Vacation exchange network RCI has purchased travel technology platform Alliance Reservations Network for $92 million.
The acquisition will facilitate growth at RCI, which is part of Wyndham Destinations, by enhancing its B2B offerings for members and affiliates, plus bring new benefits for individual and group travel, events and the corporate meetings market.
With Alliance’s intelligent booking platform, RCI will be able to offer travelers ancillary and lifestyle services through the delivery of optimized booking engine, content and pricing resources.
RCI will also be able to broaden its reach beyond the core vacation exchange business via new affinity and commercial partners with Alliance. The company says it will offer “door-to-door” services that will benefit current and future RCI members and travelers with transportation, transfer, excursion and car rental options, as well as additional access to premium inventory and experiences.
“The strategic expansion of our travel products and services is vital to the evolution and growth of RCI, both within and beyond the timeshare industry. The acquisition of Alliance and its best-in-class booking technology enables us to diversify our product line to better serve our membership and affiliate base, increase revenues and drive further growth,” says Olivier Chavy, president of RCI.
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“Enhancing the RCI travel portfolio with a broad spectrum of new services aligns with our vision to put the world on vacation in a way no other company can. This acquisition will strengthen the satisfaction of our customers through their increased access to a diverse supply of travel products and services.”
The acquisition is composed of $45 million in cash and $12 million in equity at closing and $22 million in cash and $13 million in equity over the following 24 months. Wyndham Destinations expects the acquisition to be accretive to earnings in its first full year.
In business since 1974, RCI claims to have invented the concept of vacation exchange. It offers its 3.8 million members access to more than 4,300 affiliated resorts in about 110 countries.