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OneTwoTrip, a Russian online travel agency (OTA) which offers price comparisons for flights, has acquired hotel-comparison DealAngel service for an undisclosed amount. DealAngel, which was a part of the spring 2012 class at TechStars Boulder and which we wrote about here, had previously obtained $868K (651K Euro) from TechStars, Bright Capital, and Foresight Ventures. As we wrote when we previously covered DealAngel, this is a service which allows users to select a city, select the dates for which they’ll need a hotel, and view deals by price, name, stars, reviews, and amenities. The unique feature of their service is a system which tells users about the quality of hotel deals based on the fair market, which they calculate by analyzing past pricing, location, features, and star-rating. At the time, they had offered their API for use on other sites, so it will be interesting to see if they continue to do so.
According to a Bloomberg article from the beginning of this year, OneTwoTrip has seen explosive growth in its two years of operation, reporting gross sales of $306 million (229 million Euro) for 2012 and anticipating sales reaching $1 billion (750 million Euro) by the beginning of 2014, when it will look to offer an IPO. The company was founded in 2011 by current CEO Peter Kutis, who previously acted as CEO of Russian competitor AnywayAnyday, and has to this point raised $25 million (18,75 million Euro), with $9 million (6,75 million Euro) coming from Phenomen Ventures and $16 million (12 million Euro) from Atomico.
As part of the deal, DealAngel co-founders Roman Peskin, Bob Rogers, and Oleg Zaidiner will be joining OneTwoTrip. In commenting on the deal, Andrey Kazakov from Foresight says that although there were several offers for the company, Foresight and the team at DealAngel felt that OneTwoTrip was ultimately the right fit.
Although OneTwoTrip looks to complete a global scale with companies like Priceline and Expedia, there is also fierce local competition with domestic rivals like Oktogo, Ostrovok, Travelata, and the aforementioned AnywayAnyday fighting for customers in a booming Russian online travel market which researcher PhoCusWright estimates grew by 51% from $5 billion (3.75 billion Euro) in 2011.
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