, following the departure of Feargal Mooney.
Earlier this year the company said it would be embarking on an investment plan to take the business forward into 2020.
Morrison says: "The investment is in line with our strategy to invest in innovative technology businesses, to improve the experience for our hosteller customers and drive efficiencies and ancillary revenue for our hostel partners, positioning us as a market leader in the hostel sector.”