Wego Acquires Travelstop in Singapore to Expand Business Travel Presence

13 Sep, 2023

Wego Acquires Travelstop in Singapore to Expand Business Travel Presence

Wego, the prominent online travel company based in Dubai and Singapore, has made a significant move by acquiring Travelstop, a platform specializing in business travel and expense management. This strategic acquisition is part of Wego's strategy to leverage the growing business travel sector.

Under the terms of this agreement, both companies will combine their resources and expertise. Travelstop, headquartered in Singapore, will gain access to Wego's extensive regional network, while Wego will expand its footprint in the realm of business travel and expense management.

Wego, while not disclosing the exact value of the acquisition, emphasized that this partnership will contribute significantly to the growth and development of the travel industry, particularly in the Middle East and Asia-Pacific regions.

Ross Veitch, Chief Executive and Co-founder of Wego, shared his perspective on this strategic move, stating, "This strategic move is in line with our vision of offering comprehensive travel solutions to businesses in the region. Together, Travelstop and Wego will empower businesses to streamline their travel and expense management processes, introducing new levels of convenience and cost-efficiency."

The global business travel sector is experiencing a faster-than-anticipated rebound, as indicated by the latest annual outlook report from the Global Business Travel Association. It is forecasted to surpass its pre-pandemic levels, reaching $1.4 trillion by 2024 and growing further to nearly $1.8 trillion by 2027 under stable economic conditions. This recovery is ahead of the previously projected timeline of mid-2026, signifying the resilience of the sector. In 2022, global business travel spending witnessed a remarkable 47% year-on-year increase, reaching $1.03 trillion, and is expected to grow by 32% in 2023 to reach $1.36 trillion.

In the current landscape, the Middle East and Asia-Pacific regions are anticipated to contribute significantly, accounting for 46% of the total global business travel expenditure, according to estimates by the Global Business Travel Association. These regions are not only the largest markets but are also experiencing rapid expansion in business travel.

The Middle East's tourism sector has showcased remarkable resilience, emerging as a global leader in post-pandemic recovery, despite facing ongoing global economic challenges. According to a report by HSBC, the region is witnessing a "total recovery" in terms of tourist arrivals during the first quarter of 2023. Tourist arrivals in the initial three months of this year have surged by 15% compared to the levels recorded in 2019.

Wego, established in 2005, boasts strong backing from investors such as Tiger Global Management, Crescent Point, Square Peg Capital, Middle East Venture Partners, and the MBC Group. In February 2022, the company expanded its regional presence by acquiring Cleartrip's Middle East unit and Flyin.com from Indian e-commerce giant Flipkart.

With this latest acquisition of Travelstop, Wego aims to address the challenges faced by businesses operating in emerging markets, including fragmented travel options and manual expense reporting. The amalgamation of their capabilities will result in a comprehensive "one-stop solution" for businesses, enabling them to efficiently manage their corporate travel needs while gaining enhanced visibility and control over expenses.

Travelstop, founded in 2016 by ex-Yahoo executives, focuses on empowering businesses with tools designed to reduce costs and enhance productivity. Their solutions cater to managing business travel and expenses more efficiently, making them a valuable addition to Wego's portfolio.

Prashant Kirtane, Chief Executive and Co-founder of Travelstop, expressed optimism about the partnership with Wego, noting that it holds "immense potential" and will enable them to set new industry standards while reshaping the future of business travel through product innovation and customer satisfaction.